Anyone care to share some solid PASSIVE INCOME ideas?!

Gerbud on 01/02/2015 - 02:25

Hi all,

I have been looking into setting something up for a while to bring in some passive income but have not had much success. A couple of hundred bucks a week would be really nice!

A lot of people go for property rentals after buying it seems but I amn't ready to go there yet.

Does anyone here have any advice on some tips on making/setting up passive income streams? I am flexible in terms of time I can put into this and am more than willing to do the initial work to get things up and running.

Thanks

Financial

Comments

    • Baghern on 02/02/2015 - 09:06

      comon you wacky Queenlanders…

  • tomleonhart on 01/02/2015 - 09:16
    +2

    franked blue chip share ?

    • massafiri on 03/02/2015 - 11:40
      +1

      End of thread.
      If you don't have money for a property, then shares are your only option for hands-free passive income.

      Anything else is considered a business, and there is no such thing as a hands free business (at least for a few years).

      • MementoMori on 03/02/2015 - 13:32

        Can someone please explain at a high level how one would do this?

        i.e.

        1. Register for Commbank account.
        2. Transfer $ into Commbank account (automate a monthly amount if possible).
        3. Purchase 'basket XYZ' of high yielding bank shares (or whatever). Is a High Yielding EFT like Vanguards one better?
        4. Dividends are paid into Commbank account?
        5. Declare income on tax return.

        etc.

        I know the general concept but not the specifics.

        • massafiri on 03/02/2015 - 16:20
          -1

          Don't by into a Managed Fund, they are crooks at best.

          Do your homework on Shares, Dividends, Franking and the Australian Stock Market.

          In a nutshell, if you bank with Commbank, you will need to open a CommSec account. This will allow you to buy and sell on the ASX (for about $19 per order)

          First thing is First. Do your homework. You must be able to accept risk. I say this to everyone starting in stocks - at one point or another, you will loose money. But this only happens when you decide to sell.

          I started trading when I was 18 and never looked back. I looked for high yield, fully franked stock (meaning the company pays 30% tax before distributing its dividend, so if you personally pay 30% on your income, you effectively get this money tax free). Company's like Telstra are a safe investment that will return around 4.4% dividend, fully franked - a much, much better investment than a bank.
          Granted, you take on the risk of the price going down, but it also might go up.

          • Please note, all this advise is general in nature. I am not a financial adviser and you should do your own homework. Seriously, do it.
        • smoothymcmellow on 04/02/2015 - 09:49
          +5

          @massafiri:
          "Don't by into a Managed Fund, they are crooks at best"

          This statement couldn't be more incorrect, low cost managed funds allow you to diversify a share portfolio without need for significant investment dollars and brokerage costs.

          Index funds for example could track the ASX 200, which would require millions to replicate at market capital weighting and brokerage costs would be out of this world. So don't bucket all manage funds as bad, just do your research

        • MementoMori on 04/02/2015 - 10:37
          +1

          @smoothymcmellow: Absolutely, I'd only go a low cost index style fund (if any).

        • hayne on 05/02/2015 - 00:08
          +2

          @massafiri: Absolute rubbish. Unless you're willing to invest significant time and effort into learning how to analyse a company and determine whether to buy them, your best bet is an index fund which will give you exposure to the overall equities market without putting your eggs in a limited basket. 75-80% of active money managers who do it for a living don't deliver returns exceeding a low cost index fund. Unless you think you're a better investor than people who do it for a living, an index fund is a good idea (or alternatively, you can pick a few stocks you understand very well and back, and then use an index fund to bulk up the rest of your exposure to equities).

          If you buy into a stock without an investment thesis and a clear idea of why you think that stock will outperform, then you're really just gambling.

          Comments like Telstra being a much, much better investment than a bank on the basis of a fully franked dividend of 4.4% is an odd rationale, given that most of the Big 4 banks are paying better than that (NAB and ANZ are north of 5% and historically have paid in the vicinity of 5 - 6% dividend yields).

        • nikey2k27 on 05/02/2015 - 10:21

          @massafiri: Managed fund are Crooks. I love play stock market i can personal recommend it.

