Most of us probably can’t imagine living in a world where we make money, but don’t actually have to physically do anything to get it. Let me tell you that world does exist. In a normal work-for-pay system we do the work and someone pays us for it, it’s a give and take. However with passive income we don’t need to continuously work.
Passive income requires an upfront work effort then afterwards you can continuously reap the financial rewards with minimal additional efforts. Doesn’t that sound great? If you want to start earning more income, but don’t necessarily want to give up your day job and start a new business think about creating a passive income.
Here are four ways women can earn a passive income:
Invest in real estate
Becoming a landlord is a great way to continuously earn a passive income from month to month. Of course there’s always the financial risk of not renting out the space because whether you have income or not the mortgage is due every month.
If you want to invest in real estate you can rent out part of your own home (a room or a basement suite) or you can purchase a building (such as a duplex) that already has tenants.
Re-evaluate your investment portfolio
If you’re paying someone to manage your investments look over your last account statement and see how much you’re paying in fees. Each individual investment (like a mutual fund) has a management fee and then you’re also most likely paying your financial advisor to manage your entire portfolio. See if there are ways you can cut costs.
Investing in exchange traded funds (ETFs) and index mutual funds can help lower management fees. It’s also a good idea to talk to your financial advisor about their service fees and see if there’s a way you can save. After all, saving money is making money.
Take your skills online
If you have a set of skills why not share your expertise online. Pat Flynn is the creator of Smart Passive Income and after creating the blog he decided to start making money from it. In a recent interview with Laura Shin Pat talks about how he made his first dollar online.
“He decided to investigate how to turn his blog into something bigger, and so turned to Google Analytics to track visitors. What he saw floored him. ‘Little did I know it but this little website I created to help me pass this exam was generating thousands of visits a day,’ he says.”
Consider peer-to-peer lending
You’ve probably heard of peer to peer lending, it’s a good way to make a big return on your money and all you have to do is loan out your money. Peer to peer lending is part crowd-funding part venture capital firm. Websites such as LendingClub.com allow people to come and get loans from investors – that’s you.
As an investor you’ll loan out the money in exchange for a big return in the form of high interest rates. The person gets money and you get paid interest, it’s a win-win.
This article was written by Ginger Dean from Forbes and was legally licensed through the NewsCred publisher network.
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