You might currently be holding a full time job and drawing a stable monthly salary. But what if you are able to earn passive income without actually having to forsake your full time job?
Passive income is the money you earn without requiring a lot of your personal touch, involvement or input. You just build something and it works for you and generates income without demanding your real-time presence.
This type of business requires minimal effort to maintain the revenue flow, thus granting one the flexibility or free time to concentrate on other matters. Thanks to steady progress in technology, one can now start earning extra cash. Here are some brilliant passive income ideas.
In Singapore, those who seek to earn passive income usually do it for some of the following reasons:
- It gives a good accumulation of wealth which can be used during retirement: Many Singaporeans struggle with financial difficulty during their retirement years. The money received on pension is rarely enough, therefore, earning some passive income over the productive years becomes very useful during sunset years.
- Can go a very long way in helping to pay off debts: This is can a great relief, especially where there are default fees being charged. The passive income will help to reduce the pressure that comes with debt repayments and also help to improve the credit rating of the borrower.
- Generating a passive income is a way of growing financially: It is actually one route to financial stability in the long run. Many Singaporeans would love to reach a state where they have enough financial investments to actually retire early. Having a passive income can provide this opportunity.
There are some popular ways of earning a passive income in Singapore. 14 of these ways are given below:
1. Start A Blog
One of the best known routes to earning passive income is through blogging. At first, there will be little or no income, but with time, the money starts flowing in. Although it may sound easy, starting a blog requires excellent planning. You will first need to pick one area of interest. Some of the most lucrative markets include dating and relationships, finance, diet, fitness and travelling. A successful blog requires that you pick a certain niche within the market, and stick to it.
The niche is a subdivision that you specialize in. If you are into travelling, a niche can be about travel attire or travel equipment. In finance, you can specialise in savings or on making money online. Remember to regularly update your blog with unique, engaging, informative and well-written content. With time, you will get a strong reader base, and businesses will pay you to advertise their products and services on your blog.
2. Get Into Affiliate Marketing
If you are looking for ways to make a steady stream of money in autopilot mode, affiliate marketing is a sure bet. Here, you need to first create a sizeable following whether through social media or using a website. You then partner with a company and recommend their products to your followers. When anyone visits your website and hits the link of the product, you earn a commission that you agreed with the company. When the person makes a purchase, you also receive a certain percentage. Ensure that the product you are marketing is popular or profitable and test it to ensure that it lives up to its promises. This will help you gain the trust of your audience.
3. Peer-To-Peer Lending
P2P lending is one smart way to earn some extra cash. When it comes to loans, banks have many rules which one must pass to qualify for one. Unfortunately, not everyone qualifies for a traditional bank loan. This is where the opening is. Today, there are peer to peer lending platforms that enable one to lend out money and get a high interest of between 4-10%. This is way higher than what banks give you when you save your money there. With a P2P platform, you can invest with just a small amount of money. For success in this venture, always remember to check out the details on the profile of the person whom you are lending money to. This way, you will be repaid on time and avoid losing money.
4. Rent Your Stuff
You probably have a lot of items lying around your home that you rarely or never use. Whether it’s a musical instrument, camera, carpentry tool, bicycle, or garden equipment, there is someone near you who would pay to use your item. We are living in times where the sharing economy has emerged, and people are earning money by renting items that they own. Instead of letting your valuables gather dust in the garage, look for a platform that specifically deals with renting stuff.
5. Rent That Extra Space
Maintaining a home is not an easy feat. It takes time, energy and money. Did you know that you can make money out of your home or apartment? If you have an extra room, you can rent it. Just be careful to vet the person whom you rent it out to. Only choose a tenant whom you can get along easily and who is capable of paying the rent. Someone touring the city for a while may also be in need of space, and may prefer living in a home rather than a hotel room. This way, you will not only earn some extra money, but you will also spend less time cleaning up all the rooms.
