Mailbox money, also known as passive income, is on the rise as more people want to own their lifestyle and have more flexibility. And it’s no surprise — with a minimal amount of work required to keep income flowing, mailbox money can be a dream lifestyle.
“Mailbox money,” which refers to getting a check in your mailbox, can require some upfront work, but ultimately operates as a more hands-off way of making money. Doesn’t that sound like the absolute dream?
Types of Mailbox Money
Many people have found great success in passive income streams and even passive income empires. There are technically seven main income streams:
Earned income: Money that you make for doing a job
Profit income: Money you make by selling something for more than you purchased or cost to make
Interest income: Money you get as a result of lending your money to someone else
Dividend income: The money you get as a return on shares of a company you own
Rental income: Money you get from renting out something you own
Capital gains: Money you get as a result of an increase in the value of an asset you own
Royalty income: Money you get as a result of letting someone use your products, ideas or processes
People who make a sizable profit off of passive income can have a mix of these income streams, or they can simply dominate one type. Of course, there are challenges and risks to pursuing every income stream type and not every stream will be the best fit for you.
Determining Your Passive Income Stream
When you are trying to figure out what type of passive income stream works best for you, ask yourself the following key questions:
What is your current financial situation?
What are your financial goals?
How much do you want to make now?
How much do you want to make in the future?
Do you want short-term or long-term passive income? Or both?
Are you willing to front any money now in order to make a profit later?
You also want to look at the landscape around you and see what may or may not be feasible. For example, if you live in a one-bedroom apartment, then you probably won’t rent out a room in your home on Airbnb.
However, maybe you were thinking of getting rid of your car because you never use it. Instead, you could list it on Turo, a peer-to-peer car-sharing service. Take stock of everything around you and do lots of research.
Ways to Make Mailbox Money
Once you figure out the type or types of passive income streams you are interested in exploring, you can then narrow it down even further. Here are some ways to make passive income or mailbox money in 2020:
Invest in real estate
Airbnb a room in your home/apartment
Write a book or ebook
Create online life coaching classes
Purchase a laundry mat
Create a lead generation website
Sell products on Amazon, eBay, Etsy, etc.
Create an online course
Own a car wash
Create content, such as YouTube videos
License your photos
Dividend stocks or invest in the stock market
Develop a mobile app
Rent your car to Turo
Open a savings account
Advertise on your car
Purchase a storage rental
Partake in cashback apps, services and surveys
When you decide which type(s) of passive income is the best for you, you should still do some due diligence to make sure that it’s going to be successful and actually make you some income. You should start by developing a written financial plan and getting some professional advice. Saving your money and living below your means can also aid in making your mailbox money goals a solid reality.
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Lisa Crocco is a marketer for an international food manufacturer by day and a freelance writer/marketer for startups and small businesses by night. She's written for outlets like USA Today College, Career Contessa, CloudPeeps and Fairygodboss.