Passive Income for Millennials
Over the past few months, the labor market has just had a radical change. Not too long ago, according to CNBC, there are around 73 million Millennials that had changed jobs in a span of one year. Most of them looking for higher-paying jobs that would provide them with more experience and challenges.
But with the arrival of Covid-19, millions of Millenials around the globe have lost their jobs and are now starting to apply for employment insurance.
For the rest of them, they are happy to still be employed and earning any money at all.
But Covid-19 may present an opportunity if you’re a Millenial stuck at home (working or not). It is a great time to learn about passive income and start creating a few streams of cash that can help you weather the current storm and put you in a position to win the long terms financial game.
Things to Know About Passive Income
Money is considered an income if it’s earned through any means. To be specific, there are two types of income: active and passive income. If you work and sell your time for an equivalent amount of pay, that’s an active income. You do what your job entails you to do in the hopes of getting promoted and earning more.
The opposite is true for passive income. You get a chance to have that work-from-home lifestyle and be your own boss. Passive income is defined as money earned continuously without having to exert much effort. Selling your time for an equivalent amount of pay is not necessary when you start gaining passive income.
Passive income doesn’t grow on trees (image that!). Typically to create passive sources of income you need to two factors:
- Upfront money investment (buying passive income)
- Sizable time investment (creating passive income)
If you have upfront capital, then you can purchase passive income such as a business, an investment in a stock/bond or previous metal, or purchasing rights to some assets. if you do not have capital to invest, then you need “sweat equity”, in other words spending your time (and skills and effort) to create this income such as working for a company for future shares of ownership, building a website or creating a product.
Either one of these two factors or maybe a combination of both can bring forth a steady and sizable source of future passive income.
How to Start Making Passive Income as a Millennial?
Before wanting to make passive income, you better ask yourself first, “Why do I want to make passive income?” Know your purpose in doing this. Is it because you need to buy something? Is it merely for additional income? Will you consider doing this in the long-run? Answer these questions first to help yourself.
As a millennial, you have the opportunity to choose from multiple possibilities. You may opt to grab more than one opportunity, but it would be better to focus on one. Do one at a time to have better results rather than doing multiple ones at a time and lose quality. Choose the right one for you. For those of you who are beginners, the things to stated below can serve as your guide.
Choose something that interests you.
No one wants to do something they don’t want. It makes everything feel dragging and boring. Keep in mind that you may do this in the long run, so make sure to pick something that really piqued your interest. After choosing something, list down everything related to it that could potentially be a source of income. Be it a travel blog, video content or eBook writings; you’ll prosper as long you’re interested.
Come up with a plan.
Be it an abstract or concrete plan, sketch it. Nobody starts as an expert, keep that in mind. In fact, as a millennial, you have an advantage in terms of conducting research and reviews. You get to formulate a plan on what to do for your project to take action. Furthermore, you may encounter an idea that you might want to infuse with your original plan. Don’t rush things and take one step at a time.
Seek for guidance.
Asking for help is not a sign of weakness. In fact, it makes you look strong for acknowledging that you might have something that you lack. This is another advantage you have a millennial beginning with passive income. You have a chance to talk with people that have ventured into making passive income the same way you imagined yourself to do so. Hear their stories and take into account everything they shared, as this will help you tremendously.
Passive Income Ideas for Millennials
Following the steps mentioned above, do not exempt you from the possibility of failure. Just like any other business, some try to venture but never makes its mark in the public eye. But of course, there are passive income businesses that are less vulnerable and risky. These types of companies are those who give out a massive payout after some time.
Now that you’re familiar with what to consider if you start making passive income let’s move on with some ideas. Here are some passive income ideas that you, as a millennial, may want to consider.
Whenever we want to know more about a particular product, we more or less go to review pages or websites. That’s how you’ll work as a blogger. You create write-up content for a page or website about your review of a specific product. For instance, some companies might seek your analysis of their product, and they’ll pay you for it.
However, you may also incline yourself to be a video blogger. Make reviews of the places you went to, the restaurants you ate in and the products you’ve tried. The same scheme applies wherein companies may contact you to do these video reviews but for a much higher payment.
2. Come up with an Online Course
For sure, you have something you are good at. Do you make out of this world pastries? Are you a techie and can get things up and running? Or are you innovative and can improvise house equipment? If so, then create an online course today!
Consider making an educational video and try reaching out to online platforms such as Teachable. Online courses have been in demand lately. People that are busy with their day jobs but want to expand their skills and knowledge enroll in these online teaching platforms. These people are willing to pay several hundreds of dollars for quality content, so just try considering this.
3. Creating an eBook
With the ongoing development in technology, tablets are getting much cheaper. This results in people relying on eBooks for easier access and comfortability. In fact, there are even schools that implement the use of eBooks for their students’ learning. This means that there is a massive opportunity for you here.
What’s great about this is that eBooks can go hand in hand with your online courses. Say, for example, you teach about business models, then you can suggest having your eBook as an additional source for learning. Doing so increases the chances of having your eBook advertised by your clients to others. As you know, spreading information through word of mouth.
4. Be a Freelancer
To be a freelancer may mean to be your own boss as you make all the decisions for yourself. Unlike having a primary job wherein you’re tied in your company chair for several hours, freelancing means a bit of freedom. However, freelancing entails the right decision making as one wrong move may make you lose a client.
Freelancing may be a lot of things. You can write for companies, do graphic designs and accomplish homework for students, among others. The only thing you need to remember about freelancing is that you will only earn as much as your skills are worth.
5. Materializing your own Mobile App
Mobile app development is one of the highest paying passive income ideas. On average, iOS mobile app developers earned around 5000 US Dollars per month. Now what’s better is that developing an app is not as taxing and expensive as you think.
Focus on generating money from your other passive income ideas, and after a year or so, you’re good to go. Look for developers online and have programmers do the job for you. It won’t cost as much because most developers are willing to cut costs to be part of the app development.
Now that you get the idea of making passive income start visualizing your own. Do things at your own pace. Remember that it would definitely take time for you to feel the benefits of your hard work. Look for resources that would help you answer your questions and give you tips on passive income.
As a millennial, believe in yourself, for you are someone that has a lot of potential in generating passive income. In a few years, you’ll reap the fruits of your patience and hard work and have yourself a one-man company. Until then, get a piece of paper and pen or your laptop and start browsing for ideas.
For more passive income ideas for you, you may read The Millennial Roadmap To A Rich Life by Jeremy Kho.