        • thirtysixd on 05/02/2015 - 13:12

          @hayne:

          Yep diy is very dangerous if you don't know what you are doing.

          Best advice I can give is to wait for a crash and then buy an index tracking fund.

          If you want to sleep easily and be safe I would lock in a term deposit asap

        • massafiri on 05/02/2015 - 13:34

          @nikey2k27: I can see the forum is mixed in opinions. Each to their owns and I respect that. In MY personal experience, a low cost manage fund adds little value in such a bullish market. Of course, it only takes a few variables to turn the tide. But at the same time, if you loose money on the market, Managed funds usually take a cut, so they always win. Just something to consider.

          Also, to add on to my rant, learn about Economics OP; learn how interest rates affect the Stock market and diversify. When I say diversify, consider different industries (Eg Banking/Telco) and Share Capital size (eg Large Cap [Your CBA/BHP] and Medium, Small Caps).

        • nikey2k27 on 06/02/2015 - 07:53

          @massafiri: I am all for each to there own. every fund i put money with a fund manager i lost money. i love raw power of stock market buy went low sell went it hight. it that easy.

  • Pumpkin_rrr on 01/02/2015 - 09:51
    +1

    Years ago I used to admire Mortgage Brokers. Once they have the loans set-up, they will receive trailing commission for a long time. Not sure whether it is still the same.

    I have lots of friends and relos do direct marketing: Avon, NuSkin, Tupperware…. But you might need a female partner.

    • [Deactivated] on 01/02/2015 - 16:47
      +9

      Next door neighbour's daughter is a USANA representative. She's lost more money than she's made.

      • radicalvin on 02/02/2015 - 12:09

        A good friend of mine is one too, and she has reached gold status doing it part time (as she still has her FT job) with a goal to get to diamond in 3 years time.

        Doing this you need the mindset, passion and drive of the product and end goal to succeed.

        She tried to get me to join a couple of times without pushing to no avail though :D

        • mooboy on 02/02/2015 - 13:39

          Just curious, if you know the answer, any idea how much she earns related to time she puts into it. i.e. what would her hourly wage doing USANA equate to?

        • radicalvin on 02/02/2015 - 13:49
          +2

          @mooboy: To be honest I have never actually asked.
          She puts in about 4 days a week for it, and I would say since she still needs to keep her FT job, USANA earning maybe about 10-20k annually?

          For the time that she puts in I don't think its worth it, however she loves it because she enjoys what she does, gets to travel a lot, meeting all these new people, working with her own team, and having a clear goal of getting to that diamond status. Apparently when you get to diamond = financial freedom.

          So hey we may not think like its worth it now, but hard work always pays off.

        • [Deactivated] on 02/02/2015 - 21:14
          +2

          @mooboy: http://www.mlmpyramid.com/USANA_Income_Disclaimer.html

        • garetz on 04/02/2015 - 08:14
          +4

          @radicalvin: Sounds like a pyramid scheme, with the levels actually having names like diamond.

    • Thenarrator on 02/02/2015 - 18:41

      Um.. isnt NuSkin a scam? I recently got approached by someone on linkedin asking if I'm interested in helping him in the distribution networks of NuSkin products. Googled NuSkin and found out that in 2014, they've been accused of using pyramid scheme (which is illegal) or multi-level marketing. So pretty much sounded like a scam.
      If you dont know whats pyramid scheme, its pretty much you paid a sum of money to join the scheme and you get promised money when you refer others to join the scheme. If the system collapses, you lose all your money.

    • johnno07 on 03/02/2015 - 16:10
      +2

      My girlfriend did Nutrimetics for a time (her aunt got her into it). It has the feel of a pyramid scheme while being legit (as far as I know). While I don't exactly how much money she made (she made a smidge) it was certain that it was not worth her time. There's a craptonne of work (read: incredibly onerous targets that you have to hit for a number of months in a row) to get to a point where you have your little underlings running around doing it for you. You're better off just working a 9-5 and making your way up the ranks.

