Are you working at a 9 to 5 job, but not exactly 9 to 5? Do you love your job but feel something is missing?

I love my job and is passionate about it. But after years of waking up 6am every morning and reaching home at 8pm as my day-to-day routine, I started to feel burnout.

To make a living, I have to work.

Does this sounds like you as well?

This is when something extraordinary comes to my mind. How awesome it will be if I can choose to work because I want to, but not because I need to.

A dream where I believe you are thinking about it as well; Simply because you are reading this Article on Passive Income!

Having the Freedom to choose to work because we want to is a really beautiful dream.

But in order to have the freedom I am looking for, I need a way to make a income to let my dream come true.

This is when I became passionate about the idea of earning passive income, an income where it puts money into your pocket while you sleep.

Passive Income is the answer.

Rich Dad Poor Dad is the first book I read that shows me the difference between assets and liabilities. It is the book that shows me the most important mindset in order to be wealthy.

If you like books such as Rich Dad Poor Dad here are some of the best books to read as well, you can find the reviews of each books in my other resource articles here.

Read Also: Books Reviews

Today, there are many ways of making passive income but only a few which is easily actionable. 

And in this article we will explore a few easy ways on how to make passive income today.

easy ways on how to make passive income by incomebuddies.com

1. Rent out your spare room

Be Your Own Landlord

Income: 2/5

RISK: 2/5

TIME: 2/5

Growth: 1/5

Being a landlord sounds like a dream to many. But if it might not as hard as you might imagine. What can be better than earn an extra passive income at the comfort of your home?

Following are a few requirements:

  1. If you are renting be sure to check with your landlord, as you will need his/her permission to rent out the extra room.
  2. If you own your own home then you simply have to make sure your spouse won’t scream at you when you rent a room to a stranger

Now the hard stuff is out of the picture here are a few simple general steps for renting out a spare room (details not included):

Start with:

Option 1

  1. Ensure renting out part of your property is in compliance to the law.
  2. Determine how much you want to rent out your property for.
  3. Engage a housing agent who will help you to find your tenant.
  4. Screen your potential tenant.
  5. Choose the tenant that passes most of your stringent criteria of screening.

Tada! You are now a partial landlord!

Option 2

The easier way with Airbnb!

  1. Go to https://www.airbnb.com/
  2. Click “Become a Host”
  3. Follow step-by-step 

Wahoo! You are now a Host!

How to make passive income by Incomebuddies.com
Example (illustration Only)

John is living alone and have 2 spare rooms.

He rent out his first room for $100 per week and second for another $100 per week. His rental income is a total of $200 per week.

This calculated to approx. $800 per month and whooping $9,600 per year!

Earning $9600 passive income is pretty impressive for you doing nothing.

How much can you earn?

How much will you be making will basically depends on the location, the size, and finally the condition of your home. But this will definitely be a great way of earning a passive income from the spare room that is sitting there empty all day long.

2. Buy index fund or etf

Passive Investing

Income: 4/5

RISK: 4/5

TIME: 1/5

Growth: 4/5

What if you want to try investing but don’t have the time or the know-how in investing?

Next in line for passive income is investing in index funds or exchange-traded funds (ETFs). Both index funds and ETFs tracks the performance of the specific market index. 

Following are a few requirements:

  1. You have spare cash that you want to invest and will not be using them anytime soon (it means more than 5 years)
  2. You have the risk tolerance to see the share price drop 10% or more and raise 10% or more in the few years you are investing. (During market crash, share price might even drop more than 50%)

Now the hard stuff is out of the picture here are a few simple general steps for investing in index funds and ETF (details not included)

Start with:

  1. Open a brokerage account
  2. Screen through the list of index funds and ETF you can purchase
  3. Identify those markets you are interested in investing
  4. Ensure you know the risk you are taking before you invest
  5. Select the index funds and ETF that best suits your risk tolerance level

Congratulations! You are now a owner of a bundle of companies!

If you can afford to read just one book, highly recommend you to read this book The Bogleheads’ Guide to Investing, wisdom of the sage John C. Bogle.

How to make passive income by Incomebuddies.com
Example (illustration Only)

John is a passive investor and do not plan to sell his stock for very long time.

John brought 100 shares of ETF at $100 per share (Total of $10,000) on 1st Jan 2010. The ETF he brought gives a 5% dividend every year ($500 per year).

In year 2020, his ETF stock price have risen to $200 per share (Total of $20,000)

He is still gaining 5% dividend income because he have not sell his stock, but this time, dividend he is receiving is 5% of $20,000.

This calculated to approx. $1000 dividend income per year!

Earning $1000 passive income per year and $10,000 capital appreciation is pretty impressive for you to do nothing.

How much can you earn?

How much will you be making will basically depends on the timing when you buy and the ETF or index fund that you buy. Preferably one with low risk and low fees. Alternatively you can utilize the technique called ‘dollar-cost-averaging (DCA)’ thus timing of the market doesn’t matter.

Want to learn how to be a prudent investor?

Read Also: Best Investing Books You Should Be Reading

# 3 Write a e-book

Be An Author

Income: 1/5

RISK: 1/5

TIME: 4/5

Growth: 3/5

Read Harry Potter? Or maybe hear of it?

In the past being an author is a very difficult task that requires a publisher to be willing to publish your book.

Authors nowadays have the luxury of writing an E-Book instead. Low barrier of entry and easy to do.

If you love writing, writing an 50 page short story or even a 100 page e-book on the topic of your passion will be an easy task!

Following are a few requirements:

  1. You need to have a computer or something similar.
  2. You must have the passion on the topic you are going to write

Now the basic requirements are out of the picture here are a few simple general steps for writing and publishing an E-Book! (details not included).

