Passive Income Ideas For Programmers

all right in this video i'm going to show you five different passive income ideas or strategies that i would use if i was to start at zero money and try to get to financial independence as a software developer software engineer programmer whatever you want to call it doesn't really matter and this is essentially the video that i wish i would have had when i started out and the aim of the video is to basically teach you how to leverage your programming skills to becoming rich and when i say rich i mean like actual wealth so enough money so that you are set for life and do not need to work again so let's go so the first thing that you need to understand is how the rich actually get rich and i feel like i sound like a financial like guru or a trickster or something but that's what you need to understand and the concept that you need to understand is actually fairly simple but the hard thing is actually internalizing this and actually using it fully and this is the idea that the rich get rich by essentially using the money that they earn to make them the money that they spend so this means that you should never actually spend the money that you earn you should instead invest this money and then use the profits from those investments to pay for things if you imagine what you make in a year and then you imagine if you didn't have to spend a single dime of that money imagine how much money you would have in 10 years so like i said this is a pretty easy concept to understand i think that most of you guys will understand that most people in general will be able to grasp this as a concept and the idea is basically just invest the money that you make and only spend the profits that your investments make which means that you never really spend your own money you're only spending the profits of what your money is making and this is however a lot more difficult to actually put into practice it's not as difficult as most people think but it is a concept that i think that you really need to internalize before you start making a passive income if you want to turn that passive income into actual wealth and the truth is that at the start maybe you won't be able to invest everything that you make but i don't really recommend that you do that either because none of this of course is financial advice or anything like that but i do really recommend internalizing the mindset that you never ever want to be spending your own money you only want to spend the profits of your investments this means that if you want to buy new shoes or a new phone you shouldn't just pay for it mindlessly first try to find an investment that can make you the money that you need in order to buy the thing that you want so let's say that the phone costs a hundred dollars what i would do then is spend some time trying to figure out how i can invest some money to make a hundred dollars for instance maybe i read up on some stocks and i find something that seems likely to increase by 10 over the next month if i invest a thousand dollars into this stock and i have done my research properly then this stock might actually make a hundred dollars and i can then take that money and buy the phone while keeping my bank balance exactly the same as it was before i invested the money so i know that i make this sound super easy and it's not actually that easy at the start you probably won't be hitting home runs on every single investment that you make you may even lose all of your money that you put into a certain investment and that's why you don't ideally want to be investing your own money that you've worked hard for to make you ideally want to be investing money that you didn't work for so this is where creating that passive income comes into play because most of us wouldn't really be able to handle or shouldn't take the risk of putting all of our life savings into a single investments dogecoin so what you would ideally want is a situation where you get paid money every month for work that you did in the past and this is a main idea that you should take away from this video you can build for free and get paid for life and now we get to something that's i think is really interesting which is that even if you have no money to invest you can still be an investor and you can think of yourself as an angel investor but instead of your currency being money so you invest money instead of that being the case you actually your currency's time you invest time now you want to be transitioning over to investing money instead of time as soon as you can but most of us can't really start out as an angel investor investing hundreds of thousands of dollars into super risky startups and hoping that they succeed because most of us don't actually have that money just laying around so therefore my strategy at the start would be to build up passive income streams by doing some work for free and in just a second i'll explain how to actually do that and then i would use the money that those income streams are generating to invest into more assets that make more money and this is a concept that a lot of people are familiar with which is the concept of money making money basically you want to get to a point where you're getting money for money and not money for time and that is what will allow you to become financially free and that is also the topic that i've been obsessed with for a long time now and the old adage time is money it's actually literally true because you spend your time to make money and money and time in that sense is just interchangeable and in the same sense money is basically something it's just a testament to how much time you've spent in most cases so when you're spending your money you're also by default spending your time since you put time into your job and in return your boss gave you some money this is not the investment that you want to be making you want to make the investment where you trade money for money which is what investing in assets allows you to do if for instance you take ten