Achieving financial security and freedom with your money really is all about focusing on moving from exchanging your time for money to PASSIVE INCOMES in whatever form they can take.
This is one of the fundemental mindset changes that really will open up your life to more freedom and choices over how you spend your days, allowing you to also try new opportunities and life paths as they come along too.
Understanding why Passive incomes (ways to receive money in the background instead of receiving it as paid for your time) is due to the fact your time is more valuable than money. There is no way around that fact.
Unlike money, which can be earned, saved, spent, invested, we can never get our time back once spent each day and the greatest turning point in your financial path ahead will be when you develop those passive income sources outside of your normal day job.
With passive income, you make money while you sleep essentially as they do not require you (in most part) to turn up or be present to receive a form of income from them.
** DISCLAIMER – my blog and youtube channel are for information purposes only, and do not act as financial advice for every individual. Before changing any financial habit or investing, please ensure you are completely comfortable with your choices – it’s YOUR MONEY after all!
Passive incomes and become a form of investor with your resources to create incomes this way are a key component of a well-known Money Principle called the Cash Flow Quadrant.
Creating a Passive income will may require some time and effort initially to set up the process, but often the small amount of time to create or start the income is a one-time effort with minimal maintenance required long term.
Most of the world lives with the mindset that you must work in order to produce an income, and with a limited amount of time each day to do that – our total possible income is fixed.
Without any more hours in the day, you simply cannot make any more money!
I want us to be smarter than the norm and by creating multiple sources of income in general allow us to become less reliant on our main income source (our job and career usually) and diversify taking away alot of potential pain and risk from unemployment in the future.
I am excited to share with you my favourite passive income sources that I have personally tried and tested and use in some ways still in my own life.
Small amounts added up regularly can make a difference and quickly become part of your household income regularly each month.
Passive Income Idea #1 – Investing
It goes without saying but on my blog and Youtube Channel my hope and passion is that everyone understands how easy and simple it is to start investing in the Stocks and Shares market in a tax efficient way to gain passive income every month.
This is one of the basic principles that I believe everyone can apply, even if you only choose this as your only form of Passive income outside of your job, and really requires little to no input of your time once you have a plan set up.
Investing in a low-cost index or mutual funds allows you to own a part of many hundreds of generally the top performing companies in the world and then as they use your money to make profits, they return back some of those profits to you.
Of course with investments there is a level of risk, however by spending time understanding how to minimise those risks as best as we can – we can ensure that year on year using Investments as part of a income source long term (10+years at least) we will continue to see a higher return for our money deposited.
It works with the power of time and compound interest, our amount total saved in for example an Investment ISA (a tax efficient way to save up to £20k per person per year currently) gains interest in the form of the change in the fund pricing from when we bought it to the current date.
You can find out more about Investing and even how to set up your own Investment Account using Vanguard on this blog too!
Passive Income #2 – Start a Blog or Youtube Channel in your spare time
A great place to start when looking to create a fun passive income is to start a blog or Youtube channel.
It would be wrong for me to miss out on this side hustle idea given that I took up this very advice a few years ago, and now enjoy making a form of passive income myself from sharing knowledge and information about money and success lifestyle strategies.
To turn this into a passive income source, you would need to look for ways to monetize your content for example with either Youtube or Blog uploads you create, if you receive enough people watching and enjoying your creations – then advertisers will start to want to have their adverts mentioned on your website or before your videos show on Youtube.
This then allows you to receive a small portion of that ad revenue as a form of income and if you manage to create content that is highly sought after and “evergreen” (content that doesn’t age with time but people are still searching for) then quickly pieces of information you create once can then provide you with an income for the long term.
It is not uncommon of course for people to find within a few years of creating content online that this income equals or replaces their full time income in comparison, if the niche and topics you pick are sought after and your content is engaging.
To start with this idea, all it takes is your time and efforts – blogging can be completely free of charge using such sites as WordPress to create a blog and uploading to Youtube is free all you need is a phone with a camera and off you go!
This is one passive income that doesn’t require any investment outside of the time to create content that you are passion about and people will enjoy.
A great fun passive income to try for anyone in their spare time! Why not give it a go!
Passive Income #3 – Create and sell Ebooks on Amazon
You might also have noticed that recently I turned my hand to publishing my first book “The Master Money Blueprint” and I can testify that absolutely anyone can create E-books (and paper copies) with a little bit of work and effort for passive income.
With the rise of Digital readers being so popular, everyone is seeking for the next great book to read and enjoy and there is no reason why that book cannot be written and published by you in your spare time.
Intially of course for this income we need to come up with a concept, write the book and then ideally have it in either Word or EPub format which may take you approximately 1-3 months to complete in your spare time.
