Do you want to build your wealth overtime? Passive income is one of the ways to improving your finances. I have purposely left the online world out of this article, although it has a vast potential, I have chosen to explore the economic opportunities in the real world.
Passive income is the income that you earn which is not necessarily related to your daily involvement and activity for it; your money actually works for you with little or no effort besides your investment. The concept behind this is so that you can build your income streams to attain financial freedom.
These tips are sure fire ways to helping you generate a great income on the side:

1. THRIFT( CASH ADVANCE)BUSINESS
Have you ever heard of cooperatives?
This is another way of growing your savings as well as earning extra. This system carries a higher percentage of interest earnings. When people loan money to the cooperative, they use the money for lending and upon collection it bears an interest. It is the same as the banking process but offers a very easy system of collecting loans.
All you need to do is invest in an already established operating scheme after doing your required due diligence on the intended cooperative or you can as well collaborate with others to starting a new scheme.
In a society with a lot of low income earners and little or no knowledge on proper financial management techniques, there is always a need to borrow and a resultant market for lenders. This is an easy and quick business to setup with a huge market to service as lending can be to trusted friends, colleagues in the office as well as associates with a steady source of income.
On the risk side, it is advisable to not over expose a lot of investment due to return, for schemes with weak management and return policy.

2. RENTAL SERVICE BUSINESS
Have you heard of the concept Rental?
This is the same concept as thrift (a case where money is rented out and returned with interest). It can be referred to as semi passive as it requires a bit of monitoring.
You can rent out items that people need regularly like projectors and screens, catering utensils, chairs and canopies, cameras, earth moving equipment, books on personal development, event instruments (light and sounds), generators and event halls.
Their sustainability requires little investment for maintenance. You can set up a professional property manager who can cater for the management of the property for you and make your investment more passive although they usually charge about 10% of the monthly rent.
The best advice is to save to buy these items to rent out.

3. REFERRAL MARKETING
Why not take advantage of the contacts you have?
In referral marketing, you simply build on the skills, talents, experience and time of your associates. The rule of every small business is that it needs referral sources to gain sales. You can call them to see if they have a referral system or you negotiate one.
For example, if I am confronted with a job on programming, I can hold the client then call a contact that can deliver on programming and on referral ask for a percentage commission.
Also, if I can identify a problem with a firm understanding of the solution required, I can leverage on the skills of my contacts for a commission. The requirement for pay is based on the fact that you made the deal happen. This is easy money with really no work. You can make a list of your plumbers, electricians, accountants, engineers, landscapers you name it!
The popular saying goes ‘keep your friends close and your enemy’s closer’, well! On knowing this, ‘keep your friends close and your skilled friends closer’

4. NETWORK MARKETING BUSINESS
Have you heard of the brands: swiss gold or forever living products?
The concept of network marketing is for the selling of a company’s product directly via local consumer referrals. That is, there customers distribute their product.
This business has hand delivered to its fervent distributor’s cars and huge monthly income as some are solely dependent on it as a source of income.
The benefits of this business are that it can be done at flexible hours and it helps build relationships. Also, they engage their distributors with up to date education, training and personal development services to enable them make more sales.

5. SELL YOUR SKILL
What skill do you have that you can leverage on?
Upon developing your skills, you become an asset and thus self-employed. Skills range from design, leadership skills, catering skills, artistic talent such as singing and painting to teaching skill, you name it!
You can offer them as service on part time basis and get paid.

6. ANGEL INVESTOR
Have you heard of a silent partner?
There are a lot of startups today in need of capital for expansion. You can become a silent small time investor by not offering a loan per se, but rather taking an equity position in the business.
This way, you participate in the profit of the business while the owner handles the day to day running of the enterprise.
Well you can lend your wings to someone to fly and still profit?

7. ANNUITY
Do you know annuities existed as far back as ancient Rome?
This is simply giving your money to an insurance company and they pay you a particular amount every month till you die.
With a Deferred Annuity Plan (DAP) which is suited for self-employed persons or people who wish to augment their earnings from the company sponsored Retirement Savings Account (RSA), you will be purchasing life annuity starting after a deferred period that you have determined. Thus, you can save towards early retirement and ensure a regular source of income.

8. INVEST IN TREASURY BILLS AND BONDS
Have you heard of T-Bills and bonds?
Treasury bills are short term government debt security that has no interest but rather is issued at a discount on the redemption price. It is done to curb inflation and manage liquidity. There are 3 tenures available: 91 days, 182 days or 364 days.
In simple terms, for example if you buy a 182 day N 100,000 treasury bill at a discount rate of N 90, 000 the Federal government of Nigeria writes an IOU for N 100, 000 and agrees to pay back in 182 days. So you just made N10, 000 in profit at 10% interest rate. You make money when the bond is purchased back from you at full price and you don’t get monthly interest payments. You are simply lending to the government and it pays with interest.
Bonds and notes on the other hand are securities that have stated interest rates that are paid semiannually until maturity. There difference is that bonds are long term investments with terms of more than 10 years where as notes are issued in two-, three-, five- and ten-years terms.

9. INVEST IN MUTUAL FUNDS
By looking for not only the best performing funds but also funds that are consistent in their performer, mutual fund investors can reap their prospective gains.
A kind of investment in mutual funds is the Real Estate Investment Trust (REITS) which is a passive way in investing in real estate. It pays higher than bonds and is more liquid than owning a real estate as you can sell REIT anytime you like.
Also examining the FBN Fixed income fund is a medium volatility fund with low risk profile if you have a low risk appetite. You should examine how much each allocates its assets in the money market, fixed income instruments and in cash.

10. INVEST IN HIGH DIVIDEND STOCKS
I know you have heard this one very well. But I will use this in feeling up my white paper and still reiterate the obvious.
Purchase of high dividend stocks enables you to create a regular passive income at a higher annual rate as compared to what you get in bank investments. They have the potential for capital appreciation, so you can earn by dividends and capital gains. This allows you to receive money at regular intervals. Although the initial investments may be costly, the return of investment is largely significant with you doing virtually no work.
It is important to do your due diligence with the help of a financial consultant.
On a closing note, it is best to have the word FOCUS which can be tagged as Follow One Course Until Successful. Then you can branch out to another. Note, success here means until it attains your desired objective. This will enable you build your income in a strong and efficient way.
Share your thoughts and experiences and feel free to leave a comment.

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Nice one OP.

Thanks for a good article, but Foreign Exchange should be included on this list as well.

Real Estate Investment Trust (REITS) de Nigeria?

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Igwekazi:
Thanks for a good article, but Foreign Exchange should be included on this list as well.

glad you found this helpful. i decided to do passive income ideas besides the internet, as the heading implied.

Good article. Could you nominate any REITS?