- Passive income streams are a great way to mitigate your financial risk and earn extra income.
- I’ve spoken to financial advisers and accountants about the lucrative passive income streams they’ve seen.
- Owning a parking lot, real estate, blogging, and online courses can generate over $ 100,000 a year.
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I run my own business and to help mitigate personal financial risk I try to create as many passive income streams as possible. This way, I don’t have to just make money with my business.
Over the years, I have built several sources of passive income for myself, including classes, eBooks, and merchandise sales. I’m always on the lookout for new ways to make money, so I decided to ask financial planners and accountants to share the unique passive income streams they’ve come across that can generate significant income.
1. Buy and manage parking
One way to come up with new passive income ideas is to take a look at the businesses and services you see operating every day. Financial adviser Chris Nddie suggested that people should consider owning parking lots, for example.
Depending on the location of the parking lot you wish to purchase, you can find a property for as little as $ 10,000 using websites like Loopnet.
According to How to Start an LLC, the typical monthly expense for a small outdoor parking lot can be around $ 5,000, but the gross profits for a lot of about 20 spaces can run up to around $ 28,000 per month.
2. Invest in real estate
One popular way to generate passive income is through the use of real estate properties, whether commercial or residential. Financial planner Brent Dickerson recommends that people invest in real estate, such as office buildings or shopping malls.
âMany large real estate companies are owned by multiple investors under a joint tenancy agreement,â Dickerson said. âThis allows multiple landlords to own an unequal share of a property, such as an office building or shopping mall. As the payments are made by the tenants of the lease, the owners of the property receive these payments as returned.”
Dickerson added that the amount of income one receives is determined by the percentage of ownership in the property, so the more you invest the more passive income it will generate. You can start with $ 1,000 and build from there.
3. Become a blogger and use affiliate links
For someone with a strong personal brand, blogging can be a great source of passive income according to Olivia Tan, CPA.
âBlogging has helped countless entrepreneurs passively earn through affiliate links, courses, sponsored posts, products, book deals, etc.,â Tan said.
While Tan acknowledges that starting a blog takes a lot of upfront work to be successful, she added that, âIt’s one of the most lasting ways to generate an following through organic and social traffic, or by creating a mailing list. “
While a large portion of this income is based on the traffic you can get to your website or social media, it is possible to make money without having a large following. You can do some research to set your personal rates or follow the common advice of charging $ 100 for every 100 subscribers you have.
4. Start an online course
One of my favorite ways to generate passive income is by creating and selling online courses. Financial adviser Sanchit Taksali said this is a great route for anyone who has specialist knowledge to share, or is an expert in a certain subject.
Depending on the topic of your course and the size of your potential audience, you might follow in the footsteps of people like this expert in writing who made $ 1 million in 2020 selling a course, or this 71-year-old man who earns 8,500. $ per month by selling a course.