Everybody, young or old, should have their own passive income. Singapore, being one of the most expensive cities requires a lot of savings after one retires in order to live on.
If one plans out how to generate passive income correctly, at the right time, through a properly thought of strategy, it may even help you retire early. Passive income involves both products and services.
Some of us, having started their own passive income stream, end up having an actual start-up successfully.
The best way to create your own passive income is to make money online.
So you ask. “How to earn money online? Is it safe?” Yes, and no. Nothing is ever risk proof, but most of these are some of the safest ways you can earn passive income without much worry.
#1 Invest in Stocks and Shares
Being a circumspect investor in stocks and bonds can help you build a solid income that pays regularly even though it is known to have higher risks than most.
There are enough stories out there by the unwary thinking they can earn passive income through stocks and other high risk investments.
It is true that stocks and bonds will generate a yearly dividend yield for you, care must be taken lest your investments turn out to be wrong.
With investing in the stock market, there is also a learning curve to it. Learn some basic rules to find the best stocks to look out for and the ideal time to buy them.
Nonetheless, once you have figured out the essentials, you are good to go and all you have to do is wait for your payment and the next.
Others prefer slightly safer options through the buying of bonds. This is because bonds offer a higher degree of capital guarantee. This means you have a greater return rate with fewer worries.
Holders of bond rank at the top in comparison to stockholders; hence, profits of the company are first given to bondholders.
#2 Invest in a Business
You can either have a transaction of equity in which there is an exchange of money for ownership and profits or by debt; lending money for a business.
These two are the most commonly talked about in regard to investing in a business.
Equity investments mean that you are taking a part of the ownership, in terms of profit distribution. You are expected to supply values of capital with a trade-off of the business’s profits or even losses.
In debt investments, you basically loan money and getting interest-based income and principal repayment. The best and probably the biggest advantage of this is that this kind of investor is always privileged.
If the company would face failure, the debt investors are prioritized, even over equity investors. This is called the capitalization structure.
#3 Real Estate Investment
In spite of the uncertainty of the returns over the recent few years, property investing continues to be one of the most preferred means of investment for long-term great returns.
The reason is two-fold. You are assured to have a regular rental income from your property despite it being ‘passive.’ Sometimes, if you are in luck and you can afford to buy a fully furnished mid-luxury condominium, giving you better monthly income returns over an empty low-cost apartment.
However, if you do not want to manage it yourself, you can look into Real Estate Investment Trust (REIT). It is in their policy to pay 90% of taxable income as dividends to investors.
Investors get to have the benefits of tax advantages of direct ownership. Not to mention, one is free from the headache and endless responsibilities as a landlord.
#4 Start a Blog/ Affiliate Marketing
This is a more modern take on passive income.
Affiliate marketing is when a content creator whose media is consumed earns through a set percentage of commission by promoting other people’s products.
Simply put, you have a platform, a company has a product, they give it to you – you review and promote. The sales that are made through your link or platform, some part of those will be directed to your account.
This is definitely a good investment opportunity for those with a high followers count. It helps you grow through the exposure and network you get when you connect with a company or a brand.
#5 Rideshare Driving
Uber and Lyft have made rideshare driving services a mainstream passive income resource.
It has become a very successful business model with millions of riders getting a share of their own profit in the market. Based on a study, some Uber drivers are able to gain up to $2,000 with 30 hours in total of working hours a week.
If you can and are willing to drive people every Friday and Saturday night, specifically in major cities that are full of crowds and entertainment in those hours, you will make a fortune ferrying late-night revelers home.
#6 Drop-shipping Service
Drop-shipping a business of supply chain technique that does not require a retailer to keep any stock readily available. All orders from customers will be intermediated by the retailers directly to suppliers – and it will be delivered then.
Drop-shipping service opens up more job opportunities, especially to those who have to work from home or those who want to get a side income.
Being the mid-person on duty, you are to promote the products to make potential customers have a channel to get their inquiries answered and so on.
But all that you do is forward customer orders and details to the manufacturer, and they will be responsible for that.
#7 Transcription Service
Transcription itself is a great alternative to any content, what more when it becomes an income resource. Transcription is the repurposing of existing verbal content into the written form.
This allows for the content to reach an even bigger range of audiences.
As an example, the transcript of a business video seminar can be sold as a module. Hence, this is why a lot of business gurus say transcription service may come from your active income and provides a passive stream of steady earnings.
If you enjoy your read, don’t forget to share the article on your other platforms. With all that said, if you are in any circumstances needing immediate cash or financial help, you may visit Bugis Credit website – one of the most trustworthy moneylenders in Singapore.