There are two techniques to gradually enhance your financial resources. Increasing your earning potential is one option. The other option is to increase your savings. Both active and passive income contribute to earning power. Active income is the money you earn when you work and are compensated for it. This includes earnings from both full-time jobs and freelancing.
Passive income, on the other hand, comes from an income-producing asset that can create money for you even while you aren’t working on it. But don’t be deceived into believing it’s all fun and games! Often, we must provide the groundwork before the money can compound on its own. So, here are three methods that any student can make money passively!
1. Creating a blog or a YouTube channel
Consider launching a blog if you’re strong with words and enjoy writing to an audience. People clicking on your ads, sales commissions from a product you’re advertising, and selling your products and services on your blog are all examples of blog monetization. I recommend starting with WordPress because it is one of the greatest blogging platforms for making money from your blog.
If you’re more of a public speaker who enjoys having their voice heard, consider launching a YouTube channel and earning money through advertisements! The entry hurdle is minimal, and if you’re genuinely amusing and engaging, you can go viral, especially given the Singapore YouTuber scene is so small. However, being a social media influencer frequently goes hand-in-hand with this, so make sure your Instagram photographs display all of your best perspectives!
Naturally, neither of these solutions is simple. When it comes to gaining an audience, they both require time, effort, and even a little luck. When the readers and viewers begin to flow in, and the followers begin to grow, you can expect a steady stream of income that will continue even when you aren’t blogging or streaming!
Perhaps you’re not the creative type, or you’d rather spend your money on anything else. Investing is the way to go in that circumstance! Some people recommend putting all of your money in a high-interest savings account or a fixed deposit account because you won’t lose any money. Singapore banks, on the other hand, offer pitiful interest rates. I once put $2000 into a fixed deposit account and received only $7 over the course of two years. As a result, I don’t think it’s worthwhile.
You’d make more money if you put your money into stocks, mutual funds, bonds, cryptocurrency, and so on. That is, assuming you have the necessary financial knowledge of how financial markets operate. If you want to let your money work for you, it’s a good idea to first invest in yourself by studying how the stock market works. There are numerous materials available! I began by watching Rayner Teo’s YouTube stock market tutorial. You can also read my other essay, aimed at new traders, about three distinct trading techniques.
3. Starting an Online Store
Another alternative is to sell your gently used or handcrafted items on Carousell to generate a monthly profit. I did this in JC and made around $500-$1000 per month selling pre-owned anime things in like-new condition and flipping retail items from Taobao.
If you’re an artist, Etsy and Redbubble are two online markets where you may sell your handcrafted jewelry, keychains, and art. I adore exploring Etsy because there are so many unique handcrafted things in so many different categories! Don’t be afraid to try new things with your creations!
Of course, there is some work required, notably in communicating with and meeting with the customer. If you sell your own items, you must also put in effort in designing and manufacturing them. Though your business might develop passively as you add more listings to your store and leave them there, there is still some active labor involved in managing your store, so make sure you’re up for it!
Some may portray passive income as a get-rich scheme in which all you have to do is sit back and watch your money grow, but the truth is that producing money always requires some effort.
Because we have limited funds as students, it’s critical to plan ahead of time how much money we’re willing to part with. For example, if you want to get a domain name for your blog, you’ll have to pay some money, depending on the site’s prices. If you’re opening an online store, you’ll need to consider the pricing of the things you bought before selling them, as well as the expense of mailing them or taking the bus to meet the buyer.
But as long as you’re wise and willing to learn, passive income can be yours for the taking!