With the South African economy rated a paltry ‘Baa3’ by Moody’s and the unemployment rate at 26.7%, there are limited prospects of prosperity for many South Africans. Although many desire to earn a passive income, they soon find out that the capital needed to start is prohibitive. The internet is awash with numerous passive income opportunities. But as the number of get-rich-quick scams rises, you need to carefully scrutinize promises of easy money. There are, however, some genuine opportunities for making money without toiling on a daily basis. Here are three easy ways South Africans are earning a reasonable passive income.
Stock trading used to be a hobby of the rich and powerful. But the proliferation of the internet has heralded a new breed of online stock brokers who have made stock trading a reality for ordinary people. South Africans are able not only to trade stocks on the Johannesburg Stock Exchange (JSE) but they can also trade on the stock markets of most major economies in the world. To start stock trading, you’ll generally be required to submit your ID card and a utility bill as a proof of residence. In addition, you will be required to deposit an amount that will serve as your initial investment. This money can be as low as $100 (1388 rand) although experts recommend starting with at least $1000. Depending on your broker, you can trade stocks from the major economies in the world as well as South African stocks. Popular stock brokers in South Africa and licensed to operate in the country include Ava Trade, IG, Plus 500, and XTB.
Peer to Peer Lending
There are millions of South Africans in need of quick loans. The stringent requirements for starting a financial institution and the initial investment needed make investing in such institutions out of the question for most South Africans. But many ordinary folks are providing peer to peer lending services. There are a number of online peer to peer investing clubs that allow people to lend with a small investment as little as $25. You can alternatively set up a small lending business in your locality. All you need is some basic starting capital and setting a few ground rules. Be sure to ask for a security for each loan if you choose to lend locally to prevent your business from being sunk by bad debtors.
Renting Out Part of the Home
You don’t need to be a bigshot landlord to earn money from rent. Home sharing services like Airbnb and VRBO have enabled virtually anyone who has an extra room in the house to rent it out. To list your room on the service, you’ll need to apply on the website of the renting services. The income from renting part of your house could be as little as a couple of rands to thousands of rands per night.
Getting a passive income used to be a luxury of the most wealthy South Africans. But largely due to the growth of the internet, virtually, every South African with some spare cash can invest and get a reasonable passive income. The choice of investment will depend on your circumstances and preferences. You earn a passive income through stock trading, peer to peer lending, and renting out part of your home.