Many young people are taught to follow the traditional path of getting a job and a mortgage, which leads to working every hour of the day just to earn enough money to retire at 67 and finally die. However, there is clearly something else going on, and it involves making passive income. Passive income is a way of making money that doesn’t rely on working day in and day out. In this article, the speaker will share seven ideas for making passive income, along with ratings for each idea in three different categories: time required, amount of money needed, and ease of making $100 per week.
The first idea for making passive income is investing in stocks, specifically dividend stocks. Dividend stocks are chunks of companies that pay a share of the profits directly into the investor’s pocket. The speaker will provide tips for sorting the good from the bad dividend stocks and will rate this idea in the three categories mentioned above. The second idea for making passive income is automating a side hustle, which involves building a digital asset and effectively advertising it on social media. The speaker will provide steps for building a digital asset and will rate this idea in the same three categories.
- Passive income is a way of making money that doesn’t rely on working day in and day out.
- Seven ideas for making passive income include investing in dividend stocks and automating a side hustle.
- Each idea is rated in terms of time required, amount of money needed, and ease of making $100 per week.
- Key Takeaways
- The Traditional Path
- The Passive Income Concept
- Idea 1: Investing in Stocks
- Idea 2: Automating a Side Hustle
- Idea 3: Making Online Content
- Idea 4: Start Private Investing
- Idea 5: Affiliate Marketing
- Idea 6: Create A Digital Tool
- Idea 7: Rent Out Your Stuff
The Traditional Path
The traditional path of getting a job and a mortgage is often taught in schools, leading to a life of working every hour of the day just to earn enough money to retire at 67 and finally die. However, this path does not necessarily lead to financial success. To make passive income, one needs a way of making money that does not rely on working day in and day out.
One idea for making passive income is to invest in dividend stocks. Dividend stocks are chunks of companies that pay a share of the profits directly to the investor’s pocket. The top tier of dividend stocks are the Dividend Kings, which have not only paid a dividend but actually increased it for 50 years in a row. Under that are the Dividend Aristocrats, which have increased their dividends for 25 years. The lower tier of dividend stocks are considered the dividend working class, and caution is advised when investing in them.
Investing in dividend stocks is rated as a 1 out of 5 in terms of time required, as all one needs to do is download and invest in an app, deposit some money, and buy a few dividend stocks. However, it is rated as a 5 out of 5 in terms of money required, as a significant amount of money needs to be invested to make a significant income. It is also rated as a 5 out of 5 in terms of how easy it is to make $100 per week, as dividends are calculated on a yearly basis and paid out quarterly.
Another idea for making passive income is to automate a side hustle. By building a digital asset, such as a blog or course, and effectively advertising it on social media, one can make a lot of money without having to sell every minute of their time. The time required for automating a side hustle is rated as a 5 out of 5 if done alone, but can be reduced to a 3 out of 5 if using an all-in-one platform such as Hostinger. Money required is rated as a 1 out of 5, as this idea is more about spending time than money.
The Passive Income Concept
The speaker in the video explains that passive income is a way of making money without relying on working day in and day out. He suggests seven ideas for passive income, with dividend investing being the first one. Dividend stocks are chunks of companies that pay profits directly into the investor’s pocket. The speaker rates dividend investing as a 1 out of 5 in terms of how much time it takes. Investing in dividend stocks requires downloading and investing in an app, depositing some money, and buying a few dividend stocks. The speaker rates the ease of making $100 per week from dividend investing as a 5 out of 5.
The speaker explains that the second idea for passive income is automating a side hustle. By building a digital asset, such as a blog or a course, and effectively advertising it on social media, a small side hustle can become much more passive and make a lot more money. The speaker rates the time required for automating a side hustle as a 5 out of 5 if done alone, but a 3 out of 5 if using an all-in-one platform like Hostinger. The money required for this passive income idea is rated as a 1 out of 5, as it is more about spending time than money.
The other five ideas for passive income are not mentioned in this section.
Idea 1: Investing in Stocks
Understanding Dividend Stocks
Investing in stocks can be a great way to generate passive income. However, not all stocks are created equal. Dividend stocks are the ones that pay out a portion of their profits to shareholders on a regular basis. This makes them an excellent choice for generating passive income.