    • massafiri on 03/02/2015 - 16:25
      +2

      Yes, these things you have mentioned are a Pyramid scheme, the difference is that there is a product behind it which makes it legit by legal standards. It still have the same outcome, the top 1% make > 100K per year, and the rest make $5K at best, and that's putting in 30+ hours a week. Not worth it.

      • ilikeradiohead on 04/02/2015 - 20:11
        +1

        I feel like they're pyramid schemes, except when they collapse the losers from it are stuck with overpriced protien powder/cosmetics/plastic containers etc. instead of nothing.

  • WatchNerd on 01/02/2015 - 11:51
    -3

    Get 1 million dollars from somewhere & invest it in shares and property.

  • 2pro4sho on 01/02/2015 - 11:57
    +30

    Plant a money tree

    • MasterNoob on 03/02/2015 - 19:35

      If only life was like Sims 4…

  • Davo1111 on 01/02/2015 - 12:32
    +7

    sugar daddy

    • [Deactivated] on 01/02/2015 - 18:09
      +5

      I wouldn't call that passive…unless the hide his viagra pills

      • Davo1111 on 03/02/2015 - 01:27
        +7

        well, all you've gotta do is lie there

        • ankor on 03/02/2015 - 07:45
          +5

          Used to work with a 21yo who was dating a 55yo. She really didn't just lie there, and they happened to work out quite well together. It was really strange, and they both got judged heaps for it.

          Met the guy, he was smooth as #@$%#$%

        • [Deactivated] on 03/02/2015 - 19:47
          +1

          I know someone who came to Australia as a mail-order bride when she was 19. Her husband was in his 50s. They were together for 5 years before he passed away.He enjoyed reminding her that he had bought her "body and soul" and expected her to "perform". He was controlling, jealous; she wasn't allowed to talk to anyone.Towards the end , he would even lock her in the house when he had to go out.

          She inherited some of his money after he passed away. Just enough to put her through uni. She's got a great job now and is dating one of our friends. He's a couple of years older than her.They look very much in love but she's made it clear that she would never marry again.She was too scared by the experience.

        • [Deactivated] on 03/02/2015 - 21:51
          +1

          @Jar Jar Binks: edit: she's too scarred by the experience.

        • TurkishDelight on 04/02/2015 - 02:39
          +2

          @Jar Jar Binks: lol my ex was 26 and she continued in relationship with 55yrs old man. what!!
          now are sugar daddy days..money rules.

        • Charity on 05/02/2015 - 02:38
          +5

          @Jar Jar Binks: she knowingly married a psycho, so now her legit loving boyfriend has to pay the price.

          lol. female logic.

  • LakeVostok on 01/02/2015 - 14:33

    do some freelance wriitng? Have a look at Weekendnotes.com….in order to earn around$100-$200 per month u need to contribute atleast 15-30 articles!

    • WatchNerd on 01/02/2015 - 14:42
      +24

      That's not passive income.

      • inherentchoice on 02/02/2015 - 19:15
        +1

        But a lot of IP including written books or articles or music does earn passive income.

        Friend of mine created some DJ tracks and still earns $30 a month from iTunes without any work.

  • ethereal88 on 01/02/2015 - 16:15
    +1

    Set up a whorehouse. The gift that keeps on giving!

    • teardrops21 on 01/02/2015 - 21:31
      +11

      He might screw all the profits

    • Charity on 02/02/2015 - 07:54
      +1

      +1 it isn't as silly as it sounds.

      They can make millions.

    • Paul Atreides on 02/02/2015 - 12:05
      +2

      "where money keeps on coming"

  • grabngo on 01/02/2015 - 16:18
    +10

    and so u thought that if people really knew,they would tell u the way to make easy money….

    • Scrooge McDuck on 02/02/2015 - 12:41
      +1

      + If money was easy to make, it wouldn't be worth as much.

  • gozhard on 01/02/2015 - 16:19
    -4

    www.ownyourownshippingcontainer.com.au

    Earn more 12% return per annum

    • Doggiie on 01/02/2015 - 21:47

      That looks fun, have you or anyone had any experience with this? What are the risks and rewards?

