Six Ways to Make Passive Income With No Money:

If you are truly looking for a great way to get ahead in this life, then you need to start looking at passive income streams. These are a means of creating positive income that don’t take any work (or at least minimal work) to maintain. Creating these forms of income usually requires one of two things, either money time. This list forgoes the former and instead focuses solely on things you can do to earn passive income with no money.

You might be surprised to hear there are a lot of ways to do this, so don’t think this list is entirely comprehensive, though these methods are tried and true. So if you’re looking to get started down the road to financial freedom, then read on.

It’s nice just being able to call yourself an author.

Write a Book

This is a perfect example of getting passive income without putting any money in it, the right way. You put in a lot of work up front, and if you set things up correctly you can reap royalties for years. Now there are some special precautions I would recommend when self-publishing a book, but it’s still one of the best sources of passive income out there. The only problem with writing books is that it takes maybe a bit too much effort up front before you start to get paid. And then if you want to try and go with traditional publishing you are going to have to get an agent, which can take months or even years.

Now that’s not to say that traditional publishing has lost its place, but if you are just starting out, then it may be better to self-publish a couple of e-books for a quicker turn around on your labours.

Also note, that just because the book is done, that doesn’t mean that you are. Doing this effectively means that you are going to have to put in some elbow grease to market it correctly. Contacting a few bloggers, and getting them to review it is a good way of doing this. Understand though, a lot of people do this, so it may take some convincing to get it into their hands.

Write a Blog

Starting a blog is one of the best ways to make passive income with no money. And the good news is that pretty much anyone can get on board. Even if you don’t have a dollar, you can sign up to create a free page one WordPress.com. Although if you were to go this route, and have somewhere around 20 dollars a month you can drop on this, then I would actually recommend getting yourself your own domain name and hosting, as you would eventually do better in google search ratings.

One tricky part about this is figuring out what to write your blog about. There are literally millions of topics out there which you can cover, and some are more profitable than others. I wouldn’t recommend writing something just for the money involved though. Good blogs that get high traffic tend to come from someone who is particularly passionate about what they are writing.

As for return of investment? Well that’s up to you. The more time you put in to making unique and engaging content, the more you are going to get out of it. Though as a general rule of thumb, it takes somewhere around six months for blogs to start seeing some results. Although you can speed that up by learning how to write articles faster. It’s actually estimated that blogs which get over 15 posts a month perform exponentially better. So it’s worth taking the time to learn how to do it right.

You are also going to want to sign up for some form of affiliate program, like google adsense or Amazon’s affiliate program.

Chances are you are if you want to get serious in this, then you are going to take your time to learn about SEO (Search Engine Optimization). It can make a drastic difference between a successful blog, and one that never seems to pick up steam.

Start an Online Store

If you’re looking to make passive income with no money, then there are few better ways than to start an online store. Starting an online store is pretty similar to creating a blog, as far as getting the website set up, but you are also going to want to create a shopping system on your site. If you’re handy with coding then you can do this for free, but here’s another time where a minimal investment can save you a lot of time in the long run. Shopify is very simple way to get up and running in a very short period of time, and I highly recommend it.

Although, if you are savvy enough to run a blog to increase traffic to a online store, then you may want to take a look at this tutorial on how to integrate your shopify store directly into your WordPress page.

But wait! What about products to sell in the store? You don’t have much unless you have those. Well not to worry, there are plenty of free drop shipping companies out there. These companies will allow you to sign up and sell products from their catalog at a higher price. And the best part is you don’t even have to handle any inventory. Just send the order information their way, and the items will be shipped straight to the address you specify. The only real downside is that the profit margins on this kind of business are really slim, so you may have to get creative in what you are selling to avoid competition.

It could be you with some time and talent!

Write and Sell Music

Can you pick a tune, belt a chorus, or even synthesize music? Well then you might be surprised at just how easy it is to start selling it online. You can sign up to begin selling music on Amazon in just a few minutes. Other platforms are a little tricky to get started on though. iTunes for example doesn’t allow just anybody to publish their music with them, but there are a few companies that can help you out.

