The idea of sitting at home and having to work little to make money―otherwise known as passive income―is an idea which has caught on rather well. But while the term 'passive income' may be a recent one, the idea of rolling back and watching your money work for you is an old one.
When you make money with minimum fuss and effort, the income generated is known as passive income. Making money without working sounds like a Utopian and improbable deal to the unacquainted, but yes, with some sound investments and study of the best sources, money will soon be chasing you, rather than it being the other way round.
Passive Income Strategies
Now, like I said, the term is new, but the ideas are pretty old. Investments are great if you put the money in the right place. Then all you have to do is sit back and watch the green of the dollar, roll into your coffers in copious amounts, no less. Here are some ideas to help you generate passive income.
You can only be so passive when it comes to shares. The stock market is a dynamic entity, and you'll have to put in some work in figuring out which shares to buy and when to sell them. Or you could just outsource the whole problem to a broker or a fund manager, who'll manage your shares admirably well, for a small fee. The disadvantage of holding shares is that while a broker may admirably manage your funds, the stock exchange is too volatile to not command your attention, so you'll probably worry yourself too much with this investment.
If you have a lot of money lying around, then home buying is possibly one of the best passive income investments. Real estate hit rock bottom a couple of years ago, but is expected to pick up. And it looks like you could pick up some sterling property, at the best rates today and then lease it out. The advantage here is that you will have a continuous passive income stream. The disadvantage here is that you need to be a lot less passive to find a lessee, who will cause little trouble and pay up on time.
Set Up a Business
Setting up a business is anything but passive, but should you set up a business model and then get the right people to manage it, you will have a continuous cash inflow. All you have to do is to hold the shares of the company and operate as a sleeping partner of the company. Hiring the right management staff will take care of the rest and ensure that the business runs enough profits to keep you going.
This one is a comparatively new business model. Generating quality Internet content for reputed websites can often be remunerative and requires very little effort. You could also start blogging and then by attracting enough traffic to your website, you could hook yourself up with the Google AdSense program which will bring in the moolah. But then again, this is pretty creative work and will generate enough passive income, only if it is of really good quality.