There are countless opportunities that can allow you to go beyond one single income stream. Never feel locked into a full-time 9-5 job as your only opportunity for financial growth. 65% of millionaires have three streams of income, while 29% have five or more.
Becoming a millionaire might seem out of reach to the average American, but there is truth in diversifying income streams through passive income or side hustles. But, how do you transition from part-time side hustle to genuine financial freedom?
These seem to be the most successful methods for people looking to attain financial freedom through third-party platforms, without resorting to building a website for a business from the ground up.
Related: 21+ Best Ways To Earn Extra Income From Home
REITs
Most people won’t be able to front the overhead costs involved with owning and renting real estate – nor do they want the headache associated with tenants. Those that want to get into the real estate market still have options, namely in the form of REITs.
This abbreviation stands for Real Estate Investment Trusts. These involve real estate crowdfunding platforms like Fundrise.
These are companies that own, finance, or operate real-estate that is income generating through the help of third-party investors. Much like mutual funds, REITs involve pooled capital from various investors, which makes it possible for you (as one of these investors) to earn dividend percentage from any of these real estate properties.
Related: How Many Jobs Are Available At Real Estate Investment Trusts?
Amazon and Dropshipping
No one should pretend that dropshipping or selling through Amazon doesn’t involve upfront costs and a lot of work. However, these are methods that can easily generate huge amounts of passive income in the form of monthly revenue.
There are a number of ways to utilize Amazon for sales.
With third-party sales, you don’t have to deal with the headache of shipping, customer returns, or generating sales. You’re also already tapping into a market of millions with pre-existing Amazon customers.
Alternatively, you can use Amazon’s ecommerce marketplace or purchase an existing Amazon FBA business, depending on your level of commitment and funding.
Amazon is another pivot many people already using platforms like eBay or Etsy can make.
With ecommerce, the sky’s the limit – it all comes down to time and resources. Profit can always be reinvested. Dropshipping involves selling products through a platform – like Amazon. However, all of the legwork is already done for you. The manufacture of the product, the shipping, and the customer returns are all additional time-consuming elements that can be taken care of by a third-party to make this a truly passive income stream.
Related: 15+ Best Ways To Invest in Yourself & Build A Better Life
Peer-to-Peer Lending
A “peer-to-peer” loan is a loan that exists through a lender and borrower, which is most commonly facilitated by a third-party app or website, like:
These platforms connect investors with borrowers directly (or indirectly) who are in need of financial assistance, and provide the lender the ability to earn high returns on their investment. Lenders will earn income from the loans they invest in through EMIs that are credited to them each month.
They can then withdraw the EMIs or reinvest into other loans.
Algorithms on these websites can also help automatically build a portfolio for lenders by matching investment objectives with borrower profile.
Of course, this is a much riskier form of passive income.
It is important for us to be clear about the risk involved with peer-to-peer lending, as many borrowers turn to these platforms due to limited credit history. This presents added risk for the investor, as if they were to default on the loan, you would lose your money. These aren’t FDIC-insured loans, so you won’t be reimbursed by the company or app.
However, there can be a lot of passive income made from peer-to-peer lending. You can always restrict the amount of money you’re willing to invest if you’re concerned about people defaulting on loans.
Final Thoughts
There are countless passive income opportunities out there, which offer the ability to generate extra income to reinvest in yourself, or the future.
You need to dissuade yourself of the idea that passive income magically ‘happens’ overnight. It still takes a lot of work to generate a stable passive income, but it can be done secondary to a full-time job – and it can certainly help you grow wealth for savings or retirement.
There are just three of many options that can help you make money while you sleep. If you have an idea for generating passive income or the means to do so, don’t hesitate to start earning from home today!
Featured Image Credit: Adobe Stock.
