4 Ways to Grow Your Income in 2022
Wouldn’t it be great if we could make income in our sleep? Better known as earning passive income, this topic seems to be a typical fascination.
Experts agree that earning passive income can help earners generate extra cash flow, whether that is having a great side hustle or piecing together income to make a bit more money each month.
Whether you are hoping to make passive income to stack money during financial good times or to tide you over when you lose your job, earning passive income is great when your income situation is up or down.
When you earn passive income, there will always be money coming in even as you are completing the duties of your day job.
You might even be earning so much passive income that you can ease up on working at your primary job.
Having this access to extra income can mean that you will feel a bit more security in your finances – especially as you think forward to attaining your retirement goals.
Create an Online Course
One of the ways to collect passive income is to generate an audio or video course.
Creating this sort of content will allow you to sit back and watch as the income from your online product begins to roll in.
The kinds of courses we refer to are distributed and sold through websites such as Skillshare, Coursera, and Udemy.
If you are unsure about working with one of these platforms, another alternative might be to first begin with a “freemium model.” This entails generating free content and then charging the interested clientele for having access to more detailed information.
An example includes language teachers who initially provide free content to demonstrate the level of their expertise and then, after attracting an audience, can begin charging money for the information they provide.
Experts agree that these online courses can provide creators with an excellent income stream because the money begins pouring in after the initial product creation and marketing process.
Experts also advise creating more than one product – rather than generating one and hoping that only that product is the one that pulls in large income numbers.
Another great way to increase your passive income is by writing an e-book. Not only will you maximize the benefit of the low cost of publishing, but you will also be able to leverage the worldwide distribution of organizations like Amazon.
Unlike paper books, e-books are fairly short – that is, in the ballpark of 30-50 pages – and they are also cheap to create by comparison.
To create your e-book, you will first need to be an expert in a particular or niche topic.
This is where you can flex your special skills or abilities for an audience of readers interested in what you have to share.
After generating the page content, you can easily design the other attributes of the book, such as the book’s cover, and then set the price and test-market it.
Like online courses, the more books you create, the more the value and passive income pour in. In addition to the books themselves, increasing the number of books can help you drive additional online traffic to other online offerings such as music, video courses, a website, or workshops.
Another great way to earn passive income is by investing in rental properties. In addition to purchasing the property, you will also need to spend a significant amount of time learning how to make this process a profitable venture; otherwise, you risk losing your investment.
Before earning passive income in this way, you must first determine: how much return you want on the investment, what the property’s total costs and expenses will be, and what the financial risks of owning the property will be as well. You will also want to consider whether there is a market for your property.
In addition, you may at some point need to problem solve. For example, what if you get a tenant who pays late or damages the property, or if you cannot pay the rent for the property at any point?
In these instances, you will need to consider a strategy to avoid incurring a massive dent in your potential to earn passive income.
And what about the challenge of economic downturns or rising or declining real estate markets?
These can also pose challenges. And so, before you make such a big decision, you may want to weigh these risks and generate contingency plans to protect yourself.
You can position your rental property as a vacation rental investment in an area that attracts tourists to maximize the potential of it getting booked by people looking for temporary living quarters.
Real Estate Investment Trusts (REITs)
Another way to add passive income to your future is to have a REIT, a real estate investment trust.
This term refers to when a company with a special legal structure owns and manages real estate and pays little or no corporate income tax if they forward most of their income to shareholders.
Like any other company or dividend stock, REITs can be purchased on the stock market, and you can pick the good REITs (by analyzing each of the businesses you are interested in buying). However, they are riskier (given that prices fluctuate in the short term) than owning an ETF consisting of dozens of REIT stocks.