Passive income is a great way to increase your earnings potential and build wealth without having to put in as much hands-on effort as traditional jobs. Financial expert Humphrey Yang recently shared nine passive income ideas in a YouTube video that are worth considering. Let’s take a closer look at each of these ideas to see how you can start earning money in the background.
1. Investing in Stocks:
One of the most popular passive income sources is investing in stocks. By putting your money into stocks, you can earn dividend income and potentially benefit from capital gains. Yang suggests aiming for an 8% average return by holding investments for the long run. However, it’s important to note that there is a risk of loss, so diversifying your investments with index funds is a smart move.
2. Investing in Real Estate Investment Trusts (REITs):
Another option for passive income is investing in Real Estate Investment Trusts (REITs). This allows you to earn dividends based on rental income without the hassle of managing a rental property. Additionally, you may benefit from the appreciation of the REIT’s properties. For added diversification, consider investing in REIT exchange-traded funds.
3. Being an Affiliate Marketer:
Affiliate marketing is a great way to earn commission income by partnering with brands online or locally. You can post affiliate links on your blog, YouTube channel, or social media platforms to increase sales and earn a passive income. However, this option requires knowledge of how to drive traffic to your affiliate links.
4. Starting a Membership Community:
If you have an existing online following, starting a membership community can be a lucrative passive income source. You can charge a monthly fee for access to special content, expertise, or group discussions. Keep in mind that running a membership community requires ongoing work and engagement.
5. Having a YouTube Channel:
If you meet YouTube’s subscriber and views requirements, you can earn money through ad revenue on your videos. While this can be a profitable passive income source, it’s important to note that it may take time to build a following and start earning significant income.
6. Writing Content:
Creating content for platforms like Medium or setting up a Substack email list can also generate passive income through page views or subscription fees. However, this option requires good writing skills and a willingness to put in the work to create engaging content.
7. Selling Digital Products:
Selling digital products such as Udemy courses, e-books on Amazon, or digital art on Etsy can be a scalable way to earn passive income. Consider the competition in your chosen niche and be prepared to invest time and effort into creating and marketing your digital products.
8. Renting Out Your Car on Turo.com:
Turo is a platform that allows you to earn income by renting out your car to others, similar to an Airbnb for cars. While this can be a relatively hands-off way to earn passive income, it may not be as scalable without additional vehicles to rent out.
9. Staking Your Crypto:
If you have cryptocurrency, you can earn interest by locking it up on platforms like Coinbase. This is a hands-off and scalable passive income option, but it’s important to be aware of the risks associated with cryptocurrency investments.
In conclusion, passive income sources offer a way to increase your earnings potential and build wealth with less hands-on effort than traditional jobs. By exploring these nine passive income ideas shared by Humphrey Yang, you can start generating income in the background and work towards achieving your financial goals.
