How to Generate Passive Income With No Initial Funds

Does it seem as if only the rich are able to earn a passive income? After all, it certainly makes sense that you need money to make more of it, right? Well, that’s true to a certain extent. However, that doesn’t mean that the everyday person cannot take advantage of the many tools at their disposal to earn a comfortable living without putting in a full-time effort.

In this article, you’ll discover passive income’s true meaning, its benefits, and your many available options. If you’ve ever heard of the phrase “work smart, not hard” and want to apply it to your life, read on.

What Is Passive Income?

First, let’s discuss the implication of income. Put simply, that’s any money you receive, in whichever form. You need an income to live comfortably, pay off your bills, secure a roof over your head, and buy food to alleviate hunger. 

You may envision income as the salary you get from your nine-to-five job. However, there’s more to it than that. Essentially, there are three different types of income: 

• Earned
• Investment
• Passive 

This article will focus on the third type: passive income. Here, people receive remuneration automatically or without having to exert much effort. The earner will usually have to pay a tax on it, and it may come from rental or trade activities. One may have to invest funds or time in the act initially. However, that investment is (more often than not) a one-off. Now, the question is, what happens when you don’t have much money to start off with?

Can I Build a Passive Income With No Initial Funds?

The beauty of the internet is such that it allows you to earn a passive income in various ways. Generating a steady influx of money without putting in continuous effort is a possibility for many today. Plus, you don’t need a nice nest egg to launch your venture, either. 

Sure, acquiring a passive income without initial funds isn’t as simple as if you were Warren Buffett. In this case, you’ll need to bank on your available skills and interests. You must consider what you currently own and how it can drive profit.

Passive Income Examples

Do you have an unused space in your home? Do you drive your car around a lot? These are things that you can monetize in many ways. You could rent out a room or car, for example. Alternatively, you could stick an advert on your car and drive it around. Look at it this way: you have something that other people want. Now, all you must study is the best way to reach your potential customers. 

Another broad example of passive income is royalty payments on a book, piece of music, or photograph. Naturally, this works well if you possess the skills necessary to create these assets. Of course, you must exert an initial effort to write a novel. After that, you may have to market it. But after your product picks up steam, you’ll earn from that one asset for years to come.

Benefits of Passive Income

In this day and age, you shouldn’t be satisfied with a salary; that doesn’t continue when you stop working. Instead, the smarter way to go about things is to venture into an opportunity that allows you to earn continuously without effort. These reasons will explain why: 

• A Diversified Portfolio 

That old adage of never putting all your eggs in one basket will make total sense now. Relying on a single source of income is never a good idea. An excellent insurance policy is to create several income streams so that if one fails, another is available as a backup. 

No one is saying you have to give up your day job. Instead, your aim is the level of comfort you achieve from not having to worry about getting retrenched, for example. 

If something happened to the company you work at today, you might have to go job hunting. You don’t know how long that will take. Imagine the worry. Well, if you had some passive income to tide you over, you wouldn’t have to take the first position offered. You’d have the freedom to hold out for something better.  

• Early Retirement 

Sure, you might be telling yourself how much you love your job and working. That might be true, but do you see yourself working until you’re on your deathbed? Don’t you want to explore other avenues, travel the world, or take up gardening or woodworking? Retirement is something most people look forward to, despite having a fulfilling career.

Life isn’t about slogging at a nine-to-five job for as many years as possible. It’s about cutting the hard work short and experiencing the beautiful moments. If you have a hobby, early retirement gives you a chance to dedicate more hours to it. The same goes for spending more time with the family. 

When you earn a passive income, that will pay for your new adventures, be it that plane ticket or accommodation in Paris. You won’t have to worry about spending money you don’t have. There’s beauty in that. 

• Profits With Minimal Effort 

Having a day job implies waking up early every weekday and spending eight hours at an office. It involves using physical effort and your brain and creativity to complete tasks so that you receive a salary. You may have to spend hours on a commute you don’t enjoy. 

All of that effort and wasted time goes away with passive income. The whole idea of earning passively is that you don’t have to continuously work on something for money. You may have to put up an initial investment. However, with smart decisions, income keeps rolling in no matter what. 

