30 Passive Income Ideas To Build Wealth in 2023
Do you struggle to pay your bills on time? Yet, you feel like you are spending every moment working. Perhaps, you find it difficult to find time to spend with the people that you love or doing things that you enjoy. Is your life filled with fear that you will no longer be able to work or that you will be a burden on society when you retire? If you are living with financial fears for your future, then you need to be creating more passive income.
Creating a passive income stream can be a great way to go if you need more income. This type of income requires minimal effort while increasing cash flow into your life. The great thing about this type of income is that you are your boss and can often work from home at the hours you want to work.
You can define passive income comes from activities where you are not actively engaged. You can divide passive income into three broad categories. It can be money earned by renting something, often property, or it can be money earned in a partnership with other people where you have no work responsibilities. Finally, passive income can be an investment in an account that will grow over time.
In the beginning, passive income will require you to invest something. It may be money or your time. After the initial investment, you can sit back and collect the rewards. There are many different types of passive income. In this article, we will give you some ideas. Feel free to take them, modify them and combine them with your own ideas.
Why Is Passive Income Important?
You are limited to the number of hours you can work daily. Even if you only sleep four hours a night and work the rest of the time, you still only have 20 hours per day to work. After a while, your health would start to fail.
Passive income helps you earn even when you are sleeping. Therefore, it adds a new level of stability to your life. Furthermore, if something happened where you could no longer work, you would still have income coming into your household. Passive income gives you the freedom to do other things besides sleep and work to enjoy life instead of worrying about money continuously.
Ways To Earn Passive Income
There are many ways to earn passive income. Some of them require only an investment of your time, and you can complete setting them up in a few hours. Others require you to pay or invest in something. Consider these different passive income ideas.
Invest in a High-Yield Savings Account
While you may already have a savings account at your local financial institution, you may be receiving little or no interest on that account. While having three-to-six months of living expenses tucked away is always a great idea, you need to put your money aside in a high-yield savings account because they can pay up to 25% more in interest than the one you are currently using. These rates are often found at banks that only operate on the internet as they can pay more than the average brick-and-mortar bank because they do not have the overhead.
Use an online tool to identify the top-paying options. If you consider a credit union, be sure you meet their eligibility guidelines. Consider the requirements to open an account and find a way to meet those requirements. For example, some accounts may require you to deposit a particular amount. Strongly consider options that are Federal Deposit Insurance Corporation approved as your money is safer there.
Decide if you want to open the account by yourself or jointly with another individual. Either way, there may be tax ramifications, so you may want to talk to a tax advisor. After you have been approved to open an account, fund the account.
While putting your money into a savings account is usually a safe investment, the return can be very low. In May 2022, one of the highest-paying accounts was only paying 0.6% interest.
Rent Out Your Parking Space
If parking is a premium near your location, consider renting out your parking space if you get a free one at work or live in a congested area. You can even rent out your entire driveway if people can get by other vehicles to get in and out.
This is especially great for people who live near college campuses or retail areas but work away from the site. Right now, your parking area is sitting there doing nothing all day, so put it to work for you. Be sure to check your work or apartment contract to ensure that you are allowed to rent the space, but there will not be an issue in most cases.
Invest as a Silent Business Partner
Some businesses need an inflow of cash to get them off the ground or lead their company in a new direction. This can be a great passive income if you find the right opportunity.
Several companies connect investors to businesses. Research suggests a greater danger of these companies failing than those funded through venture capital because many owners lack experience. Before investing in one of these platforms, check their site security because they are a favorite target of hackers.
One of the reasons these investments are popular is that investors feel greater satisfaction than when investing in big companies. Many also like the idea that their money is stimulating the economy. While there are significant risks, the rewards can also be huge.
Depending on how much money you have to invest, you can find opportunities to become a silent partner in many businesses. If you have a smaller amount to invest, then equity crowdfunding may be perfect for you. While there is a more significant than average risk, investors in successful companies usually see their money grow by 20%, so good rewards are also possible.
You can purchase annuities from insurance companies or organizations that specialize in annuities. At the end of a set time, they pay out either a lump sum or payments depending on your contract with the company.
