Passive income streams are all about consistency and keeping at it.
I’ll share with you 6 ways I am generating passive income currently, and I a few more bonus ideas at the end. The awesome thing is, you can develop any of these income streams with just $1,000.
I recorded the answer for you as a video just in case if you rather watch it
To make things as practical as possible, I’ve broken how I generate passive income into two categories:
High Effort = More than 24 hours/ month to make it work
Low Effort = Less than 24 hours/ month to make it work
#1 Dividend Shares | LOW EFFORT
This is one of the key parts of how I am making most of my passive income currently.
Essentially, when you use your $1,000 to buy a share, you now own a small piece of that company
And because you own a small piece in this company, you’re entitled to some of their earnings, and they usually give this out, quarterly or half-yearly.
For example, if you use your $1,000 to buy some commonwealth bank shares at the beginning of the year (for the Aussies out there), and their dividend yield is 5%, at the end of the year, you’d have $1,050.
You basically didn’t have to do anything to earn that $50. That’s why the effort level is so low.
It honestly takes me less than 30 minutes a month, to move a portion of my paycheque to a brokerage account, and buy those shares.
#2 Index Funds | LOW EFFORT
Now the first-time I paid attention to index funds was in Tony Robbin’s book “Unshakeable”.
When I learned about financial market indices in university, (yea I am Asian and I did finance, how stereotypical)
I saw pictures like these on the daily:
That’s the ASX300, which is a financial market index for the top 300 companies in Australia.
As a university student at the time, there’s no way I could afford $6,752 dollars a share.
It wasn’t until reading ‘Unshakeable’, I dug into index funds, then I realized there’s another way.
Let me explain.
Index funds are just a portfolio of shares that mimics a financial market index.
Now instead of buying one of every single stock in the ASX300, which would cost you a fortune and a lot of time
You can buy an index fund that tracks the ASX300 for $86 dollars and own a very small% of everything.
That way, not only are you getting the diversification of owning shares in multiple industries, you’re also entitled to…
Alongside dividends, what you can look forward to is the value of your shares growing over time, and that’s what we call #capitalgrowth.
And if you look at historical returns averaged over 30 years the Aussie market has returned a whopping 9% (without accounting for inflation).
I just really like index funds as a passive income source because:
- It’s low effort;
- Management fees are incredibly LOW
- Affordable for everyday people like me
- And the coolest thing? They tend to outperform professional money managers paid to pick out individual stocks.
PLUS, Warren Buffet & Tony Robins recommends them, so that’s where I’d put my money if it’s not going towards dividend stocks.
#3 Courses | HIGH EFFORT
This is where people pay for your courses online.
For some people, this stream of passive income is absolutely massive, and that $1,000 can be invested in things like:
- Camera & Microphone Equipment
- A place to host your content (something like KAJABI)
And then after that, you really just focus on selling.
If the course is really good, people will naturally gravitate towards it and refer their friends to the course as well.
The point is, you don’t need to trade time for money with courses, once the courses are recorded.
Sure, there’s an upfront investment of time, but like anything you’d reap the fruits of your labor later.
So for me, I am currently getting paid to teach digital/growth marketing related stuff at a school in Sydney.
And because I have to be there physically, it’s not really a passive source of income.
In order for it to become passive, I am working with Andrew John to teach a lot of the key skills on youtube for FREE (for now, will think about monetization later).
Search for “Seicho Marketing” on YouTube if you’re interested!
#4 Youtube | HIGH EFFORT
While we’re on the topic of Youtube, this is another way to generate some ridiculous passive income.
Some YouTubers like Graham Stephan makes $2,000+ USD a day.
Just so you know, it took him 3 years to get to this point. It’s not a get rich quick type scheme.
It’s a lot of hard work and consistency. (just managing your expectations)
So let me explain how you can generate some ridiculous passive income on YouTube.
Every time you smash that LIKE button, it’s literally like $$$ falling from the skies.
Well not really…
When you smash the like button, the youtube algorithm will recommend this video to more people.
