By Benjamin Stanfield
Disclaimer: If you opened this article, you probably already think this is a scam, I’m not selling you anything. Also, this is not financial advice. Do your own research before applying anything in this article
Key term: Asset
“A useful or valuable thing, person, or quality”
(Source: Oxford Languages)
What if you could add money to your salary? I’m sure if you had enough time, you would just get another job if you wanted more money. This article is about making more money if you don’t have more time for a job, or if you are a student who wants to make money while still focusing on school. Making money without doing anything, or Passive Income does take some time to start and needs some management every so often. The only way to passive income used only to be to invest (Stocks, Real Estate, etc.), but now we are given various kinds of passive income that don’t have as much risk. Even then, no income is truly passive and takes some time and sometimes some resources to get started.
There are three types of passive income:
(Source: Forbes Advisor)
This article will explain what they are, examples of them, and how risky they can be. Just remember that all of these are much, much safer than gambling, even investing. The more money that you use, the more money you make. It will also share what the new types of passive income are.
According to Investopedia.com, “Investing is the act of allocating resources, usually money, with the expectation of generating an income or profit.” This basically means moving your money somewhere which might make you more. You are probably wondering how you do that; the most popular way is with stocks. This way of investing has been around for years now, and it is very impactful to your wealth. According to a WealthFront Investing Automator, “Investing can help you to obtain financial freedom (retirement) at a faster rate” This can get you 10% more money every year, if you are good at investing you can get way more. If you buy an S&P 500 share, it is impossible to lose money if you don’t sell for 20 years, but this is if you made the absolute worst decision in investing history, so you will make a profit. Remember to, “buy low and sell high.”, a famous saying for investors. This applies to anything that the price can increase or decrease, like stocks. What this means is to buy, not when the price is going up, but buying when it might go up while the price is low and selling not when it is going down, but when it is high to make a profit. The more money that you invest, the more money you might make, or lose. But now, there are other ways of investing. Here are some modern ways of investing:
You have heard of bitcoin, the price soaring from a few cents to tens of thousands of dollars. This is just an example of a cryptocurrency. There are many more like Ethereum and Solana. Buying them then waiting for the price of it to go up then selling them is a wonderful way to get passive income. It just takes a few clicks to buy and sell and you can wait for the price to go up while you are doing other things. This is one of the things that “buy low, sell high” applies to. The price of crypto is unpredictable, you never know when the price will plummet.
1b. The Metaverse:
If you are up to date, you probably know that on October 28, 2021, Facebook changed its name to Meta, referring to its new way of social connection: The Metaverse. The metaverse is pretty much a mix of our world and the internet. With the VR headset, we can now experience the internet in the first person, or in the metaverse. The hope is that there will be an online version of our world owned by everyone. An online world equivalent to this world means that there is online real estate/homes, businesses, and other online things to invest in. The best part is that things online cost almost nothing until there is a limit to how much there is of that thing. For example, Real Estate in real-life costs 1 to 3 hundred thousand dollars while online real estate costs 10 times less. It is safe because of blockchain, something that makes it almost impossible to hack. This can be risky if no one buys it for a higher price.
2. Asset building:
According to Forbes Advisor, “(Asset building) means to acquire assets that earn money passively over time.” Some examples of this include things like music and photo licensing or custom-designed products, anything that you own that people pay you to use for their own benefits. But even after paying you, you still own the asset. Here are some modern ways of Asset building:
When explaining how the metaverse was safe, I talked about blockchain. This also keeps NFTs safe from hackers. NFT stands for “Non-Fungible Tokens.” The token refers to your evidence of ownership, if you have it, it is yours. Most people know NFTs as pictures worth thousands of dollars, which is unreasonable. This is because the tokens make NFTs a collector's item, only online. NFTs are ways for artists to make extreme amounts of money. If you are an artist, this could be for you. The artist sells it on platforms such as OpenSea or Axie Marketplace, giving the token to the buyer. If the buyer sells it again for a higher price, the artist usually gets a percentage of that profit, according to cyberscrilla.com, “5-10% is considered a standard (cut of profit).” This process goes on and on and the artist still gets profit from the piece of art. But it does take a fee to post the art, so there is a risk if no one buys it, around $70. The piece of art can be as simple as this piece of art worth almost $255,000 on November 26, 2021:
2b. Affiliate Sales:
This is extremely easy to explain, Affiliate Sales is when you give a positive opinion/review on something, getting people to buy it, then you get a certain percentage of the profit from the company selling the product by giving a link to that product, so the company knows that you gave them extra sales so you should be rewarded. This is for people who can influence people in writing or in a video. This does take some time if you are making a whole podcast or YouTube channel, continues makings of videos/episodes with each one hopefully adding to your assets that make you more money (I say hopefully because you need to include some strategy to get people to buy it). On the other hand, writing a blog and then posting it on a popular website only needs to be done once. This won’t cost you anything except if you buy the product to review it, but by reviewing it and being able to return it, this has no risk.
3. Asset Sharing:
Asset sharing is Asset building but when they pay you, they keep the asset until the time agreed between you and the buyer. What not even I understand is why asset sharing isn’t just called “renting”. Here are some ways you can rent out the things that you might have never thought of doing:
3a. Home rental:
Need more money for your vacations? While you’re out of town, you can put your house on Airbnb. This is if you are willing to let other people use your property. You might want to find someone who looks like they will take good care of your stuff. This can be risky if someone breaks something. This can be fixed if you have insurance as a host. Some services like Airbnb have a host insurance policy for up to $1,000,000.
3b. Transportation rental:
Have one of those days that you just stay home? If you aren’t using your bike or car, you can rent it out to someone else using Getaround for your car and Spinlister for your bike, there are many other platforms for transportation rental, thanks to the internet. Most things like insurance from the home rental sections are applied here.
This is a lot to take in, you must be incredibly surprised that this isn’t a scam. Not all of these are for you, depending on what you do or your risk tolerance. Just remember, the wealthy always take risks for what they have, this doesn’t mean that they are lucky, it just means that they take ridiculously small risks that most people don’t take, they do something different after all.
Investing. Investopedia.com. https://www.investopedia.com/terms/i/investing.asp
Asset Definition. Oxford Languages. https://www.google.com.hk/search?q=asset+definition&oq=asset+def&aqs=chrome.0.0i433i512j0i512l2j69i57j0i512l6.4412j0j7&sourceid=chrome&ie=UTF-8
Types of Passive Income. Forbes Advisor. https://www.forbes.com/advisor/investing/passive-income-ideas/
Passive Income. Bryan Stanfield.