Before you decide if annuities are among the best passive income ideas for you, consider the different types of annuities that may be available:
- Immediate fixed annuities – You pay a set amount into these annuities that are dispersed monthly for the rest of your life.
- Tax deferred annuities – With these annuities, you make a one-time or monthly payment and receive money starting on a future date. The payout can be one time or a little at a time.
- Fixed annuities – The insurance or annuity company gives you a set interest rate that will pay out when these payments start at a future date.
- Variable annuities – These annuities depend on sub-accounts to guarantee that you receive money until you die and some money left over for the next generation.
Participate in Peer-to-Peer Lending
Also called social lending and crowd lending, peer-to-peer lending allows you to join with others to make a loan to individuals without using a financial institution. Each organization overseeing the connection between lenders and borrowers sets its rates and terms. Often, the interest rates vary considerably within a site based on the borrower’s credit rating. Generally, interest rates paid by those taking out these loans differ from 5-to-30%.
While the initial focus when this idea originated about 2005 was to connect people who had money with those who wanted to consolidate student loan debt, as of 2022, the typical borrower is looking to make home improvements or consolidate credit card debt.
In order to get started in this type of investing, carefully choose the platform where you want to make a loan. Alternatively, talk to your hedge or mutual fund manager to see if you can include this investment under your current plan. This is an important distinction because, under the first plan, you will be making your own investment decisions on which loans you want to help fund. In the second case, your professional manager will choose the investment opportunities they think are right for you.
One significant advantage of investing in peer-to-peer lending is that you can spread your investment across many different loans. Many companies work with an investment as small as $25 in each loan. While each platform has its management fee, options as low as 1% exist. Some platforms allow you to liquidate your loan notes if the need arises.
You may find several advantages to participating in peer-to-peer lending. Many investors report that they get a return of over 10% on their investment. You are in charge of who receives your money so you can build your portfolio. Some platforms allow you to roll your investment into a 401(k).
If you do not reinvest your money in the program, you will eventually have zero investment. The loans are unsecured, so you may lose your investment in each loan, and the Federal Deposit Insurance Corporation does not protect your investment.
Some platforms offer savings accounts for when you have money that you are not currently investing. Generally, these platforms pay a higher interest rate than you can get at a commercial financial institution.
Invest in Real Estate
Real estate crowdfunding enables you to invest in real estate without the hassles of being a landlord. Of course, you must know how to evaluate a crowdfunding deal.
Invest in Mortgage Notes
You can also invest passively in real estate notes which are secured by real estate and commonly used when flipping houses or in the BRRR method.
Invest in a Real Estate Investment Trust
An alternative to traditional real estate investments is real estate investment trusts. When you invest in these funds, you join with other investors to pay professionals to find, manage and sell real estate. Your risk may be lower than when you only own one piece of property because you have a diversified portfolio.
Real estate investment trusts may specialize in one type of property, or it may be diverse over several different industries. When Congress established this program in the 1950s, they allowed real estate investment trusts to own apartment complexes, data centers, healthcare facilities, hotels, and infrastructure. They have since expanded the program to include office buildings, retail centers, self-storage, and timberland and warehouses.
There are at least three different types of real estate investment trusts, so investors need to decide which one meets their needs best. There are equity trusts, where the primary source of income is rents. There are also mortgage trusts that make money primarily through providing mortgages, and there is also a hybrid model of the two.
You can also divide real estate investment trusts into how shares are bought and sold. Some are publicly traded on major stock exchanges, and the U.S. Securities and Exchange Commission governs them. You can often tell the health of these trusts by examining their funds from operations (FFO). You can figure this number by adding depreciation, amortization, and losses on sales of assets. Then, subtracting gains on sales of assets and any interest income. This figure, often quoted on a per-share basis, is often used instead of quoting earnings per share. These trusts are the most fluid, so if you are unsure that this is the correct type of trading for you, then these are the easiest to sell.
There are also public non-traded real estate investment trusts. As the name implies, this option does not trade publically, so it can be more challenging to sell shares in these trusts. At the same time, they tend to be more stable, and the U.S. Securities and Exchange Commission governs them.
