9 Passive Income Ideas 2022 | best and easiest home based job 2022
Earning money whilst you sleep or sip mimosas at the seashore is a dream for therefore lots of us (or even folks who say it isn’t are likely lying!). But is it certainly feasible to get wealthy with out lifting a finger?
With those resourceful passive income thoughts, you’ll be one step towards residing your dream life, with all of the coins you want to fund it!
What is “passive income”?
Before we get into the great passive income thoughts to fit your life-style and talents, it’s really well worth taking a second to set up what we certainly suggest with the aid of using passive income, as this word is regularly misused or misunderstood.
Although passive income isn’t a few magic cash-making scheme to be able to get you wealthy without a paintings, it's far a manner of maximizing returns so you can paintings decreasingly tough over time. In different words, over time, attempt is going down, and earnings move up… Sounds notable, proper?!
One notable instance of a passive income move is shopping for a belongings to hire it out. While there's a few paintings and attempt required to discover the proper belongings, address the prison facet of things, and get it equipped for tenants – plus monetary funding in phrases of the loan and deposit – when you get your tenants in, you may be making money with minimum attempt. Sure, there is probably the strange belongings inspections and tenant modifications to address, however the majority of a while as a landlord may be taking part in the passive income earned via the hire.
Basically, passive income is a lengthy-time period choice that includes short-time period trade-offs. If you’re inclined to dedicate a while, skills, and cash closer to your intention of producing passive earnings and doubtlessly taking part in early retirement, then you can be making hundreds withinside the lengthy run.
- 00:00 Intro
- 02:20 Investing in stocks and shares
- 07:07 Starting a YouTube channel
- 10:36 Starting a podcast
- 13:35 Becoming an affiliate marketer
- 16:50 Selling a digital product
- 18:53 Selling a course
- 23:36 Building a membership community
- 26:12 Automating a business
- 28:00 Building an app or website
Speaker 1 (00:00)
Hey, friends, welcome back to The Channel. In this video, we're going to talk about 9 different ways that you can make passive income. And for each of those, I'm going to talk about how hard it is to get started, how hard it is to make $100 a month from it and how hard it is to maintain once you've created the thing in the first place for me and my business, these 9 and different sources generate around $27,000 per week these days with varying degrees of passiveness. And obviously this has taken me, like eight years to build up.
Speaker 1 (00:23)
So don't expect to be hitting those sorts of numbers when you first get started.
Speaker 1 (00:26)
But this is the video that I wish I would have had when I started my financial independence journey many, many years ago. Let's go for it. All right. So when I say passive income, I always air quote it because there is really no such thing as passive income. There is no way to make money without doing anything at all.
Speaker 1 (00:40)
But when I say passive income, what I mean is that it's money that is not directly tied to our time. So let's say you were to write a book. If you write a book, you publish a book. That book is now in bookshelves. You've done the work, kind of wants to write and publish the book.
Speaker 1 (00:52)
But now, anytime the book sells, you make money from royalties. That is passive income. You could literally be making money while you sleep because you've created this thing, which is out in the world, which is generating income for you. The other thing with passive income is that it always takes a very long time to get going. So if you see any ads before this video talking about how you can get rich quick by whatever scheme, or if you see people in the comments pretending to be me saying, oh my God, here's how you can get rich quick with crypto.
Speaker 1 (01:16)
Whatsapp this number? That is all a scam. It's not going to work. There is no way to get rich quick. It is not a thing.
Speaker 1 (01:22)
So if you're looking for a get rich quick scheme, those things just don't exist. So you might as well not even try. And the way I think of this is that ultimately money is just a medium for exchanging value. The only way to make money is to provide value. And the only way to make passive income passive money is to provide value in a way that is not directly tied to your time.
Speaker 1 (01:39)
So please, please do not try and join a get rich quick scheme. They don't exist. I've had lots of messages over the years from people who have tried signing up to a get rich quick crypto scheme or a gambling scheme. Or, hey, here is how you kind of play poker online. None of these things ever work.
Speaker 1 (01:52)
People always end up losing money. The only way to make money is by providing value. And so let's talk about the nine different ways that you could provide value if you wanted to. Just before we dive in, I want to tell you that I've just launched my brand new Skillshare class about productivity for creators, how to start a successful side hustle that's linked in the video description. Skillshare is sponsoring this video.
