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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
- Affiliate marketing
- Purchase a laundry mat
- Create a lead generation website
- Sell products on Amazon, eBay, Etsy, etc.
- Create an online course
- Peer-to-peer lending
- 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
- License music
- Network marketing
- 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.
Looking for some additional resources? Want to protect your passive income stream? Bizee can assist you with your business needs. Bizee helps you quickly and easily form your LLC, S Corp, C Corp or other business. Start your business today for $0 + state fees and get a free year of Registered Agent service as well.
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