Top 5 Passive Income Ideas that will Earn you Real Money

What is passive income

First of all, what is passive income?

Passive income is income that you earn whether you work on it or not. As opposed to a traditional job, when you are not working, you have no salary. While passive income let’s you earn money even you’re sick, on vacation or simply just not working. These are sources of money that earns money on themselves. Sounds like a dream right?

If you’ve search for how to earn passive income, many articles will pop up like “101 ways how to earn passive income”, “89 ways to make money while you sleep” etc.

Many of the ideas discuss on those articles are simply not doable or actionable for everyone. Because they involve some sort of expertise on a given field or simply not just for everyone. Examples of those passive income ideas are:

“Develop an app or software”“Be a movie star and make movies”“Earn royalties on books, music etc.”“Buy a business”“Be a NBA player and sell shoes”“And so on and so on…”

While not all of these may seem not impossible at all, these are sources of passive income that you cannot simply start right now.

But here in this post, I will show you the 5 passive income sources that anyone can begin right now.

Photo credits: listenmoneymatters.com

Top 5 passive income ideas in the Philippines ( in no particular order)

#1 Investing in the stock market

There are two ways on how you can earn money in the stock market:

1. Through dividends ( this are the income payment by the company to owners of stocks)
2. Capital appreciation (when you sell your stock for more than what you paid for it)

Investing in the stock market is probably the most legit way on how to grow your money. Anyone can do it. You don’t need to have a degree in business and finance to begin investing in the stock market. You don’t need to read charts and graphs. Anyone can invest in the stock market.

In the old days, investing is just for the rich, now investing is more affordable, you can begin investing in the stock market for only P1,000.

This blog is primarily designed to help you invest in the stock market. If you want to learn  more about investing in the stock market, browse thearticles in this blog.

#2 Putting up a business

The most common way how many rich people becomes wealthy is by putting up a business. Business can earn you passive income also. Some small business requires your presence. But in some businesses, you can just hire employees to do the work for you. Here are some  business ideas that will earn you passive income:

– Selling goods . If you have capital, you can put up a store that sells shoes, clothes etc.or anything that you are interested in.  Buy some inventory and hire employees to run your store. You can also just put up an online store.

-Selling your services. Are you expert at something? You can also share your expertise and help while at the same time earning money. You can sell online courses or ebook online.

“Did you know that the movie The Martian was based on a self publish ebook the originally you can buy in amazon for $1”

–Food business. Do you have a good location where there are a lot of people? You can put up a food cart that sells tuhog tuhog like fishball, kikiam etc. In the food business your key is having a good location where there are a lot of people.

Based on a True Story:

May isang magkaklase nung high school ang nagkita after 10 years. Ang isa ay naging teacher at ang isa ay naging fishball vendor.

Teacher: Manong 5pisong fishball nga.
Fishball vendor: Pre, kamusta na?
Teacher: Uy ikaw pala pre! Eto pre, teacher na! Ikaw Kamusta na?
Fishball vendor: Eto pre, simpleng fishball
Vendor. Buti ka pa pre!
Teacher: Dapat kasi pre nag aral ka!
Fishball vendor: Oo nga pre eh.
Teacher: Eh di sana pre, 18k/month din kita mo.Magkano ba kita mo dyan pre?
Fishball vendor: 1,500 per day pre. May dalawa pa akong cart at may tagabenta ako.Iba pa yung kinikita ko dun.

Magkasakit man ako, at di makapagbenta, may kita parin ako… Nakabili narin ako ng lupa pre dahil sa pagbebentang fishball. Plano ko magpatayo ng apartment.

Teacher: (Speechless)

Credits: Power Pinoys Facebook Page

-Franchise. There are also businesses that already have brand who you can partner with by franchising them. But it’s not that easy because you need to put up a big amount of money for the capital and to find a good location for it to be profitable.

There are a lot of types and kind of businesses that can earn you passive income ranging from small business like sari sari store to building billion dollar companies like Microsoft, Google, Amazon etc.

Among these 5 passive income sources in this blog post, putting up a business is the hardest among them and requires the most effort. Because of that it also has the highest potential for profits.

#3 Blogging and Vlogging

It’s no more a secret that there are people with only a laptop on hand lives around the world while making money online through their blogs. It sounds like everyone’s dream. Living on your own terms, quitting your job and sharing what you love (like travel vlogs)

What is the difference between blogging and vlogging?

Blogging is a written piece of content like this one you’re reading while Vlogging is a video blog, sharing what you do or what you know or something entertaining through videos.

Here are some of the top 10 earning blogs

• Huffington Post – $14,000,000 per month
• Endgadget – $5,500,000 per month
• Moz – $4,250,000 per month
• TechCrunch – $2,500,000 per month
• Mashable – $2,000,000 per month
• CopyBlogger – $1,000,000 per month
• Perez Hilton – $575,000 per month
• Gizmodo – $325,000 per month
• Smashing Magazine – £250,000 per month
• Tuts+ – $175,000

Source: targetinternet.com

This are the most successful blogs that earn ridiculously big amounts of money. You don’t need to be as successful as them to start earning through blogging.

How to earn money by blogging

There are many ways how you can earn money blogging. Here are some of them:
1. By displaying advertisements on your website
2. Affiliate marketing
3. By selling courses or ebooks

If you’d like to know more about how to start a blog, check out this 5 part blogging tutorial by thinkpesos.

#4 renting out a house

If you have a second home that you own. You can rent it out. Nowadays it’s easily to find renters because  you can just post it online and easily find tenants, specially if your property is located in a neighborhood near to a workplace. 

Some people also preferred real estate as an investment rather than paper assets like stocks. This is simply because a piece of real estate like land or a home has physical ownership.

And last but not the least is…..

#5 Investing in yourself

Yup that’s right investing in yourself can generate you passive income.

How? 

Well if you invest in surgical procedures to look like the next Tom Cruise or Angelina Jolie, you can make movies and television shows and earn money from royalties.

Kidding aside, I’m talking about investing in yourself in a way that you gain knowledge and learn new things. To gain knowledge or learn new things, you don’t need to go back in school. The world is an open source of knowledge. There are a lot of great books and great authors that are within the tip of your fingertips by searching the internet.

Another way of  investing in yourself is just continue doing what you’re good like writing,singing dancing acting playing sports etc.

While investing in yourself will not result to an immediate passive income, it will pay of in the long term not just with money but with other things that has greater value than money.

Conclusion of passive income ideas

Having many sources of passive income is something that everyone would want, because it sounds like easy money. But in fact, it’s not that easy to have a passive source of income overnight. It takes time and hard work.

Are you willing?