We all need more than one income source, but there are only
so many hours in a day to work. Every time someone talks about wanting to earn
an additional income, the recommendation others offer is to “get a casual or
side job.” But what if you do not have the time and drive to earn an extra
coin?
As opposed to active income that we earn by putting a lot of
effort and time into work, passive income is an income that you earn legally
without being actively involved in working. This means for someone to earn
passive income today, they must have made a brilliant decision in the past as
regards investment, and now that financial choice is working for them.
Bitature – one of the richest men in Ugandan said: “It’s not
true that the rich don’t work hard; they actually work very hard, but their
working style is different from that of the poor. A rich man can spend 18 hours
a day thinking to get more results than a poor man who spends the same amount
of hours toiling. Over time, rich people learn how to prioritize and know where
to focus their efforts in terms of energy, time, money and other resources for
maximum results.”
That's by design. But, if you're sitting there thinking that
passive income is impossible because you're too busy working a day job, think
again. Not only is it possible. Not only should you do it. But, you'd be silly
not to put as much of your effort into generating a passive income immediately.
For those who are trying to earn a supplementary income for
the first time, here is my submission on ways to make a few million Shillings a
year on your way to attain financial freedom.
The first major idea that will make you earn as you sleep is to write books but once the book is produced, marketed and rarely revised, it becomes a completely passive venture which can provide you with passive royalties in a lifetime. You can also make an e-book version of the print copy and sell it via Internet, may be through Amazon.
Secondly, if you like photography you could put your
photography skills at work and feed websites that buy them. Websites such as
Shutterstock provide global individuals with platforms to sell their photos.
They usually offer either a percentage or a flat fee of each photo that is sold
to a site client. In this way, a single photo could present you an opportunity
to permanently cash in because it can be sold again and again to various
customers. All activity becomes completely passive with sale details handled
through the web platform.
For the learned, say teachers, you can create an online
course. Everyone can be an expert at something. For instance, you can create an
online course teaching Mathematics or English. Your online course should have
video lessons, checklists for completing steps you recommend in your video
lessons, small e-books to supplement the lessons and audio files. People who
have done this make crazy amounts of money selling lessons.
The other way is to invest in a lending association or Sacco. There is probably no passive income that is more flawless than earning interest on safe investments, such as government Treasury bills and bonds. The problem is that those instruments pay insignificant returns - generally less than 1 per cent. It may be passive income at its finest, but you will never be able to relax or retire on returns that are that low.
Customer loyalty card rewards are another way. Most top
rewards cards let you earn anywhere from 1 to 5 per cent back on your money as
you shop for home. Here, you must be a signed up customer to earn this bonus.
Kampala’s Mega Standard Supermarket offers some opportunities. For example,
after spending just Shs55,000 on the card at any shopping round, you can earn points
translated into Shs1,000.
Another route is purchasing shares where there is a
possibility of capital appreciation. In that way, you can earn passive income
from two sources - dividends and capital gains. Currently, Uganda Stock
Exchange sells shares from a number of companies including Umeme, Stanbic,
Barclays, among others.
Investing in rentals can also be very rewarding passively. Once you put up a property and fully rent it out, you are ready to get money. This is, however, semi-passive income because you must keep managing the property for you to earn well. But there are property managers who can manage this property for you, usually for around 10 per cent of the monthly rental fee. Professional management can make the investment much more passive, but will eat into your income.
Investing in rentals can also be very rewarding passively. Once you put up a property and fully rent it out, you are ready to get money. This is, however, semi-passive income because you must keep managing the property for you to earn well. But there are property managers who can manage this property for you, usually for around 10 per cent of the monthly rental fee. Professional management can make the investment much more passive, but will eat into your income.
You can transform your business into a passive money making
business by hiring freelancers who work as contract workers. Look for
freelancers with a strong work code to provide quality results. Tasks that
include bookkeeping, writing, editing, purchasing, social media
marketing/management and many others can be outsourced.
Rent out your stuff at a fee. Thousands of people every day
are looking to rent any variety of items. Social media groups focusing on
buying and selling can be a great place to advertise your items for rent. Here
are some ideas of products that you could rent out: extension ladders, party
tents, tables and chairs, projector, white board, serving tables, kitchen ware,
napkins, outdoor screen, camping tents, outside lights and the list could go
on. Just make sure that you have a proper rental agreement signed by both
parties, get paid in cash beforehand, and get a current photo ID and secondary
proof of address to protect the property you’re renting out. For extra peace of
mind, consider requesting a security deposit as well.
Rent Your Car for Ad Space. How would you like to make money
just for driving your car and not have to pick up any passengers? By allowing
companies to place advertisements on your car windows, you can earn extra money
each month simply by driving your car around town.
As you can see there are a couple of ways that you can make
passive income. Hopefully, this list has helped you narrow down which source of
income is best for you. So if you’re tired of the traditional way of making
money, implement a few of the passive income strategies above so you can start
working less and making more money while you sleep today.
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