The third kind of real estate investment trusts is private ones. Generally, you can only sell these investments to other individuals within the group. At the same time, you may have more control over the operation of the trust.
In addition to purchasing shares in individual trusts, you may also want to consider purchasing shares in real estate investment trusts mutual funds. In these cases, investors buy shares in the mutual fund, which buys shares in real estate investment trusts. One fund may hold shares of multiple trusts, so they can be an excellent way to diversify your portfolio, but keep in mind that you are likely to be paying higher management fees. You may get more analytical data by buying through a mutual fund.
While your investment results may be different, generally, real estate investment trusts have returned annualized average total return of 9.6%, according to the National Association of Real Estate Investment Trust, when mutual funds and investment trusts are added together.
Purchase Dividend-Producing Stocks
Investing in stocks paying high dividends may be the perfect passive income generator for you. These stocks have historically outperformed the Standard and Poor because they produce regular income in dividends and capital appreciation of the stock price. The vast majority of companies who offer a dividend pay it out quarterly.
Some companies, like 3M, Procter & Gamble and Lowe’s, have paid out dividends every quarter for more than 50 years. Other companies have paid out dividends every quarter for more than 25 years. While past performance cannot guarantee future performance, repeatedly proving that you can pay a reward can be an essential indicator.
Choose stock with a dividend yield similar to others in their industry. A significant factor when choosing shares to buy should be the total return. This figure shows the increase in the stock’s value, called capital gains, plus the amount of dividend paid. Choosing stock in a company where this figure has repeatedly grown is usually a smart move.
There are several steps to setting up a dividend stock strategy. Unless you plan to spend every moment glued to the stock market, set realistic goals. An easy way to do this is to diversify your portfolio to include five-to-seven industries while adding stocks from good companies. Use a tool like the Value Line Investment Survey to help you identify stable stocks as they will be the ones that help your portfolio grow over the next several years. Be sure that you set up your purchases to reinvest your dividends automatically.
You can expect an investment dividend portfolio to pay out about 4% of its value annually. Therefore, if you want $500 per month in dividend income, you need to build a portfolio worth about $350,000. There may only be three-to-five stocks worth buying for their dividends at any given time. Therefore, you should concentrate on purchasing these quality stocks over several years.
Create a Course
People remain thirsty for knowledge, so creating a course and selling it is an excellent source of passive income. While you will need to do some work to make the course, you can continue to sell it for a long time through landing pages and social media advertising without doing any more work. The great news is that there are sites where you can create a course for free.
Think of a topic where an audience wants or needs to know more about the subject. People who have the greatest success with selling courses have already created interest through a podcast, blog or social media channel. Then, create the course using various methods, including videos, audio, texts and learning exercises.
You may even want to pre-sell your course at a discount. This gives you an idea if there is a demand for your course before you invest in your time. You may need to build marketing programs around your course initially, so it is essential to think about how you will lead perspective course buyers into your sales funnel.
Then, choose your online learning platform. There are many possibilities, and they will each cost you a minimal amount. Using a prebuilt platform allows you to build your course without technical skills, like computer coding.
After you build your course, you need to set up a sales funnel that will drive people to your class. Blogging can be a great way to do this, and you can even hire someone to write blogs for you, allowing you to collect the profits without doing the work.
The amount of money you can make from selling a course varies widely. Some people make nothing while others make over $50,000 monthly. Additionally, the most successful course builders often have stacked classes so that when students finish one course, they can choose to start on another one immediately. Others use their courses to sell physical products that they can dropship.
Originally promoted as an alternative to student loans, these agreements give young people money to go to college. Once the student graduates, they pay back a certain percentage of their future earnings to the investor for a set period. Over 50 colleges in the United States have established student-income-share-agreement programs.
Agreements with students are usually signed for between 2-and-10%, with those payments starting when a student’s income rises to a particular level. Most have caps so that the most the investor will receive is 200% of their initial investment. Many have salary caps so that if graduates are not making enough money, then the loan payments stop. You will want to read the agreements because graduates may have 10 years to repay the loan.