Therefore, you can enjoy a day off whenever you’d like and still reap the monetary benefits of your venture. Wouldn’t you rather put your efforts into something you enjoy? Imagine doing volunteer work and giving back to society. Alternatively, you can spend your time with people you love, doing something you genuinely want. 

• A Better Work-Life Balance 

You’ve undoubtedly heard of the saying, “All work and no play makes Jack a dull boy.” Burnout is a real thing, and it happens to many professionals, no matter how good they are at their job. That’s why maintaining a balance between work and play is crucial.

We’ve all heard of high-level managers who spend their whole day at work to earn a paycheck. They end up losing out on quality time with their family. They may have a successful career but lack personal relationships. Don’t let the same thing happen to you. You’ll regret that in your later years.

With passive income, you can relax knowing that you’re home at a reasonable time. That means more time with the people in your life around the dining table and having fruitful conversations. You can have a delicious meal without rushing off to complete a work project, and your family will appreciate it!

10 Ways to Generate Passive Income With No Initial Funds

Contrary to what you might think, you don’t need a substantial amount of money to earn a passive income. To establish that point, here are 10 ways for you to do just that. Research each option extensively and pick the most suitable one for your situation.

1. Sell Your Internet Connection

Do you currently pay for a broadband connection in your home? Do you have an unlimited data plan for your mobile device? If either of these is true, have you ever considered monetizing your internet plan? It’s really easy and requires just a few minutes of your time.

Many people don’t know this, but many internet-sharing platforms exist. They function as a marketplace for those who require various IP addresses to do their work or access geo-restricted websites. These platforms connect these businesses and individuals with people like you who have unused broadband to sell. One such example is Pawns.app internet sharing.

At Pawns, earning passively is simple. All one must do is register for an account and install an app on an internet-enabled device. As long as the app runs and channels the internet connection to other users, money rolls in. Amounts may not be life-changing. However, every cent counts.

2. Write an E-book

Let’s say you possess a way with words. Perhaps you’re an excellent storyteller or know how to use your voice to influence opinions. In that case, put your creativity to good use by writing an e-book. It can be something educational or entertaining – it’s really up to you. 

Selling an e-book is extremely simple today, thanks to platforms such as Amazon and Google Books. Unlike in the past, you don’t have to seek a publisher that believes in your work. The only person you have to convince is yourself. Of course, you’ll need to put in some effort to produce your chapters. However, if writing is your passion, this gig shouldn’t be a mean challenge.

Marketing your creative work is another task worth mentioning here. Take the time to advertise your book on social media, your website, and other channels. If you put in a reasonable amount of legwork in this stage, your book will gain significant traction.

3. Create a Blog

A blog is a very powerful income generator. Initially, people started blogs because they were looking for an outlet for their thoughts. Today, the landscape has evolved dramatically. Stay-at-home moms document their day-to-day activities and have a loyal following. Others talk about their favorite recipes and cooking tips. 

For a blog to be successful, passion is necessary. You won’t have an interest in updating your content if you’re blogging about a topic you don’t personally love. So find your niche and find ways to monetize it.

You can place ads on your blog, whether through Google AdSense, Ad Exchange (AdX), Media.net, or PropellerAds. Other ways to monetize include affiliate marketing programs (which we’ll discuss further down), sponsored posts, and asset sales. Successful bloggers earn a sizeable income by selling courses, e-books, and other digital assets.

4. Launch a YouTube Channel

If you’ve got an on-screen presence, you may as well take full advantage of that. Not everyone has the ability to captivate in front of the camera, and that’s a skill you should monetize. 

Having a YouTube channel is pretty much like blogging. It requires creativity and storytelling skills. Captivate your audience by offering valuable tips and lessons on topics you love. You can figure out your niche by looking at your interests and capabilities. If it’s mothering or designing Lego builds, so be it! 

YouTube stands out as an excellent platform for passive income because of its diverse audience. You’ll surely find a subset of the global population who will see value in your content. Once you have a substantial number of views and subscribers, you can participate in the YouTube Partner Program and earn from that, too!

5. Sell Designs on the Internet

Thanks to the many tools available online today, anyone can be a designer in their own right. Have you heard of platforms such as Canva? They’re a goldmine when it comes to logo creation. Plus, the learning curve isn’t steep, even for beginners. 