Speaker 1 (02:09)
I'll tell you more about Skillshare later on, but I want to plug my own class because I think it's genuinely really good and people really like it, and it will help you get tips on how you can start side Hustles in your spare time. Anyway, let's get into the video. All right. So let's kick things off with investing in stocks and shares. And in this context, the way that we provide value is by offering up our money, providing money and investing in a service is in a way giving a form of value.
Speaker 1 (02:31)
And so when we give our money to a company in the form of buying their stocks, it makes sense that we would get some kind of return for that investment. And we're starting with this because investing in stocks is the easiest way to make any kind of passive income. If you have any sorts of savings and they're sitting in a savings account earning 0.1% interest, they're not really doing very much for you. Whereas if you had those state savings and put them in stocks, you could potentially be earning passive income from the money that's otherwise just sitting there.
Speaker 1 (02:56)
Now I've got a whole video called The Ultimate Guide to Investing in Stocks and Shares for Beginners, which is going to be linked over there somewhere.
Speaker 1 (03:01)
So that is a solid half an hour long introduction to stocks and exactly how they work. But the thing that I recommend for most beginners as a nonfinancial advisor. And this is not financial advice purely for entertainment purposes. Only some people say or at least the thing that I do is that basically all my money that's in stocks and shares is invested in index funds. Now an index fund is something like the S and P 500.
Speaker 1 (03:21)
And when you invest, let's say $1,000 in the S and P 500, that basically means that your $1,000 is distributed amongst the top 500 biggest companies in the US. So weighted by how big they are, 2% of it would be an Apple 2% in Facebook, 2% in Google, 2% in Microsoft. And then you probably won't have heard of the 500th company on the list. But basically all the big US companies you've heard of, you end up investing in all of them a little bit at a time.
Speaker 1 (03:46)
So if you want to get started with that, all you need to do is sign up to a stockbroker.
Speaker 1 (03:49)
If you're in the US, you can use Webull. I think I've got a link in the description. If you're in the UK, you can use free Trade or Vanguard, basically, whatever country you're in, just Google the phrase best stockbroker platform, your country name, and you'll find something that works for you. And then it's very easy to be able to invest in an index fund. So within our famous side Hustle assessment matrix, we're going to give the difficulty of starting a one star rating one out of five.
Speaker 1 (04:10)
It's very easy to get started with stocks. How hard is it to make $100 a month by investing in stocks and shares? Oh, this kind of depends because it depends on the performance of the stock market overall. So in the last twelve months from 2020 to 2021, the SP 500 has actually increased by about 50%. That is a lot.
Speaker 1 (04:26)
It's like gone up by a solid 50% despite covered and everything going on. So if in April 2020, you had invested $2,400 in the SP 500, the fact that it's gone up by 50% means you would have made $100 a month. But obviously this is not the way to look at it, because things can go up and down, and the stock market has different levels of performance depending on what time period you're looking at. But if we average out the last 30 to 50 years, the SP 500 has had a roughly ten point something percent return, which means every year on average over the long term, it goes up by around 10%.
Speaker 1 (04:56)
This is not inflation adjusted for any economists among us.
Speaker 1 (04:59)
And so if we do some back of the envelope calculations, if we want to earn $100 a month passively through stocks and shares, we would need around about $12,000 invested in the SP 500 to make that 10% one $200 a year, which is $100 a month. But as I talk about in that video about stocks over time, we have compounding. And so if you put in $7,500 in the S and P 500 and you left it there for five years, then five years later you would be making roughly $100 a month if we go by this very average figure of 10% a year, or if you invested $5,000 in the S and P 500, then ten years later you'd be making $100 a month in purely passive income, again, assuming the 10% average.
Speaker 1 (05:33)
So overall, how hard is it really to make $100 a month in passive income from stocks and shares? Well, it kind of just depends on how hard is it for you to make 5000 $7,500 or $12,000 in savings and put them into a stock market index fund?
Speaker 1 (05:46)
And crucially, this is money that you shouldn't need to touch in the next five to ten years, at least. So basically, how easy is it for you to them to make that sort of money obviously varies massively, depending on which country you're in and what your circumstances are and what your job is. But if you're in the UK or the US, where the median kind of average salary is around about $50,000, something like that. Then again, depending on your circumstances, it's not that hard to get $10,000 in savings.
Speaker 1 (06:08)
Obviously, if you're supporting a family of 15 people and $50,000, it's different if you're a single person again, it's different.