Sell an E-Book
If you do not have any money that you can invest, writing and selling an e-book may be the perfect solution. The first thing you need to do is develop an idea that you are interested in learning more about. Alternatively, think of subject matters where you are already an expert and believe others will want to know more about the topic. Then, write a book about the subject matter. The average e-book is only about 75,000 words long, but many are shorter. You must design an attractive cover as it will be important in grabbing viewers’ attention.
After you have written and proofread the book, you can list it for sale. There are many sites where you can self-publish your book, but a favorite is Amazon Kindle Direct.
Then, join marketing groups so that others know about the terrific book that you wrote. If writing is not your talent, you can still take advantage of this passive income stream by hiring a writer for as little as $400 to write a full-size book.
E-books make their writers varying degrees of money. While some make nothing, others make over $3,000. Many people choose to become e-book publishers and let others write their e-books while doing the final work and promotion. These individuals can make up to $69,000 annually.
Network marketing can be a great way to generate passive income. Keep in mind that only about one in 100 people become successful network marketers, but that is not necessarily the fault of the MLM company. To be successful, you must find a company offering products that you love to use and that is ethical.
You must identify the target audience to be successful in network marketing. While many companies recommend that you make a list of 100 people and rate them how likely they are to buy, that is not always a great idea. Instead, think of ways to introduce your products at events and venues where people who need the company’s product hang out. Then, present your product and sponsor others willing to sell your products. Give them the training you wish you had when you started selling the MLM’s product.
You can build a successful team. Then, relax and take advantage of the sales that they are generating. Always look for opportunities to help new team members get started.
There is a wide gap in how much network marketers can make. Top marketers often make about $56,000 annually.
Use Cash-Back Sites and Apps
An easy way to earn passive income is to take advantage of cash-back sites and apps. Look for easy opportunities to participate in and where you will save money on things that you already buy. Often the best choices for you may be connected to a credit card you already use. In some cases, you can also link store loyalty cards to your account and get more significant savings.
Some cash-back sites also offer you other ways to earn cash. For instance, you may read emails, play games or fill-out surveys. While cash-back sites may not be a great way to save for retirement, they can save you money along the way.
Affiliate marketing can be a great source of passive income, but you must work to get to that point or pay someone to do the work for you in hopes of receiving a payout in the end. Affiliate marketing works by putting a link in your blog that readers can follow. You can also incorporate the link into social media posts. Then, when someone follows the link and makes a purchase, you receive a predetermined commission, often between 3-and-7% of the item’s cost. Many links have a time limit, so you need to replace them regularly.
The first key to being a successful affiliate marketer is to build a successful following by offering helpful content to a target audience. The more people that find your content useful, the more successful you will be. Therefore, you need to provide superior content that real people will find helpful continuously.
You must present yourself as an expert in the field. Many marketers try to come off as experts when they know nothing about a topic. Therefore, to be a successful affiliate marketer, you either have to already know about the products you are promoting or be willing to spend the time learning.
It is also essential that you stay abreast of changes Google makes to its algorithm. Regularly study your site’s analytics and perform updates as necessary to your content. Be sure that you are working with a hosting service that provides quick connections.
Sell Stock Photos
Numerous websites allow you to sell your photos online. Bloggers and others use pictures to illustrate their digital marketing. You can sell the same image many times in most cases, so it can be a constant passive income stream.
As you start going through all the photos you have taken, dismiss those with people in them as you probably do not have release forms to use their images. If you have been fortunate to travel, check the location as some require release forms if you plan to sell photos taken at their site.
Many who use this passive income stream find that their best-selling photos are everyday objects, like a carrot on a white background, because people can use it in many different ways. When uploading your images, use descriptive alt-texts as photo sites rely on these tags when deciding which pictures to show to buyers.
Top sites often pay about $0.30 each time someone downloads your photograph. The key to making passive income through stock photography is to create portfolios that bloggers regularly turn to when searching for images.
If you have a little graphic skill and a funny way of saying things, you can be a t-shirt designer. Numerous companies will custom print tees with your design, and some of them will even market them on their website.
In fact, Merch by Amazon will allow you to upload your design. Then, they will print the shirts as customers order them and ship them directly to the customer. They even have templates available to help you with the design process. They have a calculator to help you decide how much you should charge for your products. Amazon is not the only choice, but it is probably the biggest.