For this passive income gig to bring in the dough, you’ll have to learn the best monetization methods. Luckily, you have several options. 

Have you heard of dropshipping? Well, here’s something similar, but it demands a tad more creativity. You can try print-on-demand companies. Here, you upload designs that will go on shirts, mugs, prints, and more. 

6. Advertise With Your Car

Now, if you’re an adult, you most probably own a car. You could have paid for it in cash. Alternatively, you may still be paying off the loan. It doesn’t matter! A car is a valuable asset whether it’s entirely yours or not. 

Aside from the obvious way of making a passive income using your car by renting it out, you can earn in other ways. One method that’s less apparent is through advertising. Many companies would pay to slap on a sticker on your car to promote their brand.

Your car would be a mobile ad for businesses, and you’ll earn a nice reward. For this type of gig, you won’t have to drive more than you typically do, and that’s a plus. Your earned income can go to car maintenance and loan repayment.

7. Create a Mobile App

Not many people know this, but one does not need to hold a computer science degree to write mobile apps. Many software development platforms today implement a drag-and-drop system, where anyone can quickly design interfaces and develop functionality for apps.

It goes without saying, but a mobile app won’t be successful if it doesn’t have a strong idea behind it. Pay attention to the planning stage, as this will determine how smoothly your project runs. 

You can earn from your mobile app in a few ways. Either place ads on it or impose a subscription fee for usage. If the app brings high value, people will gladly pay to have it on their phones. As long as you market your product well, it will reach the masses. 

8. Sell Stock Photography

Smartphones take functionality to a whole new level these days. We don’t even need to own cameras anymore. Our mobile devices are photography machines, and because they’re so compact, we can take them anywhere. Doesn’t it make sense, then, that we have the freedom to capture moments wherever we are, be it on a train or in the park?

Now, how about setting a price on those photos that we take of gorgeous sunsets, trips to the market, and our pets? Businesses and individuals hunt for stock images all the time, so they’re a fantastic opportunity for passive income. 

To start off, learn what makes a good photograph, and practice your skills. After that, take as many photos as you’d like and post them on sites such as Shutterstock, iStockPhoto, and Getty Images. You’ll earn as long as people use your images for their websites and business materials. 

9. Participate in Affiliate Marketing Programs

An affiliate marketing program is one of the best ways to generate passive income. The key is picking the right companies to work with and products to promote. Here, you’re banking on your selling skills. If you’re one of the lucky few who can sell ice to an Eskimo, this venture is perfect for you. 

You can market hotel stays, Amazon products, or website hosting plans. The available programs vary according to cookie duration, profit cut, industry, and payment terms. However, they all work in a similar way. You’ll get a link that your audience must click to purchase products. You can promote your affiliate marketing URL via your social media profiles, blog, YouTube channel, email messaging, and more.

10. Rent Out a Room

Do you have an unused room in your home? If so, you can either rent it out as a storeroom or accommodation. The choice is yours. Consider your comfort level. Would you mind having a stranger living on the same property? Do you like your privacy and dread having to face another when you simply want to kick off and relax after a long day at work? 

Let’s say you’re someone who loves meeting new people. In that case, advertising your extra room on Airbnb and similar platforms is a good idea. You’ll have a chance to discover new cultures and enjoy interesting conversations. 

On the other hand, if socializing sounds daunting, your unused space will work just as well as storage. Many people would pay for a room to keep their belongings. As long as your contracts are airtight, you shouldn’t encounter many issues.

Conclusion

Don’t you just love the idea of earning money without putting in regular effort? That’s certainly the dream of many. And now, you are one step closer to making it a reality. Forget your preconceptions about needing money to make more of it. 

The methods outlined above are perfect for those who don’t have enough as yet to invest in stocks, bonds, or property. They’re for those of you who are working two jobs to stay afloat and are looking for a way out of the rat race. It’s important to understand that passive income isn’t something reserved for the wealthy. Identify your skills, assets, hobbies, and passions. 

With passive income, you’re one step closer to financial freedom. The comfort that comes from not worrying about where your next paycheck is coming from is invaluable. Everyone deserves that. With a few good moves, early retirement and a healthy work-life balance are within reach.

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