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Many Americans would like to retire by age 67, and many of us would like to create wealth that we can pass on for generations. However, many people are not on track to reach any of these goals. In a survey of 2,000 Americans aged 40 and older with a minimum of $25,000 in investable assets, the majority of those in their forties had less than $100,000 in retirement savings. For those in their 60s, more than a quarter had less than $50,000.
We can no longer count on a single source of income to make enough for retirement, certainly not for the wealth of generations. The secret to who achieves these goals? passive income.
Passive income is money earned without the need for active work. These forms of income usually require a fair amount of work up front, with the goal of eventually becoming an ineffective venture in the future. This is how people make money while they sleep. Passive income usually entails investing in stocks or property or selling a product.
Related: Passive income in a global pandemic? 3 tricks we learned to succeed in any environment
Ready to get started? Here are a few of the most popular passive income options.
1. Digital products
Digital products are online products that can be downloaded or accessed instantly. E-books, how-to guides, online courses, templates, and apps are all examples of digital products. You will need to find a way to market these items. It doesn’t take a huge following to make money – Apps like TikTok make it easy to “blast” with one good video.
With digital products, you will also need to find a place to host them – Whether you are selling from your website or elsewhere. Etsy is great for templates, Amazon is perfect for e-books and Udemy is popular for courses.
Related: 3 Effective Marketing Strategies for Selling Digital Products Online
Investing is a tried and true form of passive income. Investing in individual stocks takes time and research, so it is best to invest in mutual funds or ETFs to get easy passive income. While there is still some preliminary research, the stock market is all about time in the market; Once you invest, you need to let it sit. This is due to compound interest. The more interest you earn on your investments, the more interest you will earn. This is why early and consistent investing is so important.
3. Create a YouTube channel
Many people are afraid of the idea of creating a YouTube channel for fear of showing their faces – But this is not a requirement. Have you ever searched for a video of a thunderstorm on YouTube? Or a video of birds chirping to leave for your cat? People earn thousands of these videos, and they can be created without spending any money.
Once you’ve created your channel, you’ll need to find a video and audio. You can find free videos on websites like Pixabay.com, but there are plenty of other videos that you can find with a simple Google search. Next, inside YouTube Studio, go to YouTube Audio Library and find the appropriate audio. Use video editing software to assemble them and publish the video. Once you are accepted into the YouTube Partner Program, you will start earning advertising revenue.
4. Affiliate Marketing
Affiliate marketing refers to selling goods and services that you do not own and earning a commission for the sale. These commissions are tracked via a unique link: you get people to click on your link and make a purchase, then get credit and a commission for the sale.
People often turn to affiliate marketing in one of two ways: by building a social media presence, or by starting a blog. With the first option, you’ll need to create a sales funnel that ultimately leads the customer to the products you sell. With a blog, you’ll need to flesh it out with content and make sure your SEO is in place so that people can find the blog. It doesn’t hurt to have a social media presence to attract people to your blog either.
When choosing affiliate programs, you will first need to choose a suitable niche, and then choose the items with the best percentage of commission, so that you earn more for your time.
Related: 3 tips to get started with affiliate marketing
There are easy forms of passive income, but the really rewarding forms can take some work up front. Once you take the time, you can sit back and watch the cash flow.