Opinions expressed by Entrepreneur contributors are their own.
Many Americans want to retire by age 67, and many of us would like to create wealth that we can pass down for generations. However, many folks are not on track to reach either of those goals. In a survey of 2,000 Americans ages 40 and up, with a minimum of $25,000 in investable assets, the majority of those in their 40s had less than $100,000 in retirement savings. For those in their 60s, over a quarter had less than $50,000.
We can no longer rely on a single income source to make enough for retirement, and certainly not for generational wealth. The secret to those who are accomplishing these goals? Passive income.
Passive income is money earned without requiring active work. These forms of income typically require a fair amount of work up front, with the goal of eventually being a hands-off venture in the future. This is how people make money while they sleep. Passive income usually entails investing in stocks or property, or selling a product.
Related: Passive Income In A Global Pandemic? 3 Tricks We Learned For Success in Any Environment
Ready to get started? Here are a few of the most popular passive-income options.
1. Digital products
Digital products are online products that can be instantly downloaded or accessed. Ebooks, how-to guides, online courses, templates and apps are all examples of digital products. You’ll need to find a way to market these items. It doesn’t take a huge following to make money — apps like TikTok make it easy to “blow up” with one good video.
With digital products, you’ll also need to find a place to host them — whether you’re selling from your own website or elsewhere. Etsy is great for templates, Amazon is ideal for ebooks and Udemy is popular for courses.
Related: 3 Effective Marketing Strategies for Selling Digital Products Online
Investing is a tried and true form of passive income. Investing in individual stocks takes time and research, so it’s better to invest in mutual funds or ETFs for easy passive income. While there is still some initial research, the stock market is all about time in the market; once you’ve invested, you need to let it sit. This is because of compound interest. The more interest you earn on your investments, the more that interest will earn interest. This is why it’s so important to invest early and consistently.
3. Make a YouTube channel
Many people are scared away from the idea of making a YouTube channel for fear of showing their face <…….