It’s the dream of many to create a passive income stream (or even more than one) so that they can retire early, for example, or cut back on their current working hours, or spend more time with their families, or go traveling, and much more. Yet when it comes to actually go ahead with the idea, it’s easy to get stuck. Just what are the best ways to create a passive income that will help you to live the life you want to? Read on to find out because we’ve got some excellent examples.

 

Open An Online Store

Online stores are growing in popularity and will continue to be the preferred way for people to shop well into the future, and perhaps forever. Compared to opening a physical store, an eCommerce store is cheaper to run, less time-consuming, and can, if you set it up in the right way, provide a good passive income.

 

Most online stores are relatively passive; you certainly don’t have to be online waiting for everyone’s order to come through. However, you will need to package up the items and ensure you send them out quickly. This isn’t too much work, of course, and is perfectly manageable. If you want a truly passive income, though, choose drop shipping. When you drop ship, you wait for an order to come in, use the money you have been paid to purchase the item from a drop shipping company (keeping the profit for yourself), and have them send it out. This system can even be automated so that you don’t have to lift a finger.

Trading

Trading is a way to make a passive income, but it’s not something that you can live on right away, and it’s important to note this. Whether you choose to trade stocks and shares, invest in foreign currencies, or buy annuities about which you can find more info here, the investment you make is for the long term. If you’re happy with this, investing and trading really can provide a good passive income for when you retire.

 

The important thing to remember is that investing too much in one trade or rushing into any kind of investing without carrying out a good amount of research is a bad idea. If you do this, you will lose the money you had to trade with, have no more to invest, and have to start saving all over again. Investments like this may not be suited to everyone, so check that you’re happy with the way it all works at the start.

 

Create An App

If you enjoy both technology and being creative, this idea might be the perfect solution for you. Apps for smartphones, tablets, even TVs and laptops are going from strength to strength, and many people will search for an app to do a task for them before attempting to do it themselves.

 

If you can work out what people need help with and create an app that does exactly that, you can make good money. Once the app is created, the only thing you’ll need to do is keep it updated. Other than that, you should receive a passive income either because you charge a small amount for it or due to advertising if you’re offering it for free.

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June 3rd, 2021 by financetwitter

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