Start With:

  1. Open an account with a online Direct Publishing Platform such as Amazon: Kindle Direct Publishing (KDP)
  2. Ensure all details are entered correctly during account registration
  3. Ensure to write the book in the format that is accepted by the publishing platform.
  4. Choose a topic which you will like to write (Friction or non-fraction)
  5. Build up a draft on how the book should flow.
  6. Start writing!
  7. Upload your master piece to the direct publishing platform
  8. Click Publish!

Wahoo! You are now officially an author of your own book!

Tips!

  1. Quality is better than quantity
  2. Promote your book (No one knows you have something awesome to share unless you tell them!)
  3. Selling of an E-Book takes time and some luck
Example (illustration Only)

John is loves fantasy books and have decided to write a short E-Book on adventure.

Day 1 John drafted the story and decided it to be a 50 page short story. He gave to his friends to read on how the story goes and they loved it.

John wrote the book for the next 2 weeks when he have time and finished his master piece soon after. 

John uploaded his master piece to KDP and the book is soon published.

How much can you earn?

Well, if each book you sell give you few dollars per day. The more good quality books you write, the more passive income you will get.

Each E-Book is like a ‘real estate’, each ‘real estate’ (E-Books) gives you different amount of ‘rent’ per month (sale per month). The more ‘real estate’ (E-Books) you have the more income you will get.

# 4 create your own youtube channel

Be an Online Superstar!

Income: 3/5

RISK: 1/5

TIME: 4/5

Growth: 3/5

Making money out of a YouTube Channel need a lot of passion. If you love to be on camera and have the personality to attract audience. This will be perfect for you.

The main income for most YouTubers are display ads that is found on your channel. You will basically get paid every time someone watches your videos or clicks the link of the Ads on your channel.

Following are a few requirements:

  1. A YouTube account
  2. A passion to always improve after each video!
Optional (Dependent on your video type):
  1. You need to have camera (Phone camera will do,but quality of the video do matters to the audience).
  2. A mic
  3. An outgoing personnel that will attract your audience.

Now the basic requirements are out of the picture here are a few simple general steps for being the next YouTube Superstar! (details not included).

Start With:

  1. Open a YouTube Account
  2. Create a YouTube Channel with a Name that suites the project you are working on.
  3. Start creating your video!

You are now officially a Video Producer aka. YouTuber!

Tips!

  1. Quality is as important as quantity
  2. Ensure to post a new video every week on the same day of the week. This is to allow your audience to know when to expect a new masterpiece from you.
  3. Encourage your audience to subscribe.
  4. Turn on the Monetization option when it is made available.
  5. Promote your channel
  6. Do videos on something you are passionate in
Example (illustration Only)

Joey loves cooking and created a channel where she will teach her audience to cook.

She created one cooking video per week and each video earns her $1 Ads revenue per day.

After 1 year, she have 52 videos and earning a whooping $1,560 per month.

Even when she stop creating videos after 2 years she earn around $3,120 per month every month as long as there is a demand for her video.

How much can you earn?

The more good quality videos you write, the more income you will get. Even when you stop creating videos after a few months, you will still have an passive income as long as there is a demand for your video.

Each video is like a ‘real estate’, each ‘real estate’ (video ) gives you different amount of ‘rent’ per month (Ads income per month). The more ‘real estate’ (video) you have the more income you will get.

Read Also: Best Startup Entrepreneurs Books You Should Be Reading

# 5 License Your Photos

Awaken Your Inner Photographer!

Income: 2/5

RISK: 1/5

TIME: 3/5

Growth: 3/5

Does your friends always commented how nice the photos you take during you last trip to Bali are?

Are you the one who always find yourself always snapping pictures in different angles just to make that perfect shot?

Do you know what is ISO, Shutter Speed and Aperture?

If you say ‘Yes’ to all the questions, congratulations! You have the potential to earn a passive income by licensing your photos!

Following are a few requirements:

  1. A Good Camera
  2. A Love for Photo Taking

Now the basic requirements are out of the picture here are a few simple general steps for being the next YouTube Superstar! (details not included).

Start With:

  1. Open an account at website which sell your photos
  2. Grab your camera
  3. Start snapping some great photos!
  4. Upload your photos

You are now a part-time photogragher! Let the world know your Masterpiece!

Tips!

  1. Quality is most important
  2. Take photos in Raw format
  3. Use the techniques that teaches you in the photography class!

Best websites to sell your photos online:

How to make passive income by Incomebuddies.com
Example (illustration Only)

Sara loves taking photos during her travel, and her photos are loved by all her friends.

She took tonnes of great photos during his travel and selected only the best to be uploaded. She reviewed the online photo selling website mentioned above and decided to be a contributor of Shutterstock.

Her photo is really popular and many people brought her photo earning her a good passive income for the years to come.

How much can you earn?

The more good quality photos you take, the more income you will get. Even when you stop taking photos, you will still have an passive income as long as there is a demand for your photo.

Each photo is unique and each are like the little employees that help you earn an income while you sleep. The more employees (photos) you upload the better the income.

The first step

What to Choose?

Finding the best way of earning a passive income will depends on each individual. When you are doing something you passionate about, it is no longer work. And you will continue pursuing your passion.

Passive income does not mean laziness, it means doing something now so you can ripe the benefits in the future.

All the ideas as stated above requires some level of work, but these are some of the Best and Proven Ways to make money while you sleep!

There are definitely many other ways of making a passive income, but these are some of my favorites!

Read Also: Best Life Changing Books I Wish I Have Read Earlier

Remember! If you want it badly enough to be financially freed and have control on your own life, you will do what it takes to achieve it!

Trust me, it will definitely be worth it!

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Disclaimer: I am not your financial adviser or lawyer, information found in our website are just my opinions. You should always ask your financial adviser or lawyer for any financial or law related advice.

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