Passive income: 6 ideas to generate money

The benefits of passive income for wealth management is obvious: increase your financial security, your standard of living and have more time for yourself. The more passive income we generate, the more we cover our monthly expenses without having to work. Exit the metro-work-sleep routine.

Define your life goals and values

Think about why you want to make more money by setting concrete goals. Imagine your life once you have achieved your goals: “I want to have a house in the south and live in nature”, “I want to start an association and I need to finance it”, “I want to devote myself to my passion for horse riding”. These goals will be the driving force behind your motivation.

Investing is the opposite of speculation. A profitable investment can be beneficial or harmful to society. You should keep in mind that even if the results of your investments are not always visible (e.g. buying shares from an oil company), your money will fund projects that will have an impact on the lives of other people. We are not asking you to be Abbé Pierre, but do things well!

Our passive income ideas

It's not easy to come up with a side business idea. Before moving on to ideas, it is important to define a framework. These ideas must meet 3 criteria: be compatible with your schedule, in line with the amount you want to invest and generate a level of income that meets your expectations. Use a Excel-file asset management will be useful for quickly calculating your passive income.

Here are some examples of investment ideas we've identified:

Rental real estate

Buy an apartment, rehabilitate it and rent it out. Use the credit mechanism to finance the purchase. The most favourable regime for donors is the LMNP. Simple on paper, renting involves numerous operational challenges and can be time-consuming.

Real estate or “paper stone” (SCPI, OCPI, REITs...)

Buy shares in a property management company that will pay you a portion of the rent received several times a year. You can choose the fund according to the sector, its geography, the typology of the assets held. The funds selected must have a history, have significant capital and an occupancy rate of > 90%. Avoid funds that own a majority of commercial premises. It is possible to use credit to buy SCPIs, but negotiating with your bank will be more difficult.

Dividends

Profitable businesses pay their shareholders by paying a dividend. Instead of selecting individual stocks, buy ETF specialized companies composed of companies that have paid high dividends for a very long time. It is better to buy these shares via an envelope with reduced taxation: PEA or life insurance.

Sale of products

An accessible and quick solution is to create your website to sell products: homemade masks, jewelry, perfume... Many sites are purchased online (via Alibaba) and resell goods via dropshipping. You can great use a platform like Shopify that allows site creation, payment management, and even shipping.

Create a blog or a newsletter

Publishing your own blog on a subject you are passionate about allows you to federate a community. Once the critical size is reached, you can do affiliate marketing or offer digital products such as subscriptions to a Premium version of your site or newsletter.

Car fleet on Getaround

Buying and renting vans on Getaround (formerly Drivy) can be a source of passive income. Attention, even if the installation is relatively simple, this activity requires your attention regularly, especially during accidents or to recover the vehicle from the impound.

This is just the beginning: use your imagination and skills to identify other opportunities!

In short

It is important that you are comfortable with your investment. We recommend that you start with a simple investment to get familiar with the mechanics and quickly see results. Investing in dividend REITs or ETFs is a good first step. You will receive your rent as early as the following month with great ease of investment and limited risk.