Dividend Kings and Aristocrats
When it comes to dividend stocks, there are different levels of quality. At the top of the hierarchy are the Dividend Kings, which are stocks that have increased their dividends for 50 years in a row. Under them are the Dividend Aristocrats, which have increased their dividends for 25 years in a row. It’s important to note that not all dividend stocks are created equal, and it’s essential to do your research before investing.
Investment Apps Recommendations
Investing in dividend stocks can be done through various investment apps, such as Moomoo, YieldStreet, and Lightyear. These apps make it easy to invest in dividend stocks and manage your portfolio. Some of these apps even offer free stocks for joining, making it a great way to start investing without a lot of money.
Time, Money, and Earning Potential
Investing in dividend stocks takes very little time, as all you need to do is download an investment app, deposit some money, and buy a few dividend stocks. However, it does require a significant amount of money to make a substantial income. To make $100 per week, for example, you would need to invest a significant amount of money.
Overall, investing in dividend stocks can be an excellent way to generate passive income. However, it’s essential to do your research and choose the right stocks to invest in. With the right investment strategy and patience, you can create a steady stream of passive income from dividend stocks.
Idea 2: Automating a Side Hustle
Understanding the Difference Between a Job and a Side Hustle
The traditional path of getting a job and working every hour of the day just to earn enough money to retire at 67 is not the only way to make money. There is passive income, which is a way of making money that doesn’t rely on working day in and day out. Passive income is nothing less than actual money flowing into your bank account every month without the need to sell the asset that’s making you the money.
Steps to Build a Digital Asset
To make passive income, you need to focus on building a digital asset that can become much more passive and make a lot more money. The first step is to identify what you’re really good at and have some kind of unfair advantage. The next step is to focus every waking hour on building a digital asset of some kind, such as a blog, manual, or course.
Website Building with Hostinger
Once you’ve decided what kind of digital asset you want to build, you have to put it on the internet so that your future customers can find it. Hostinger is an all-in-one platform that offers hosting, website building, logo making, and free domain name with an annual plan. The drag and drop website builder makes it easy to create a website without any coding skills. You can also use the built-in AI website builder or designer-made templates to create a website.
Time, Money and Earning Potential
Automating a side hustle takes time, especially if you’re doing it on your own. It takes a while to build the digital product and then you have the added headache of making a website. However, if you use something like Hostinger, it can be less time-consuming. You don’t need to worry about having any technical or design skills for the website, as you can just use the built-in AI website builder to make the website for you.
This passive income idea is more about spending your time than your money. It depends on what digital product you want to build, but if it’s just a course of some kind, you can do all of that on your laptop using a program. The earning potential for an automated side hustle is unlimited, and it can become a million-dollar business if done correctly.
Idea 3: Making Online Content
Understanding Online Advertising
One of the most popular ways to make passive income online is through advertising. This involves creating content that attracts a large audience and then monetizing that content through ads. However, it’s important to understand the different types of online advertising in order to make the most of this passive income stream.
There are several types of online advertising, including display ads, native ads, and social media ads. Display ads are the most common type and are usually found on websites and blogs. Native ads are designed to blend in with the content of a website, making them less intrusive. Social media ads are ads that appear on social media platforms like Facebook, Instagram, and Twitter.
When creating online content, it’s important to consider the type of advertising that will work best for your audience. For example, if your audience is primarily on social media, then social media ads may be the best option. Additionally, it’s important to create high-quality content that will attract a large audience and keep them engaged.
Best Advice on Social Media
Social media is a powerful tool for making passive income online. By building a large following on platforms like Instagram, TikTok, and YouTube, you can monetize your content through ads, sponsorships, and affiliate marketing.
The key to success on social media is to create content that resonates with your audience. This can be anything from funny memes to inspiring stories to educational tutorials. It’s also important to engage with your audience by responding to comments and messages, and by creating a sense of community around your content.
In order to monetize your social media content, you can partner with brands for sponsored posts or use affiliate marketing to promote products and services. Additionally, you can earn money through ads on platforms like YouTube and TikTok.
Overall, social media is a great way to make passive income online, but it requires dedication and hard work to build a large following and create engaging content. By following these tips and staying consistent, you can turn your social media presence into a lucrative passive income stream.
