Passive income is a great thing to have. A regular income outside of employment really sets the mind at ease.
But how do you get passive income, and are there ways to sustain it? This information is not intended as any form of financial advice, so please be aware of risk and consult a financial advisor.
Some types of passive income include:
- Interest income
- Dividend income
- Royalties from writing or other endeavors
- Pension income
- Revenue from your content to which people subscribe
Passive income can be a wonderful aspiration for your finances, but it can come with risk. Stocks that have dividends can be great, but there is a risk in equities because companies can go out of favor and stock prices can fluctuate and lose value.
Interest income from banks can be a great passive income that is likely safe. However, the current interest rate environment is not great in terms of yearly interest on savings.
Are you looking for passive income in the wrong places? Every person has a different risk tolerance so your level may indicate a need to be more on the safe side and less on the risky side.
Here are some ideas for passive income:
- If you enjoy writing, seek out companies that pay writers for their work. It is a wonderful thing to have a great article or story that generates revenue every month.
- If you are an artist, consider companies that pay for work over time or that have royalties available.
- Some people create lessons or videos and create a teaching platform. Seek out companies that offer income to content creators who do this work and ask about the revenue payments for the work that is done.
- Lastly, others are moving to companies where fans pay to view photo and video content by the performer.
If you are unsure what is right for you and your family when it comes to investments and the pursuit of passive income, make sure you do your research and homework before making any big decisions. You may also consider talking to a financial expert or financial professional.