You may have heard about the importance of earning passive income as a young professional. But what exactly does it mean? Basically, passive income is a source of consistent cash flow that requires minimal time and energy. In short, making money while you sleep.
A full-time job does not count as passive income because you have to put in the hours to get paid, neither does your side hustle. For something to count as extra income, it has to earn you money without you losing time.
Usually, all you need to start generating income is your first investment. This could be in form of time, effort or money.
Why You Need Passive Income
Having a full-time job is great, and you certainly need that salary to survive. However, if you want to get ahead faster, creating an income stream is a must. This allows you to bring in more money while you focus on other things.
Quick Ideas to Earn Passive Income
1. Start a blog – If you think a blog can’t turn into a source of passive income, think again. While it requires a major first investment of time (sometimes, money), your blog can gain traction over time and generate money via paid sponsorships, advertising and partner promotions.
2. Invest in stocks – Your money isn’t doing you any favours sitting in your regular savings account. If you intend to make your money work for you, investing in stocks is necessary. There are plenty of services that allow you invest a little at a time.
3. Create and sell digital products – You can create digital products, i.e. online courses, eBooks etc if you have specialized knowledge from your day job. Your first investment will be great however, a valuable resource will serve as a source of passive income for years