One of our deepest desires in life is to be able to sleep well while earning a lot of money. This may seem impossible to some, but with technology and knowledge, anything is possible. Passive income is the key to generating income streams and extra cash flows while enjoying a relaxing spa treatment. Because not everyone has access to the highest-paying jobs in the Philippines, it may be useful for you to be knowledgeable with passive income ideas to help you survive the consequences of the country’s economic collapse, particularly inflation.
Consider the Following Ideas as your Next Source of Passive Income:
What is Passive Income?
Passive income refers to the concept of “making money work for you.” It is money earned through activities in which you have no active or direct involvement; These could be investments you’ve made to earn money or work you’ve done in the past that continues to pay dividends even now. Now it is important to understand the difference between active and passive income. Whereas Passive Income are earnings which requires little to none of your most valuable resources nor time. While Active Income are earnings from self-employment or materially participating in a business and receiving compensation are two other types of active income.
The main goal of having a passive income as a source of earning is that it can save you much of your time while you are at your employment where you earn active income. Many people are drawn to passive income streams and would like to have it as their primary source of income; however, the main benefit of passive income is also its main disadvantage – the lack of flexibility. You have little to no control over your earnings with passive income. Moreover, Passive income is a long-term investment that necessitates short-term sacrifices. If you’re willing to devote your time and resources to the following passive income ideas outlined below, you could be earning easily for years to come.
Deposit Cash with High-Yield Interests
High-yield savings accounts are a type of federally insured deposit account that aims to earn significantly higher interest rates than the national average. To qualify as a high-interest savings account, they must pay more than 20-25 times the national average of a standard savings account which is subject to rate caps.
Since the introduction of digital-only banks, a new formal category of banks approved by the Bangko Sentral ng Pilipinas (BSP), and the relaxation of interstate lending regulations in the last decade or so, financial institutions have competed for your deposits. As a result, many financial institutions have developed high-yield savings accounts to entice you to deposit your money in their vault.
Currently, many online-only banks have been established in the Philippines, offering higher interest rates than traditional banks. Tonik, Overseas Filipino Bank, and UnionDigital of UnionBank Corp. are among them.
Write a Book or e-Book
Is one of your abilities involves the ability to communicate through writing? If you have an excellent understanding of grammar, spelling, and punctuation, then writing a book or an e-Book is one of the best passive income ideas for you.
For the traditional way of selling books, it is important to understand how royalties work. A book royalty is the amount paid to an author by a publisher in exchange for the right to publish their book. Royalties are based on the number of books sold in which the majority of publishers base royalties on the retail price of the book.
Even though creating and publishing an ebook requires effort, it is a much easier digital product to create than writing a traditional physical book. You may even have the majority of the content in your blog post articles, which can serve as the foundation for an ebook. Furthermore, selling ebooks necessitates the use of a reliable platform. There are numerous publishing and distribution options, both large and small.
In addition, aside from selling their book, authors can earn money in a variety of ways. They can give presentations, find new clients, consult, launch a product, become a coach, or develop their personal brand.
Rent-out Real Estate Properties
As we return to the old ways, most schools, universities, and offices are reverting to face-to-face settings. In line with this, another passive income idea arises as the demand for rental properties will undoubtedly rise as people seek to avoid the hassles of traffic and to have a residence close by for convenience. Nowadays, people often buy condominium units and then rent them out for a profit, some uses the earnings to pay off the monthly mortgage. Furthermore, you’ve probably heard of AirBnB, a website that allows property owners to rent out units for a set period of time.
Read Also: How To Make Passive Income in Real Estate? | Affordable House and Lot | Bria Homes
Invest in Stocks and Dividends
As of today, this is one of the risky passive income idea as the Philippine Stock Exchange index (PSEi) indicates a bearish market meaning all the stock prices are falling, but for stock experts these are the moments to best invest and start your stock investing journey as it will soon rise and remember that passive income streams should have a long term outlook and requires sacrifices, so if you have extra money it is suggested to invest it
One of the advantages in investing in a public company is to earn from dividends. As public companies generate profits, a portion of those profits are siphoned off and distributed to shareholders in the form of dividends. Dividend yields can vary significantly from one company to the next, as well as year to year. If you’re not sure which dividend-paying stocks to buy, look for those that have a dividend aristocrat status, which means the company has at least a 25-year track record of paying out substantial dividends.
Invest in Crypto-Currency
As technology opens up new avenues for passive income, a market other than the stock exchange has emerged. It may be difficult to grasp, but cryptocurrency is certainly rewarding to those who do. There are two common ways to earn money with cryptocurrency: mining and staking.
In crypto mining, you lend your computer’s processing power to earn these cryptocurrencies such as Bitcoin and Altcoins. You are essentially compensated in cryptocurrency for your efforts, which you then store in a digital wallet for sending and receiving. On the other hand, in staking the so called “blockchains” are databases where transactions are stored with no central authority that maintains them. Proof of Stake is a way to validate transactions by committing cryptocurrency assets in a blockchain network.
Learn Affiliate Marketing
Affiliate marketing is when an online retailer pays you a commission for referral traffic or sales. It’s essentially traditional advertising done in a less intrusive manner. Rather than using visual advertisements to promote a product on your website. Furthermore, affiliate networks are companies that connect merchants and affiliate marketers in order for both to earn more money. Affiliate marketers use affiliate networks to help them choose which products to promote on their website.
Read Also: A Simple Guide to Affiliate Marketing in the Philippines | Affordable House and Lot | Bria Homes