Earning money while you sleep; doesn’t this sound like a dream come true? Before the days of the internet, earning passive income was easier said than done. There were not as many opportunities available and even if you succeeded, your residual income wouldn’t be as huge and substantial as it can be today. These days, if you are interested in earning some additional income, but without wanting to invest a lot of time and energy, you can find a horde of options available online. You just need to decide the one that works for you. If you are wondering about the best sources of passive income, some of them are mentioned here:
1. Experiment with index funds
These are a kind of mutual funds that give you the opportunity of investing in the stock market passively. An index fund is good for earning residual income as you can invest in the general market without worrying about rebalancing your portfolio, choosing investments and knowing when to buy and sell. The fund will handle all these tasks as the portfolio base will be made up of the underlying index.
2. Buy high dividend stocks
Regular residual income can be created at an annual rate by investing in high dividend stocks. This rate is comparatively higher than what you would earn through bank investments. In addition, as high dividend stocks are stocks, there is also the possibility of benefitting from capital gains. This allows you to earn a residual income through two sources; dividends and capital appreciation.
3. Real estate investments
This kind of income is usually classified as semi-passive income as it requires a little extra effort, but has the potential of providing you with high returns. Investment in real estate is a bit of an active venture. However, once you have established and fully rented a property, you just need to manage it to ensure it keeps on performing well. Furthermore, you can also hire property managers to handle the tasks for you and you can simply enjoy the returns without investing your time.
4. Create YouTube videos
This venture is growing rapidly as you have the freedom of creating videos in different categories such as opinions, tutorials, music, movie reviews and comedy. You can upload these videos to YouTube and then sign up for Google AdSense that ads automatic ads to your videos. Every time someone clicks on these ads, you will be able to earn some money. The only requirement is that you make compelling videos that will attract plenty of viewers and lead to more and more clicks.
5. Become a referral source
In order to maintain sales, every business needs to have a referral source. Think about a list of businesses you trust and you can recommend without reservation and contact them to see if they have any cash referral offers available. You can refer these businesses to people on the internet and get paid for each referral.
These are some excellent sources of earning a residual income that can benefit you in the long term.