Back when I started this blog, I was drowning in debt, living paycheck to paycheck, and earning a low income.
I wondered how certain successful people could multiply their income in such a short amount of time, build successful businesses, retire early, and become millionaires next door. Then, I read an article online that stated how the average millionaire has 7 streams of income. Bingo.
I leaned that having one job would never help me really get to where I needed to go with my finances and my life.
So, I decided to start my pursuit of having 7 streams of income, with many being passive income streams.
Realizing You May Need More Money (& The Importance Of Passive Income Streams)
Your health and quality of life should always come first. There’s no argument about that. I understand how some people would rather take a pay cut to be happy and fulfilled in their lives than work a ton of hours. I can respect that.
However, I don’t think it’s realistic or fair to assume that everyone can live comfortably and meet their goals after cutting their pay.
If you’re making $120,000 per year at your job, then yes, you may be able to survive if you take a pay cut. But if you don’t earn $100,000+ annually or even close to that, you probably can’t afford to take a pay cut and may need to be earning more.
It’s important to consider establishing some additional streams of income, including passive income streams. Here’s why.
- Working two jobs or having a side hustle is great, but it can really burn you out over time.
- There’s only so much time in the day, so if you want to increase your income, you’ll need to think outside of the box (Ie. stop trading time for money)
- Passive income streams require a lot of time and effort to create, but you’ll be building something that lasts and brings in money when you’re not actively working.
So how do you start building passive income streams on a low budget? Below are some of my favorite ideas to help you get started.
Keep in mind the word ‘passive’ is subjective. Realistically, you will have to do some work upfront and perhaps even maintenance or ongoing work to ensure the success of your passive income stream.
1. Start a Blog
Blogs are very easy to monetize, but I wouldn’t say it’s particularly easy actually to start earning a regular profit. Full-time bloggers have put in countless hours working on their content, marketing it, building credibility, and securing partnerships with others.
To earn an income blogging, first, you need to have a decent amount of traffic. In order to get traffic, you need to post quality content that is not only interesting and engaging but actually helps your readers solve a problem.
You can earn money off your blog by:
- Posting ads through networks like Google Adsense, Media Net, the Blogger Network, etc.
- Referring your readers to try products and services that can actually help them through affiliate marketing – Michelle is a blogger who earns an average of $50,000 per month from affiliate marketing and it’s all legit. Check out her affiliate marketing course if you’re serious about earning more passive income with your blog or website.
- Partnering with brands you like and support to share sponsored content on your platform
- Selling your own products and services from your blog
Monetizing a blog can take a while, and it’s not ideal for someone who wants fast money.
But over time, it can start to become a passive source of extra income even if you aren’t earning much money at first.
It pays for the initial set-up fees I had to cover itself while leaving me with some extra profit too. My progress has clearly proved that you can monetize a blog even with little experience.
I’m still learning how to grow my blogging income, but why not learn with me and start your own blog to create content you’re passionate about on a platform that you can monetize?
My step-by-step tutorial guide will help walk you through how to start a professional blog that you can monetize in just minutes.
Related: Start a Money-Making Blog in 10 Days
2. Sell a Product on Etsy
Etsy is a great place to sell your handmade or custom creations and products. I do not doubt that some people make a full-time living selling on Etsy.
If you already have a job, though, you probably aren’t interested in working on Etsy full-time.
This is why you should consider creating or selling a product you can resell repeatedly with little maintenance. One of the easiest ways to do this is to sell printables on Etsy.
It’s easy to start, requires little to no equipment and supplies, and can be done right from home. While getting started might be slow, many people make a decent part-time (and even full-time) income creating printables!
3. Write an eBook
Writing an eBook is easier than ever these days. I’ve published one before, and I’m currently working on a new project right now.
Do you have any special credentials or interesting experiences to share? Can you explain a complex topic in a way that is easiest for others to understand?
Writing an ebook and sharing your unique knowledge, information, and resources with others is a great way to diversify your income without spending too much money upfront.
First, you need to find a topic that actually offers a solution to someone’s problem. You need to make sure your content is valuable enough that it will prompt others actually to spend money to receive it.
You could also take this a step further and self-publish novels or fiction works. If you really enjoy writing and want to be an author, there are so many free and paid resources out there that can help you get started!
Just be sure you’re in the right mindset and can focus on writing books during your free time.
4. Start Freelancing
Freelancing is one of my favorite ways to diversify your income. I wouldn’t have been able to make as much progress with my financial goals if I hadn’t started freelance writing as an additional stream of income.
It didn’t cost much to start earning money, either. I basically started this blog and got a coach to help prepare me to pitch my services to clients. I made back my initial investment in weeks and now I write for about 13+ different websites. In reality, that’s 13 different streams of income!
With freelancing, you may need to put in more time and effort than these other opportunities I mentioned.
But you can put the extra money to good use by saving or investing it to build wealth.
Plus, you can control how often you work and who you work with as a freelancer. And, to make it a little easier, I’ve included some sites that pay and are looking for freelance writers!
5. Sell Photos Online
If you don’t like to write, there are plenty of other things you can do online and it all depends on what you’re interested in.
For example, I have a friend who loves photography as a hobby but he recently landed a gig taking photos at a local horse racing track.
Freelance photographers can also sell their photos online for cash to earn money as well. And the best part about selling photos online is that you can do it as stock photography and earn passive income. Talk about one of the easiest passive income streams, especially if it’s something you love to do!
6. Dividend Investing
Yes, you can even set up investing as one of your passive income streams. What better way to prepare for your future while getting paid right now? Dividend investing is when you invest in a stock that issues dividends to you on a regular basis.
One of the ways that you can start doing this (without a lot of money) is to set up a robo-advisor. Betterment is my favorite because there isn’t a minimum, fees are extremely low, and you can start seeing growth with just a few dollars a month. While it may not seem much right away, it adds up!
You don’t have to spend thousands on real estate to start earning money from it. If you have a spare room or space that isn’t getting much use, you can start renting it out through a site like Airbnb.
Not only does this mean income in your pocket, but it can also help you pay off your home faster, or at the very least, make use of space you wouldn’t use otherwise.
Learn How to Start a Money-Making Blog in 10 Days
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