12 Simple Ways to Start Building Residual Income
What is better than making money even when you are asleep? Streams of residual income will help you do this.
Residual income is not a short-term endeavor. However, it is an effective way to boost your net worth significantly.
What Is Residual Income?
Residual income can be defined in two ways. First, it is the amount of money left after you have paid off your monthly debts. It is otherwise known as expendable income.
The other definition, and the one that this article focuses on, defines residual income as the money you earn over and over as a result of one original action. That is, a single initial investment of money or time leads to continuous payments.
Why Should You Have Residual Income?
You cannot build long-term wealth without residual income. If all you have is your day job, it will be hard to make enough money to sustain you when you retire. Passive income means that you will continue to receive money when you are retired and can take care of all our expenses and emergencies.
Nonetheless, passive income is not easy. You have to put in a lot of hard work and returns are not guaranteed. Because of this, try to create as many streams of residual income as possible. Here are a few viable streams.
Real Estate Investing
You do not have to become a landlord or pay a down payment. You can dip your toes in real estate without directly managing the properties or owning them. This can be done through Fundrise and Peerstreet.
Bonds, Stocks and Retirement Accounts
This is perfect for those that want security in their retirement days.
If you have some extra cash, lend it out to businesses and individuals. You can start with a P2P lending website such as Lending Club.
Become a Landlord
Real estate investment is among the best forms of investment. Houses are always in demand and you will have a steady income source.
RV Rentals and Vacation Rentals
Rent out your extra room or apartment to tourists. List it on Airbnb or VRBO. Travelers love a comfortable house.
Start a Blog
Blogging is not exactly passive but you can make a significant amount. To make money, you can sell your own products or place ads.
Start an Online Course
If you are knowledgeable in a specific field, create a course for people aspiring to have those skills. The course will sell for years to come.
Write a Book
eBooks are very popular nowadays. Write your book, publish it then sit back and make money. Amazon will help you with self-publishing.
Credit Card Rewards
This is not exactly a source of income. But you passively earn stuff for free.
Start a YouTube Channel
Video content is so in right now. YouTube works much like a blog.
Create an Online Store
Shopify would be an amazing place to start.
Create an App
Simply build your app, put it in the App Store and/or Google Play and start making money.