You might want to take a moment to think about how you are going to market it though. I have never heard of someone buying a song that haven’t heard before, and you are going to want to take note of that. If you want to make a name for yourself in the music industry there is only one way to do it, get your song in front of as many people as possible for free. A great way to do this is to sign up for Soundcloud. Even though you don’t make any money from them directly, you can use this and Youtube to get some attention to you work. Then it’s just a matter of redirecting them to the stuff you have for sale!

Designing Products

If you’re handy with some graphic software, and have a flair for design, then you might be happily surprised that this is on the list of ways to make passive income with no money. It’s as simple as making some catchy t-shirt designs. Websites like SpreadShirt and CafePress both allow users to create their own designs, mark up the prices, and keep the profits. No shipping, no handling, and no payment processing, just design and collect.

It’s a pretty good system if you can market it correctly. Getting your wares in front of people is going to be the toughest bit though. If you, or a friend, has an over active social media profile then you may want to share your designs through that network, and see if you can pick up a few sales that way.

YouTube

The last source of passive income on this list is perhaps all too obvious. I think it would be a stretch to find someone who doesn’t know that you can make money from YouTube. But nevertheless, it’s a great way to make some extra income if you can make quality videos. Though chances are you think you need some greed to start, right? Well you don’t. There are YouTubers who have over a hundred thousand subscirbers and only use their phones’ cameras. So don’t go thinking you need to drop a couple thousand dollars to start. This truly is a great way to make passive income without money.

You are probably going to want to make something that is evergreen, and it will definitely need to add value to your customer’s lives. What does that mean you ask?

How to add value in a Youtube video:

  • Make it entertaining
  • Make it informative
  • Be charming
  • Show people how to do something
  • Share a piece of art

To put it simply, it has to be something people actually want to watch. If you can do that, then you can start to gain traffic.

Bonus: You can use YouTube to help advertise all of the other methods on this list, and make money on your advertising. If you wrote a book, then do an interview about it. Wrote a song? Put it up on YouTube to collect profits from people listening. Include it in blog posts, and talk about products you are selling. So long as you can keep it entertaining, you should be able to monetize both of them effectively.

Passive Income Streams – The Master Key to Wealth Creation and Financial Freedom?

One of the keys to getting rich and creating wealth is to understand the different ways in which income can be generated. It’s often said that the lower and middle-class work for money whilst the rich have money work for them. The key to wealth creation lies within this simple statement.

Imagine, rather than you working for money , you make the British Pound Sterling work for you 40 hrs a week. Better still, imagine each and every British Pound Sterling working for you 24/7 i.e. 168 hrs/week. Figuring out the best ways you can make money work for you is an important step on the road to wealth creation.

Incomes can be categorized into three broad types: active (earned) income, passive income, and portfolio income. Any money you ever make (other than maybe winning the lottery or receiving an inheritance) will fall into one of these income categories. In order to understand how to become rich and create wealth it’s vital that you know how to generate multiple streams of passive income.

Crossing the Chasm

Passive income is income generated from a trade or business, which does not require the earner to participate. It is often investment income (i.e. income that is not obtained through working) but not exclusively. The central tenet of this type of income is that it can expect to continue whether you continue working or not. As you near retirement you are most definitely seeking to replace earned income with passive, unearned income. The secret to wealth creation earlier on in life is passive income; positive cash-flow generated by assets that you control or own.

One of the reasons people find it difficult to make the leap from earned income to more passive sources of income is that the entire education system is actually pretty much designed to teach us to do a job and hence rely largely on earned income. This works for governments as this kind of income generates large volumes of tax but will not work for you if you’re focus is on how to become rich and wealth building. However, to become rich and create wealth you will be required to cross the chasm from relying on earned income only.