dollars and you invest them into a stock of some kind that you've done some research on and that you believe has the potential to increase in value over the next week or the next month or the next year and let's say that you did your proper research and that that stock actually doubles in value you now have twenty dollars and if you take out your original ten dollars and leave the other ten you've now basically invented new money out of thin air you used your money to make more money and if we extrapolate processes like this one over like five years or ten years or even a lifetime then you have a very good chance of becoming financially independent and i would go as far as saying that it's almost a guarantee so now that you understand the mindset that you need to have and how to actually use the money that you make once you start making that passive income it's time to figure out how to actually make the passive income to begin with and i have lots of different ideas and lots of different strategies here and i think that they're quite unique as well because i've watched a lot of these videos i haven't seen anyone else recommend most of them which means that they're probably quite unique and especially the first one which i don't know why no one else is recommending it because to me it seems like the best strategy that i've come up with and the most obvious one in a sense so i don't i'm not sure why no one else is recommending it but that's also why i think that this video will be super valuable for you but the first thing that i would do with my money is take whatever money i do have and i would invest it in some sort of low risk investment like index funds or precious metals or anything else that i could find that's low risk because of the fact that having money in the bank basically means that you'll lose money over time due to inflation and inflation is about two percent or 2.5 percent per year which means that your money will decrease by 2 to 2.5 percent in value every year which is why if you ask your grandparents how much they paid for their home you'll see that they paid pretty much nothing for their home and if they would have just put that into a bank account today they would have not been able to buy the same home so i would say that's why you need to spend you put your money into some sort of low risk investment to start off with to basically combat this inflation but do your research before you do this and once you've done that you're ready to start creating passive income streams so strategy number one is to understand that you can build for free and get paid for life here's how you can offer to build stuff for free so basically you offer to build apps or websites or whatever you know how to build for free and then you are basically almost for free because you'll be asking them for some sort of revenue share in return and this means that this can be a super low percentage especially at the start but it means that basically you build once and then you get paid for life startups often need an app or a site or something built and a lot of times early startups don't really have any money which means that they cannot really afford to pay programmers to build stuff for them and this is where you come in you build for free and in return you get a part of their revenue share for life and this sort of thing has the potential to make you infinite money and the best way to start would be to just learn how to make or set up e-commerce sites and because e-commerce is crazy popular today and will probably just get more and more popular with things like drop shipping this means that if you build the sites for the people that want to start an e-commerce site then you have the potential to make a lot of money in the future by doing nothing essentially doing a little bit of work for free right now and getting paid for life for doing basically nothing and this can be super simple you can use wordpress and shopify to set it all up within just a day's worth of work but if you do this please don't advertise that you're actually coding the site out from scratch because you're not and it won't really matter anyway just advertise what you're actually doing because most people won't really care they just want a site up and running and they want it done really fast and with wordpress and shopify your customers might be able to actually handle the sites themselves once they're up which means that they may not need to pay another developer to maintain the site which will mean more revenue which again will mean more passive income for you and this is just like investing money because sometimes you'll make investments that won't pan out and you won't make any money on those investments you might even lose money in this case you won't really lose money you'll just lose the time that you spent to build it so you might end up building something for free that never really ends up generating any sort of revenue for you which is the risk that you'll have to take in order to be able to make something like this work and hopefully if you do this 10 times a lot of those things will actually turn out to generate some sort of passive income for you and over time you'll learn what to look out for which means that over time you'll probably hit more and more home runs and this is insanely valuable because you're basically learning how to look out for good investments which will then serve you later on when you start investing the money that you make from these passive income streams into more risky stocks and as an aside i would also suggest learning a little bit about the fundamentals of probability because i believe that this is the most valuable skill that you can have when it comes to selecting investments and this will really help you when it comes to selecting the projects that you're working on for free that will have the highest probability of then generating passive income for you in the future and so what i would look into specifically is statistics as it relates to finance usually