A Comprehensive Guide on How to Build Your Passive Income

how to build your passive income streams new revenue source

Are you stuck in a dead-end 9-5 job? Or maybe you've just been made redundant because of the Covid-19 crisis and you are looking to build up some income so that you can go traveling or work remotely.

Then you'll probably want to start earning some passive income to make your new lifestyle a possibility when the borders reopen. But what is passive income and how do you grow your passive income?

Here's everything you need to know about generating passive income streams.


What is Passive Income?

Passive income is the concept of earning money without really doing much to increase its value. It comes in every week, month, or quarterly period regularly.

Many vloggers and lifestyle gurus have talked up the idea of earning money for doing nothing but in reality, it's not that simple. There is a long path you must climb where you earn nothing or very little before it comes to fruition. And you must invest some time and energy in making sure it continues to grow even when the money is coming in steadily.

There are many ways you can make this happen; here are some ways you can make a passive income. 


Diversify That Portfolio

If you have all of your assets in one place than that's a problem. Nobody makes money by throwing all of their savings into one stock or share. Your entire portfolio will depend on whether that company does badly or well that month.

Instead, you need to spread your money out. You must invest in different stocks and shares and different countries and market places. But don't just think about stocks and shares.

Think about putting your money into lots of different revenue streams and reaping the rewards from all of them.

Diversifying your portfolio is going to take up your time. But it will be worth it. It ensures that you cannot fall victim to an unexpected collapse in the share price or a general economic collapse in one country.


Launch an SEO Blog

A great way to earn a living is to do some SEO keyword research and to find a niche topic that not that many people have written about.

Build a great looking website and write some well-researched copy to add to the site. Then watch the site rank slowly on Google; use affiliate links and advertising and before long you could be making a lot of money. 

If you're not great at writing or you know nothing about the topic at hand be sure to buy in some content from the host of writers advertising their services across the internet. There are experts on everything from hair products and beauty to financial services.

The same applies to the website as well. Look for a template you can buy and if that doesn't work for you have a website built by a designer for you.


Invest in Bitcoin

Another great revenue stream is to invest in bitcoin. Bitcoin is a cryptocurrency that is not regulated by banks or any individual country and is managed entirely online in a digital wallet. Its value is much higher than traditional currencies and is determined by the Blockchain, a highly advances computer program.

Because it's value fluctuates so much and its values are so high there is a chance to make a lot of money from trading it in a short period. The difficulty though is that it's harder to predict when the currency will rise or fall and these patterns can fall victim to insider trading.


Reinvest Your Dividends

If you've got a lot of stocks and shares in a company and you suddenly start to receive dividends it can be easy to think that this is your passive income. But you'd be wrong.

You should always reinvest your dividends into your company and try not to see them as real money. If you use your dividends to buy more stocks then the following year you will make an even higher profit if the share price continues to rise. Think of them as free share credits rather than as a valid passive income stream.

If you are struggling with how to declare dividends and shares on your tax returns then be sure to use this 1099 filing service, they can take care of it for you.


Manage Your Time Effectively

The best way to making a lot of money is to manage your time effectively. Don't spend hours scrolling through social media sites like Facebook and Instagram.

Set a timer for every task you need to complete and allocate some time every day to a project or a scheme you have and before long you'll find yourself bringing in lots of money.

It's also a great way of keeping yourself sane if you have a 9-5 job that you don't enjoy or you find yourself unemployed. It makes you feel as if you have a goal to work towards.


Building Your Passive Income? Think Tactically

The term passive income is misleading. No income is passive. If you write a book and start to earn royalties then you will have already spent hundreds of hours writing it and will still need to spend time marketing your books and doing events. If you invest in stocks and shares then you will need to spend hours studying the market.

The best advice for building your passive income is to spend some time building up to your goals slowly, every day.

If you want to know more about how to increase your passive income be sure to check out the rest of our Bootstrap Business Blog. We offer a wide variety of articles on passive revenue streams, MLM, affiliate marketing, network marketing, blog monetization, and side hustles.

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