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Ideas for Passive Income Streams in 2021

To be honest, everyone is looking for passive income streams. With the cost of living seemingly rising every year, so do individuals’ responsibilities and goals. Maybe you want to buy a new home, pay for your children’s education, get your next dream car, or simply go on vacation and travel the world.

As many people don’t have the time to get a second job, it’s smart to think of another, more creative way to start creating passive income streams.

In this article, you’re going to learn how to create extra passive income streams for yourself and I’m going to provide you with some bright ideas that you can get started on in 2021.

What are passive income streams?

What is passive income? Perhaps many of us have heard of the term “passive income streams” somewhere, even once. Since things are often known by their opposites, let’s define “active income” first.

Active income is money that you earn through your regular, contracted efforts and activity, so in your regular day job, you get paid whenever you provide your service or product to a customer, which means that you have to be present every time you want to get paid. This is the common method of generating an income or salary.

Now, passive income streams pays you on a regular basis from a source other than a day job or an employment contract. How to make passive income? The most common ways that people tend to get involved with passive income streams are through the following:

  • Renting out real estate
  • Investing in the stock market
  • Businesses that don’t need you to be actively involved in organizational processes

When people are asking how to generate passive income, it’s important to remember one point: It’s a misconception that passive income streams don’t require work to generate the money, or that it will get you rich quickly … this idea still needs some work.

For example, you may need to do property maintenance, product updates, and market analysis for your upcoming investment, so you can keep your passive income streams flowing.

One of the main factors, to keep the additional passive income streams flowing, is to study and devise a strategy that will guide you in your business and generate income to enhance your financial security.

So, how to make passive income? Let’s now take a look at the most common methods people turn to when thinking about how to create passive income streams for themselves.

Passive income streams – Real estate

When you first hear about real estate investing, you might consider buying a property and waiting for its price to rise. The traditional buy and hold method. While you wait, you can rent the place for a monthly or annual fee. It’s true! But, let’s take a look at one of the latest ways in which you can create potential passive income streams from real estate you already own.

Let’s look at a popular method now for renting out real estate in this way.

AirBnb

Airbnb services have become very popular in recent years, and they are a very popular way for people to rent to earn passive income streams.

If you have your own property, you might consider researching your local laws and regulations, and the relevant tax system, and you could consider taking advantage of listing the apartment or house you own on the Airbnb service app.

While the company recently announced its IPO, the Airbnb Initial Public Offering (IPO) was a highly anticipated event by investors. It was originally scheduled to start at the beginning of 2020. But after the Covid-19 crisis, which caused a significant drop in its income, the US company decided to delay this measure.

Airbnb took the opportunity to formally file an IPO application to the SEC (Securities and Exchange Commission) on November 16, 2020.

Airbnb revenue depends mainly on seasonality, which naturally reflects tourism activity. They differ according to different criteria, such as school holidays, depending on the country and the weather. North America, Europe, the Middle East and Africa (EMEA) account for 41% and 40% of its revenue, respectively.

According to the initial public offering (IPO) file, Airbnb has seen significant growth in its revenue in the past five years between 2015 and 2019.

In the first nine months of 2020, its revenue decreased by $1.2 million compared to the same period in 2019, down more than 30%.

Despite revenue growth and fundraising prior to Covid-19, Airbnb lost some money before the IPO.

Like any high-growth company, Airbnb must invest capital to maintain its advantage over its competitors.

Airbnb revenue:

  • 2015: $ 900 million
  • 2016: $ 1.7 billion.
  • 2017: $ 2.6 billion
  • 2018: $ 3.6 billion
  • 2019: $ 4.7 billion

The Airbnb IPO is not intended to distribute a dividend in the near future, in light of its growth model.

A reminder

Before attempting to set up a passive income business through Airbnb, there are some key points to consider.

The rental market is not a porous one. You need to study prices and competition. You need to ask yourself if your residence has a market at all.

Renting a property on a regular basis isn’t a risk free passive income source either. An Airbnb property manager needs to consider potential damages, additional maintenance expenses, and higher bills to be paid. You should consider all of this and more in your budget and accounts for your Airbnb passive income stream (or semi passive income stream).

Passive income streams – Real estate via a stock exchange

How can you invest in real estate through a stock exchange to earn additional passive income?

In the stock market, you can use many different assets that allow you to operate in the real estate market to generate passive income streams. Each of them has its own characteristics, so let’s see what passive income opportunities each one offers:

Exchange Traded Fund (ETF)

An Exchange-Traded Fund, or ETF, is a listed investment fund. ETFs are securities that can be bought and sold on the stock market through a stock broker. These funds offer different asset classes, from traditional stocks to currencies or commodities.

Exchange-traded funds are similar to mutual funds, but offer lower costs and greater diversification.

If you want to invest in real estate as a passive income revenue stream but prefer to spread your risk, choosing an ETF might be an option to consider. Additionally, investing in an ETF won’t require much serious research on a company-by-company basis, as is the case with traditional stocks.

If you’re new to this, you may consider using online analysis tools to monitor the movement of stocks to help you decide which ETFs will best suit your investment goals.

Luckily, Admiral Markets offers such tools, as well as FREE real-time market data, complementary premium quality market updates, low transaction commissions, and no account maintenance fees with its premium investing account – Invest.MT5.

You can trade on 15 of the world’s largest stock exchanges, with thousands of stocks and ETFs to choose from. Click the banner below to open your account:

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