because probability usually goes under the name of statistics and so that's what i would look into i'm currently going through a course on brilliant.org called statistics and finance that's perfect for this and brilliant actually also agreed very kindly to sponsor this video if you haven't heard about brilliant then brilliant is a website and app designed for learning about math and science other than the class on statistics and finance they also have classes for learning about computer science which is perfect if you need to hone a skill to be able to implement any of the strategies that i'm going through in this video and the reason that you need to learn about probability before going into investing is because most people me included are bad at understanding how probability actually works and it's actually pretty simple so the math is not super advanced but the concepts are the ones that take more time to actually grasp and you'll want to understand this because with good understanding of probability you'll be able to make more money in the stock market or with any sort of investing because you'll be able to figure out how likely a deal is to be profitable for you so therefore i highly recommend checking out this course on brilliant.org cal holden it's one of the best investments that you can make in increasing your future earning power and the way that i would get started with this strategy of generating passive income would be to either make a post on facebook or message my friends and family neighbors whoever and ask them if they're starting something and if they need my help or if they know someone is starting something then who would need my help there are even other ways that you could advertise your skills for free and simultaneously have the potential to make you some more money for instance by creating a youtube channel where you talk about something related to what you do or show your own previous projects in some creative way this has the added benefit or the side benefit that if your channel takes off then the channel could be a source of income although it wouldn't be very passive so that is the number one strategy that i would use to be able to create some sort of passive income for myself and the second strategy that i would use would be to create my own templates it's actually a really good way of creating some sort of passive income a template is a piece of pre-written code that does a specific task and this is very common in javascript which is the language most used on the web it's often said that javascript runs the web so what some developers do is create templates for certain features and then sell these templates for instance you can create your own implementation of a slider that can be used on a website to showcase images or text or whatever and the reason that i'm bringing that up is because that's one of the successful examples that i found as i was researching this video and you can basically just create whatever else that you can come up with and there's basically a slew of things out there to create since pretty much every website runs javascript and pretty much every business has a website these days it means that a lot of people are building websites and a lot of people would rather pay for a template than build it themselves which actually makes economic sense especially for companies since their programmer might actually cost a hundred dollars per hour and the template might cost two dollars and would take their programmer one hour to build it means that they basically get a hundred dollars of value from paying two dollars and you then make two dollars every time someone buys your template that you only spent an hour creating 10 years ago if you build a lot of these then basically over time you can generate a fair amount of passive income and for some of those templates you can also charge a lot more than just two dollars and this is something that is not limited to javascript this is something that you can do for any sort of programming language for any sort of thing that you can come up with some sort of template that someone else could use to basically kick start their whatever they're working on the third strategy that i would use is pretty similar to the previous one which is to build plugins and so since it's pretty similar i won't spend too much time on it but this is something you can do with wordpress and it's actually a pretty big market for that as well and a lot of people pay for different nice looking templates so that's a really good way to generate another passive income stream and i want to stress something here which is that you always want to look for ways to leverage the time that you're putting into something so everything that you do you want to find a way to leverage that thing that you're doing and plugins and templates are actually a really great way to do this if you're building your own personal website then why not use that to your advantage by creating some templates for the feature that you need to build and maybe a wordpress theme of the layout once you're done and that way you're leveraging what you were already going to do which is building your site to make you more money strategy number four is to teach your skills and this is where i would basically just take any skill that i have and i would try to figure out a way to create a course around that skill and then i would film that as a course and then i would sell it on facebook ads basically create facebook ads google ads and i would keep tweaking those ads until i get to an equilibrium or not an equilibrium but a surplus where i'm making just a little bit more than i'm spending on the ads and that way you basically created a course or the course has basically become a self-sustaining machine of passive income generation and then the more courses that you create the more this passive income stream grows another way to approach this would be to also create a youtube channel where you talk about tips and tricks related to the topics of those courses