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You hurried to read this blog post after seeing the title, yeah? It is either you really like money a lot (we listen, we don't judge), or you just want to enjoy financial freedom, and the soft life is your retirement plan. Either way, your truth is valid, and you're in the right place.
Now that you are interested in learning how to make your money work for you, you must understand exactly what this means.
Think of how you put so much time, money or both into your daily job. Now think again: do you know you can earn money while you sleep? That's what passive income means. With a passive income, you only need the initial investment and minimal effort afterwards.
There is no need for active work, just money flowing into your account while you travel, take a long break from your daily hustle, or suddenly become unemployed. However, with your regular job, you can't afford that luxury, or you won't have yourself a job again when you 'wake up'.
Passive Income deas in Nigeria
Knowing that the unemployment rate as of Q1, 2024, was 5.3%, according to the Nigerian Bureau of Statistics, Nigerians are looking for ways to diversify their income so they don't get left behind. Below are some ideas that can help you achieve financial goals - financial freedom or financial security, that can get you to fall in line.
1. Invest in Stocks and Mutual Funds
These are some of the best ways to make a consistent income without doing too much. When you invest in dividend-yielding stocks and mutual funds, you will receive a regular income per quarter from the company you bought stocks from. E.g ETFs. As for mutual funds, you get a monthly dividend, but before investing, choose the right stock and mutual funds with favourable returns.
2. High-yield Savings Account
There are traditional savings platforms, but there are also high-yield savings accounts that offer more than a 4% interest rate per annum, which you should choose. Moniepoint personal banking offers three savings options with interest rates of up to 16% per annum.
3. Rental Income
This is another smart strategy for earning passive income. You could earn from property rental, e.g., rental collection from residential apartments, commercial buildings, land, your home, or abroad.
With the growing demand for commercial spaces in popular cities, you can generate passive income by owning a commercial property that comprises a content studio, a photo studio, a furnished kitchen studio, a podcast studio, and a video studio.
Take time to learn how you can make it a profitable investment. Consider the cost, expenses, and financial risks involved.
4. Rent Out Unused Spaces
Do you have an abandoned building or a garage? You can rent it out as a mechanic workshop, a warehouse, or even for religious purposes. As an HNI, you could rent your private boats, your island, etc. That's thinking outside the box.
5. Buy into Crowdfunded Real Estate
Imagine you have friends interested in buying property; you can all come together, purchase a property, rent it out on a monthly or annual basis, and share the profits.
This one takes the burden of property sourcing, repairs, tenancy, property management, etc., off you. All you need to do is invest through a reputable crowdfunding platform.
6. Create Digital Products
If you're creative, this one should be easy. What's that creative skill you're great at? Is it creative writing, photography, graphic design, tourism, cooking, or anything people look forward to learning? Why not package your knowledge into a digital product, such as an e-book, an online course, template files, or mobile apps, and earn money from it? Think about it.
7. Affiliate Marketing
Have you ever come across an influencer on social media with a large following who promotes a third-party product online and asks you to click on the link in their bio if you're interested in buying it? Yeah! That's what Affiliate marketing is all about.
You can monetize your following on TikTok, IG or YouTube by collaborating with the likes of Amazon and eBay to sell products on their site, and you get a commission whenever someone uses your referral link to make a purchase.
However, if you're just starting, you will need to do the hard work of growing your community before you can enjoy the benefits of affiliate marketing.
8. Sell/Rent Out Unused Items
Many of us have old clothes, customised items, or vintage pieces that we no longer need. Think about how you can make money off them. Your wedding dress, vintage decor items, books, music records, and more can be rented out or sold to a new owner who needs them.
9. Rent Out Household Items
Do you have the latest mechanical or power tool or gadget, the biggest cooking pots and kitchen utensils, party chairs and canopies, barbecue stands, coolers and everything else? What are you waiting for? Then, start cashing out.
Look for high-value items that people need quickly and make cool cash leasing them out.
10. Reward Programmes
An easier way to earn passive income is to participate in reward programmes like the refer-and-win campaigns that Moniepoint and MonieWorld are currently offering, online cash giveaways, cash back rewards when you shop, and more.
11. Car Rentals
For example, If you work remotely and don't use your car often, you can use it for Uber or rent it out for private use, e.g., for newlyweds, tourists, etc.
12. Earn as You Drive to Work
You may also be a 9-5er who drives to and from work; you can also carry commuters and charge them a fee.
13. Vehicle Advertisement
Use your vehicle to display ads and earn money while you drive. Contact a car advertising agency and get started.
14. Become a Social Media Influencer
Content is king, and if you know how to create a kingdom for those interested in your kind of content by influencing their buying patterns and their social, physical, spiritual, or mental lives, then by all means, start now. You can leverage your engaged audience to support a brand, your business, or even a movement, and you get paid.
15. Peer-to-Peer lending
Do you have N2K that you are not using? Lol. (Jokes apart). If you have money lying around in your bank account, you can use it to make more money by lending to small businesses or individuals you trust based on their borrowing history.
Decide on a reasonable interest rate. The more you lend, the more you earn.
16. Dropshipping
This low-risk business doesn't require you to invest in a large amount of inventory, e.g., storage. All you have to do is create an online store for your customers to place orders for what they like.
Once you get that order, you contact your supplier, and your supplier does the shipping. You only have to focus on marketing, customer service, and the general operations of the business.
17. Royalties
Got a creative side? You can earn passive income by collecting royalties from your work—think music, art, photos, writing, or even digital designs. Once you put your work out there, you can get paid every time someone uses or downloads it.
For example, musicians earn through streams on platforms like Spotify, photographers sell on sites like Shutterstock, and writers can license their books or articles. Do the work once, and keep earning while you sleep!
18. Sell Photographs Online
Monetize your skills in photography by selling it to stock photo websites like Shutterstock
Now that you have an insight into passive income and examples of it, consider these before delving into any of the above:
Figure out your interest and choose the right idea that fits.
Understand your schedule. Do you have the time to give to the idea you're interested in? Some require more time, others not much.
Start small before expanding. You can start by getting a high-yield savings account with Moniepoint, participating in the rewards programme, or monetizing your skills.
Be well-informed about the pros and cons of each idea before proceeding.
After you have crossed your 'i's and dotted your 't's,' you are well on your way to financial freedom and security.
If this was helpful, don't forget to keep our share of the pie when the millions start rolling in. 😁
