Passive income is a term that has gained popularity in recent years as people seek to diversify their income streams and achieve financial freedom. One key piece of advice that financial experts often give is to not put all your eggs in one basket when it comes to investing. Diversifying your investments can help mitigate risk and create a more stable financial future. One way to do this is by creating passive income sources that can generate money without requiring active involvement.
Ben Broch, CEO and founder of Cover Letter Copilot, and Mark McShane, founder of Cupid PR, are two individuals who have successfully built multiple passive income streams. They shared some of their methods for creating passive income with GOBankingRates, shedding light on how others can follow in their footsteps.
Real Estate Crowdfunding is one method that Broch highlighted as a game-changer for him. By investing in commercial and residential properties through crowdfunding platforms like Fundrise and RealtyMogul, he is able to earn a share of rental income and potential property appreciation without the need for direct property management. This hassle-free approach to real estate investing allows him to diversify his investment portfolio and track his investments and returns easily.
Another method that Broch mentioned is running an Automated E-Commerce Store. By utilizing dropshipping and leveraging tools like Shopify and Oberlo, he is able to sell products without holding inventory and focus on marketing and growth strategies. This automated approach minimizes operational burden and allows for scalability, driving consistent revenue.
High-Yield Savings Accounts and CDs may not be as flashy as other passive income streams, but Broch finds them to be a secure and steady source of income. By allocating a portion of his savings to these accounts with competitive interest rates from online banks like Ally and Marcus by Goldman Sachs, he is able to grow his savings risk-free while keeping his money accessible for future investments.
On the other hand, McShane shared his experience with App Creation and Monetizing as a way to generate passive income. By developing a mobile app and monetizing it through ads, in-app purchases, or subscription-based models, he is able to earn money with very little maintenance. Platforms like the Apple App Store and Google Play Store provide access to a mass audience, allowing for continuous income generation.
Affiliate Marketing Websites and Selling Digital Products are two more methods that McShane highlighted as opportunities for earning passive income. By creating content that promotes products or services and incorporating affiliate links, individuals can earn a commission for every sale made through their referral. Selling digital products like e-books, online courses, and design templates harnesses expertise to create scalable streams of income through platforms like Udemy, Teachable, and Gumroad.
In conclusion, building multiple passive income streams is about diversifying efforts and leveraging various opportunities. Real estate crowdfunding, automated e-commerce, high-yield savings accounts, app creation, affiliate marketing, and selling digital products are just a few examples of how individuals can create significant passive income that complements their primary earnings. By following the methods shared by Broch and McShane, others can also work towards financial freedom and achieve their wealth-building goals.
