Ways to Earn Passive Income Without Any Investment

Ways to Earn Passive Income Without Any Investment
As we all know, passive income is the holy grail of income sources. After all, it’s a great way to supplement your active income without having to put in any additional hours after the initial set up period. Typically, passive income sources tend to be from investments, like rental properties, real estate investment trusts or dividends from the stock market and mutual funds. However, these outlets often require a considerable amount of upfront investment.  
Don’t worry though, dividend stocks are not the only way to generate passive income. The internet has made it incredibly easy to generate passive income with little to no upfront investment. In this article, we’ll explore some passive income ideas that can help you achieve your financial goals without breaking the bank.

Active vs. passive income

Before we delve into the income opportunities, it’s important to understand the difference between active and passive income. Active income requires a direct, repeated effort, such as your full-time job, or a side hustle.  If you don’t go to work or do your side hustle, you won’t generate any amount of money, which is what makes them forms of active income.
A passive income strategy is when you generate recurring, monthly income without having to do much work outside of the initial setup window. Despite what people say, few income sources are truly passive, as with any “passive” income source, there is bound to be some amount of time and effort spent in the beginning to set things up.  This work you do upfront is similar to the initial investment you would put into a stock portfolio or a real estate property. 
In the next few sections, we’ll go through some of the most proven ways to generate steady cash flow for yourself and your family.  

Affiliate marketing

Affiliate marketing is practically as old as ecommerce itself. For decades, businesses have been paying commissions to people who promote and sell their products for them through word of mouth or other means.  While affiliate marketing was a well kept secret for quite some time, it’s incredibly popular today and an easy way to make money online.
It’s particularly easy for beginners to do, as you really only need your cell phone, a social media account, and an Amazon Associates account to get started.  All you have to do is find something that you love and talk about it or show it off to your followers, urging them to buy the product through your link.
Don’t want to be in front of the camera? No problem! You can also do affiliate marketing through other channels, such as a blog. If you’re good at SEO, you can assemble a blog, talk about things that you want to promote, and put your affiliate links in your blog post!  You can even use programs like Canva, to create high-quality promotional graphics for your blog if you want.

Creating and selling digital products

Another simple way to build wealth without any upfront investment is by creating digital products and selling them.  What’s great about digital products is they don’t take up any space in your house, you can reproduce them infinitely, and they cost practically nothing to create. Additionally, there are platforms like Etsy, Amazon, and Udemy that allow you to sell your digital products, so you don’t even have to set up a website.
Some common digital products that people create are templates, ebooks, online courses, and planners. However, these aren’t the only things you can sell as digital products. The sky is the limit! The unbounded nature of selling digital products makes doing so a great way to make money for creatives like graphic designers. However, you will need to remain committed to your online business and have the discipline to show up everyday.

Renting out a spare room or parking space

Gone are the days when you had to put a 20% down payment on a rental property in order to generate rental income. Nowadays, platforms like Airbnb make it easier than ever to generate extra money through short-term rentals. Each and every day, millions of people look for spare rooms or entire homes to stay in while they’re out of town. Listing your spare room is quick, easy, and requires little ongoing maintenance, aside from a little cleaning when your guest leaves. Don’t have a spare room? You can always rent out a parking space that you’re not using if you live in a major city where parking is a problem.

Start a YouTube channel or podcast

Starting a YouTube channel or podcast is a great, low-cost way to generate passive income. On YouTube, you can create content around topics that you’re passionate about, and get paid when people watch your videos. As your channel grows, you can further monetize it through the use of things like sponsorship and affiliate links. Although many may not consider YouTube to be a truly “passive” income source, it’s certainly incredibly scalable, and easy to pick up!

A warning about passive income

When you’re looking for in-depth guides on how to start businesses like the ones we listed above, you’re very likely to come across someone who sells a course that teaches you “everything you need to know.”  It’s important to be wary of these people, as oftentimes, these people provide information that could be found on a blog, like this one, or a YouTube channel.  
Before purchasing any courses, do some research and see what people are saying about the courses on places like Reddit to determine whether or not they’re worth it.  After all, you don’t want to become the source of someone else’s passive income stream while you’re searching for your own source.
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The bottom line

Creating a source of passive income is a great way to earn extra cash, and work toward financial freedom.  However, it’s important to remember that building up a passive income source takes time and diversification is the key. You more than likely won’t be an overnight success, but that’s okay. What’s important is that, whatever you decide to do, you work at it each and every day. While passive income may sound great, there’s a good bit of upfront work that goes into generating it. 

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