How to make passive income

How to make passive income

Louis: Check out these new wheels I bought without having to lift a finger. Hashtag passive income - Danny bought a car? How? Passive income. That's a thing? I thought you had to work for your money?

Louis Voiceover: ANZ presents: How To Make Passive Income. It's okay. I didn't know either.

Louis: Jade! Danny - How did he make enough passive income to buy a car?

Jade: Well, there are a few different types of passive income. Put simply, it's a way to earn money without having to work for it.

Louis: So how does one get paid without working? That sounds fun.

Jade: Well, it's important to remember that any passive income requires a bit of upfront work. For example, buying a property and renting it out is technically passive income, but it takes some time to set up. It's only really passive once you've handed it over to a property manager or a real estate agent who takes care of the day to day.

Louis: Okay. But like, what if buying a house is just a little bit out of my reach for the time being.

Jade: An easy form of passive income is just investing. You don't have to do much to earn interest. So you can look at what your bank offers. You get all sorts of things like term deposits, shares. Once you've built up your portfolio, you can just let it grow. And with a little more effort, some people turn their side hustles or creative projects into passive income.

Louis: Oh well, I design t-shirts. Do you reckon I could turn this into passive income? Do you like it? Would you want to buy one?

Jade: I suppose there's a market for everyone, but anyway, it can be a lot of work to turn your side hustle into a passive income. But let's say, for example, you had your t-shirt design and you found a printer to get them made, you could outsource your business to an e-commerce platform and they'll hold all your stock and fulfil all your orders for you. It would still take some upfront work designing the shirts, but they do the rest. So that's passive. Remember, you're still responsible for managing your own taxes, so make sure you do your research and keep your business expenses and income in a separate bank account from your personal one. And, you know, find a niche that responds to what you're good at.

Louis: Okay. You've made your point.

Jade: Look, if you've got an entrepreneurial mindset, which you clearly do, this is absolutely something worth exploring. You don't just have to sell the merch either. You could film an online course on how to make your own merch. You only have to film it once, but lots of people can keep buying it over time. And remember, you can always fall back on basic investing. If a side hustle isn't your cup of tea.

Louis: Thank you Jade. If you've also found this insightful, subscribe to our channel and watch me as I upskill in a whole lot of other financial wellbeing topics. Oh, and check the links in the description for some more handy resources. And also check out my website. Do you want anything?

Jade: Oh, I like the fan.

Louis: $35.

Jade: Oh, that's expensive.

Louis: Premium.