And if more people watch your videos, the more youtube will have a chance to put ads before, during and after your video.
The more ads => the more $$$.
But can I keep it real with you?
It’s a ton of work, from planning, shooting the content to editing, it’s honestly a lot of work.
My first video on Top 7 Things NOT TO DO when starting a business, literally took me:
- 4 hours of planning
- 3 hours of being in front of the camera
- And I kid you not, almost 5 hours of editing
And that is not enough because Youtube rewards you for consistency, so I plan on releasing a video once a week.
The good thing is, I really enjoy making these videos since it gives me a chance to reflect on what I’ve done, and teach it to you.
Back to youtube being a lucrative passive income source.
Once you get a backlog of videos with a healthy amount of views, you can easily make $100 a day.
$100 a DAY!
For some YouTubers, that amount is probably small, so it’s not unrealistic to make even more than that a day.
And $1,000 is more than enough to invest in some camera equipment to make some really gangsta youtube videos.
#5 Blog | HIGH EFFORT
Similar to youtube and courses which are really content-driven, another form of developing passive income is blogs.
How this works is that you’ll need to write content people love coming back for.
And as you build up your readership, that is, more and more people visit your website, you can:
- Sell placements on your website to advertisers using google adsense
- Put affiliate links on your website (will explain that more in a second)
- Start a membership with Patreon (where your readers will pay a specific amount per month to get access to exclusive content)
I’ve even seen personal finance blogs, where if readers express their interest in an insurance product they are writing about, companies will pay for that lead.
Just FYI, with financial services leads, they can go anywhere from $150–300+, so it’s not unrealistic to make $100 a day.
With $1,000, you can easily start a website using Squarespace and start blogging.
Don’t worry about perfection, it’s like youtube, you need high-quality content and consistency.
#6 Affiliate Marketing | HIGH EFFORT
This answer wouldn’t be complete if I don’t mention affiliate marketing.
This is when you’re spending time selling someone else’s product, and you get a % of the sales you make for them.
What you need when it comes to affiliate marketing is a source of traffic and companies that’ll reward you for sales you bring in.
A good example and the easiest one to start would be amazon affiliates.
Where you can choose to sell any product on their catalog, and receive a % of sales when you bring someone to their site and order something.
Again, $1,000 is more than enough to create a blog, Instagram/tiktok followings, YouTube channel to promote affiliate products.
High-Interest Rate Savings Account | LOW EFFORT
If you’re a little bit more risk-averse and don’t want to invest that money into the share market, this can be a really easy way to generate passive income.
It’s exactly as it sounds.
Some banks attract new customers by offering them really handsome interest rates when you’re depositing your money with them.
Understandably, the returns are not as attractive as index funds, but this is a safe way to generate passive income.
But some rates usually have tiers and conditions, that is, you need to deposit a certain amount every month or the more you deposit, the lower the interest rate.
Just make sure you do your research on the tiered interest rates, and conditions when going down this path!
Bonds | LOW EFFORT
Companies & government will often give you the chance to lend them money, and if you do, they’ll pay you back the amount owed with interest.
They set the terms and duration of the loan, so it’s up to you whether you want to lend them money.
With bonds, especially government bonds, these are incredibly safe and consistent.
The chance of our government not being able to pay us back is, let’s just say very very very VERY slim.
Again, similar to the index funds section, I’d recommend looking into a low cost, vanguard index fund that tracks a portfolio of government bonds like
The key with all these passive income ideas is consistency!
After my first dividend payment, I got literally hooked.
So with every paycheque I receive, I move 30% of it straight to my trading account and invest that straight away.
I knew that the more I invest, the more I’d earn in the future.
What was your experience like developing passive income sources? Let me know in the comments below!
Disclaimer: I am not a financial advisor, therefore the information above is for entertainment purposes only. I am not liable for any losses you may incur for investing and trading in the share market in an attempt to mirror what I do. Before making any type of investment, please consult a licensed professional .