Real Estate & Business – Sources of Passive Income

The passive type of income is not dependent on your time. It is dependent on the asset and the management of that asset. Passive income requires leveraging of other people’s time and money. For example, you could purchase a rental property for £100,000 using a 30% down-payment and borrow 70% from the bank. Assuming this property generates a 6% Net Yield (Gross Yield minus all Operational Costs such as insurance, maintenance, property taxes, management fees etc.) you would generate a net rental yield of £6,000/annum or £500/month. Now, subtract the cost of the mortgage repayments of say £300/month from this and we arrive at a net rental income of £200 from this. This is £200 passive income you didn’t have to trade your time for.

Business can be a source of passive income. Many entrepreneurs start out in business with the idea of starting a business so as to sell their stake for some millions in say 5 years’ time. This dream will only become a reality if you, the entrepreneur, can make yourself replaceable so that the business’s future income generation is not dependent on you. If you can do this than in a way you have created a source of passive income. For a business, to become a true source of passive income it requires the right kind of systems and the right kind of people (other than you) operating those systems.

Finally, since passive income generating assets are usually actively controlled by you the owner (e.g. a rental property or a business), you have a say in the day-to-day operations of the asset which can positively impact the level of income generated.

Passive Income – A Misnomer?

In some way, passive income is a misnomer as there is nothing truly passive about being responsible for a group of assets generating income. Whether it’s a property portfolio or a business you own and control, it is rarely if ever truly passive. It will require you to be involved at some level in the management of the asset. However, it’s passive in the sense that it does not require your day-to-day direct involvement (or at least it shouldn’t anyway!)

To become wealthy, consider building leveraged/passive income by growing the size and level of your network instead of simply growing your skills/expertise. So-called smart folks may spend their time collecting diplomas and certificates but wealthy folk spend their time collecting business cards and building relationships!

Residual Income = A Form of Passive Income

Residual Income is a form of passive income. The terms Passive Income and Residual Income are often used interchangeably; however, there is a subtle yet important difference between the two. It is income that is generated from time to time from work done once i.e. recurring payments that you receive long after the initial product/sale is made. Residual income is usually in specific amounts and paid at regular intervals. Some example of residual income include but not limited to the underlisted: –

– Royalties/earnings from the publishing of a book.

– Renewal commissions on financial products paid to a financial advisor.

– Rentals from a property letting.

– Revenue generated in multi-level marketing networks.

Use of Other People’s Resources and Money

Use of Other People’s Resources and Other People’s Money are key ingredient required to generate passive income. Other People’s Money buys you time (a key limiting factor of earned income in wealth creation). In a sense, use of other people’s resources gives you back your time. When it comes to raising capital, businesses that generate passive income usually attracts the largest amount of other People’s Money. This is because it is generally possible to closely approximate the return (or at least the risk) you can expect from passive investments and so banks etc., will often fund passive investment opportunities. A good business plan backed by strong management will usually attract angel investors or venture capital money. And real estate can often be acquired with a small down payment (20% or less in some cases) with the majority of the money borrowed from a bank typically.

Tax Benefits of Passive Income

Passive income investments often allow for the most favorable tax treatment if structured correctly. For example, corporations can use their profits to invest in other passive investments (real estate, for example), and avail of tax deductions in the process. And real estate can be “traded” for larger real estate, with taxes deferred indefinitely. The tax paid on passive income will vary based on the individual’s personal tax bracket and corporate structures utilized. However, for the purposes of illustration we could say that an average of 20% effective tax on passive investments would be a reasonable assumption.

In summary:

For good reason, passive income is often considered to be the holy grail of investing, and the key to long-term wealth creation and wealth protection. The major benefit of passive income is that it is a recurring income, typically generated month after month without a great deal of effort by you. Building wealth and becoming rich shouldn’t be about extracting every last bit of your own energy, your own resources and your own money as there is always a limit to the extent you can do this. Tapping into the effective generation and use of passive income is a critical step on the road to wealth creation. Begin this part of your wealth creation journey as early as is humanly possible i.e. now!

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