Many jobs require people to go to work every day. The time that people spend in offices is huge. It’s hard to admit, but many people are stuck at their jobs. Trading time for money to pay for your expenses is becoming less interesting for a lot of people. And with good reason, because there are alternatives available than the standard 9-5 job. If you are interested in passive income read further. In this blog article, we give you some passive income ideas for 2021.
What is passive income?
People can only work a maximum number of hours per day, and they obviously need time to rest to be ready for the next working day. So, time is a big constraint here because we have our own human limitations. It depends on the occupation, but it’s likely tough to become wealthy from an active income only.
How great would it be if you can make money while you are sleeping or for example while working on something else? This can be achieved with passive income. In other words, passive income is not directly related to the number of hours you put into work. Nowadays, there are plenty of ways that you can do this. And yes, this is totally possible 🙂
To start building passive income as a beginner, you may plant seeds while working in an ‘active income job’. You can reap the benefits and have a passive income later. So, you still have to work for it but after a certain time, your earnings would come. Maybe a better terminology would be ‘semi’ passive income or something like ‘deferred income’.
Common examples of passive income include real estate investments, royalties from books/videos, or investments in businesses.
We list and explain a couple of passive income ideas from which we think are interested in 2021.
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Rental properties for passive income
Have you ever thought about making an income from a rental property? Renting out a property can increase your monthly income because you simply receive rent every month. Besides, there is also a possibility that the house increases in value as well but the latter is of course a bit of a gamble and depends also on market conditions.
We think that rental properties can still give you a proper passive income in 2021. Especially because the population of many countries and cities is increasing which often causes shortages in the housing market.
But, how to invest in rental property? Unlike many other passive income sources, to purchase a rental property you need an initial investment. Depending on your cash situation you can pay for the property in cash or use a mortgage. Besides the initial investment, there are also taxes and other costs involved. Therefore the cash flow of rental property differs per situation and mostly depends on how it is financed. But if everything is in place then you probably have an income for years.
Interested? We wrote an article on the 10 big mistakes investing in rental property
Rent out a room in your house
Renting out a room in your house is pretty similar to investing in rental property and an easier way to start building your passive income. So, when you don’t have the financial abilities to finance a complete rental property at once, you can start small and rent out a spare room in your house. Long-term rental of a spare room will give you more stability in your passive income. Short term rental like Airbnb requires a bit more work but can also generate a higher cash flow.
Start a blog
Blogging is a good form of passive income and when you get a certain amount of people reading your articles it brings in a decent income. The earning potential of blogging is limitless.
You can have multiple passive income streams from a blog. Advertisers can pay you to add their content to your blog. You can sell your own products via your blog. And you can use affiliate marketing to promote products that suppliers are selling.
If you are not familiar with affiliate marketing. Basically, people click on a link on your blog, and when they eventually purchase the product you earn a commission from that sale.
Interested in starting a blog? To help you, we have written an article on how to start a WordPress blog on Bluehost. In this article, you can find how to set up your first blog 🙂
Write an eBook
eBooks are still a pretty good passive income source. Maybe you have certain knowledge about a topic and you like writing about it as well? You can bundle all the content that you have in an eBook and sell your knowledge on Amazon or other online platforms.
One of the biggest benefits of selling an eBook via online platforms like Amazon is that your exposure is huge and you can reach many potential buyers. So, a big part of the selling is basically done for you. In addition, many online marketplaces where you add your book to are free.
It obviously takes a lot of time to write a proper eBook and you really want good online reviews as well. So, it’s not so easy to earn a passive income from this, but once you have put all the work into it you can earn good money. Your eBook can become a passive income month after month.
Ready to start with your passive income?
I hope you get the idea of what passive income is about and some of the various passive income sources that you can use. The passive income sources listed in this article are just an example of what we think is possible in 2021. There are obviously so many other passive income examples available. So, if you have some other interesting passive income ideas as well, please leave a comment below and we are happy to start the discussion about this.