      • harper on 01/02/2015 - 22:52
        +6

        This guy makes a good point about it
        http://www.heraldsun.com.au/business/barefoot-investor/bewar…

        • Cluster on 02/02/2015 - 14:14
          +3

          My first reaction to anyone offering 12%pa+ is that the owner of the offer must be really stupid. Why don't they borrow money and invest themselves? They would reap the rewards plus keep others from diluting the value of the offering.

          The product is "fully insured" and the returns are fixed, so what have the business owners not told us?

        • Geewhizz on 03/02/2015 - 07:31
          +1

          My first reaction to anyone offering 12%pa+ is that the owner of the offer must be really stupid.

          No, they just think WE are.

    • strikerzebra on 02/02/2015 - 09:28

      Have you done it? I saw that advertisement on an inflight magazine

    • Tarnsie on 02/02/2015 - 13:12
      +5

      Read here: http://forums.whirlpool.net.au/archive/2288284

  • Nutrino on 01/02/2015 - 19:16
    +5

    You want money for doing nothing?

    • [Deactivated] on 02/02/2015 - 20:11
      +1

      yes please.

    • MasterNoob on 03/02/2015 - 19:36

      don't we all?

    • smoothymcmellow on 04/02/2015 - 15:16
      +7

      and chicks for free

  • GnarlyKnuckles on 02/02/2015 - 01:09
    +12

    Nutrino has been negged, but actually his/her concisely expressed point is completely valid.

    Consider the definition of 'passive income' (PI) supplied by Wikipedia:
    'Passive income is an income received on a regular basis, with little effort required to maintain it. It is closely related to the concept of "unearned income".'

    Legally-derived PI is largely a myth/fantasy. Unless, as Luke73 above points out, you have a huge amount of capital to use to 'earn' you income by way of interest. If it was possible to set up a legal PI stream of, say, the "$200 a week" you allude to in your post by doing some hard work for a few weeks or even a few months initially, then peeps would simply do that repeatedly for a few years, until they were receiving a few thousand bucks a week. Frankly, the entire concept is a pipe-dream, unless you want to get involved in crime. Think 'protection racket', 'pimp', 'semi-automated online scamming operation' etc. Then realise that's not what you want, and continue to just go to work like the rest of us!

    Appropriately given the site we're on, the old adage 'a penny saved is a penny earned' springs to mind. If you could identify a few ways to avoid some of the expenses you're currently incurring each month (or reduce them substantially), then in real terms, that would be the same as a PI. Although it probably wouldn't be $200 a week! The thing is though, if you're on this site you're probably already onto all the usual 'outlay minimisation' strategies, such as eliminate credit-card interest, shop wisely/frugally and buy in bulk if you have the storage space or a collective of peeps to chuck in with, ensure you're getting the cheapest home-loan interest-rate you can for the policy you want, ditto for other things like home/car insurance and gas/electricity providers, eliminate 'dead savings' via a mortgage-off-set account or at least a savings account that attracts some (real) interest, if it's a realistic distance ride rather than driving to some destinations, ETC.

  • dealman on 02/02/2015 - 05:43
    +1

    Listen to people who've done it before you, say for exp this guy…. WWW.Smartpassiveincome.Com

  • Charity on 02/02/2015 - 08:31
    +6

    Great topic OP.

    Been thinking about this for years. Real estate is king, but since u want other ideas:
    + vending machines
    + laundry mat
    + write a book
    + compose a song
    + make youtube/twitch videos
    + lend money and charge interest
    + boring term deposits!

    love to hear more ideas :)

    • phoenixx on 02/02/2015 - 08:57
      +3

      Composing songs or making videos is hardly passive.

      • Charity on 02/02/2015 - 09:03
        +3

        Pretty sure The Beatles will make more $ than you without setting many tour dates this year.

        • OBone on 02/02/2015 - 22:13

          Well, half of them will at any rate.

      • [Deactivated] on 03/02/2015 - 09:36

        Well actually making a youtube video that earns passive income (i think trailing income is a better term) is not that hard. I get about $100 per month from a few that I did four years ago. I made them using a very cheap Kodak Zi8 video cam. The trick is to have the right topic that people want to watch and then cross promote it on forums. Funny thing was that I never did it for the money. Google Adsense sent me an invite after my vids started to get a few thousand hits.

