“The main reason people struggle financially is because they have spent years in school but learned nothing about money. The result is that people learn to work for money…but never to have money work for them.” — Robert Kiyosaki
The above quote is so true, but we hardly give it a thought. Let’s say when we have limited cash, we either think about
working more hours
to ask for a raise so that we can turn our time into more money.
In this article, we will discuss about the other ways in which you can plant seeds so that your money grows in autopilot mode, i.e. even without actively putting your time & efforts to make money in the longer run.
Before discussing the ideas, let’s look at the difference between Linear vs Passive Income.
This represents the people who trade Time for Money, for e.g employees or self-employed.
Now let’s understand what’s wrong with this approach.
First thing is your income is limited and will always be limited. Reason is — there’s only 24 hours in a day & 365 days in a year. As you are trading time for money, and since time is limited, so is the money.
This represents the people who’s income doesn’t depend on their presence, for e.g. Business Owners and Investors.
They would rather earn 1% off a 100 peoples efforts, than 100% of their own efforts.
This is how money works for you, because now you have created a system which is not time bound… Agree?
Now as we have covered the importance of passive income, we know that making money will not be easy and take a lot of hard work. Correct???
However for now, we will discuss the Top 3 Passive Income ideas with little to no effort.
1. Buy Index Funds and ETFs
If you have capital to invest, but don’t have the time, knowledge or energy to get stuck in dividend investing, index funds and ETFs are a much easier alternative. Both index funds and exchange-traded funds (ETFs) track specific returns of a market index.
If you want your money working for you, you are looking for a simple approach and don’t want to play with risky strategies, this passive income stream might be for you.
2. Rent Out Your Car, Bike, Parking Space or Spare room
If you got a car, bike, garage, an extra parking space or spare room, then you should think about renting it out! This will require some maintenance and work, but you can definitely earn some good money.
If you have a free parking space, driveway or garage, post it on websites like Craiglist. If you live in a major metropolitan area, you will be surprised by how much you can earn rental income.
Also, thought about earning passive income from home? If you own your house and have some extra rooms or you rent a place with some extra space, you can start earning money now on websites like Airbnb.
3. Sell beautiful photographs.
If you are good behind the camera, then you can make a somewhat passive side income as royalty when others download your pictures. Licensing one picture that you take and upload now can give you cash flow forever as it’s downloaded again and again!