Links to external websites are not managed by Varo or The Bancorp Bank.
Passive income is always a popular topic. Who doesn’t want to earn money while sipping drinks on the beach?
But, in truth, it’s a little more complicated. Let’s break it down.
Passive income is money you earn that doesn’t require you to invest time or money into.
While that sounds great, often, you’ll need to put in many hours of work without receiving any money in return or you’ll need to already have startup money to invest on hand.
Usually, passive income is possible once you’ve invested lots of time or money at a loss at the beginning of a project.
Hopefully if you invested wisely, your money and time will make you money back later.
Let’s say working a 9-to-5 job, you might earn $10 an hour.
On the side, you start making YouTube videos. It takes you an hour to make one video.
At first, your videos probably won’t earn you anything. But if you keep making videos and your following grows, you can start making money from the advertisements on the videos.
Each hour you put into making a video for your YouTube channel doesn’t lead to an immediate payout, but might over time.
Even when you’re not making new videos, your popular older videos are still racking up views which means money for you—that’s your passive income.
Passive income is rarely passive forever.
Most passive income streams are businesses.
Like normal businesses, if you want to keep your passive income alive, you need to keep reinvesting.
Keeping a project going is usually easier than starting up, but also usually means putting in more time or effort eventually.
There are many ways to start earning passive income.
These are some popular ways that you can put your time and money towards something that will earn money for you.
If you want to make more than a few dollars, most opportunities require a large initial investment—either money or time.
If you don’t have money to invest, try to monetize hobbies and subjects you like to study.
People make good money creating videos of themselves playing video games, selling sewing patterns, and writing fiction ebooks.
The more popular the topic, the more money you could make.
Investing time to actively build your passive income streams comes with another benefit—the valuable skills you can learn along the way.
You may be able to turn side hustles into money, and, eventually, maybe into a business.
That’s a win, even if you’re not on a beach.
Opinions, advice, services, or other information or content expressed or contributed here by customers, users, or others, are those of the respective author(s) or contributor(s) and do not necessarily state or reflect those of The Bancorp Bank (“Bank”). Bank is not responsible for the accuracy of any content provided by author(s) or contributor(s).