Contributed post
Earning money without doing any work- it sounds too good to be true. However, it really is possible if you go about things in the right way.
Passive income is gained from ventures in which you’re not actively involved, meaning your time is freed up to work on something else but you still get profits rolling into your bank.
The only snag? You need money up front to be able to benefit, but if things are going well for you then here’s how you can turn a little money into a lot more. Here are some of the ways you can go about it.
Property
Property is one of the safest ways you can invest your money. While there are rises and falls in the market, as a general rule property appreciates in value each year. Plus there’s always a demand for houses, and so whether you want to sell or rent out you always have the option to do so relatively quickly. If you buy a couple of properties and rent them out, you can have an estate agent manage everything for you for a small fee. They will sort everything from referencing tenants, chasing up rent, answering tenants questions and much more. You don’t need to be involved at all but have money each month landing in your account.
Business
Investing in a business is another great way to make passive income. Simply find a bootstrapped startup business that shows potential but needs a cash injection to get off the ground. In return, you get a percentage share in their company which you get back every time they make a profit. If the company goes on to do very well then it’s money coming to you each year that you have to do nothing to earn.
High Interest Savings Accounts
A time deposit is an interest-bearing bank deposit account. These have a fixed term in which the money must be held, and are a great way to keep your money safe over a number of years. Perhaps you want a pension nest egg, or you want to save money for your child to access when they’re twenty one. Look into time deposit interest rates and find the one offering the best deal. Your money will keep generating interest and by the end will have accumulated a nice sum just for being sat in the bank.
Peer to Peer Lending
Peer to peer lending often gives higher yields than even the highest interest savings account, so this is another good way to boost your income over a longer period. Here investors are able to loan to lenders while cutting out the middleman (the bank). This means both you and the lender get the best rates, and they way that peer to peer lending is set up, there’s minimal risk to you. Your money gets split up with a small percentage loaned to a number of different people. That way if one person stops paying, you only lose that percentage and not the entire loaned amount.