How Much Passive Income Can I Generate?
How much passive income can I generate? How much passive income one can generate is unlimited as it is an income source independent from an individual’s personal time and physical presence. However, how much passive income one can generate depends on factors including the types and number of passive income sources they own, as well as their upfront effort, motivation, perseverance and skill to build a non-active, scalable, sustainable passive income source.
Types of Passive Income Sources
Offering side hustles is an excellent way to get started in the passive income world. If you currently have a 9-5 job that you cannot leave, a side hustle is an excellent opportunity to generate extra income after work. At beginner’s passive income, we call it the “5-9.”
Side hustles are dependant on your time but allow you to build your skills and can help you transition to working for yourself. Once you have a base of clients, you can start to outsource your side hustle and eventually make it passive.
Here are some side hustles you can transform into passive income sources. Click on the links below to be brought to detailed guides that provide how to’s for each one on our site, Beginners Passive Income:
- Recording Audiobooks [Guide]
- Gaming [Guide]
- Copywriting [Guide]
- Implementing Chatbots [Guide]
- Data Entry [Guide]
- Video Editing [Guide]
- Customer Service Chat [Guide]
- Virtual Assistant [Guide]
- YouTube Channel [Guide]
How Much Passive Income Can You Generate With a Side Hustle?
Let’s take building a YouTube channel as our example. We will have a look at the importance of time when building a passive income source later on in this article, but if you build a successful enough YouTube channel, you truly can generate significant amounts of passive income.
Ok, we did choose the largest YouTube channel ever in our example, but it’s just to make a point. If you would like to see how much other, maybe smaller channels are making, click on this link that will bring you to SocialBlade and enter the name of a YouTube channel and you will get their estimated YouTube earnings.
You have probably heard of AirBnB but maybe didn’t know the company is a pioneer of the online peer-to-peer economy. The peer-to-peer economy is a decentralized business model that consists of two individuals (yourself, and the buyer) interacting to buy, sell, or rent goods or services directly from one another. Sometimes, a third party like a platform or marketplace puts those two individuals in touch.
Of course, the peer-to-peer economy has existed since the beginning of time (it was just called “trade”). But it has never been easier to find people looking for what you have to offer. There are many examples of how you can make money from the peer-to-peer economy on our site (click for examples and guides on our site):
- Rent Your Bike [Guide]
- Rent Your Home [Guide]
- Rent Your Stuff [Guide]
- Rent Your Parking Spot [Guide]
- Rent Your Car [Guide]
- Rent Your Storage [Guide]
How Much Passive Income Can You Generate With a Peer-to-Peer Economy Project?
Creating an online business is another easy way for beginners to make passive income. We truly are living in a time with incredible opportunity, where anyone with an internet connection, a good idea, and true motivation and execution can generate significant passive income online.
Here are some passive income ideas that can be created from home, or anywhere in the world. Click on the items you are interested in to learn more. They will lead you to detailed guides on our site, Beginners Passive Income:
- Blog (Monetized) [Guide]
- Affiliate Marketing [Guide]
- eBay [Guide]
- YouTube Channel [Guide]
- Print On Demand [Guide]
- Niche Membership Sites [Guide]
- Sell Physical Products
- Online [Guide]
- Buy Domain Names And
- Park and Sell Them [Guide]
How Much Passive Income Can You Generate From a Monetized Blog?
Source: Learn more about Income School here.
Brick & Mortar Businesses
Businesses are a way to generate passive income, however, they need to be built with the goal of becoming passive. If not, having a business will be a very active endeavour (learn more about the difference between passive and active income here).
Some ways to make a business passive is to hire employees, automate (repetitive) processes, or outsource parts of the business. Here are some ideas of businesses that can be automated or outsourced:
- Storage Space Rentals [Guide]
- ATMs [Guide]
- Laundromats [Guide]
- Vending Machines [Guide]
- Self-Service Kiosks [Guide]
- Self-Service Coin-Operated Car Washes [Guide]
- Ice Cream Shops [Guide]
How Much Passive Income Can You Generate a Small (Automated) Business?
Investments are the most known way to make passive income, however, they are also the least beginner-friendly. Unless you are specifically interested in learning more about stocks, bonds,dividend stocks or real estate, this may not be the best place to start your passive income journey.
However, there are some smaller, easy investments you can make as a beginner. Here are some examples:
- Cashback Credit Cards [Guide]
- Savings Account [Guide]
- Get out of Debt [Guide]
How Much Passive Income Can You Generate from a Savings Account?
Number of Passive Income Sources [Diversification]
After having chosen your passive income source, another determining factor in how much passive income you can generate depends on the number of passive income sources you have.
Let’s take the examples in each passive income source we named above. If you have a successful YouTube channel, rent a property on AirBnB, have a couple monetized niche blogs, a couple ATM’s around town, no debt and a garnished savings account, you can be making significant passive income.
By diversifying your passive income sources, you have less chances of running into issues if one of the sources are no longer generating the expected income. But there is one ultra important determining factor before your dream of passive income can come true, and that’s your upfront effort.
Your Motivation, Perseverance And Skill [Upfront Effort]
There is no passive income without upfront effort, period. Everyone sells the startup dream, from garage to the front page of Times, but in-between, there are thousands of hours of grueling hard work.
No matter what passive income source you decide to build, there will be copious amounts of time involved in building a successful passive income source. You will have to learn new things and apply your knowledge in a methodological, organised way. There will be ups and downs, and motivation, perseverance and dedication to your passive income dreams will be necessary for you to push through the hard times.
You may have to work hard upfront and anywhere between a couple months to ten plus years. However, if you stick to it, you will generate passive income and benefit from your hard work for many years to come. The choice at hand is working a 9 to 5 job for over 40 years of your life, or working 80h weeks for a couple years to benefit from passive income for many years to come.
Building a Non-Active, Scalable, Sustainable Passive Income Source
It’s very easy to get started working on a side hustle (you can go right onto Fiverr and offer your services today). It’s also fairly easy to start a business or a website. But these income sources will be very active (demand your time constantly) if you do not actually build them with the goal of being passive.
Here are a couple factors you should study before you chose a passive income source with the goal of generating a lot of passive income. A cool thing is that on Beginners Passive Income, we evaluate each of these criteria in each passive income idea guide we provide on our site. Check out our passive income ideas here (opens in a new window).
How to Build Passive Income Sources The Right Way
Watch YouTube Videos
Head Over to Your Local Library
Learn From Online Courses
Read Our Blog: Beginners Passive Income
Can Passive Income Make me Rich?
How can I make passive income online? There are many ways to generate passive income online including through peer-to-peer platforms (such as AirBnB, bike rental platforms etc), and through small online businesses (monetized blogs, affiliate marketing, print on demand, niche sites etc).
How can I make passive income with no money? There are ways to generate passive income with no extra money such as starting a YouTube Channel, renting a space in your home, renting your parking spot, print on demand, getting out of debt, or starting a side hustle for example.