5 Simple Ways You Can Set Up Passive Income Streams Today:
Updated: Oct 16, 2020
With the massive change that COVID-19 has caused in many industries as the world adjusts to the ongoing pandemic, it's become clear that the way our grandparents built their living just isn't going to work for you and I. We've all heard a family member stress the "go to school, find a job with a great company, start your family, then retire 45 years later" American Dream tale as old as time, and the coronavirus pandemic has only further depicted the difference of our reality in the 21st century. Now, more than ever, you should be working to start creating multiple streams of income.
Let’s break down what I mean when I say Passive Income Streams:
Active Income: An active income is one that you are actively making, meaning a job that depends on you physically being active to make money. Working a full-time job at the Bank is an active income stream because you only get paid while you are putting in the hours.
Passive Income: A passive income is a source of money that continuously for work that you only had to create one time. For example, Monetization on your YouTube Channel, selling a course online or creating a mobile App that has in-app purchases
If 2020 has taught us anything, we should know that situations can change in the blink of an eye; corporations that dominated their markets closed their doors within the first few weeks of the pandemic and millions of workers lost their jobs. While it can be daunting, here are 5 ways that you could start building passive income streams today:
Invest in the Stock Market:
The words "Stock Market" can be scary, but don't let that stop you from learning about how stocks and bonds can help make money in your sleep. Now, I'm not a financial advisor and I certainly won't be giving a crash course on how many shares of which company you need to purchase in 2020. However, the stock market does have options that allow your money to make you more money over time - dividends. Apps like Wealthsimple make it easy for beginners to learn about the different options, start investing and building their portfolio day by day, without charging a commission on each trade. Invest what you can afford to lose, and know that you don't need a million dollars to start investing.
Psst... The Wealthsimple link is a referral code and if you sign up, we both get $10.00 to trade. It's the easiest $10.00 we could ever make.
Invest in Cryptocurrency:
Money is changing, and it's important to get with the times and diversify where your money is and how you make it. While cryptocurrency can be risky, there's a risk associated with every type of investing. Again, I'm not a professional and I cannot recommend how you should start investing in Crypto. If we look at Bitcoin in recent years, getting your hands on BTC would have been under $200USD in October 2014 and by December 2014 - the value shot up to over $1000USD. With Bitcoin being the world's first decentralized cryptocurrency - it's not a surprise that it's one of the most commonly held cryptocurrencies on Coinbase.
If you are nervous about investing in Cryptocurrency but don't want to get a big case of FOMO - there are apps like Fold that allow you to earn Stats while shopping at retailers like Amazon, Nintendo, Sephora, and Starbucks. It's similar to getting cashback rewards, except in cryptocurrency.
Psst... The Coinbase link is a referral and if you sign up, we both get $10.00 to trade if you buy/sell $100 of Bitcoin on Coinbase. Fold is not a referral code and goes directly to the company's website.
Start Using Affiliate Marketing Religiously:
Companies don't create affiliate programs because their teams have nothing better to do, companies know that a customer that is happy with a service will scream from the mountaintop about how great their company's product is - but now they incentivize that process. Take a look at the services that you use in your daily lives - from banking, online shopping, even playing Fortnite with your squad. In most cases, it will cost your audience nothing on their end; Epic Games introduced their Support a Creator program where YouTubers, Twitch Streamers, or anyone who meets their guidelines can apply and for each person who uses their code in the Fortnite Item Shop - a portion of that sale supports the creator at no additional cost to the person who would already be buying the latest skins.
Sell A Course Online:
Digital products like courses can be a pain to set up, but the return that you can see can be significant with the right marketing. No matter the industry, there's always someone that is looking to expand their knowledge or skillset; learning a new style of Graphic Design or how to build an iOS App on Penguin. Right now, you are sitting on a wealth of knowledge, no pun intended, and someone out there is willing to pay to take your course. Production Value doesn't have to be Hollywood quality so don't fret over buying the same cameras that Marvel Studios uses on set. Start planning the key areas and takeaways that people will gain from your course. Udemy and Skillshare are two popular sites where people go to polish their skills, become an instructor, and start building your community further.
The beauty of digital products while you have to put in a number of hours to create the product, there's no limit to how many sales you can make.
Open An E-Commerce Store:
E-Commerce has rapidly become a preferred method of shopping for many people, and in early 2020 - 25% of Americans mentioned that they shopped online at least once a month and this study came out before the pandemic had people spending more time indoors. E-Commerce doesn't only mean opening a store where you have to sell t-shirts and physical products - while there's nothing wrong with taking that route. The appeal that E-Commerce solutions have is that you aren't limited to only people in your direct area; you can sell your products to people that live in Managua while you are based in Toronto, Canada. In early Q1 of 2020 when the Pandemic first began, Shopify saw a 62% increase of new stores on the platform between March and April 2020.
Whether you are interested in setting up a no-inventory Dropshipping store or selling digital products, like your latest motivational E-Book, you'll make income from shoppers as you are counting sheep in your dreams.
Let go of the myth that in order to diversify your income sources, you've got to crack a secret code and deliver fire to the people on earth from Mount Olympus. There's a way that all of us can start making passive income. While it won't happen overnight, building passive income is something that we all should be continuously working towards setting up in our lives until the systems we build are autonomous enough to keep moving on their own as we watch from a distance.
This article was originally published on my personal Medium Page on October 25, 2018 and has been updated since with relevant information.