and then link those courses or promote them somewhere in those videos if you do a good job you might actually build a following and then your courses will pretty much be selling themselves now the last strategy that i have is the most exploited one and which is why i saved it to last and i also cannot really skip it because it's also the one that has i think the most potential to just make you rich literally overnight and this is to build and publish apps instagram facebook tick tock snapchat angry birds the list just goes on and there are so many apps that have been built and turned into hundred million dollar companies if not billion dollar companies that it definitely is a valid route to attempt especially when looking at something like flappy bird for instance the roi for the person who built flappy bird must be insane because it's dead simple to create yet it can be turned into like a million dollar business and that's also why this market is completely saturated everyone basically wants to build the next flappy bird and so the reality is that what you actually want to be doing or where the actual opportunity is is to find something that people are already doing but in the real world and then basically finding a way to make an app that makes that a lot easier so the more often people do this thing in the real world and the more of a hassle that process actually is the greater the potential for your app for instance parking today it used to be that you had to park and then get out of your car walk over to a parking meter find coins in your wallet estimate how long you were actually going to stay there and then get the ticket walk back to your car put the ticket in the window and that's what the process used to look like here in sweden at least but now you just download an app put in your registration number and credit card info and hit start it will remind you when it's about to expire and you can easily refill and that's actually what the most common million dollar app ideas look like and with an app like that you can again just offer revenue share to the parking lot owner and anytime someone pays for parking you just make a small percentage on that payment and this is the main type of opportunity that i would be and that i also am on the lookout for basically find something that people pay for that's recurring or that's very frequent that could then be simplified with an app the other option when it comes to app development is to build game apps and then put ads in them if your game gets downloaded a lot and used a lot then you make some money and the money that you make from this is in general not that much unless it goes viral so this is an okay strategy and i really wouldn't shy away from it but i would again try to consider how can i leverage my time when doing this so for instance building and publishing apps is actually really good to add to your portfolio and that can really help you accomplish strategy number one which is the one that i think most people should be focusing on so in order to achieve strategy number one which is to basically build apps for free and get a revenue share from those apps basically the people that you build those apps for they probably need to see that you actually know how to do what they want so in that case a couple of published apps can really help so you might as well create some apps with ads in them that you would already need to do and then has the side benefit of potentially generating more passive income for you plus you'll learn skills that can help you understand which apps do well and which don't and why so that you then be able to actually help the people that you build apps for to create more successful apps which means more money for you again always thinking about how you can get as many things out of the things that you're doing as possible so basically you want to try to figure out a way to increase the interest on your time all right those are my best tips for creating passive income as a programmer and once one of these strategies has started working for you make sure to put your money to work and this is where you can start to spend a lot more time researching stocks and investment opportunities to find things that you can invest in that have a little bit higher risk but also higher potential reward it's money that you make for doing nothing so you really can't afford to risk it but again if you do your research properly and learn from your mistakes these investments should become less and less risky and since your starting passive income may only be a few dollars it means that you'll have time to learn and to understand how to actually invest money in the proper way so that once you start making a substantial amount of money from that passive income you will have learned and you'll know how to invest that money so yeah i hope you enjoyed this video and i really tried to put together a list of strategies and ideas that i haven't heard and haven't seen people talk about as much and that i think are actually super valuable especially like i said the first strategy i think that's something that's immensely valuable and i think that i'm not sure again why most people don't talk about it so uh again i wanted to try to put something together that was quite unique so that i wasn't just repeating what other people are saying about this stuff so yeah let me know in the comments how i did or if there's something that you think that i missed or something that we can add to this i think that would be super helpful for a lot of people and yeah that's it for this one i hope you enjoyed it and i hope that you start making some passive income from these ideas and if you do please let me know in the comments or in an email or whatever you however you can find me all right that's it for this one i hope you enjoyed it and i hope i'll see you in the next one

Channel: Hallden

Views: 661,546

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Id: wWySnxhZYsc

Length: 21min 42sec (1302 seconds)

Published: Fri Jun 25 2021