Most people dream of a life where they can sit back and watch the world go by. It seems so stress-free and happy not to have to deal with going to work every day. Of course, this is usually only the lifestyle the rich and famous can afford. But more and more of us are discovering that some of our income at least can trickle in without us having to lift a finger. Just how easy is it to set up a passive income revenue stream, and what are the long-term implications?
There are many different ways to set up a passive income. Some may be more lucrative than others. And all of them are going to require regular maintenance to keep the stream going. The American Internal Revenue Service will tax you on all your revenue streams, including interest on your savings. Defining your income as passive income means you are not materially participating in it, according to the IRS. Of course, you still need to set it up and manage your accounts!
This pic is from 401kcalculator.org at Flickr.com
Setting up a passive revenue stream isn’t always quick and simple. One of the most common ways to do so is to rent out a property or a room in your own house. Your tenant will pay you rent every month for being allowed to live there. However, preparing and maintaining that property will cost you time and money. And your tenant may be quite demanding too. You need to consider how you collect that rent as well. A simple bank transfer is fine. But if you have to visit the property and cash checks, that sucks up your time.
Most people seek to earn a passive income online. There are countless ways to do this. All of them will require some work and effort on your part, though. For example, you may set up a blog. It will take a substantial amount of fresh content each week to rack up the followers needed. You may not earn very much from visitors, sponsors or advertisers at first. You could use a ‘Donate Now’ button, sell exclusive content, or approach companies to review their products for a fee. Shares of sales, or pay-per-click advertising will generate a small stream of income for a limited time.
You don’t have to own a website to earn money online, though. Websites like surveyssay.com detail how signing up to receive email campaigns or completing surveys could also become lucrative. Again, you will need to set these accounts up and regularly participate. But you can work from anywhere at any time of day to suit your lifestyle. And the fees you’ll receive could become a regular trickle of income.
Renting out equipment you own and service could also provide you with a good stream of income. During the days the equipment is with the renter, you’ll have little to do but enjoy picking up the day rate. Of course, you may need to provide a customer service, or travel to the customer to fix the equipment. Or if it’s something like a Pinball games machine, you simply need to collect the coins from the equipment once a week.
Creating a website that attracts visitors seems like an easy win. But it can actually take a lot of work and a lot of maintenance to keep it going. Perhaps you sell third party goods or services and even use a drop shipper. You don’t need physical storage or a mall shop front. Internet access is all you require. However, attracting a high number of visitors could take months or even years of hard work before you see an income you can live on. You may by then seek to sell the website for a profit.
You don’t need to restrict your activities to online ventures. You may have a bit of cash that isn’t earning much in the bank right now. This might be invested in an up and coming business venture. As a silent partner, you won’t have much say on how the business is run, or even where your money is spent. But you will earn an income from any profits without having to do any more work. This is one of the simplest passive income opportunities you can find. However, it can also be one of the riskiest. You’re unlikely to see your cash back if the venture fails.
You might also choose to invest in stocks, shares or bonds. The only work you might have to do after investing is to check on the value of what you have invested in. Buying and selling are often left to professional traders who operate on your behalf. Some schemes are safer than others and will offer a small income each year. Where will you invest your time and money?