Many people often look for ways to ensure financial stability. But, doing so can include taking extra jobs, cutting expenses from your life, and other options that can end up stretching you thin. As Warren Buffet famously says, “If you don’t find a way to make money while you sleep, you will work until you die.” That’s why passive income is such an appealing prospect.

Passive income is a steady flow of money that you earn on a regular basis from work that you have previously completed or that requires little daily effort from you. Having passive income is one of the top ways to build financial security and gain flexibility. In this article, we’ll share some of the best passive income strategies that can help you start earning money while you sleep!

The Best Passive Income Investments

There are a wide range of passive income strategies out there. Some methods involve a substantial amount of effort, time, and/or money to get started, but then require little work after. Other options may be easier to quickly jump into, but involve more regular attention and effort on a frequent basis. They each have their own pros and cons, so you’ll need to determine which strategy is best for you and your situation. We’ll focus on some of the best options, including how to make passive income online.

1.  Invest In The Stock Market

Investing in the stock market is a great passive income strategy—in addition to being a good financial tip in general —that doesn’t require much work. The first step is determining whether you want to invest in individual stocks or in a mutual fund. Individual stocks are shares of one, specific company, while mutual funds are small pieces of a variety of stocks.

One of the most important things about investing in the stock market is to diversify your portfolio, which usually makes mutual funds the preferred option since they include many different stocks already. 

You can either choose to open your own brokerage account (and choose a broker) or open a robo-advisor account that offers a more hands-off approach. Whichever method you choose, the key to success when investing in the stock market is to let stocks appreciate over the long term. Try not to get caught up in the day-to-day since some years will be up and some years will be down. Over a long period of time, prudent stock investment generally returns 10% annually.

2.  Buy Rental Properties

Another good passive income strategy is to buy or invest in rental properties. This can involve buying homes to rent out, renting apartment complexes, or investing in other real estate. Real estate is a great long-term investment because the value of property generally increases over time, with a national appreciation rate of 3.8% per year.

However, being a landlord and caring for all of your properties can require a lot of effort and time. That’s why most people who invest in real estate hire property managers who can care for the property and collect money from tenants for rent. Between paying property managers and the upfront cost of the property itself, buying rental properties can require a lot of money in the beginning before you start seeing earnings. But, just like with stocks, real estate investments can yield great returns in the long run.

You can also choose to go a simpler route by renting out a room in your house, your guest house, or any other property you currently own. Rental companies like Airbnb and VRBO have made it incredibly easy to earn money for your extra space. 

3.  Get Online

Once you have done the initial work for nearly any passive income strategy, you will mostly be able to earn money from afar with little daily effort. However, there are a wide variety of specific ways to make passive income online that you should consider if you’re looking for easy strategies that require little time or money to get started, but are willing to do a little more work on a regular basis. These options include:

• Starting a YouTube channel
• Becoming a blogger
• Selling things online
  • This includes things like digital products, stock photographs, handmade goods, designs like templates and logos, or even buying and selling entire websites
• Teaching online courses
• Recording audiobooks
• Writing an e-book
• Creating an app
• Making music
• Affiliate marketing

4.  Purchase UA Abundance Packages

Purchasing UA Abundance Packages is a creative passive income strategy that also gives back to those in need. UA Abundance Packages are similar to annuities—you pay a lump sum up front, then begin to receive payments in the future. But, UA Abundance Packages also offer additional benefits, like contributing funds to UA Legacy Grants to help individual grant recipients, charities, and more. 

Universal Achievers, the partner entity to UA Legacy Grants, makes this possible by combining multiple streams of income and distributing the funds, known as revenue shares, with variable payouts based on maturity. You can then use these funds as a way to create passive income, contribute to retirement supplementation and elder care, and more. At the same time, you are helping to charitably “give back” through your purchase by helping grant recipients receive funds as well.

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These are only a few of the many different passive income strategies out there, but they can help you get an idea of options that might work for you. Soon, you’ll be able to start making passive income and build a healthy, secure financial future. 

While it’s impossible to cover every piece of important information, the financial tips and advice in this article should help you get started on the path to a healthy financial future.

At UA Legacy Grants, our mission is to empower over 1 million individuals with the tools needed to increase financial literacy and the ability to create financial abundance for their families. Our UA Abundance Packages help individuals and organizations to reach their financial goals, like making college more affordable for students, through our Purchase With Purpose program.  Between grant donors and contributions from our “for profit” sister company, Universal Achievers, we are able to provide granted financial wellness packages to those in need. 

Find out how you can learn more about what we do or purchase your own UA Abundance Package today!