Is it possible to earn money even when you’re sleeping?
Perhaps, you already know that income can be classified as active and passive income. Active income is the one you get from your job as an employee of a company or doing your own business. If you don’t work, you will get not paid. However, passive income comes from indirect sources that you have invested long time ago. One example of this is the stock you bought several years ago that pays dividend regularly, maybe monthly or annually.
Passive income is better than active income because you don’t need to be there in a certain place and time to be able to get an income. If you will only rely on active income, there will come a time that it will be gone because of layoff, retirement or resignation from the company you’re working.
So how to earn passive income continuously?
That’s a good question. There are many ways on how you can do it. You only need some knowledge and actions to pursue it.
List of Passive Income Streams
Like what I said earlier, passive income is the one that you get even if you are not physically there or you don’t put effort to get that income. Mostly passive income is you setup the stream at the beginning and then after several months you just leave it there and still giving you income on the future in the years to come.
1. Dividend Income
Dividend income from stock is one good example of passive income. Most stocks are giving dividends to its investors in a form of cash or shares, but majority are paying cash.
You can research which stocks have high dividend yield and payout. In the Philippines, PLDT and Globe give high dividends but the price per share is also high. As of this writing, PLDT’s price per share is P1464 and Globe’s price per share is P1571
Basically, if you want to get this dividend income, you will buy the stock and then you will hold it as long as possible. Every year, this companies pay once or twice of dividend and the payout varies depending greatly on the performance of the company. If the company does well, dividend will be good also.
To give you idea, last year 2015, PLDT pay a total of P106 per share. So if you have 100 shares of PLDT last year and you didn’t sell it, you earned P10600 of dividend income during that period.
As long as you hold this stock, it will give you dividend income continuously. If you hold it for 20 years, the dividend payout from PLDT is also 20 years. Of course, the amount of dividend depends on the company but you are sure that you can get something from them in the future.
I would say blogging is semi-passive income stream since you need to update your blog from time to time. However, even if you are not writing every day, your blog will still earn some income for you. Yes, even when you are sleeping!
A blog needs to be setup and established at the first few months. It is challenging and hard work at the start but when you reach a point where you have followers and readers, and search engines notice you, passive income will follow.
Is it it great? Right?
It is not overnight work. In my experience, it took several months before I earned my first paycheck from Google Adsense. These days, it is harder to get approval from Adsense and consequently, the payout because of competitions and ad blocking.
Adsense is only one option to earn from blog. There are other ways that you can explore such as private advertisement, Infolinks, Media.net, Chitika, and affiliate marketing where you promote products.
I have been blogging for more than 6 years as of this writing.
My first blog is my baby because its the first blog I have created and built from scratch without any knowledge about writing and setting up a website. It still earns some income for me through Google Adsense, though it is not that high compared from the first 2 years of its existence.
The good thing is I don’t need to update or post frequently on that site and it still gives me some dollars. However, I would like to make it more active next year 2017 so that traffic will be higher and more readers and followers to come.
3. Rental Properties
Owning a rental property is my future goal to have. Maybe at least 5 rental properties in different locations in Australia and Philippines before I reach 60 years old. It is not impossible, only believe that it will happen.
Once you have a rental property and a tenant that pays rent regularly, it is one of the best passive income out there. What do you think? The only thing you need is to maintain the property and do some repairs needed.
Some people put their properties in property management company so that it will be taken care well. It will give them greater chance to get new tenants with higher capacity to pay regularly. They will do the background check of the prospect tenant and do all the processing needed before they can move in to your property.
Of course, you need to pay some certain fees for you to avail this service of the property management. That’s why your rental property can have higher monthly rental fee.
If you want to do it your own, you can list your property for free in the internet such as OLX and AirBnb. In case of AirBnb, your property can be rented for short or long term. If you are want to list your property and like to learn more about it, you can visit their website here.
There you are. It’s just short list that I think a good passive income streams.
How about you? Do you know some ways on how to earn passive income continuously? Can you share what you have learned?