Discover the Best Passive Income Ideas for 2021
Updated: Jan 7
If you don’t find a way to make money while you sleep, you will work until you die. -Warren Buffett.
What is the first thing that pops into your mind when you hear the term passive income? Do you picture yourself earning money while sitting on the beach? Or do you consider it a passing trend?
For many people, the idea of earning passive income is shrouded in mystery. Luckily, there is plenty of information (including this blog post) to help you learn how to make passive income.
As 2020 comes to an end, you will probably review your financial achievements and create new financial goals. If one of your goals is to make extra money, then you are in luck.
In this blog post, Honeygain seeks to:
Define passive income.
Highlight legit passive income streams, including our very own money-making app.
Download the money-making app ⬇️
Passive income definition
There are two types of income: Active income and passive income. Active income refers to income earned when you exchange your services for payment. It requires your active involvement in tasks. On the other hand, passive income refers to income from a source you are not actively involved in. The most common forms include interest, rental, Business, and capital gains income. The IRS identifies two main sources of passive income, namely:
Income from business activities in which you do not actively participate in.
Income from rental activities in which you do not actively participate (unless you are a real estate professional).
An important point to note is that passive income is not free money. Creating a passive stream of income requires a lot of initial work, money, and time. Additionally, you may need to put in additional work along the way such as fixing rental property or reviewing your portfolio.
Why should you create passive income streams?
Creating an alternative source of income is the first step towards financial freedom. You can invest income saved up from your current job to generate the same amount of passive income. Creating alternative sources of income is not only great for wealth creation, but it can serve as a cushion during tough times.
Financial Independence and Early Retirement (FIRE) is a movement geared towards freeing people from the traditional forms of employment. Members believe in setting up multiple streams of income to support financial freedom and early retirement. Luckily, you can also learn how to make passive income from the comfort of your home. Let’s start you off on your journey to passive income 2021.
How to earn extra money from home
1. Create learning online material
As you may have noticed, the education landscape is changing. The demand for E-learning materials has gone up. It is expected to rise even higher as more people get access to smartphones and internet connectivity.
You can put your knowledge to use by creating:
An online course.
All you need to do is pick a niche subject, create content, and distribute it. There are numerous avenues where you can share your content, including YouTube, Udemy, Skillshare, Edx, and Coursera.
Remember to always make sure you create high-value content to stay relevant.
2. Venture into E-commerce.
E-commerce is a perfect way for you to earn smart passive income. You can sell digital products such as videos, pictures, games, apps, music, and much more. All a customer needs to do is make a payment and download or receive their product via email.
Another way to make money through e-commerce is by starting a dropshipping business. Dropshipping can be fully automated and does not require you to own a physical store or ship your products. All you have to do is advertise your items. Once a customer makes a purchase, the order is sent to a fulfillment service.
The fulfillment service then ships the product to your buyer. You can avoid the hustle of stock inventory, shipping, delivery, and constant follow up.
However, the bulk of the work lies in marketing. You will need to establish an online store and create a large following to keep the orders coming.
3. Make investments
You can also make smart passive income through investments such as stocks. This is one of the best passive income ideas. Shareholders with dividend-yielding stock receive regular payments from their investments.
Aside from the initial financial investment, you will not be required to put in any work. In Fact, all you do is make a purchase, sit back, and get paid. Additionally, you could invest in Exchange Traded Funds (ETFs). These are a collection of assets such as commodities, bonds, and stocks. Such an investment is highly liquid and has better returns compared to stocks.
Even though both of these instruments guarantee a good deal of extra income, you should remain vigilant. Carry out your due diligence before investing in a company.
4. Make money on your smartphone.
If you are looking for a smart passive income stream, then consider using your smartphone. You can do this by using apps to make money, as Honeygain.
Honeygain offers you an opportunity to do more with your smartphone. It enables users to make extra income by sharing their internet connection. All you need to do is download the app and make your device a network gateway. You can rent out their smartphone’s data to companies so they can:
Carry out market research
Improve their content delivery
Carry out ad verification.
Join the Honeygain community today ⬇️
Our money-making app enables you to make extra income by sharing your internet connection.
Other streams of income require a substantial amount of effort or financial muscle. But with Honeygain, all you need to do is download our app and permit it to run in the background.
Furthermore, you can make more money by inviting your friend. For every friend you invite, you get 10% of their daily earnings.
Learning how to earn extra money from home is just the first step to financial freedom. You need to put in some work, time, and money. Hopefully, our passive income ideas can help you get started. If you do not have the financial muscle to invest or start a business, don't worry. You can join the Honeygain community and make extra income through our money-making app ⬇️.