5 Passive Income Ideas For 2021
June 2, 2021
What are some passive income ideas for 2021?
- Rent out real estate
- Affiliate marketing
- Peer to peer lending (P2P)
- Sell digital products
- Start and monetize your blog
Passive income is money you earn that does not require you to do work actively to make it. In essence, you can do most of the work upfront and do additional labor along the way to earn an income. The best passive income ideas for 2021 are great options for people who want to generate extra cash flow and the economic crisis largely caused by the COVID-19 pandemic is a testament to the immense value of having multiple streams of income.
With the pandemic throwing day-to-day jobs into disarray, passive income offers to create stability and security for personal finances. Since passive income lets you earn money even as you pursue your primary job, it helps you minimize financial troubles if you suddenly become unemployed or if you decide to take time away from work. If you are worried about being able to save to meet your retirement goals, building wealth through passive income might be an appealing option as well. Undoubtedly, successful business entrepreneurs also built their wealth through passive income at some point in their entrepreneurial journey.
Continue reading to learn more about some passive income ideas for 2021.
Rent Out Real Estate
Renting out real estate is one of the most popular and oldest forms of generating passive income. It can be a challenging experience and require a large initial investment. However, if you’ve got the money, then renting out real estate is a high-earning and stable option.
To minimize your risk, make sure you determine how much rental income you expect from your property and what costs are involved such as taxes, mortgage, insurance, late rental payments, and damages. You should also consider the location of your property and whether you have potential tenants in the area.
Depending on your financial goals and the amount of effort you want to put in, you have numerous options for real estate investments to choose from. Passive income can come from short-term rentals or long-term rentals.
Thanks to developments in technology, most passive income ideas for 2021 are found on the internet, with one of the best examples being affiliate marketing. Today, Instagram, Youtube, and TikTok have become popular platforms for those looking to earn from affiliate marketing.
With affiliate marketing, website owners, bloggers, or social media influencers promote a third party’s product by including a link to the product on their platform. The opportunity is when a visitor clicks on the link and makes a purchase from the third-party affiliate, you earn a commission. You don’t have to put in additional effort to create your own products or brand, instead, you can sell other products.
If you are just starting with affiliate marketing, you will have to take time to create content and build traffic. Nonetheless, if you can grow your digital following and cater to a more niche market such as financial services or software, you may be able to generate more income.
Peer To Peer Lending (P2P)
Peer-to-peer lending, also known as P2P lending, refers to personal loans made between you and a borrower without an official financial institution participating as an intermediary in the deal. It cuts the middleman and is generally done through online platforms that match lenders with potential borrowers.
With P2P lending, you can earn income through interest payments made on the loans. However, it carries high credit risks. To cut the risk, you can meticulously analyze the risk profile and historical data of the borrower to make informed decisions. You can also diversify your lending portfolio by investing smaller amounts over multiple loans.
Sell Digital Products
Selling digital products is another great way to earn passive income for 2021. Since there is no physical inventory and shipping involved, the income becomes passive after some time.
You can sell digital products such as templates, mobile apps, audio tracks, professional stock photos, and generate royalties for them. In the age of technology, more and more people are turning to online courses that they can do in their homes. This means people are willing to pay for knowledge and you can sell online courses for your line of expertise.
Start and Monetize Your Blog
Starting a blog can generate passive income this 2021. The key here is to provide people with answers to their problems and add value. Then, monetize your content by selling or advertising products and services.
Blogging can be challenging, but if you have the skill for writing and SEO, it could pay off. It is not entirely passive as well, as they require to create content, but you can earn full-time earnings by working part-time.
There are many different passive income ideas for 2021. It is also always recommended to build a passive income at some point in any entrepreneurial journey to protect and grow your finances. Take your cue from the most successful business entrepreneurs in the Philippines who expanded their wealth portfolio through passive income.
If you’re wondering how to create passive income, the first step is to gain education on the type of investments. You’ll need to turn to a professional mentor who really knows the business industry. Fortunately for you, Benito Keh has the expertise to get you started. Learn more from one of the country’s best entrepreneurs by contacting him here.