Sell Unique Products on Amazon
A straightforward way to make passive income is to sell unique products on Amazon using their fulfillment services. Products selling between $10 and $50 usually perform best. Amazon regularly provides a list of their top-selling categories and products so you can choose options based on data.
Select items in demand that are not currently available at offline retailers. Ensure you are comfortable with the profit margin. List the items using a seller’s account using words and phrases that customers looking for the product will use.
Sign up for Amazon’s fulfillment program. Then, ship all the items to Amazon at one time, and remember to calculate this cost into your price. Amazon takes care of everything except marketing your products, so be sure that you are regularly creating marketing content.
The average seller on Amazon makes about $1,000 in sales monthly while top sellers make over $250,000 in monthly sales.
Invest in a CD
Buying a CD can be a great way to save money while earning some passive income. You will make more than if you put the money in a traditional savings account. You also know how much you will receive at the end of a set period. In many cases, you can choose to receive the interest off the CD monthly. The Federal Depository Insurance Corporation protects your investment of up to $250,000.
While you often have to pay a huge penalty, you can usually take the money out of a CD. You may also be able to use it as collateral if you need to take out a loan.
CD interest rates vary widely based on economic conditions. While they may not give you much interest, they are a secure way to save money.
Invest in a Private Equity Fund
While you may need to invest $25 million, private equity funds can be a great way to earn passive income. These funds help fund a variety of projects or can be used to strengthen a company’s bottom line. You will need to be prepared to leave your money in the fund for several years, with a decade being typical. The funded ventures often have a high risk, so you need to be prepared to lose your money. The risk is usually lower because you join forces with many other individuals, so you are funding more than one project at a time.
If you are still working on building up your savings to make this type of investment, consider buying shares in exchange-traded funds. The funds act the same way as private equity funds, but you join with other individuals to buy shares in the fund. Therefore, your investment is much smaller. If your fund does well, your reward will also be smaller. These shares can be bought and sold like other shares, so they are liquid assets. You may have to pay a brokerage fee for each transaction.
Invest in Art With Others
You may want to join with other investors to buy a share of a famous piece of art. The most money is made when the company finds upcoming artists, snags their artwork, and sells it when they become famous. In many cases, your investment will have to be held for more than 10 years to make a lot of money. If the art fund manager makes poor decisions, you can also lose your investment. Unlike if you only owned one piece of art, the fund owns several art pieces and a professional who understands the art world manages the details. The experts also take care of insuring the artwork and storing it in proper conditions.
Earn Rental Income
In addition to real estate investment trusts, you can make money as a landlord. You can buy residential property and hire someone to manage the property for you. The company takes care of all the work, from finding the right tenants to maintaining the property. Then, they send you a check each month.
This works well for some people, but most find owning commercial property easier. The typical commercial office and retail lease lasts five years, and many commercial leases last 10 or more years, and this eliminates the need to be hunting for new tenants continually.
You can structure these leases in different ways. For example, a single-net lease makes the tenant responsible for paying the property tax while in a double-net lease, the tenant must pay the property tax and building insurance. There are also triple-net leases where the tenant has to pay the taxes, insurance and building maintenance.
In some cases, you may have to work with the tenant in the first year so that they can remodel the space according to their company’s branding. Unlike residential leases, these leases are typically based on cost per square foot.
Use Bond Ladders
A bond is issued by the government or a company that needs to raise cash and promises to pay you more than you loaned to them on a specific date. You can trade these financial instruments. While most come with fixed-interest rates, you can find bonds with variable interest rates.
While buying a bond and waiting for it to mature is one way to earn passive income, you will also want to consider setting up bond ladders. When you buy bonds with different maturity dates, you are helping to protect yourself against rises and dips in interest rates.
The first goal of a bond ladder is to minimize the effect of interest rates on your investment. If interest rates are higher at the end of the bond’s period, you can do something else with your money. If they are lower, then you have the opportunity to continue the ladder by buying new bonds.
Many bonds pay interest twice a year, which usually coincides with their maturity date. Therefore, by staggering bonds, you can constantly get a payment without affecting your initial investment.