      • GnarlyKnuckles on 03/02/2015 - 12:37

        Neither is operating (stocking/maintaining etc.) vending machines, or running a laundry mat. Very few people actually have what it takes to write a song or a book that will actually make money, so those a not realistic suggestions either. Re youtube videos, you generally need to posess a certain talent (music, comedy, stunt-riding etc.) first, then base your vids around that talent, to have any hope of actually making money from them.

        So all that's left is what others have already suggested; but it requires a large amount of capital, and anyone with a large amount of capital either already has it invested, or they are an idiot.

        • [Deactivated] on 03/02/2015 - 18:26
          +1

          Re YouTube - maybe the op has some talent, so it is not up to you to shut it down. And like most things it takes business know how more than talent, look to learn the tricks of the trade. Whats the formula for success in that business. Same applies to YouTube - how do you maximise your effort (Hint: create a blog and double the exposure of your material). All simple inexpensive stuff, but you do have to do a bit of research. Much like any of these ideas you need to Google it to see what is involved, see if it is the right thing for you.
          And just to let you know - I can't play music, I'm not funny, and I don't do stunts, but as talentless as I am, I do know what sort of things people are looking for.

      • RefusdClassification on 04/02/2015 - 20:45

        Intellectual property is great since you only need to put some initial effort in and for the rest of your life you keep getting royalties. Definitely passive income.

    • Ravensbane on 03/02/2015 - 08:24
      +3

      Would not do vending machines personally. My prior landlord had them as his business and it is a lot of running around restocking and or fixing the machines. And the machines can be quite expensive. As with the fixes. A lot of work really.

    • garetz on 04/02/2015 - 08:19
      • play games and stream on twitch, as long as you play games irl, streaming may give you donations that would be considered passive income.
  • [Deactivated] on 02/02/2015 - 08:53
    +11

    3 easy ways:

    1) Earning rent on property. Someone else works and gives a share of their income form labour.
    2) Earning interest on lent money. You are taking all the "risk" so you must be paid for it.
    3) Earning through profit from others' labour. Start a large company and be the boss, all workers work for you and earn you profit.

    Don't forget to claim that you work really hard and pretend to care for the society and make them believe that all that cannot be done without you.

    • Cantdecide on 02/02/2015 - 09:05
      +3

      Ooooh so sarcastic and contemptuous … I love it! Lol

      Once upon a time when I was younger I saw the good in all people … now I work for a very rich person and get screwed over constantly whilst they fly around in their private jet and cry poor over their inherited fortune… on the other hand if I could have their wealth and power I would probably be exactly the same :)

    • RefusdClassification on 04/02/2015 - 20:48
      +1

      That's the essence of capitalism. You get rich by exploiting other people, manipulating them (eg advertizing, spamming), and ripping them off.

      Capitalism = theft. The shareholders and executives steal of the the profit generated by the workers.

  • ozeebee on 02/02/2015 - 09:38
    +3

    The main question is how much capital do you have to start with OP?

  • schwinn on 02/02/2015 - 11:04
    +4

    Good passive income takes great initial effort. Examples:
    - Invesment property: Needs research, the transaction will take effort and setting it up for rental will cost time and money
    - Automated drop shipping online retail: Need to set up web site, advertise etc.
    Can't think of any instantly rewarding passive income.
    Can't get passive income on sunshine and fresh air.
    Even something like AirBNB is has maintenance.

    • goms on 02/02/2015 - 11:16
      +4

      ive done a drop shipping business before and it's actually really really really hard to earn anything. It's even impossible to compete with ebay market. I was able to make money by buying bulk when there is a deal going on, but it's very rare. I'm yet to find a dropshipping that can actually make a descent profit. And yes, a hell lot of work.

