How to Create Active Passive Income Streams

This article explains the methods of generating multiple streams of income through identifying right opportunities around you. It explains both active and passive type of income generation ideas for the readers to select and follow. In other way, it can consider as a formula of active-active-passive income generation model.

Generating active income required attention from the person but, a passive income doesn’t required full time attention but generating income from some carefully planned and executed activities with an intention of generating income while the person is sleeping. Here is all three methods:  

How to create Active income?

Want to boost your income now? Active income rewards your time and skills directly. Explore freelancing, side hustles, or a part-time job that leverages your talents. Ready to unlock your earning potential?

1. Generate Active Income from Full time Job

No doubt your full time job is the major stream of income. As you are engaged with job in the whole day, it is the first active income source for you. 

To continue with this, a person required to put high amount of efforts to increase the skill sets to competent with the market.

2. Create Income from Part time Business or Job

Part time activities such as home business or part time jobs are the best way to create another source of income. 

However, here also your attention required as it is again an active method to create a second source of income.

How to Create Passive Income?

Passive income is nothing but you are getting income from some activities you have dome such as investing in some good dividend stocks or mutual fund. 

In order to generate a handsome passive income, search around for the opportunities. Here are some methods I follow to generate passive income to me:

1. Invest in High Dividend Yield Stocks

As mentioned earlier, stocks are the most preferred instruments to create passive income through making a onetime investment. If you research a bit, you can easily identify the best dividend payers in our market. 

For an example, those who have invested on Wipro shares during the year of 1981, might have received a passive dividend income more than 118 crores now. Read How to Invest in Stocks and Shares.

Building a good portfolio with high dividend paying company stocks would help you to generate passive income to your bank account time to time.

2. Mutual Funds Investment

Mutual funds are another option to create passive income. Creating a portfolio by including good dividend paying mutual funds, selected with Dividend option, is a best method and highly recommended to people near retirement age, to create a steady, passive income.

3. Monthly Income Plans

Make a mix of MIP and monthly income option such as post office MIPs to generate passive income tremendously. One should calculate the required income to their account and the period and invest/deposit of the MIPs accordingly.

4. Real Estate Investments

Real estate is the best option to generate passive income through the form of rent. Any once can achieve the goal of having a piece of rented real estate through planning properly. 

It can be any form, either it is a rented houses, shops or even renting a plain land. One of the beautiful advantage of real estate is, the passive income stream generating from real estate will increase and sustain. Read How can leverage real estate to build significant wealth 

5. Internet Entrepreneur & Side Hustles to Make Money Online

Create a web portal or blog with high traffic to generate income from advertisements and adding contents. 

High traffic blogs are generating handsome income through advertisements and other methods. 

However, your free time required maintaining the portal or blog and so some kind of effort regularly required but this is also a considerable option to show your passion to the world and generate decent income.

6. Convert Your Passion to Side Income Opportunities

This idea is bit different than others above. If you are a passionate photographer, you have lots of opportunities to sell your photos through various options in internet.  Read How can Sell Your Photos Online.

If you are passionate to any other field, identify relevant opportunities to sell your passion to the world. This will fetch you lots of money indirectly and directly.

Top 50 Ideas to Generate Passive Income from Side hustles, Small Businesses, Online Activities:

How Monetizing Your Skills & Knowledge

1. Create & Sell Online Courses: Share your expertise on platforms like Udemy, Skillshare, or Teachable.
2. Write & Sell Ebooks: Turn your knowledge into a downloadable book on various topics.
3. Become a Stock Photographer/Videographer: Sell high-quality visuals on platforms like Shutterstock or Adobe Stock. Know how to make money as a photographer.
4. Develop & Sell Printables: Design and sell printables like planners, templates, or artwork.
5. Offer Online Consultations: Provide expert advice on topics you excel in via video calls or email.
6. Start a Membership Site: Offer exclusive content, tutorials, or community access for a monthly fee.
7. Create & License Music/Sound Effects: Compose music or sound effects for use in videos, games, or apps.
8. Write Blog Posts for Sponsored Content: Partner with brands for paid content creation on your blog.
9. Develop & Sell Mobile Apps: Design and launch mobile apps with in-app purchases or subscriptions.
10. Offer Online Coaching/Tutoring:** Share your knowledge and guide students remotely on various subjects. Learn How to start online tutoring.