When you purchase at least six bonds, you can stagger their maturity date, allowing you to receive a payment each month. Generally, bonds with longer maturity dates have lower risks, but you will need to wait longer to get your full payment. Using different types of bonds may give you tax benefits, so speak to a tax expert.
Advertise on Your Car
Especially if you live in an urban area, you may be able to sell advertising on your car. Generally, companies prefer drivers who have clean driving records and own their vehicles completely. You will also need to have insurance on your car.
Do a quick internet search to find car wrap companies. Then, take a look at their rates as they vary by company. In most cases, after you sign the contract, you will need to take your car to a specific location to have the advertising put on your vehicle. Note that some companies require that you drive your car regularly.
Rent Out Your Car
If you have a car that you seldom drive, you may want to rent out your car. Some companies that will rent out your car focus on anyone needing to rent one while others focus on professional drivers, like those working for Uber and Lyft. Often the websites where people rent cars offer liability insurance and roadside assistance.
It can be a good idea to meet the driver before and after each trip to assess any damage that has been done to the vehicle. Most companies offer about 70^ of the trip cost to the car’s owner, with some companies reporting that the average owner can earn about $14,000 annually.
If you know that you need to lose weight, you can do it while earning passive income. Several sites allow you to bet with other individuals to see if you can lose the weight you need over a given time frame. Then, you each put money in a pot to see if you can lose a given amount of weight or reach your healthy weight.
Losing weight is not passive, so you must be prepared to do the work necessary to lose weight. You can take home your share of the pot when you are successful. You may want to consider losing the weight in smaller segments, allowing you to win more than one pot.
Become a Drop Shipper
Dropshipping is a great way to earn passive income. Then, a third party does all the work to confirm the order and ship the merchandise. You can set up all types of e-commerce stores, and it is easy to do because there are so many tools available. While you might think that it is easier to try to sell lower-priced items, the opposite is true as you will have fewer customer complaints. Top product lines include hobbies and business products.
The great thing about dropshipping is that another company does all the work after setting up your site. As your prepare each product page, ensure that you use words that your customers would use to describe those products.
There are several advantages to the dropshipping business model, including that you do not have to tie up your money in inventory. These businesses are straightforward, but you will need to do some marketing until you get a reliable customer base established. You can operate a dropshipping company from your desk or the kitchen table, and you can run it from anywhere you have a stable internet connection. It is also easily scalable without paying high fees for additional retail space.
Start an Art Collection
While we have already discussed investing in pieces of art along with other people, you can also make passive income by collecting art. There are at least three types of art. The first is decorative art you love, but these pieces will probably never amass much value. The second is commercial art, which you see in most art galleries, and these are great places to start collecting art. The third type of art is industrial–grade art. While these museum-quality pieces will cost you a lot more, they also usually increase in value for years because the artist is already well known when you purchase the art, but their works become scarcer over the years.
It is always best to buy art that you enjoy. You can smile each time you see it, even if it does not increase in value. Therefore, the first step in creating a passive income through art is to know what genre you enjoy. Most collectors find that they need to study at least 500 pieces before they develop an eye for good art and what they enjoy. Usually, an artist’s work will not increase in value for 20 years or until that person passes away. There are a few exceptions where the person became a household name.
The more you know about a particular artwork and the artist who created it, the more likely you are to make quality investments. Before buying any piece, it is vital to do your homework and learn as much about what people have paid for the artwork in the past as possible. You also need to consider the condition of the artwork.
It is also essential to consider where you will place the art in your home or office. Pieces that are too small do very little for a wall while those that are too big will look cramped and make the room appear smaller. Think about where you will put the artwork as you will want to protect it from natural light as it can fade it and keep it at a constant temperature.
Like many businesses, it is essential to form friendships with dealers. Then, when they find out that a piece is on the market that may interest you, they can send you a message. Honest dealers can be an essential key in helping you develop a workable art collecting investment plan.
Open a Crypto Account
A crypto savings account pays a much higher interest rate than a regular savings account. These accounts work very similarly to traditional savings accounts. You open an online crypto bank account and deposit bitcoin or altcoins. Then, the crypto bank loans it out and pays you back interest.
