On Passive Income
The term passive income is quite misleading. The idea that you could just sit back and watch the money come in sounds ideal, but might not be as straightforward as you think. True passive income comes from the idea that an individual has considerable spare resources, mainly money, that he or she can lend out against a return in income. It’s the traditional earning interest on capital model that has always been and still is the most authentic model of passive income.
That doesn’t mean, however, that if you lack the means (read: capital), passive income is out of reach for you. It really depends on which part of the phrase ‘passive income’ you put the most emphasis. If that’s the first part, then you might be out of luck. There is no such thing as passively earning money. However, if you focus on the latter part of ‘passive income,’ and treating it as a side-income or side-hustle, then there are plenty of options out there for you.
For those willing to put in the time and effort, there are always ways to earn something extra.
One of the first things to consider is the risk-appetite you have, and if you have any capital, you are willing to part with. End of the day, money gets money. So, either investing or speculating will get you the best returns, if you are willing to carry the risk. As always, never invest more than you are willing or can lose. A very recent area of speculating with massive growth (and also massive drops) is in cryptocurrency such as Bitcoin.
For those without the risk-appetite and/or capital, there is the side-gig. Perhaps the thing you do on a daily basis for a boss is something you might be able to do on your own. And that’s not to say that you should quit your job straight away and risk losing the steady income check. You could simply just offer your services on freelancer websites. Just make sure your employment contract allows you to be active in the same field as a freelancer.
There is always the option to spend your free time in the gig-economy. If you consider your free time as an asset wasted on frivolities when you could easily convert this time into money, then becoming a food delivery driver, an Uber driver, an ethical hacker, or a photographer could be an option for you. Be aware that pay can vary a lot, and it does require quite some work. Remember, it’s a second job next to your main job.
Maybe you have hidden creative talents that are just waiting to be shared with the world. A whole new industry of Instagram Influences, YouTube and Twitch streamers and a whole heap of so-called ‘creators’ are at the vibrant heart of the internet. Some of these manage to make an absolute killing from their efforts. It’s definitely not passive, it is as active as it comes, but when you do well, it will no longer be your side-gig, it will be the main event.