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Residual Income Ideas For You To Try In 2023
The cost of living crisis has affected many people in their day-to-day lives. People are going on holiday far less than usual and treating themselves to fewer things. It is causing people to be cautious with their expenditures and wait for the next payday, particularly if people are struggling with debt and are considering looking for IVA advice.
Some people are taking it upon themselves to earn extra money. Some people will be working two jobs, others will gain money through passive income and some may gain extra cash with residual income. In this article, we will look at what residual income is, as well as how people can earn extra money.
What Is Residual Income?
Residual income is something many people are doing to earn extra money. It is an income that requires investment before you start earning more money. You will also need to do work before you start seeing the money coming in.
A great example would be a book writer. An author will spend months on end writing a book before they release it to the public. This book will then go on sale and generate money in the near future. Although this might not be a method for you, it is a good example that gives you an idea of how it works.
One of the best things about residual income is you will earn money for many years. It isn’t just something you make for a couple of months or a year. This type of income can last forever if you do it right. It sounds great, right?
How Do You Start Earning Through Residual Income?
For those who have never earnt money through residual income, we can guide you on how to do it. Firstly, you need to establish the type of residual income you want to be a source of income. A great way to start would be to find something that works hand in hand with your interests and skills. It could include investing in the stock market and real estate or even creating eBooks to educate people.
Once you have decided what your residual income method is, it is time to put the time and money into it. Once you have put enough money and time into researching this method, you can soon enjoy a pleasant and steady form of passive income.
Different Types Of Residual Income Ideas
There are many different residual income ideas, some of which you may have heard of. Furthermore, some are far more successful than others so make sure you research each method. Find the best residual income method for you.
Stock Market Investing
One of the best ways to earn money is by investing in the stock market. Many people do this on top of their 9-5 jobs and a great way to grow your bank account.
There are a couple of issues when investing in the stock market. One of those includes a considerable upfront investment. However, you can get away with investing a small amount. Nonetheless, the more you invest early on, the more money you earn.
If you invest £30 and the stock increases by 30%, you will only receive an extra £3. However, if you invest £300 into a stock and increase by 30%, you will gain an additional £30.
A common mistake which beginner stock market investors make is putting it all into one stock. We strongly advise you to spread your stock market investment and have a portfolio with multiple companies.
Real Estate Investing
Another excellent method of residual income and something you can guarantee to earn you extra money is real estate investing. It is a proven method and a great way to become wealthy for many years.
Being a landlord is problematic and requires perseverance. Nonetheless, if you have the money to invest in real estate and put in the effort, it will benefit you massively.
Being a landlord isn’t for everyone and if you don’t want to be a landlord, consider investing in crowdfunded real estate on platforms such as PeerStreeet, CrowdStreet and Fundrise.
Create A YouTube Channel
Although competition is very high, a YouTube channel can be another way to earn extra cash. Yes, it requires a lot of time to create content and edit it however, it can feel like a hobby more than a way to earn extra money.
All you need to do is find something you are good at. That could be cooking, DIY in your household, or handcrafts. Find a passion you enjoy and believe can benefit others. Then start recording it and uploading it onto youtube.
Sell Digital Products Online
We touched on this before but e-books are another great way to earn money. It is something many people are doing because of the return on investment.
If you are unsure what e-books are, it is where the author will create an online course or digital book to educate people. One of those includes investing in the stock market. Another thing that people will try to educate others on is dropshipping or managing personal finances. However, this is all becoming a popular topic for many people so competition is high.
To ensure your ebook sells, you need to ensure you have a good marketing strategy for it. One of those ways to market it is to publish snippets or create videos for TikTok. It is a great way to increase your revenue for your e-book and generate a good following.
What To Do If It Doesn’t Go The Way You Expected
Your passive income isn’t always going to go the way you expect. It is something you need to persevere with before you start seeing the rewards. Money is one of those things that you don’t see instantly, especially with your residual income.
Before you commit to one of the residual income methods above, you spend time researching everything you need to know about that strategy.
Summary
There are many different residual income methods out there that can benefit your bank account. If you are someone who cannot wait for their next wage to arrive, consider one of the above.
Sometimes you can get into financial trouble where your residual income and your full-time job can’t save you from. Debt is one of those things that can continue to increase, especially if you’re unable to pay it off. Debt can cause a lot of stress however, many things can help you get out of that debt. Consider seeking IVA advice to reduce the debt you need to pay off.