However, the process of then self-publishing couldn’t be simplier!
You would simply use Amazon Kindle Self-Publishing tools online, as one example, to upload your manuscript and away you go!
The tools even allow you to create your front cover if you wish to provide a paperback copy of your book to readers.
Every month then if you are selling copies of your book in whatever format, Amazon will send to you your royalities in the background from books sold.
You do not need to get involved in any form of the printed/storing of books/shipping and therefore so simple to start to create books on any topic or story you desire.
Passive Income # 4 – Affiliate Marketing
Without realising, often the products and companies we enjoy regular are looking for loyal customers to promote their items to others, and even offer them a reward in return to both parties for making the suggestion and creating a new customer.
Think for example about your energy supplier, or pension, or even your favourite Cash back site – all of these usually have a “Refer a Friend” or simliar marketing strategy where if you provide your friends and family with a unique website link tracking you as the referrer, you will receive some form of income if the new customer signs up to their product.
A great place to mention this to friends and family is to create a list of your favourite products in the form of Blog post or email signature at the bottom of every email you send, so that you are making use of communications with people you love to share products you love as well.
Sometimes the affiliate referrals can be worth a sizeable amount very quickly, so always make sure to check out if the products and services you are using allow for some benefit for referring others that you could use as a form of passive income.
Passive Income # 5 – Become an Amazon Associate
Similar to using “Refer a Friend” marketing from your favourite products and services, we cannot over look Amazon as an easy way to set up a similar “favourite products” list for our friends and family to view and potentially order from.
Particularly important if you have any form of website, content online or business in general, Amazon is quickly becoming the main online provider for most of our home purchases and anyone can apply to become an Amazon Associate to gain unique referral URLS for the products we love from Amazon to share with others.
Every time someone clicks on your unique links and buys anything (absolutely anything not just the product you recommended), Amazon will give you a very small portion of the profits and cost of the total basket ordered.
Although the amounts can be small this could quickly add up over the weeks and month, to form a fantastic passive income source for anyone who uses Amazon regularly for household, personal and even business items.
They even allow you to create your own landing page on Amazon (like a Store front) where you can catagoise your favourite items, very much like having your own website but custom built with Amazon products you use and enjoy.
A passive income very much where you “shop and add to basket” once and then you can allow it to create income for you as you recommend others to check out your favourite items.
Passive Income # 6 – Dropshipping or Amazon FBA
If you are looking for a side business idea that very quickly could be become passive income every month, then drop shipping or Fulfilled-by-Amazon could be a great place to start.
Drop shipping is the term given to a business idea where you would use a third party to produce and ship the entire product you have created to your customer, removing you from the physical creation of the item or handling returns/exchanges.
A great way to think of this would be with a Tshirt or garmet designing service where you would take time to create digital copies of your printing for the items, upload to a drop-shipper (such as Inkthreadable in the UK) who would then select the garmet, print your logo as per your image and ship to customer.
There would of couse be charges for using such a service that you would need to include in your final price to customer, but outside of the intial product creation and some basic customer marketing to direct eyes to your site – this would be a business where you can sell and ship out products you created without much interaction from you at all and easily during weeknights or weeknds.
Amazon FBA is another route like this where you would source your items to sell on Amazon from a third party, market and create your information on Amazon and then ship directly to Amazon warehouse to store for you.
Everytime someone purchases your item from Amazon, they would ship to customer directly and handle any returns as well internally, removing you from the customer feedback circle.
A slightly harder passive income to set up, requiring perhaps a little initial investment if selling third party products or at least some time and effort to ensure you have products to sell in the first place – but this is a known income source where people can very quickly make a lot of money if they find a product in demand for the right price.
Passive Income #7 – Cash back cards and rewards
Never overlook good old cash back on your purchases as a form of passive income, although technically you do have to spend money in order to generate it!
Many banks and credit cards offer spending cash backs on certain purchases or debits you make, such as utility bills or travel, and those small amounts of cash back can add up over the months.
I also love using cashback sites such as TopCashBack and such comparison sites where we can receive money back from making our required purchases online and over the course of the year, this could add up to a good few hundred pounds very quickly if you use it smartly to maximise cash back on your household items and spending.
Why not have a go yourself at one of these?
There are many more Passive Incomes ideas out there, but hopefully these will inspire you to try a few and see what extra money you could bring into your household on autopilot in the coming months.
With the internet making it much easier than every to have additional sources of income outside of our day job, it makes sense to give a few of these mentioned a go at least and you never know what you could create in a matter of months with some effort and time intiailly.
Not enough money left over each month or barely enough to last you post the few few weeks?
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