It seems no matter where you go online, someone is saying that they've found the key to unlock their financial freedom. From opening multi-million-dollar Shopify stores to selling digital courses, there seems to be no shortage of ways to unlock your own potential. And as exciting and motivating as the idea of financial freedom is, not everyone knows how to go about it. What sounds good in theory can quickly become a demotivating mistake, especially if you invested money into it. Fortunately, there are still ways to build your passive income nest egg without going broke. Here's how to do it.
What Exactly is Passive Income?
If you don't already know, passive income is money you earn without having to, well, earn it. After initial setup or investment, it usually requires no effort on your behalf except to check in and see how things are going. Examples of passive income include digital courses, online stores, and rental properties. In fact, rental properties are probably the most lucrative way to earn passive income, even if you're not familiar with now it works.
It's always best to do your research before you invest in a property or rent out your own. If you were to rent out your own vacation rental on Airbnb or VRBO, do you know the tax rules on rental properties that may or may not apply to you? Most vacation homes carry a wide array of applicable items that deo meet the deduction criteria. To learn more, you should review how the IRS qualifies vacation rentals and what type of deductions are available.
Invest in Dividends
If you're still sitting on the fence about rental properties, you could invest in dividends. You invest in mutual funds, stocks, and bonds. You earn the money you invested back in dividends. If you're not sure what dividends are, not to worry. Dividends are the payments companies make back to shareholders. This usually occurs every quarter, however, it may vary.
If you have a creative side, you could earn money by earning royalties. Royalties are what you get when you sell your music, art, photographs, or writing. You can be paid out on time, or you can earn money every time someone buys what you created, like a copy of your book.
Write a Blog
While some say blogging is a dead-end street, not everyone would agree. You can still earn money through affiliate marketing on your blog. All you need to do is set up your blog and find affiliates that you want to promote. Whenever someone clicks on that link and makes a purchase, you earn a commission. You can also sign up for AdSense and let other businesses advertise on your site.
Long gone are the days of attending in-person courses. Now, you can create a digital course and promote online to earn cash. Whatever your specialty is, you can create courses that teach everything they want to know from the comfort of their homes. If you love to bake, you could create courses for people who want to learn how to make homemade baked goods. The same idea applies to any other skill you have. You could create a course of teaches people how to draw, groom their pet or start an indoor garden. Just make sure you price your courses fairly. Even though people are willing to pay to learn, they don't want to be ripped off.
Rent Out Your Car or Parking Space
This idea is not for the faint of heart, however, you could rent out your car to people who don't have one. This trend has gained a lot of popularity over recent years, so if you feel confident that it can work for you, you should start marketing online. Start with your family and friends first to ensure that you get the right type of customers. Also, check the insurance laws in your state prior to letting anyone behind the wheel. If loaning to strangers doesn't appeal to you, you could rent out your parking space. It's usually impossible to find parking in big cities, so if you have an extra space, you can rent it out and earn money without doing anything. You can choose to charge by the day, week, month, or even on a yearly basis.