“Has anyone ever asked you a question or made a statement that changed your opinion on something? Let me share mine.”
“If hard work made you rich, everyone with a 9–5 would be a millionaire.”
If I’ve questioned your efforts at your current job, I apologize. Let me make it up to you by teaching you how you could pave your way to financial freedom even with your 9–5. The secret, if you haven’t guessed it, is by having a side job or a way of making money passively 24 hours a day, 7 days a week.
Unfortunately, to get started, you need a small investment. This will require both your time and money from your active 9–5 income. Deciding what type of passive income you want is determined by your attitude towards risk and your acceptance of failures. Money does not grow on trees; therefore, any form of investment carries risks. You’re at risk of either not profiting, being out-competed, or losing your deposit. But if you play your cards right, conduct proper research to back your ideas, and utilize the right marketing mix, there is a lot of money to be made.
I already have a saving account. Isn’t that enough passive income?
Having a savings account is definitely a start, but currently, the amount you’re earning isn’t a sustainable income. Also, remember that in the UK, your savings account is only protected up to £85,000 by the FSCS. This is why wealthy people have turned to assets not only to store their capital but also to gain a healthy return on investment (ROI). Let me ask you about the difference between a wealthy and rich person. Most of us would think they mean the same, but as you know, the English language does not contain repeated definitions.
The difference is that wealthy people have sustainable wealth because their capital is diversified into assets, ensuring they will always be wealthy. On the other hand, a rich person will eventually run out of money if they do not diversify or invest their capital.
So how can I diversify my eggs (money) into different baskets?
What’s great about passive income is that there are so many different ideas to supplement your active income. Unfortunately, the hardest step is also the first step: deciding which side hustle, job, or gig to pick.
To help direct you, here is a summary of some of the most feasible ideas.
Cashback/Reward Credit Cards — Yup! Switching or using a reward purchasing card is considered a passive income. A transaction, which you would have made, such as rent, bills or groceries can still be used to earn rewards.
Amex — The Platinum Cashback card (£25 fee) — Higher cashback rate
Amex — The Platinum Cashback Everyday card (free)
To spare you the trouble of calculating the impact of the £25 fee on your returns, here’s a quick tip: the break-even point for benefiting from the £25 Platinum Cashback card is £10,000 of annual spending. If your spending exceeds £10,000 on the card, it’s worth paying the £25 fee.
Amex — British Airways American Express
Sainsbury’s Bank credit cards
Virgin Atlantic Reward Mastercard
IHG Rewards Mastercard
Curve — It’s a one-of-a-kind digital wallet for your cards that gives you 1% daily cashback as you spend. The best part is that you can combine these rewards with existing benefits from your credit card provider.
TopCashback — Cashback portal that allows you to earn money for purchases you make online that you would have made anyways. Combine with reward credit cards and Curve.
Crypto staking (like a bank) — You can deposit money/stake money into a crypto wallet to earn interest rates up to 7.6%.
Algorithmic Trading (What I specialise in) — Similar to the auto-copier, where you are copying a successful trader, my algorithm trades automatically where your account is being controlled by a software
Here’s the article on the strategy:
This is my passive income idea and speaking with an experience, I’ve loved every step of it. It can be difficult at first but the reward pays out in good time. I now have clients and a team working with me.
Investing, auto-copier — Depositing money onto index funds or copying the top-performing accounts.
Trading212– Copy the top-performing pies on trading212
Etoro — Copy other investors automatically with your investment.
Real Estate (Housing)/ REITS — These are companies that own or finance income-producing real estate across a range of property sectors. You can buy shares in the most popular market. An easier way to jump onto the property ladder without owning any properties.
Digital Products (Etsy, Facebook MarketPlace, Ebay) — Selling products at a higher marginal price. Although this idea has the most active work. Eventually, the goal is to automate most of the steps. This is also one of the most lucrative, but difficult ideas to compete successfully.
Amazon FBA/ Dropshipping — Likewise to selling products at your online store with Facebook and Etsy, Amazon FBA (Fulfilment by Amazon) lets you purchase and store products sourced from cheaper countries. Amazon store and fulfil order on your behalf for a small fee from the product price.
AirBnb — If you have a spare room and would like to rent out your space. Use Airbnb to advertise your room.
Instagram accounts — Create an Instagram page on a specific niche that attracts followers. Using your influence you can gain paid sponsorship and endorsements from companies looking to market their products.
Youtube Partner Programme account — Create videos with or without your face for other people to watch. You could create videos with background music to gain views passively. YouTube ad revenue only occurs once you reach 1000 subscribers and have 4000 watch hours. Youtube pays around $3–6 per 1000 views.
Website (Google Adsense, Affiliate Income, Sponsorship) — Earn an income through creating websites/blogs and get paid by displaying small adverts by Google.
Patreon Page — Patreon is a membership platform that makes it easy for artists and creators to get paid. People often use this to get extra money through their digital work, such as Youtube or from a blog. Use sites like this to supplement your cost or be rewarded for the dedication you put into your content.
Affiliate Marketing — This is when a company compensates you to generate traffic or leads to the company’s products and services. You promote their products for a commission fee. Like a referral bonus.
Amazon Affiliate — Affiliate for any product on Amazon through your social media platforms.
Courses, digital/ physical shipped products, etc. — There are thousands of companies offering a commission for bringing in clients. The higher the price ticket, the higher the payouts. Just remember to check the product beforehand or Youtube some of the current examples.
Conclusion
Now you have an idea of some of the different types of passive income, think about what works for you as it will take some time to make the passive income a sizeable amount.
As always, contact me for any queries and questions.
