Many Kenyans yearn for that extra coin to supplement their regular paycheck. But how can you make more money if your job or business takes up so much of your time?
The most talked about component of personal finance right now is passive income and how it can turn around fortunes.
A well-thought passive income stream could help you easily reach your financial goals. However, certain passive income streams are so robust that they can make you wealthy.
A passive income stream means you earn money from a source without putting in too much effort as you would in your regular job. It's a business model that requires little of your time yet continues to grow and self-sustain.
Most passive income streams start with an initial investment that generates a steady gain for as long as possible. And instead of active participation, it's your money that works for you.
Unlike active income, where you earn once and get paid once, passive/ residual income equals working and getting paid over and over in the long term.
Financial asset investment is a passive income stream that revolves around using your money to make even more money. The type of assets and investments you choose plays a huge role in your future earnings without your active role.
Once you invest, you mostly rely on the proceeds from those financial assets. Some of the best laid-back yet lucrative income streams to invest in right now include:
The advantage of the above investments is that they require minimal maintenance. They also have high growth potential, although in the long term.
A passive income stream popular with many Kenyan investors is real estate/ rental property investment. However, can it make you rich?
There are several ways you can profit from your property.
A hassle-free money-making investment that can make you rich is the vending machine, a growing retail technology in many parts of Kenya.
Here is how you can earn money from it:
Investing in vending machines is a one-off financial input that can consistently provide excellent passive income for the foreseeable future. And so the more machines you invest in, the higher the returns.
Finally, it might look a little if you collect about Ksh2000 weekly per vending machine. If you have 10-20 vending machines in high-population areas, the amount could even be higher, and that is how you can rake in money without putting in too much effort.
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A steady stream of passive income revolves around music and book royalties. What are royalties? These are payments you receive when someone uses your intellectual property.
Your immediate concern might be how to earn royalties when you are not a book author or musician in the first place. Investing in a song, even when you have never sung, is possible.
Some artists will often sell their rights to their music work. The same applies to authors. As an investor, you can purchase a certain percentage of advertised royalties. Investing in popular music or books is the trick to earning more money that can make you rich.
Some of the advantages of investing in royalties are:
Read Also: 8 Ideas to Create Multiple Sources of Income
Many people are surprised that affiliate marketing can provide a lucrative passive income stream. Yet it is a branch of digital marketing that many investors use to earn hefty commissions for products bought on their websites.
How does it work? The first step would be to create a website with high-quality content that attracts traffic. The more visitors, the more you encourage them to buy specific products from your affiliate stores and brands and earn a commission.
Some strategy people devise is investing in targeted traffic, especially from Google. You can also identify a wide range of products you think people are searching for and heavily promote those that sell.
Also, be discriminatory and promote only those products that earn you a massive commission. Of course, the initial start is hard work. But once people begin ordering products from your site, you sit back and benefit from a constant stream of income that can make you rich.
If you think social media is just another pastime where people gossip and laugh, you are wrong. Many industrious Kenyans have taken social media influence to the next level, earning serious money, passively.
The trick is to align yourself with brands and produce and post sponsored content.
Some of the rates you earn are dependent on the number of followers you have. Brands also calculate their earnings based on their active engagements with their audience.
But you can also go a step further, share links of your affiliate partners, sell their products and earn commissions. Lastly, consistency and niche creation will get you far ahead in your earnings.
A passive income stream might work for you if you have no spare time but a strong desire to grow your wealth portfolio. There are many options, but whatever investment or business model you choose, let as many people as possible know about it. Effective advertising and awareness will draw customers and help you make sales with less effort.