Being able to generate passive income is always a great idea! This is especially so during the COVID-19 pandemic where job losses and pay cuts have become the norm. Having an additional source of income can come in extremely handy during such unprecedented times.
If you’re like most Singaporeans, a passive income may be your dream-come-true. Luckily, there are plenty of ways to reach that dream today.
The advantage of a passive income source is a minimal effort in the long-term. However, some of these solutions require good planning abilities and time until the cash flow starts rolling.
While side jobs can also afford us with quite a steady flow of income, having a source of passive income can be benefitial in the long run as minimal effort is required.
Poor investments, on the other hand, will never bring you profit even if you’re doing everything right. Lucky for you, we’re here to prevent that. We’ll tell you all about the best opportunities so that your passive income can help you achieve financial independence. Keep reading!
Investing is a good way to make passive income, especially if you know what to choose. As such, you can focus on:
You may not know this, but having your blog can bring a lot of passive profit your way. However, you should be prepared to invest in it at first and nurture your blog until you can see significant cash flow.
Besides, you need to have good planning skills to produce a profitable blog. You should start by choosing a profitable niche, such as parenting, finance, healthy lifestyle, or travelling. Ideally, you should have a lot of insight into the niche you’re choosing if you’re writing the blog posts yourself.
After you choose your niche, settle on a unique selling proposition. What makes your blog different than the competition? For instance, if you choose the health niche, you can follow peer-reviewed journals and explain their findings to the common reader. Just make sure your posts are relevant and engaging to your audience.
Affiliate marketing can be the next step after opening your blog. However, this strategy also works if you have your website or are very visible on social media.
Then, you can start recommending various products to your viewers. Make sure you remain relevant through your articles, videos, or infographics. You should focus on why a certain product can solve some of your customer’s needs to determine more people to click on a certain link.
Sometimes, you’ll get a commission just by having someone click onto the link. However, if they end up buying that product through your website, your commission is bigger.
However, you have to make sure that the products you’re endorsing are high-quality and that their companies are trustworthy.
You probably know that banks in Singapore don’t lend you money if you have a poor credit score. As such, many people who have to weather emergencies easily fall prey to loan scams.
A more reliable solution when they don’t qualify for loans is to pick a peer-to-peer platform. You too can register on one these Singaporean P2P platforms and lend people money. The advantages are that you can charge a big interest rate and that everything is legal. The disadvantage is that you have to double-check everyone before lending your money so that you won’t lose your investment.
You can also loan money to small ventures or start-up companies if they don’t meet the banks’ eligibility requirements. However, this option is riskier because a company that doesn’t qualify for a loan is less credible than an individual with a poor credit history.
You may not realise it, but you probably have plenty of things to rent that are just in your house. For instance, you may have an elliptical machine you never use, a wedding gown, or your kids’ Halloween costumes from when they were little.
Renting these things is more profitable than selling them because you’ll get more money out of them in the long-term. Besides, people may be more into renting an expensive item than buying it. After all, why buy a $3,000 elliptical which you’re not sure you can use if you can try it for $20 per week?
The disadvantage, though, is that some of your customers may damage your property. To avoid this, you should consider contracts, especially for valuable items.
You can also rent an extra room in your house, but you’ll have to ensure your tenant is likeable and dependable.
Unlike a few decades ago, writing a book or an e-book today couldn’t be easier. You don’t need a lot of money and you also don’t need to have lots of contacts.
You can do all your research on the Internet and publish the book yourself. The Internet also gives you wider access to people, especially if you have your website or lots of social media followers.
Remember that you should do your research first to ensure there’s a market for your book. You don’t have to write a witty novel; you can write children’s stories or even a collection of your own witty jokes!
You can even publish excerpts of your book to get Patreon donations. The more publicity your book has, the more profit it will bring you.
Dropshipping is an advantageous way to generate passive income. You’ll have to build your website on a certain niche, and then advertise products from different companies. When someone places an order for a specific product, you’ll buy that product from the manufacturer and fill in their address as the shipping destination.
Each time someone makes a purchase, you make a profit without having to worry about things like transportation and inventory.
Make sure to find out which products your audience prefers, first. You should also research for a trustworthy supplier that can deliver the products neatly and timely.
The rise of social media platforms have resulte in serious addiction for some. However, social media have also opened up numerous opportunities and jobs for others. Influencers with millions of views attract more companies that will give them money to create certain content. Besides, YouTube also gives you a neat sum once you reach a certain number of viewers and every time an ad appears, money goes in your pocket.
However, you need a lot of people to watch your videos so that your profits can increase. Interesting and relevant videos are one way to go, but history has shown us that controversial videos work best. Either way, you need to choose relevant and current topics to keep your audience engaged.
If you’re tech-savvy, you can consider building an app. Let’s face it, everyone uses apps today so why not develop yours if you have programming skills?
It can be anything from a food recommendation app, virtual interior designer app, receipt management app or customized restaurant app! You can also talk to business owners about your app propositions to see if they’re interested in providing you with the capital to start!
If you have a knack for taking photos and you have a professional camera, you should consider stock photos. A lot of companies will pay good money for your photos and there are plenty of platforms where you can publish your work.
Each time someone downloads one of your photos, you’ll earn a commission. Make sure you build a diverse portfolio, with pictures from different walks of life. A bigger portfolio increases your chances of being noticed so that you can increase your cash flow.
Credit cards are a great source of passive income if you know how to use them correctly. That’s because credit cards come with plenty of rewards and cashback on your expenses.
For instance, you can gather air miles with your shopping or receive significant discounts from certain providers. Now here’s the catch. This reward system is supposed to have you buy more things even if you don’t need them.
That’s why you have to be smart. Instead of buying useless products, you can pick up the check when you’re having dinner out with your friends. You’ll pay with your credit card, and they’ll pay you back with cash. You can also do this when organising trips with a larger group.
Annuities can also be technically included in the investments category, but the thing is you’ll only use them when you grow old. That’s because annuities are money you get from an insurance company after you retire.
The longer you hold the policy, the more money you’ll receive. Of course, the amount you’ll receive also depends on how big your instalments are now. So, if you want to have an increased regular income in your golden years, annuities are a risk-free solution.
This COVID-19 pandemic has rendered many Singaporeans jobless or caused some to suffer pay cuts. While some of us are grateful that we have a source of passive income, others might not be as lucky.
There are still bills to pay and mouths to feed. How does one then find the extra cash to solve these pressing issues? Instead of falling prey to loan scams by unlicensed moneylenders, one can always take a loan from a licensed moneylender.
CreditMaster is a licensed moneylender under the Ministry of Law. This means that we abide by the rules set by the ministry and do not condone unscrupulous and unlicensed money lending activities. We understand that the COVID-19 pandemic has resulted in many Singaporeans requiring urgent financial help, fast. This is why we have streamlined our online loan application process so much so that it only takes 5 minutes. If everything goes well, you can even receive your cash within the hour. It’s that simple!