For most people, 2021 has been a tough year loaded with numerous financial lessons. The most significant takeaway is that surviving on a single source of income is no longer an option. Having more than one source of income has become necessary to get through the harsh economic climate in the post-COVID-19 era.
The citizens of Tampa Bay haven’t been spared from the financial crisis caused by COVID-19. With the recent surge in mass layoffs and joblessness, creating a passive income can help them get back on their feet. Therefore, this article couldn’t be more timely.
What is Passive Income?
Passive income is money you continually earn through any venture that requires minimal daily effort or upkeep. It’s a long-term reward that requires short-term trade-offs. Most passive income ideas aren’t get-rich-quick schemes. It can take time to build up steady streams of income. However, depending on your endeavor, you could earn anywhere from hundreds to thousands of dollars.
Why You Need Passive Income
While most people build passive income streams to escape a paycheck-to-paycheck lifestyle, some do it to attain early retirement or achieve financial freedom. Whatever your reasons, here’s why passive income can be invaluable.
- It enables you to pursue your passions
- You can live and work wherever you want
- There’s less reliance on a paycheck
- It can be the foundation of wealth creation
Passive Income Ideas in Tampa Bay
Statistics indicate that while 34% of Americans have a passive income, 24% plan to create one. That said, there are several ways of generating passive income. This article outlines some of the best passive income ideas to consider and how to be successful with them.
1. Real Estate Investments
Real estate is one of the leading passive income-generating ventures because it is a tangible asset, and it doesn’t lose value instantly. One can invest in real estate through Airbnb, Real Estate Investment Trusts (REITs).
Although utilizing Airbnb may seem engaging, you can always hire a property manager and a cleaning company so that you won’t have to be physically present. On the other hand, REITs offer an easy way to invest in real estate with minimal start-up costs. It involves investing in a trust which purchases real estate.
This strategy is gaining popularity, especially in Tampa Bay, the nerve center for real estate investment, owing to the low mortgage rates and the affordability of the housing market. If this sounds like the perfect idea for you, be sure to consult local realtors and property managers for the best deals.
2. Dividend Stocks
Investing in dividend stocks can be one of the best passive income ideas if you can stomach the occasional volatility. Financial experts warn novices against jumping into the market without thoroughly investigating the company issuing the stocks. Investment apps like Robinhood can help you invest your money in a custom portfolio that mirrors your investment preferences for those who prefer a hands-off approach.
Dividend stocks can be great because while they pay dividends, they can also appreciate (or depreciate) in value. Therefore, you can either take advantage of compound interest of the value of the stock or invest in dividends until you reach your desired amount. Once you’re ready to start investing, I am sure there are some financial advisors based in Tampa who can guide you.
3. Peer-to-Peer Lending
Peer-to-peer lending has recently gained popularity since banks have cut down on offering loans to small businesses. Investors can pull together their resources to offer loans directly or indirectly to borrowers who are looking to secure loans without going to a bank.
When using this strategy to create passive income, it is best to use an established mediator. This way, you reduce the risk associated with it by a huge margin. Peerform, which offers the best rate, Prosper, which finds borrowers with established credit, and Funding Circle, which helps fund small businesses, are popular P2P platforms.
4. Digital Products
Selling digital products to earn passive income is well-known for its simplicity and affordability. Digital products are inexpensive to start since they are created, sold and used digitally. Most of the time, you only need to pay fees to the sales platform you use. One can bring in extra income with this method in the following ways:
- Publishing e-books: All you need is expertise in a given area, an investment of time upfront to write the e-book and an online platform to help you sell your e-book such as Kindle and Apple books.
- Affiliate marketing: It’s a modern interpretation of an old idea – getting a commission on a sale. Once you join an affiliate program, you can promote the merchant’s products using your affiliate link or unique ID in exchange for a commission. The best thing about it is that you can promote products from different companies and earn a commission from all of them.
- Blogging: This side hustle involves finding a niche and posting regular content to gain an audience. It can be an excellent source of passive income once you overcome the initial challenge of finding an audience.
- Vlogging: From sponsored videos to ad revenue, vlogging can be highly efficient in gaining a steady amount of money.
These could be a good time to invest in dropshipping, especially with the current upsurge in online shopping. This business model involves creating an e-commerce store where customers browse and buy products. As a seller, you only purchase inventory as needed from the wholesaler/manufacturer, which minimizes cash risk. For this reason, it’s an ideal strategy for those with minimal upfront capital.
With dropshipping, you have the freedom to control most of your earnings, as you can control the pricing of your products. A great bonus is that your products are not only available to people in Tampa Bay, they can be shipped worldwide. Websites like Shopify, BigCommerce, and Wix can help you start your dropshipping business today.
Creating a passive income can fast-track your journey to financial freedom and wealth generation. It can be a worthwhile endeavor, although it may take some time and effort in the beginning. By exploring these ideas, you could be on your way to making money while you sleep.