Create Smart Passive Income Streams

A passive income is earnings received by an individual on a regular basis, with little effort or active participation required to maintain it. It may not be your main source of income like the office job you attend to eight hours a day, six days a week. Rather, it is another source of income where it doesn’t require much of your time and attention yet gives money streams going into your pocket.

For family breadwinners, having a passive income on a side while maintaining your day job is a big help to support the family’s needs. It is also possible to create your retirement fund through creating multiple streams of passive income.

Several sources of passive income can be the following:

1. Cash dividends from stocks investments
2. Monthly rental from rental real estate properties
3. Earnings from advertisement in Blogs and Niche Websites
4. Sales from eBook Publishing
5. Sales from creating Apps for mobile devices

All mentioned type of passive income sources requires you to put more effort during the early stages.

To start with, choose the passive income source where you are most comfortable with. Draw up your plans to attain your goal. Make some conservative as well as aggressive scenario calculations to simulate your figures. Put your plans into action when you feel confident and ready. Once you carried out your plans, check your progress if you are on-track based on your plan. Fine tune your plan if you feel it is compulsory to do so.

CASH DIVIDENDS FROM STOCKS INVESTMENTS

If you are investing in the stock market for a while, you might have already received dividends from your stock investments. Dividends are a portion of the company’s profits paid out to you as a stock holder of the company.

When a corporation earns profits, the company either reinvests the profits or distributes it to the shareholders in the form of dividends. Being an owner of stock shares, you are entitled to receive a portion of this dividend according to the number of shares you have.

If you intend to generate your passive income from dividends of stocks or equities, learn how to invest in the stock market. As a prerequisite, you need to have your stocks trading account together with a bank account tied to your trading account as your settlement account. Two of the good stock brokerage firms which can offer you an online trading platform are Citisec Online and BPI Trade.

As a good start, read our article here about investing in high dividend stocks.

MONTHLY RENTAL FROM REAL ESTATE PROPERTIES

I have known some acquaintances that are successful building their passive income through investing in rental real estate.

Buying real estate properties can be capital intensive if you don’t know the correct strategy regarding this investing instrument. It can also be frustrating sometimes if you are not familiar with the ways of the said business. But there is no massive obstacle that is insurmountable for the aggressive investor. If you think you can succeed through this niche then follow your guts.

One important thing to consider when you decided to invest in rental properties is how to acquire the property without shelling out most of your cash to pay for it.

Banks seldom give bank loans for rental properties .The reason is that tenants are not guaranteed each month. Ironically, banks are also the best source of rental properties. This is acquiring your rental homes through the foreclosures they offer.

Periodically, banks hold auctions for foreclosed properties through public biddings. Winning bidders can have the option to pay the property through a mortgage on a monthly installment basis within a specific period of time.  

Most investors earn their passive income through the difference between the monthly rental and the monthly mortgage payment. With this in consideration, you must assure the following important things;

1. Your rental rate should be higher than your monthly mortgage payment. The difference will be your cash flow for your investment. The higher the difference, the better for your investment.
2. Your vacancy rate should be zero. With your property full of tenant at all times, you avoid to get the mortgage payment from your own pocket.
3. Your tenant should be consistent in paying his obligations. A tenant who does not pay his obligations has no right in staying in your investment property.

EARNINGS FROM ADVERTISEMENT IN BLOGS AND NICHE WEBSITES

I have been blogging for PISO Ni Juan for quite a while now and it gives me some benefits not just on my personal outlook in life by helping people about personal finance and investing but on the financial matter as well.

I have created this blog as my way to share my knowledge and experiences about personal finance and investing to all people who are interested to learn from those. The positive responses I’m getting from people who are completely stranger to me give me sense of fulfillment. The negative responses give me more room to improve more.

Financially, I’m getting passive income generated from the ads of my advertisers. These advertisements you can see on the sidebars and bottom of this blog are being paid by advertisers as long as it is there. The ads payments give me a stream of passive income as long as the advertiser wants to place their ads in my blog.

 You, too, can create your own blog or website on your chosen niche. You may not get the attention of advertisers during the first time. This is just normal. Make your blog as interesting as possible and make articles more often. Learn more about Search Engine Optimization (SEO) to have your blog do well in the search rankings. Once you got good SEO rankings consistently, advertisements will follow suit.

SALES FROM eBOOK PUBLISHING

If you have the passion to write books on any interesting topics that you think will be saleable to some interested readers, then you can capitalize on this by creating and selling an eBook online. You can create your eBook among the popular eBook formats like PDF, EPUB, AZW, LIT, ODF and MOBI.

When  you have completed your eBook and ready to be published, register your eBook to online publishers and eBook distributors like Amazon Kindle Store, Barnes and Noble, Sony Reader Store or Kobo. Once your eBook was approved for publishing, this will be promoted by interested affiliate publishers through their websites in exchanged of good commissions from the sale of your eBook. Every sale of your eBook will generate you passive income stream as long as there are willing buyers to buy it.

SALES FROM CREATING APPS FOR MOBILE DEVICES

If you have just bought an Android device or an Apple gadget, the first thing that will come into your mind is to load it with different Apps that you can download through the Apps store in the internet. Every download you make means a passive income for the creator of the Apps that you have downloaded.  Why not create an interesting Apps yourself to create your own passive income stream?

One inspiring success story of Apps creation is the case of the very popular mobile game apps Temple Run. Created by Imangi  Studios, Temple Run was a huge hit that it was mistaken to be created by a large development team. Surprisingly, the developers behind the popular game apps is the husband and wife tandem of Keith Shepherd and Natalia Luckyanova  along with the help of artist Kiril Tchangov doing the amazing graphics.

To create mobile apps, you need to know how to program certain programming applications for mobile devices like Java, DroidEdit, Deuter IDE, AIDE or Android Java Editor. Along with good creativity, imagination and eye-catching graphics, you may build the next mobile app blockbuster that can give you huge stream of passive income enough to send you into early retirement while enjoying life’s comfort.