If executed well, these ideas will gradually increase your net worth

In 99 out of 100 cases it took years to get rich. But because the media loves to highlight the idea of ​​someone getting rich overnight with some passive income, many of us screw up our ideas about how people get rich.

While we know get-rich-quick schemes never work (otherwise they wouldn’t be called that), most people don’t know that accumulating wealth isn’t that complicated.

The problem with getting rich is that it takes time. In this impatient world, people just don’t want to wait. They want to be rich now.

But if you decide to buck the trend and commit to building long-term wealth, you will inevitably become rich if you do one thing: increase your net worth every year.

The best way to achieve this is to have multiple income streams. If you only have one or two sources of income right now, that’s fine. With consistency and timing, you’ll get there eventually. It doesn’t happen overnight.

If you’re serious about accumulating wealth over time, you’ll get there because you’re in control of your actions. When executed correctly, the following passive income ideas will gradually increase your net worth.

1. Create and sell books

Let’s start with something you can create for free. Unlike an e-commerce site or baked cookies sold at the office, a book is something you can do without spending money. It requires only your time, attention and a computer.

A book can not only increase your income, but also your credibility. When you write and publish a great book, you instantly set yourself apart from the millions who don’t.

You may introduce or market yourself as the “author” of such-and-such a book. Not some random, unknown writer with nothing to show for it.

But books also generate revenue. Here’s a screenshot of my paperback sale through Amazon.

As you can see, not much happened between 2015 and early 2018. It wasn’t until my third year of continuous writing that my books started selling. As of June 2018, I have three books. Eventually, it got to the point where my book continued to earn money on its own.

The point is that building a brand and gaining awareness takes time. By publishing multiple books, you increase your odds of success.

2. Offer Online Courses

People always want to learn. Whether it’s building an online business, writing, cooking, and more. There will always be a need for expertise. We are willing to pay for good information.

When you have expertise, the best way to share it is through online courses. Why? Because you only have to create it once. Then you can sell it for a few years. This is my definition of passive income.

Here is a screenshot of earnings posted by one of my online courses. (I currently have 7 paid courses).

But my first post generated about $1,500. It took me three or four years to get to that level, too.

It’s not just about numbers, though. This shows that we are willing to pay for valuable knowledge.

If you focus on helping your students, the money will come. I know it sounds stupid when you’re sitting at home with $0 income.

Remember: People buy things because they think it will help them.

Online courses can also help you demonstrate authority in your field. Gordon Ramsay is a good example. He rules the culinary world. He doesn’t just have restaurants. He also has TV shows, online courses and books.

3. Develop a digital product or service

Online courses and eBooks are also digital products. But I’m talking about products that people use for things other than learning. This is a great passive income idea for those who prefer to focus on providing their online properties.

This can come in the following forms:

• an application
• Digital assets such as stock videos, photos, etc. For those photographers and videographers, this is a great game.
• For designers, sell templates.

Artists are also moving to subscription-type revenue streams. A good example is an award-winning novelist Chuck Palahniuk, who has his work serialized in a paid newsletter.

For most digital products, we can manufacture them, and, apart from a few updates and changes from time to time, they are pretty much self-sufficient.

There is no upper limit to how much money a person can earn. As long as people buy (or subscribe), you’ll keep making money.

4. Buy a rental property

Once your other sources of income start to gain traction, you’ll eventually reach a point where you have more cash on hand. This is usually the best stage to invest in real estate.

I do the same. I never had the ambition to be a full-time real estate investor. Over the years, I have accumulated two sets of rental properties with good income. And since I only have two tenants, I’ve never had any issues.

This provides me with a nice side income.

Just like books and all other assets – passive income streams only thrive in greater quantities. If you are renting out a single property, the rental income may not be very high. But you don’t need to be a tycoon either.

Everything depends on your personal goals and the current real estate market. Investing needs to make financial sense. For example, I bought my apartment before 2020.

I haven’t been interested in real estate since then because the prices are outrageous. Now that the price has dropped, I’m interested again.

5. Invest in index funds

With as little as $500 a month, you can be a millionaire. true. This is not a scam. It only takes a few decades.

Let’s do some quick math.

• If you make an initial investment, say $2000
• Then you invest the $500 you may be missing out on each month in an S&P 500 index fund
• You keep investing $500 every month whether the market goes up or down
• The index continues to grow at an average rate of 10% per year.
• After 30 years, you’ve invested a total of $182,000. If you don’t invest that money, inflation will eat it up and make it worthless.
• But through the power of compound interest, you’ll have a total of $1,021,862.94 in retirement!

As you can notice from the chart, the hypothetical returns are hardly significant in years 4 or 6 of the investment. But things start to soar 10 or 15 years later. It’s all about taking a long-term view.

With the right investment strategy, you’ll avoid common investor mistakes, avoid losses, and build wealth over time.

To be rich is to persevere

The passive income idea I talked about is not “exciting”. They’re not hackers, they’re not going to make you rich in a few months. But they work.

Once you have them in place, you don’t need to spend much time and effort on them. This saves you energy to do other things.

I often quote a quote from Vanguard founder John Bogle:

“The winning formula for investing success is owning the entire stock market through index funds and then doing nothing. Just stick to it.”

Many income streams don’t seem interesting at first. They won’t make you rich instantly. But over time, you’ll get richer than you are now.