Passive Income Sources to Build Wealth in 2023

Passive income can be a great way to help you generate extra cash flow. Having more than one source of income is common these days. For some people, it’s a way to make ends meet. For others, it’s a way to grow their wealth. It can also be a way to feel more financially secure. If one source of income dries up, there is another that can fill in the gap. While a common source of income is the type earned from a regular job, there is also passive income.

With passive income you can have money coming in even as you pursue your primary job, or if you’re able to build up a solid stream of passive income, you might want to kick back a little. Either way, a passive income gives you extra security.

There are obvious benefits to these low-effort side hustles. Earning more money without putting in more hours offers the opportunity to make extra cash without burning yourself out. If you’re successful enough, it might even give you the freedom and flexibility to quit your day job and do whatever you want instead, whether that’s going to school, traveling, writing, or making art.

If you’re thinking about creating a passive income stream, check out these10 strategies and learn what it takes to be successful. 

1.  Create a course

With the emerging of technology one popular strategy for passive income is creating an audio or video course content and sale your product. Courses can be distributed and sold through sites such as SkillShare, Udemy, and Coursera. Then, sit, kick back, relax, and let cash roll in from the sale of your products. 

2.  Invest in Rental Properties 

Making investments in rental properties is an effective way to earn passive income in today’s time as many working people tend to stay on rents than paying of mortgage because of their travels. However, there are some risks associated with investing in rental properties if you don’t take the time to learn how to make it a profitable venture, you could lose your investment. 

Some risks associated with rental properties

·  Is there a market for your property.

·  You could get a tenant who pays late or damages the property.

·  You might be unable to rent out your property on time.

To earn passive income from rental properties you must determine these three things:

·  How much return you want on the investment

·  The property’s total costs and expenses

·  The financial risks of owning the property

3.  Create a blog or YouTube channel

Are you an expert on travel, games, cooking, dance, singing, or anything that you are passionate about. Find a popular subject, even a small content and take your passion for a subject and turn it into a TikTok blog or a YouTube channel and using ads or sponsors to generate your income. This will take some effort as you must build out a suite of contents and draw an audience, but it can create a steady income stream over time. 

Opportunity: Become an expert about your content to draw sponsors and you can leverage a free (or very low cost) platform, then use your contents to build a following.  

4.  Sell designs online

If you have design skills and want to leverage, you may be able to turn them into money maker by selling products with your printed design on them. Business such as CafePress and Zazzle allow you to sell products like T-shirt, hats, arts, mugs and more with your own designs online. You can also contact your local business such as restaurants and grocery stores to expand your business. 

Opportunity: You can start small with your own designs and see what market is interested in and expand form there. You can also set up your own online store through a site such as Shopify to market your products. 

5.  Affiliate marketing

With affiliate marketing, website, social media influencers, or bloggers promote a third party’s product by including a link to the product on their site or social media account. To start affiliate marketing, Amazon is the best known affiliate partner; however, ebay, and ShareAsale are among the larger names. And social medias such as Instagram, and TikTok have become huge platforms for those looking to grow a following and promote products. 

6.  Become a Copywriter

With emerging online retails and business there’s potential need for copy writer as companies tend to hire copy writer to save their time and effort. 

Copywriter is someone who writes with the intent of educating, persuading, or influencing their audience, often with goal of selling product or service.

Copywriters write copy and provide consumers or clients with information about a particular product or service. These are three main types of Copywriters. 

·  Agency Copywriter

Agency copywriters are typically expected to work full-time with an agency that serves multiple clients. The average salary for a full-time copywriter is $50,000 to $55,000. per year. 

·  Corporate Copywriters

Corporate copywriters will write for the products or services offered only by the specific corporation they work for. These positions are typically more consistent in subject matter and require less creativity which is why corporate copywriters will have more job stability. 

·  Freelance Copywriters

Freelance copywriting offers flexibility and largest amount of freedom in terms of company or agency, subject matter, project type and time commitment. Freelance copywriters will have highly flexible schedule and can commit to as many or as few jobs as possible.

7.  Invest in a high-yield Dividend stock

If you have little money saved one best way to build a passive income stream is to invest in high yield dividend stocks, which distribute part of the company’s earnings to investors on a regular basis, such as quarterly. Dividend stocks typically are less volatile than growth stocks and help diversify your portfolio. The best ones increase their payout over time, helping grow future stable and secure income stream.

8.  Dividend index funds and exchange-traded funds (ETFs)

Stock market and investing in stocks is not everyone game if you chose not to invest in stocks don’t worry. You can also invest in index funds or exchange-traded funds (ETFs) these funds hold dividend stocks rather than buying and selling individual stocks. This investing strategy can be passive investing and way to make passive income stream for those who prefer a more hands-off approach.

Index funds such as the S&P 500 hold a well-rounded selection of top 500 companies’ stocks in the United States that aim to mirror the performance of a given index. Dividend ETFs offer the diversification benefits of index funds as your funds will invested in a selection of stocks that pay good dividends over time. Index funds can help balance your portfolio risk, as market swings. 

How to invest? 

To invest in dividend stocks, index funds, ETFs or other publicly traded assets, you’ll need to open brokerage account with Robinhood, Fidelity, TD AmeriTrade, or Webull if you don’t already have one and start investing. 

9.  Rent out your car

If you are car enthusiast and have cool car this would be one of the best passive income opportunities for you, renting out your car on a website like Turo. Turo is basically the Airbnb of cars. As of now, according to Turo the annual average income for one car on the site is somewhere between $10,000 to $12,000.

10.  Create a greeting card 

For those who has interest on Photoshop and designs this another artistic endeavor that could be a good passive income stream is creating greeting cards, birthday cards, wedding cards, anniversary cards, and even business card that you sell online and to local businesses around your areas.

The question of which passive income source is best depends on several factors; however, some of the most important factors include money you have to invest, amount time you must put, flexibility of your schedule, total opportunity size, your interest and ability in the area to find potential success. Therefore, you’ll need to weigh the opportunity against these factors and see which passive income strategy works best for you.