Speaker 1 (06:14)
But I'm going to give this roughly a three out of five star rating for difficulty of getting $100 a month. Obviously, if you live in a country like India where the average salary is $3,600 a year, it's very, very difficult to make $10,000 in savings overall. And finally, the third category in our side Hustle Assessment matrix is how hard is it to maintain this income once you've set it up in the first place? And we're going to give this a one star out of five because once you've got the money in, you just like, set it and forget it.
Speaker 1 (06:37)
And it's not that hard to maintain.
Speaker 1 (06:39)
There are other sources of passive income that require higher degrees of maintenance over time. But stocks and shares is a very easy way to make passive income. And to use my personal example these days, my stocks and shares portfolio, which I've been investing in since 2015, is now worth around about $350,000, and the vast majority of that is in the SP 500 index fund. Now, I can't be bothered to work out the actual inflation adjusted returns for that. But again, if we assume a very, very rough average of 10% a year, then that averages out to around $682 per week in purely passive income.
Speaker 1 (07:07)
All right, idea number two for generating passive income is to start a YouTube channel. This is something I will specialize in because I'm here on YouTube, and I actually teach a course called the Part Time YouTuber Academy link in the video description where I teach people how to do this sort of thing. So let's use our side Hustle Assessment Matrix and we'll talk about this. How hard is it to start a YouTube channel? Well, I'm going to give this one out of five stars because it's actually very easy to start a YouTube channel.
Speaker 1 (07:27)
You just go on YouTube. Com. You click create a channel and you can upload videos by just filming with your phone and uploading it. In reality, it's a lot harder to make good videos and making good videos is how you grow on YouTube. But getting started on YouTube is very, very straightforward.
Speaker 1 (07:40)
The real question is, how hard is it to actually make real money from YouTube? So again, let's say we want to make $100 a month in passive income. What does that look like? Well, Firstly, to be eligible for monetization on YouTube, you need 1000 subscribers and 4000 hours of watch time. It took me six months and 52 videos to get my 1st 1000 subscribers.
Speaker 1 (07:58)
And if we look at the averages, it actually takes on average, 90 something videos to get to 1000 subscribers. So that's quite hard. If you're thinking you're going to start a YouTube channel and start making money from day one. That's basically not going to happen. It took me 52 videos six months to get there.
Speaker 1 (08:11)
So if people message me be like, hey, I want to start useful. You have to be able to put in the effort and do this for a very long period of time, at least once a week. I'd say for at least two years before you can expect anything in return. But let's say you've hit your 1000 subscribers and your 4000 hours of watch time. How hard is it to actually make $100 a month?
Speaker 1 (08:27)
Well, on average, the kind of revenue per thousand views on YouTube is around about $2. So this varies massively. But let's say on average, about $2 per thousand views. Therefore, if you want to make $100 a month, you need 50,000 views on YouTube to make $100 a month. Let's say you make one video per week.
Speaker 1 (08:42)
And let's assume you're not getting any traffic on your older videos. That means every video you make needs to get around about twelve, 500 views. And very roughly the average YouTube channel can expect around about 20% of their subscribers to equal the average view count for each video. So on YouTube, if you had 62,000 subscribers, very roughly, very averagely, you can expect 20% of them ie 12,500 views on each video. And assuming you have no evergreen content over the long term, you would need around about 60,000 subscribers to be making $100 a month.
Speaker 1 (09:09)
In reality, you make $100 a month a lot before 60,000 subscribers. I think I was making $100 a month when I had, like, 10,000 something subscribers. It was fairly early on, but when it comes to assessing how hard is this to do, I'm going to give this a four out of five stars. It's actually very hard to make compelling YouTube videos, and it's very easy to get started, but it's hard to do well. It's totally worth it.
Speaker 1 (09:30)
It's a great skill set. It's really fun. You get to meet people across the Internet. You get to learn how to talk to a camera and how to film and video edit. And it's really great, but it's very hard to actually make money from YouTube.
Speaker 1 (09:38)
Finally, in terms of effort to maintain actually getting that 1st 1000 subscribers is a lot harder than keeping it growing, because once you've got 1000 subscribers and once your channel is growing, it means you've landed on a formula that works. And so maintaining it then becomes easier than starting from scratch. And so in our side Hustle assessment matrix, we're going to give maintenance of a YouTube channel passive income stream to be right. About two out of five stars to use. My.
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