Smart People Finance

Best Passive Income Ideas and Investments for 2023: A Guide to Making Money Online

Best Passive Income Ideas and Investments

for 2023:

A Guide to Making Money Online

For all of you who preferred video learners out there, here is a video of this topic from our YouTube Channel.

Click here to watch the video.

Let me start by defining what being financially free means to me.

I totally agree with Robert Kiyosaki‘s definition saying that you are financially free when your passive income is greater than your expenses.

If you think about it, this should make you feel happy because your financial freedom is not necessarily related to the total amount of money you have got but rather to how much passive income you have that can cover your expenses.

So, if you earn 1,000$ per month and your expenses are 800$, you have a positive cash flow or surplus of 200$ per month and if you use that money wisely to create new sources of income, that can generate an additional 600$, that day, you can say that you are financially free.

If the day after, you decide not to work anymore or just take two months off, you can do it easily as your passive income will cover your expenses.

Isn’t it fantastic?

Obviously, I am simplifying but what’s important here is the concept.

The person in the example above is financially free even if it’s ” only earning 1,800$ per month! “

Do you get the point?

SECTION 1: What Is Passive Income

Now, to be clearer, let’s define what passive income is.

When you own an asset that gives you money without your effort, that’s a passive income.

Some examples might be your savings account which gives you an interest in money just to keep it in there, or a dividend stock or a house rent.

As you can see, some of them are more passive than others but I like not to be too strict on this.

I consider passive income anything that gives me money even with a low effort from me.

I mean that if you own a house and rent it out with long-term rent, you get a passive income, your monthly rent, which is basically effortless.

But, if you want to increase your house potential and you rent it out with apps like AirBnB for example, for short terms, now you have to do some work because you need to take care of cleaning, hand over the keys to the many travelers you will have and so on and this is going to take more time, more effort from you but still, I consider these as passive income.

SECTION 2: How To Be Financially Free...Quickly

Now that we agree on the passive income definition and we get that as it is greater than our expenses we are financially free, let’s see how you can get there the fastest way possible.

You can do two things here, reduce your expenses to need less money to cover them or increase your passive income.

To reduce your expenses I suggest you use a budget planner to help you trace all of your expenses and see where your money goes and cut what is unnecessary.

To increase your passive income, you need to have a positive cash flow first. This means that you MUST have money left every month to put into an account ready to be used whenever a new passive income possibility rises.

Let’s now see the best passive income according to my experience.

SECTION 3: The Stock Market

Many stocks in the market pay you money and this money is called dividends.

So you can go on the market and buy a stock.

This means that you become the owner of a very small part of the company by buying shares of it.

This is the way the companies collect money from the market to run their business and make new investments.

As you are so valuable to the companies because they can live thanks to you and investors like you, you get rewarded with a percentage of the profit the company makes usually every year.

This is called a dividend.

Now, not all companies pay dividends but many do and this is the only way for the board of directors to get money and when they want to pay themself, you get paid as well.

You usually get dividends on a monthly, quarterly, or yearly basis.

Now, I can see you running to look at the stock market to find the highest dividend stock but I warn you, that’s not the only thing you have to look at as many small companies may offer you high dividends but then run out of money and stop doing it.

So, individual stock trading is very risky though, and before doing any action, be careful, prepared, and diversify the most possible.

SECTION 4: Index Funds

An alternative to individual stock trading is an Index fund.

That’s a very good way to invest and generate income, especially for beginners because they have a lower relative risk and you don’t need to put much effort into choosing it.

On the other hand, the passive income you can get is much lower.

SECTION 5: Selling Products Online

This is something everyone can do. It’s never been easier than today.

We have great platforms like eBay or Amazon on which you can start selling any sort of product.

Once you upload your product on the platform, it will work for you 24h a day, 7 days a week.

You make the initial effort and then just wait and see the money coming in.

SECTION 6: Dropshipping

Don’t you have a product to sell?

Well, first of all, have a better look around your house and garage as I am sure you can find something to sell but even if you really have nothing, you can learn Dropshipping. which basically is promoting a third-party product and selling it on the platform.

Once someone places his/her order through your store, he/she pays you the retail price.

Then you forward the order to the supplier and you pay it at the wholesale price.

The difference is your profit and you don’t need to do anything else as the supplier will take care of shipping the product and the post-service as well.

Isn’t it amazing?

SECTION 7: Real Estate

Here is another one of my favorite passive income sources and one of the safest in the long term you can have.

In this sector, you have so many different ways to invest in.

You can choose a Property Investment Crowdfund and put some money there. The manager will buy and rent out the property and share the profit with you and the other investors.

If you want more control over the investments but don’t have enough money to buy a house, you can try Subletting.

This way, you find an apartment on rent that you like and agree on the price with the landlord and you also ask for the possibility to rent it out.

Eventually, you can do it at a higher price and you keep the difference!

The best way to get a higher price from the apartment is by renting it out for short periods on Airbnb or similar.

Be careful though, you always have to be able to pay the rent to the landlord and he MUST agree on the subletting.

Another good way to invest in Real Estate is by using down payments.

This is only applicable when you have already some money set aside so be ready and start saving money every month to grab the opportunities when they arise.

When you find a good house where you think you can rent it out for good money, buy it with a 20% deposit and take out a mortgage on it.

Be sure that the monthly rent is equal to or greater than the monthly mortgage you have to pay to the bank to generate a passive income or get someone else to pay for your house for you!

SECTION 8: Affiliate Marketing

This is an amazing opportunity to generate extra income almost passively and at an extremely low cost.

It works this way.

You find a third-party product that you love and preferably you have been using for yourself and start making a review on it.

It can be a video or a simple website article. In the video and article leave your referral link so that if anyone clicks on it and buys the product through it, you earn a commission.

There is affiliate marketing on a lot of products. Almost every company has this kind of program so if you use something that you love, have a look at the official site, and you might probably find a referral program and start making money promoting something you really like.

Amazon Associates is another great place to start affiliate marketing.

SECTION 9: Selling Digital Products

This is another one of my favorites.

Nowadays information is gold.

If you know how to do something very well, you can pack all your knowledge and expertise into a digital product and sell it online.

It can be an ebook, a video course or a membership area, or one on one coaching, you name it.

The best part is that once you have created it, and yes, it takes a lot of effort, it will generate hundreds or thousands of sales forever 24 hours a day, even when you sleep and all over the world.

Have a look at my “ Selling Options – The Cash Machine Course “.

This is the best course on selling options that I have created to teach people how to invest the right way and earn about 20 – 40% per year with an average of 95% of winning trades using options.

In this course, I put all my knowledge and experience to teach people how to be profitable all year round.

It took me a long time to prepare it and offer the best product on the Internet but once finished, it’s there forever.

SECTION 10: Conclusion

There are so many ideas to generate extra income, especially nowadays.

Your imagination is your limit.

I walked you through some of them and the ones that I have been personally using for more than 15 years now, but there are much more. Some are smaller than others but still valuable and I‘ll probably walk you through them in another post.

I’d like to conclude this article just to remind you that the best asset you can have is yourself.

Invest in yourself first and learn the skills you need to make you grow in the future.

I wish you all the best, stay connected, and subscribe to my newsletter and YouTube channel so as not to lose any future posts or videos useful for your wealth.