There are many financial strategists, who predict a recession on the horizon. While this might sound like a very scary experience, there are ways to prepare for it. Whether you’d like to be wealthy or financially comfortable, it’s so essential to utilize passive income streams to sustain you.
Creating additional streams of income is a safety net for tough times. It can be a major stressor to find yourself in an emergency situation where you need to borrow money or forego essentials because you’re short on cash. Unfortunately, those situations do come up. Click here to learn more about your options if you are faced with an unexpected emergency expense, and don’t have the cash on hand to cover it.
To avoid situations like this, consider how you can create additional passive income to sustain your life. Here are five key ways you can begin making the shift in order to multiply passive income streams. Consider the following tips.
1. Create digital products.
Digital products are undeniably convenient. They’re also eco-friendly because you don’t need to print out copious amounts of paper to read a book. You can outsource the writing process to a freelance writer. Then, once you have a digital e-book, add it to sites like the Kindle store and other e-book retailers. Purchase ads to help the book gain visibility and circulation. As books gain traction and gain more reviews, you’ll make more money. When you create a book, you can earn passive income for a lifestyle. The key is to make sure there is a system for marketing. Once that’s automated, the sky is truly the limit. The same concept applies to online courses. Create a course once. Make sure there’s a strong marketing system to support it. Then, let the money flow in each month.
2. Rent out a room in your home.
Whether you have an extra room, a garage or a basement, you can become a landlord. You can rent out your space to other people for different purposes. If you’re passionate about photography, build a studio inside of your basement. Make sure you have a separate entrance so that random people aren’t traipsing through your home. Charge by the hour for studio time.
So many people love the excitement of staying in an Airbnb. Create a rental unit that you can list on short-term housing sites like Airbnb. Make it appealing, safe and comfortable. As long as you’re hospitable and receive great reviews, this option can easily become a viable stream of passive income.
Although temporary/short-term rental income works well, some people like the consistency of a set amount every single month. If that’s the case, consider renting a room to one tenant. Transform your basement or garage into a studio apartment or a one-bedroom unit. Depending on the rate you charge, that rental property can potentially cover the mortgage of the house.
3. Create a multi-family rental unit.
If you have good credit and a good amount of money in savings, you can easily purchase properties with the right strategies. Gone are the days where you had to go the traditional route in securing a mortgage loan to purchase a home. By finding a motivated seller who’s behind on their payments, you can use different strategies to take over their payments and own the home. If you do this with a larger home, turn it into a multi-family unit. This means that you’ll end up making a lot more money for one property.
As you maintain a home with multiple units, you’ll need to take care of different expenses like lawn care, utilities and more. Charge your tenants the proper fees that cover those expenses. In addition to that, you can include a fee that pays you more money. All of this can be included in the rent so that tenants don’t feel like they have to pay a bunch of fees at different times. However, a $25 administrative fee for each unit can lead to a few thousand every year. That money adds up. Since you are the landlord, you get to make those decisions. As you secure more money from rental fees, you can reinvest that money into purchasing more properties to make more passive income.
4. Study trading strategies.
There is grunt work in the beginning when you’re learning the strategies of the foreign exchange market and the stock market. However, once you’ve put in the work to study and test different strategies, you can let the market work for you. Plenty of traders place trades in the system, go about their day, and wake up the next morning to profits.
Depending on the strategy you choose, you can lose money. If you’re in a position where you’ve lost money that you really needed, don’t be too hard on yourself. Be intentional about allotting a small amount so that you don’t fall behind on your bills if you lose a trade.
5. Utilize affiliate marketing within online content.
Contrary to popular belief, blogging is far from dead. As long as you have the internet and websites, blogs will remain relevant. The key is to make sure you’re creating a blog that contains relevant information. It’s also important to properly use search engine optimization (SEO) strategies in order to gain the traction and visibility you desire. You can also use a platform like Facebook, Instagram or YouTube to host a blog or vlog (video blog). As you produce valuable content on a consistent basis, you’ll build a loyal following. Just don’t forget to promote it well.
The art of affiliate marketing comes into play when you’re ready to monetize your value. If you’re using a platform like YouTube, you’ll get to monetize your videos with ads. However, there is a major key that plays into the passive income many content creators enjoy. When you have affiliate links in your description box or embedded in your content, those links can lead to dollars. When you recommend a specific product and someone purchases it through your affiliate link, you’ll earn a small commission. As your content continues to circulate, the more you’ll increase your chances of earning commissions on your content. It doesn’t matter how old the content is. As long as the affiliate link and the product are still available, you’ll make money.
When you’re getting started, you’ll probably experience a learning curve. Don’t let that intimidate you. If you don’t get started now, the time will pass anyway. You’ll simply prolong the time that you get to experience financial security. Instead, put in the hours to set up the right systems that will allow you to earn the passive income you seek.