Idea 4: Start Private Investing
How to Evaluate the Risk of a Business
Before investing in a private business, it is essential to assess the potential risk factors. This includes analyzing the financial statements, understanding the market trends, and evaluating the management team’s experience. It is also crucial to consider the industry’s current state and future growth prospects. By thoroughly evaluating the risk factors, investors can make informed decisions and minimize their chances of losing money.
Will You be a Shark or an Angel?
Private investing can be divided into two categories: Shark investing and Angel investing. Shark investors typically invest in companies that are already profitable and seek to maximize their profits. Angel investors, on the other hand, invest in early-stage companies and focus on helping the company grow. They often provide mentorship, guidance, and connections to help the company succeed. Depending on the investor’s goals and preferences, they may choose to be a Shark or an Angel investor.
Can You Add Value?
Investors must also consider whether they can add value to the company they are investing in. This can include providing expertise, connections, or resources that can help the company grow and succeed. By adding value, investors can increase the likelihood of a successful investment and potentially earn higher returns.
Overall, private investing can be a lucrative way to generate passive income. However, it is essential to thoroughly evaluate the risk factors, determine the type of investor you want to be, and consider how you can add value to the company. By following these steps, investors can make informed decisions and potentially earn significant returns on their investments.
Idea 5: Affiliate Marketing
Affiliate marketing is a type of passive income where an individual earns a commission by promoting other people’s products. This is done by sharing a unique link or code that leads to the product’s website. If someone clicks on the link and makes a purchase, the affiliate earns a percentage of the sale.
The amount of money earned through affiliate marketing can vary depending on the product being promoted and the commission rate. Some products offer a higher commission rate than others, and it’s important to choose products that align with the affiliate’s brand and target audience.
To become an affiliate marketer, one can join an affiliate program or network such as Amazon Associates, ShareASale, or Commission Junction. These programs provide access to a wide range of products and resources to help affiliates promote them effectively.
One advantage of affiliate marketing is that it can be done from anywhere with an internet connection, making it a flexible option for those looking to earn passive income. However, it does require some effort to create content and promote the products effectively.
In terms of time commitment, affiliate marketing can range from a few hours a week to a full-time job, depending on the individual’s goals and level of commitment. It’s important to approach affiliate marketing with a clear strategy and set realistic goals to achieve success.
In terms of investment, affiliate marketing can be done with little to no upfront costs. However, investing in a website, social media ads, or other marketing tools can help increase visibility and potentially earn more commissions.
Overall, affiliate marketing can be a lucrative and flexible option for earning passive income. It requires effort and strategy, but with the right approach, it can be a successful source of income.
Idea 6: Create A Digital Tool
Passive income is a way of making money that doesn’t rely on working day in and day out. One of the best ways to achieve this is by creating a digital asset that can generate income on its own. Here are the steps to automate a side hustle and turn it into a passive income stream.
Firstly, identify what you’re really good at and start building a digital asset around it. This could be a blog, a course, or any other digital product that can be sold online. Hostinger is an all-in-one platform that can help you create a website, host it, and even build a logo. Once you have your digital product, start advertising it on social media.
Automating a side hustle takes time and effort, but it’s worth it in the long run. If you’re doing it on your own, it can take a while to build the digital product and make a website. However, using a platform like Hostinger can make the process much easier.
The cost of automating a side hustle is mostly in time, rather than money. Depending on the digital product you want to create, you may need to invest some money in software or equipment. However, the focus should be on spending your time to create a valuable product that can generate passive income.
Overall, creating a digital tool is an excellent way to generate passive income. It takes time and effort to build, but once it’s up and running, it can generate income on its own. With the right skills and tools, anyone can create a digital asset that can generate passive income.
Idea 7: Rent Out Your Stuff
Another way to make passive income is by renting out your stuff. This could include anything from your car to your camera equipment or even your home. There are a variety of platforms that allow you to do this, such as Turo for cars and Airbnb for homes.
Renting out your stuff can be a great way to make money without having to put in a lot of effort. However, it’s important to keep in mind that there are risks involved. You’ll need to make sure that your items are insured and that you’re comfortable with strangers using them.
One of the benefits of renting out your stuff is that you can set your own prices and control when your items are available. This means that you can work around your own schedule and make money on your own terms.
Overall, renting out your stuff can be a great way to make passive income, but it’s important to weigh the risks and benefits before getting started. With the right precautions and planning, however, it can be a lucrative way to make money without having to put in a lot of effort.