    • [Deactivated] on 02/02/2015 - 12:15
      +3

      Can Confirm online retail and drop shipping is Fn hard work!!
      I have attempted this 3 times, and Failed all three times :( .. Not due to lack of hard work, because I spent hours and hours every day for many months (To the point i burnt out at one stage)

      The hardest part of it all is finding a product the market wants and needs (and you understand and have an interest for)
      Also keep in mind, that marketing is a huge part. If you are just selling generic stuff.. people will tend to go to ebay or china for the product. (If that point makes sense - Didn't explain it the best)

      :)

      Edit: Spelling

      • Tarnsie on 02/02/2015 - 13:14

        Theres a guy on here (ozbargain) that states he puts in an hour a week for tweaking his ads and makes hundreds of thousands a year. It sounded very legit but he need to fit a reputable drop shipper (hard)

  • Dominic on 02/02/2015 - 12:23
    +6

    Come work with me mate. Quite a few people around passively earning an income.

    • schwinn on 02/02/2015 - 12:34

      Multi Level Marketing offer? What's your 'secret?'

      • Dominic on 02/02/2015 - 12:42
        +15

        Join a union.

    • MasterNoob on 03/02/2015 - 19:39

      how much do you earn lazy guy?

  • Tarnsie on 02/02/2015 - 13:16

    I heard about investing in ATM machines but im not sure if this is very profitable

    • IMBI3 on 04/02/2015 - 18:05

      No

  • mousie on 02/02/2015 - 14:46

    Bitcoin farming haha

    • Cluster on 03/02/2015 - 11:21
      +1

      That used to be a sensible suggestion. Buy an ASIC based miner, plug in, watch dollars roll in. Now you need electricity costs of 5c/kWh or less just to break even, let alone pay for the hardware and cooling costs.

  • ShatGPT on 02/02/2015 - 14:50
    +15

    Invest in Bonuts.

  • Hikey on 02/02/2015 - 15:06
    +2

    Start a blog/website. Initially you need to invest a lot of time and create unique quality content. But don't expect too much. After a year or two it can make $50 a month, maybe much more if you get many visitors. It's very hard to predict. Once it's all setup you can let it run as passive income or invest more time and make it bigger.

    It's easy to make money from Google Adsense ads on a website. Later you can become an Amazon affiliate site (or similar) and start selling premium content, like an eBook.

    • Neoika on 03/02/2015 - 07:10

      That's how ozbargain grows…

  • enforcer on 02/02/2015 - 16:12
    +7

    I know a plant breeder who bred his own ornamental Grevillea variety and put his kids through university on the royalties.

    • Geewhizz on 03/02/2015 - 07:38

      Which one?

      • roiboi123 on 05/02/2015 - 10:28
        +3

        the one you can smoke

        • NueLogic on 05/02/2015 - 18:45

          +1 to you sir hahaha

  • itbargainhunter on 02/02/2015 - 16:37
    +2

    If you know how to count(?!) and have good EQ —> Black Jack
    If you know how to read people and have good EQ —> Poker
    If you have good statistics and analytical skills —> Horse Racing

    If you think I am joking you just don't have what it takes.

    • Cluster on 03/02/2015 - 11:19
      +2

      If you know how to count(?!) and have good EQ —> Black Jack

      Yes, I do think you're joking. Counting cards hasn't worked since casinos installed continuous shufflers. High rollers paying $500 per hand can still get decks shuffled and played the old way, but everyone else is playing a -EV game.

    • Charity on 03/02/2015 - 14:21
      +1

      no such thing as card counting in Aus.

    • banzini on 04/02/2015 - 11:18

      until a jockey gets on board your pony and backs the other one

    • itbargainhunter on 04/02/2015 - 12:03
      +1

      I am loving it when people actually believed I was't joking when I said so.
      Guess my poker face was too good.

  • cloudy on 02/02/2015 - 18:32
    +13

    We have a 30 yr old fig tree, every single year it produces delicious figs. We do nothing but pick it. So I guess we could try selling it too, and it'll almost be passive.

    So my tip, plant something productive.

    • Scrooge McDuck on 02/02/2015 - 18:57
      +25

      Congratulations, you have just discovered agriculture.

      Welcome to ~12,000 years ago.

      • cloudy on 02/02/2015 - 20:51
        +16

        Lol, thanks for the useless sarcasm.

        I guess I'll try not to be helpful to the Op post next time if it's so obvious.

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