Residual income is an innovative way to make extra money that does not require working a traditional 9-to-5 job. With a few different strategies in play, you could make money over time that could either supplement your paycheck or be your main source of income. If you’re ready to dive into the world of residual income and looking for the best ideas to get started, this article will provide you with the top income strategies you can use at any stage in life.
What is Residual Income?
Before you jump onto any of these ideas, you may be wondering what exactly is residual income? Residual income is money that is earned on an ongoing basis – usually from investments or work you do once, but continue to collect profits. You’re not actively working for money, but instead, you’re garnering it from something you’ve done before. Any residual income requires you to make an upfront investment of your time, money, or energy. Once you finish making that initial investment, you could start to cash in on residual income.
Residual income is a cornerstone for many of the financial goals that you may want to accomplish, such as creating a passive income stream, diversifying your income and preparing for retirement. While setting up residual income may seem daunting, it’s something that anyone can do – regardless of how much money they may have or whatever stage they’re in life.
The Best Residual Income Ideas You Can Try at Any Stage
Now that we’ve established what residual income is and why it’s important, here are the best residual income ideas you can try at any stage in life.
Rent Out a Room or Your Home
One of the easiest ways to start getting into residual income is to rent out a room or property you own. Your rental property doesn’t have to be a large apartment or vacation home. You can rent out just one room in your home and make money off it every single month. Platforms like Airbnb, VRBO and other vacation rental websites are great places to start advertising your property – it’s convenient, easy to access and gives you lots of options to create extra cash.
Invest in Dividend-Paying Stocks
Investing in stocks and bonds has long been a cornerstone of residual income, but with the innovative digital tools available nowadays, it’s even more accessible for newer investors to get in and start getting returns. Dividend-paying stocks are especially great for beginner investors as companies will give investors a portion of their profits every single quarter.
Create an eBook
If you have a special set of skills or expertise that others may be looking for, you can monetize that and create an eBook. You don’t even have to be a writer to get into the eBook game. Platforms like Acrobat, Kindle, and Apple Books make it easy to upload your book and start selling it.
Design and Sell Products or Crafts
One of the oldest ways to create residual income has been through selling products or crafts. Even though traditional methods may take a lot of effort, websites such as Etsy, eBay, and Amazon make it way simpler to list and track your sales. Crafting customized items or products is also a great way to differentiate your item from other competitors in your space.
Become a Digital Nomad
The digital age has created a whole host of opportunities to make money online. With the proliferation of online work, many professionals are able to switch from the traditional 9-to-5 to working remotely, making it easier for them to travel the world and earn money from anywhere. Whether it’s through blogging, freelance writing, software development, or creating courses, being a digital nomad can be a lucrative way for you to create residual income.
Buy Real Estate
Investing in real estate has long been considered a great way to make long-lasting residual income. The core of this method is the same as any other property renting venture, with the caveat that you purchase these properties – usually a home or an apartment – and rent it out. The rent money you make needs to cover the mortgage, property taxes, insurance and other costs, with the remainder of money being pure profit.
Open up a Storefront
While it may seem counterintuitive, opening up a store with physical items you sell can make you quite a bit of residual income. You’ll need to make an upfront investment of time and money to create your store, but you already have an advantage – shoppers can come to your store to purchase chances, instead of relying on a third party platform like Amazon. Plus, depending on the merchandise you carry or the services you offer, you may be able to have customers subscribe to have your items shipped directly to them.
There you have it! If you’re looking to make residual income, you have plenty of options to choose from. Whether you’re a digital nomad looking to monetize their travels, or a first-time investor looking to dive into the stock market, residual income can be a great way to make extra cash without putting too much strain on you.
No matter which idea you go for, it’s important to remember that residual income requires an upfront investment in order to start making real money. So before you jump onto any of these ideas, make sure that you have done your research and created a timeline for when you want to start seeing returns. Then, you’ll be ready to start earning residual income and create the financial future that you’ve always dreamed of!