6. Write An E-book
Back in the days, writing a book required one to have finances and the right connections. Now we are living in the era of digital technology, and writing your own book doesn’t have so many hurdles. The internet now provides everyone with the chance to put their idea across and reach a wide audience through self-publishing. For it to be a rewarding venture, first conduct thorough research on what you want to write about, know your target audience and be original. When you publish, market your book through the various social media platforms and other channels. The more you market the book, the more its demand will increase, and this means more money. What a great way to earn passive income while doing what you love!
7. Invest In Stocks and Bonds
Today anyone can make money by buying stocks and bonds. There are many companies available today where you can buy these. All you need to do is perform extensive research before deciding on where to invest. Unlike other investments where you need a lot of cash to start, you can now find stocks that go for less money. Slowly, you can increase the amount of money you are investing. By choosing the right stocks, you can sit back and watch your money grow steadily.
8. Get Into Drop Shipping
Drop shipping is an excellent passive income generating business. It involves creating a website, choosing an area of interest and marketing products from a certain manufacturer. When a client makes an order, buy the item from the manufacturer and have them ship it directly to the customer. This way, you will get to rake in tidy profits without dealing with the costs and logistics of transportation or handling inventory. Before starting out, you will first need to assess what products are in demand, then secure a dependable supplier. From there, embark on an online marketing campaign.
9. Make YouTube Videos
Making videos and uploading them on YouTube can help you generate passive income. To be successful, you need a large viewer and subscriber base. One can gain this by creating videos that are interesting and informative. You need to choose what audience to engage. The youth are the best choice as they are more digital savvy, and are thus more likely to watch. With a large audience, you will start earning through the ads that appear when a viewer watches.
10. Build A Mobile App
Every app you use on your phone generates money for someone. If you have talent in programming, why not build a mobile app? Whether you build an app that solves a problem or a game, a good application can be a great stream of income. Once you are done building it, put it on App Store or Google Play store and start earning every time it gets downloaded.
11. License Your Photographs
If you own a camera and you have an eye for taking spectacular photos, you may be sitting on a gold mine. There are multiple online sites where you can send those pictures and start earning every time the image is downloaded. Whether you like to photograph people, plants, animals, buildings or cars, someone may find the images useful. The more images you post, the more your revenue will likely increase.
Having a passive income is the dream of many people. Today, there are multiple ways in which you can earn money without having to toil all day. However, it is important to understand that passive income requires one to properly plan and invest a significant amount of time during the early stages of the business. In the beginning, the returns may be minimal, but with patience, you will start making a pretty sum. Whether you are in school or employed, starting your passive income business today will help you attain financial independence.
12. Investment In Real Estate
Investing in real estate is one way of earning some extra income. It should be noted that this particular source of income will require plenty of patience.
You will first need to source for the initial capital to purchase the property. This could easily be a very costly affair. However, the property should be put up for rent immediately so as to generate sufficient funds to cover the repayments required for the initial capital as well as generate a profit.
There will be other costs incurred such as agent fees and maintenance costs of the property. The rental income should be sufficient to cover all costs as well as give a surplus which can accumulate as a passive income.
These are policies where the insurance company pays the policy holder a regular fixed amount during retirement years. For the income to be substantial, it is advisable that the policy be maintained consistently for several years.
Those who choose this type of investment in their youth usually enjoy the benefit of having a regular income in their old age.
14. Lending On A Peer-To-Peer Basis
There are many small businesses or startups in Singapore that are not eligible to get credit from banks or any other financial institutions. Those who lend funds to these businesses tend to make a passive income from the interest that they charge.
It should be noted that there is a risk involved because it is difficult to determine the credibility of these borrowers. The fact that they are unable to borrow from banks means they are high risk. You to do a thorough background check before extending credit to any client. The interest charged on this type of credit is normally higher than that of banks, therefore, if this lending is done with the necessary caution, it can be a good source of passive income.
Having a passive income is a great way to achieve financial growth and stability. Thinking of earning passive income to achieve your long-term goals? You can begin with the above 14 points!