While many regular savings accounts pay little interest, these accounts often pay over 7%. Levels of volatility often vary across different types of crypto accounts, so keep that in mind when comparing various accounts. Additionally, watch the terms on your accounts very closely as there are often high fees for withdrawals. You may also find that you cannot withdraw your funds for several months.
Furthermore, you should understand what happens to your crypto if the bank lends it out and the borrower does not pay it back. In some cases, you will lose some or all of your deposit. Keep in mind that there is no insurance on your deposit like there is with a regular savings account. There are more than 13,000 types of crypto in the world, and some types may go extinct.
With these points in mind, if you have the right risk attitude on your income, you may be able to make a great return. States are currently introducing regulations, so this passive income idea may change over time.
Open a Business
While many businesses require a large outlay and lots of time, there are others that you can start very inexpensively. For instance, you can buy vending machines and put them in areas near your home and check on them once a week. Meanwhile, your neighbors are sticking their money in them, even while you sleep. Alternatively, you may want to open a self-service laundry. Those who do not have a washer or dryer in their homes will be glad to pay to use your machines. You may need to go in and do some cleaning and collect the payments, but otherwise, laundries take care of themselves. You may also want to consider renting out a room in your home for short-term stays.
FAQs About Passive Income
Can You Make $1,000 a Month in Passive Income?
Yes, you can make $1,000 a month in passive income. You must often do some work to build your income stream before you can sit back and let your money work for you. For example, you may have to find and train the right team members before you can count on them to produce multi-level marketing income for you, or you may need to write an e-book and market it before word-of-mouth advertising starts selling the book on its own.
Can You Start Making Passive Income Easily?
Yes, you can start making passive income easily. Begin by examining your budget and see where you are wasting money. Then, find ways to invest that money so that it is working for you. For example, if you spend $5 a day on coffee at a coffee shop, you pay $150 a month for something you can make at home. Over a year, that is $1,800, and there are many ideas on this list that cost less than that to get started.
Passive income allows you to become wealthier without doing any more work. Earning it can be a game-changer for you and your household. You will either need to invest time or money to get started, but then you can reap the rewards of knowing that you are more financially stable than ever before.
You need passive income to provide financial stability to your life and for those who count on you regularly. The great news is that you do not have to have money to earn passive income. Grab one of these ideas and start implementing it today. Your financial future depends on you being able to make some money even if you suddenly cannot work anymore. You will want to retire someday, and passive income allows you to do that when you are ready without feeling like you are in a financial bind. Additionally, passive income will enable you to have more time to enjoy the great things in life.
What are you waiting on? Many of these ideas you can get started on today. While some require money, many are free or very inexpensive to start. If we can be of assistance, please let us know. We would love to discuss your ideas with you as you get started earning more passive income. Once you relief yourself of financial pressure, you will be amazed at how bright your future looks.
John Dealbreuin came from a third world country to the US with only $1,000 not knowing anyone; guided by an immigrant dream. In 12 years, he achieved his retirement number.
He started Financial Freedom Countdown to help everyone think differently about their financial challenges and live their best lives. John resides in the San Francisco Bay Area enjoying nature trails and weight training.
Here are his recommended tools
M1 Finance: John compared M1 Finance against Vanguard, Schwab, Fidelity, Wealthfront and Betterment to find the perfect investment platform. He uses it due to zero fees, very low minimums, automated investment with automatic rebalancing. The pre-built asset allocations and fractional shares helps one get started right away.
Personal Capital: This is a free tool John uses to track his net worth on a regular basis and as a retirement planner. It also alerts him wrt hidden fees and has a budget tracker included.
Credit Karma partners with Equifax and TransUnion and offers free credit reports and free credit scores updated weekly. It also provides alerts when it detects unusual activity on your credit files. Monitoring your credit report for errors can save you thousands.
Streitwise is available for accredited and non-accredited investors. They have one of the lowest fees and high “skin in the game,” with over $5M of capital invested by founders in the deals. It is also open to foreign/non-USA investor. Minimum investment is $5,000.
Platforms like Yieldstreet provide investment options in art, structured notes, supply chain financing, etc. They also have fixed-income portfolios spread across multiple asset classes with a single investment with low minimums of $2,500.