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Passive income strategies for positive cash flows
Passive income streams interest you? It is possible to build passive income without constant efforts thru a job or everyday actions.
The definition of passive income is receiving income payments without having to do actions on a daily basis to earn them.
Wether you’re looking for less pressure at work, more money to travel or to retire early, there are many opportunities that pay you passive earnings.
You can create passive income with capital (money to invest) or with your knowledge or talents.
Investors can use money to invest and creators can create something of value that people are willing to pay for.
If you’re curious and wanting to build passive income before retirement, here are 10 non traditional ideas on how to do it.
First, set up your goal for how much income you need because only you can define the value you expect for survival needs and other things.
Then decide the types of passive income you will build. Are they going to be thru investments or thru creating value that people will pay for?
Creating a service or product that offer value will require of your time, knowledge and skills.
If you’re looking at passive income in any of these categories, this post has ideas for you.
- Passive income investments
- Passive income online
- Passive income for college students
- Passive income for beginners
- Passive income for a blog
- Passive income for non accredited investors (small investors)
- Passive income for developers
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Invest in Royalty Income
Royalty income is a percentage of the earnings of a physical asset or a copyrighted asset. TV shows, songs, films, oil and gas industries pay royalties.
Farmland Crowdfunding – Passive Income Flows
Crowdfunding investing is the concept of participating in a pool of investors to fund some kind of project. Examples, real estate, land and commercial properties developments.
Instead of taking the risk and funding the entire project, you just participate as part owner of the venture, you’re part of the crowd of investors.
There are companies buying shares or whole farms and opening participation to crowd investors who want to earn royalties.
As an investor in Farmlands, you collect money from rents and profits provided by the farmland project.
This is a passive income strategy that requires upfront investment to earn royalty money in return.
Some of the companies providing Farmland crowdsourcing are AcreTrader, Farm Fundr, American Farms Investor, Harvest Return and Farm Together
Royalty Trusts – Passive Income Flows
For this passive income strategy you’ll need to invest in individual oil and mining stocks. These stocks in return pay you income thru dividends.
So, you’ll need a stock broker account to buy and sell oil royalties stocks. You’ll also need to decide in which companies to invest and take some risks.
Historically, Oil and gas Royalty stocks have a high dividend yield. Kiplinger has a top picks here for Royalty Trusts.
Your broker can assist you in selecting the appropriate oil royalties trusts to earn passive income.
If you invest in Oils and Minerals Royalty Trusts, don’t forget to collect your earnings so they don’t end up on the List of Unclaimed Royalty .
Buy Music Royalties for Passive Income
For investors looking to earn income, music royalties are another alternative to make money with no actions.
These investments are becoming popular even with traditional investors like Pension Funds and other institutions.
What is it? Music Royalties are part ownerships in songs that you don’t write or produce. You get a percent return of your investment periodically.
Some artists put their music for bidding because they need the money right now for other projects or for personal reasons.
The Royalty Exchange, Lyric Financial and SongVest are three Music Royalties platforms you can use to invest in music. These platforms offer a crowdfunded participation model to buy music.
Create a Blog or Buy an Existing Blog
Blogging can be an ideal passive income venue for the long term. You can start a beginner’s blog and with consistency in a few months to a few years earn passive income. This income is earned thru various monetization strategies on your own blog.
Here is my guide to creating a blog as a beginner
If you are interested in earning passive income with a blog, but don’t want to start from scratch, you can buy an existing blog.
Of course you’ll have to do due diligence or hire someone to do it for you when buying a blog, just like with any other asset purchase.
Some blog buyers make direct contact with a blog’s owner they are interested in. They approach the owner with an offer or ask the owner to put a price on their blog.
Another option for buying a blog is to do it thru a broker. A marketplace for buying and selling blogs. Platforms specializing in flipping blogs are Flippa, Empire Flippers and Website Brokers.
After you finalize the purchase of a blog, you’ll start earning the income it generates.
Lend Money to Earn Passive Income
Becoming a money lender is a more traditional approach to earning passive income thru interest payments. You can help finance small businesses and start ups thru P2P lending.
Peer-to-Peer lending or P2P is a simple way to create passive income. Lending communities like Prospers and Lending Club link lenders to borrowers.
As a lender you’re are investing your money at a fixed interest rate. You can start lending small amounts of money.
So, you earn passive income with the capital you lend out in the form of interest. The lending platforms screen out borrowers, but it’s just part of the business that some people will not pay back their loans.
Another option is to lend money directly to small startups. To find these potential businesses, you’ll need to do networking in specific niches.
Create an App to Earn Passive Income
This is a passive income idea for a developer or someone who wants to outsource development of an App.
You can develop an app and sell it or even give it away for free and still make money thru it. You can also buy and sell App thru Flippa.
If you don’t have the coding skills to do the actual App, platforms like 99Designs, Upwork and Fiverr offer development services for your idea.
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Sell Digital Products
Selling digital products is one of the best ways to make passive income online. The sale of digitals is not limited to ebooks or online courses. Arts, t-shirts and printable are all feasible products to digitize and sell. check these two posts.
Dividend Earnings thru Stocks and Bonds
Buying dividend stocks for your portfolio and collecting those payments can make good passive income in your early retirement. Dividend stocks are among the least risky of all stocks.
You buy a number of shares and you’ll get dividend payments (kind of like interests) during the year. You’ll also can get stock price appreciation.
The website Dividend.com has a screening tool you can use to find stocks and their yields.
Passive Income with Photography
Create passive income selling stock photography or with a photography blog. You can place your amateurs or professional photos on sale for cash or for royalty income.
Photography is one of the most profitable hobbies to blog about because it is easy to monetize in various ways.
Passive Income with Crowdfunding Real Estate
Real estate is one, if not the best, way to invest and build wealth. Going back hundreds of years, real estate have performed very well, despite some periods of down turns.
However, owning many physical properties in a portfolio can be a burden for some investors.
Today, there is an option to invest in specific real estate projects without owning the physical property. This method is Real Estate Crowdfunding using an investment platform such as Fundrise, Rich Uncles and RealtyMogul.
Final Thoughts on Earning Passive Income without Everyday Action
These are some of the ways to build passive income over time. You can start creating these income streams before you retire or before quitting your job.
These streams have different earning potentials, consistencies and time horizons.
If you’re trying to make a specific amount of money passively to live off, then diversification is important.
Try to invest your time and money in different types of assets early.
A combination of passive income investments and assets that pay you earnings can give you the total amount you want or need monthly.
10 Ways to create passive income streams without everyday actions
- Farmland Crowdfunding
- Oils and Minerals Royalties
- Buy Music Rights
- Lend Money
- Creat an App
- Sell Digital Products
- Earn Dividends
- Create a Blog or Buy an Existing One
- Sell photography Online
- Crowdfunded Real Estate