Today I’m going to break down some different passive income sources that you can implement to generate some extra income monthly, hopefully to help some people out
I kind of wish that I saw a blog like this last year or two years ago, because then I would have a better understanding of how possible it is to actually earn passive income.
I generally try to avoid using the word passive income because I think it’s kind of a buzzword kind of a catch word that a lot of people use without fully understanding what it actually is because I feel as though there’s kind of this misconception that people view passive income as just like money falling from the sky, and just growing on trees.
but realistically, being pragmatic, that’s not how passive income really works and that’s why some people don’t talk to lightly about passive income because I think there definitely that disconnect with people when they think about passive income.
It’s not just money falling from the sky. It’s not just totally free money, you’re doing something upfront to then reap the rewards of that work, or that investment later on down the road.
So that’s what I want to kind of clear up in this post I’m going to show you some of the different sources that you can be generating that are primarily passive income sources, we’re not talking about anything that you might be doing actively, but I want to break this down for you.
Before we get started if you’re new here to this blog make sure you subscribe to the blog for more posts like this one.
I try to help people make money, save money and just build financial freedom and create financial freedom for themselves because I think that’s something that schools don’t really touch on very often actually almost never, especially in high school I don’t think I’ve learned anything about personal finance.
I don’t know why they forced math and English and science on you without even touching personal finance which is kind of the root of a lot of people’s issues throughout life, financial stress can really cause a lot of issues so hopefully this post can help you out a little bit.
This post is really just to show you what’s possible and kind of show that having passive income is possible. It’s not easy to achieve but if you can achieve it, it definitely is nice to have so I really do wish somebody made a post like this two years ago and I read it two years ago because I think it would be helpful.
so for you people out there who would find this to be helpful. Good luck, and stick along hopefully this can help you out a little bit.
So, the first real source of passive income that I encourage others to look into is YouTube ad revenue.
My kind of personal philosophy behind YouTube is to try to provide value and not really follow the money so much, and hopefully I’ll be more obvious that that’s the way that I’m going because if I was trying to squeeze money out of people I think I would probably be selling like thousand dollar online courses and just being sponsored and trying to just squeeze as much money out of this as possible that’s not really the route that I like to take this is not really who I am, and hopefully that shows.
So a lot of Youtube ad revenue is fairly passive but the whole idea behind this passive income is like you’re putting something up front and that’s the misconception that people have that’s a disconnect, where they think it’s free money, but realistically, they’re either putting time up front, which is what I did with some of these posts, or you’re putting money up front sometimes there’s a third option as well but you’re either putting time or money up front to then reap the rewards of that work or that money input later on down the road.
So you really have to have an input to then get an output later, unless like your grandma’s giving you checks every month in the mail or something but other than that you’re going to have to put something up front, and then get a reward later, so that’s what I did with this blog and if you make a Youtube Channel I encourage you to do the same. and it does feel fairly passive.
The next source of revenue actually comes from Amazon Associates.
if you’re not familiar with it, we’re not going to go too in depth because I think a lot of people do know how affiliate marketing works. But if you don’t, essentially, If I were to promote products on blogs or youtube videos for example and then people will click on a link to one of my favorite books down in the description. And then if you buy something, through that link, I get a few percent commission, like it’s a very low commission, but it’s kind of strength and numbers strength im views, and especially when you’re reviewing products.
Product Review channels can be really really popular and can generate a lot of cash because if you get like 10,000 views on a product review video, and you’re really persuasive about a certain product, you can make thousands of dollars from like 10,000 views and I’m being serious with that.
Moving on to the third. You can do a couple things that can get you passive income from so one of them is dividend payments. so stocks paid dividends if you’re not familiar with that essentially, a lot of different stocks will pay you a certain percent like three or four or 5% of as a total value of your stock for owning that company stock.
You know if you buy Pepsi stock you might get a couple percent interest on that stock over the course of a year, and you also get probably over the long run growth in that stock as well so that’s something that I’ve gotten into when I was young and I’ve been building up over time and I will continue to build it up and kind of eventually. Hopefully the goal is that eventually you have enough in investments, where you can live off of that and that’s why people who get rich stay rich because they have so much money that they’re getting these dividend payments or interest or things from these investments that they’re able to never lose value in their money and they’re able to live off of those interest payments or those dividends to never lose money and actually gain money in the long run.
That’s why the rich stay rich and hopefully that’s where I can get to eventually where I can build that up enough where I can live off of those investments and that’s very passive as an income source.
But, like I said, you’re putting money up front to then reap the rewards of it later. That’s something you want to keep in mind with just about every passive income source.
If you don’t wanna get into stocks than I think everyone should take advantage of just putting some cash in a savings account that’s offering a decently high interest rate compared to the rest of the bank.
so look, if you have an emergency fund I think everyone should have an emergency fund or a little bit wary of the stock market, and you have some cash and like a bank account that’s not earning any interest.
I would consider putting it into something like a savings account like ones that are offered by markets like Goldman Sachs which has 2.25% interest over the course of the year, as of now let’s see the interest rate that they’re offering, it’ll probably climb eventually in the future.
But 2.25% interest might not sound like a lot of money and maybe it’s not but if you say have $20,000 in that account, 2.25, that’s about like $450 dollars per year, give or take a little bit in over the course of a month it’s probably about almost $38 it’s like 37.50, per month. That’s like 37.50 per month in free money passive income from having money in a bank account.
Look, if you don’t have $20,000 put into that account, even if you had $5,000 at 2.25% interest, you’re still making almost hundred dollars per year in just, in interest rates so that’s something that I would consider dealing for everybody, just as an easy passive income source. You don’t have to think about it very much just park your cash in there and just generate some money over time.
So another source of income for bloggers actually comes from promoting certain products. so generally speaking, I don’t like to follow the money too much I’d rather just kind of try to create valuable content and then the money follows later.
But if for example there are some products like investment products that a blogger will use personally, and because they are using them because they like them. They will decide to promote them and get affiliate commissions from some of those.
Now I would say out of the maybe like 15 or 20 different popular investing assets out there. You could only really promote four because those are the ones you really like. if you promote them and people click on the link you might get like 20 or $30 every time somebody signs up. I think if you follow the money too much. You can harm yourself and obviously to people who read your posts .With that being said to make passive income You have to put energy into it. The biggest tip I would say is work smarter and not harder I think if you put your head down and grind for too much without actually thinking about the big picture, sometimes it can hurt. In the long run, that’s just kind of my philosophy behind this but thanks for reading this post. Any questions, comments, leave down below. I’ll get back to you as soon as possible, and I’ll see everybody next time.