People often mistake the idea of a passive income with not wanting to work or to make money by doing nothing. And, there are some people who definitely are trying to figure out how to do that.
Yet, passive income does not mean not having to work to make money. It simply means that you put a system in place, through hard work and a lot of time, to have money coming in without needing to be active to do it.
Yes, you can make money while you sleep, but you’ll need to put in the time to build a system for that to happen.
Passive income is still very possible if you are willing to work hard to make it happen. In this article, I will go over several ways to make a passive income for extra money or to replace a full-time income.
Bitcoin or cryptocurrency
I’m not sure if buying and trading Bitcoin qualifies as passive income. It can make you a profit without any effort, but you won’t have a residual income that is automatically deposited into your bank account every month. And you can even lose money.
Mining Bitcoin can be very passive though and there is no risk of losing money by investing in a volatile cryptocurrency.
Though the gold rush is over when it comes to making a lot of money by mining, you can still do it to earn some extra passive income. You just need to have the right equipment that can handle the complex computations required and provide a high hash rate.
What is hash rate? This is how fast your computer can create a block on the blockchain. The higher the hash rate, the more money you can make. If you have a little technical know-how then you can mine and make money even today.
If you have the patience to wait a couple of years for your efforts to pay off then you could be an ideal candidate to start an affiliate marketing website.
The website can be about anything and is essentially a blog. You pick a topic to write your blog around and try to write articles that will rank high in the Google results to get you traffic. Then, you need to create links on your site that will bring people to products or services that will pay you a commission if they buy.
It sounds easy, but does take a lot of trial and error to get it right. When done right, you can create an asset that brings in a steady income even if you stop blogging for a while.
Real estate rentals
With enough money to invest, you can buy rental properties and make some passive money from rent. Now, if you don’t mind changing a lightbulb or unclogging a toilet in the middle of the night then you can make money albeit not very passively.
Otherwise, you can hire a property manager to handle any problems with the tenants, collecting rent and taking care of any legal matters. That makes having rental properties totally passive and you can live anywhere in the world as you don’t have to physically be there to make money.