Creative Pursuits & Monetization

11. Sell Handmade Crafts on Etsy:** Showcase your artistic talents by selling handcrafted jewelry, décor, or clothing.
12. Design & Sell Printables for T-shirts: Create unique designs for print-on-demand t-shirt companies.
13. Self-Publish & Sell Coloring Books: Unleash your creativity and cater to the adult coloring book trend.
14. Create & Sell Stock Music Loops: Design royalty-free music loops for videos, games, or presentations.
15. Record & Sell Audiobooks: Narrate audiobooks for self-published authors or platforms like ACX.
16. Design & Sell Printables for Wall Art: Offer downloadable prints for posters, canvas art, or home décor.
17. Become a YouTuber with Brand Partnerships: Create engaging content on YouTube and attract brand sponsorships.
18. Start a Podcast with Sponsorships: Launch a podcast, build an audience, and attract relevant sponsors.
19. Sell Personalized Items on Etsy: Offer custom-made crafts, mugs, or accessories with names or designs.
20. Write & Sell Greeting Cards: Design and sell unique greeting cards for various occasions.

Rental Income & Sharing Economy

21. Rent Out a Spare Room on Airbnb: Earn income from unused space by listing your room on Airbnb.
22. Rent Out Your Car Through Turo/Getaround: Generate passive income by renting your car when not in use.
23. Peer-to-Peer Lending Platforms: Invest in loans for individuals or businesses on platforms like LendingClub. Learn about Peer-to-Peer Lending Business
24. Rent Out Storage Space in Your Home: Utilize unused closets or garages for storage rentals through Neighbor.
25. Rent Out Your Equipment/Tools: Share underutilized equipment like cameras, tools, or party supplies through Fat Llama.
26. Invest in a Rental Property: Purchase a property to generate rental income, requiring ongoing management.
27. List Your Backyard for Events on Peerspace: Rent out your backyard or unique space for gatherings or photoshoots.
28. Rent Out Your Parking Space with SpotHero: Make money from your unused parking space by listing it on a rental platform.
29. Invest in Real Estate Investment Trusts (REITs): Invest in a portfolio of income-generating properties through REITs. Read Investing in REITs
30. Rent Out Your Boat/RV on Outdoorsy: If you own a boat or RV, list it for rental adventures on a dedicated platform.

Affiliate Marketing & Online Businesses

31. Affiliate Marketing on Your Blog/Website: Promote other companies' products and earn a commission on sales.
32. Start a Dropshipping Business: Sell products online without holding inventory through dropshipping.
33. Become a Social Media Influencer: Build a large following and partner with brands for promotions. Read How to become a social media influencer.
34. Start a Blog with Ads & Sponsorships: Generate income through ad placements and sponsored content deals.
35. Develop & Sell Online Templates: Design and sell website design templates, business plans, or social media templates.
36. Create & Sell Stock Video Footage: Capture high-quality video footage and sell it for use in projects. Read how to make money with stock videos
37. Offer Online Translation Services: Utilize your fluency in multiple languages to translate written content.
38. Invest in Dividend-Paying Stocks: Purchase stocks that pay out regular dividends as a portion of their profits.
39. Invest in Peer-to-Peer Lending Platforms: Loan money to individuals or businesses and earn interest on your investment.
40. Invest in High-Yield Savings Accounts: Park your savings in accounts offering higher interest rates than traditional options.
41. Buy and Sell Domain Names: Register domain names with potential and sell them for a profit later. Here is a detailed article to make money from digital Assets
42. Invest in Royalties from Creative Work: Write songs, design products, or patent inventions to earn royalties.
43. Invest in a Vending Machine Business: Place and manage vending machines in high-traffic locations.
44. Purchase and Lease Out Billboards: Invest in billboards and lease advertising space for recurring income.
45. Invest in Crowdfunded Real Estate: Participate in funding real estate projects for a share of the rental income.
46. Start a YouTube Channel with Product Sales: Create engaging content and sell your own merchandise alongside it.
47. Develop & Sell Online Courses with Lifetime Access: Offer comprehensive courses with one-time purchase for lifetime access.
48. Write & Sell Blog Ebooks: Compile your best blog posts into an ebook and sell it to your audience.
49. Build a Stock Photo Portfolio & Sell on Multiple Platforms: Expand your reach and sell photos on various stock photography platforms.
50. Write & Sell Music for Video Games/Apps: Compose music specifically designed for video games or mobile applications.

Remember: Building passive income streams takes time and effort. Choose ventures you're passionate about, be consistent, and focus on providing value to your audience or customers. The rewards of financial freedom and ongoing income can be well worth the initial investment.