Best Passive Income Ideas to Make Money While Sleeping
They say the average millionaire has seven different streams of income. Note: This does not mean they have seven jobs. Most millionaires have discovered the passive income game.
Once you have finished reading, you will be comfortable with suggestions on how to earn your own income.
According to Reader’s Digest, over 50% of Americans are immediately plagued by work and financial problems as soon as they open their eyes in the morning.
Even if you can not solve all the problems of your life by earning passive income in addition to your daily work, it’s a good start. Especially if you are serious about building wealth.
What is Passive Income?
Basically, passive income, also called residual income, is the money you earn when you are not working. You can sleep, drink on the beach, drink margaritas or simply relax. Your account will still be debited.
Traditional passive income ideas include investing in stocks, bonds, real estate and even royalty generation. All this requires some form of investment or money to get a return.
What is the Difference between Passive and Active Income?
What is passive income? Active Income? Active income is about getting money for a service. This can be a salary, an hourly wage, commissions or gratuities. It’s basically an exchange of your time for a fixed amount. Most people choose to live this way, and nothing is fundamentally wrong in that sense, as long as you know there is a limit to how much you can actually earn.
This does not mean you should quit your job (at least not yet), but if you’re looking for creative ways to create wealth, here are 15 ideas for passive income.
15 Best Passive Income Ideas Worth Exploring
Most passive income concepts require some work before they can benefit. However, there are ways to make money right away which is the ways to make passive income – virtually no effort!
1. Get money for purchases you already make
If you already make some of your purchases online, you may miss out on easy passive income by not using cash back rewards.
Refund credit cards
Cash back credit cards offer a percentage – usually between 1% and 5% – of purchases you already make. Some discount offers vary by category. For example, a card can offer a cash back of 2% for gas and grocery purchases and 1% for all other purchases.
Many cash back credit cards also offer sign-up bonuses. For these programs, you will normally have to spend a specified amount within 60 to 90 days of opening your account to qualify for the bonus.
Keep in mind that these offers are only useful if you withdraw your credit card balance every month. Interest rates can quickly add up and easily offset potential benefits.
If you already have a refund card that you like or do not prefer to open a new account, there are other ways to get rewards for your daily purchases.
- Use Ebates alone or with your Cash Back Credit Card for a 1-40% refund on your online purchases.
- Sign up for a free account to get started. Then download the browser extension to not miss a good deal. If you visit an Ebates affiliate site – Amazon, Best Buy and Target, to name a few – the extension invites you to activate the refund.
- Just click a button and continue shopping as usual.
- You can redeem your bonuses every three months via PayPal, a paper check, donations to a charity, or a friend.
2. Put your car to Earn for you
Do not forget how often your car is not used – traveling, on vacation or even during your normal work day.
You have two options: 1) Let your car sit down and reduce it. 2) Use it to get passive income.
Rent your car with Getaround
For example, with Getaround, you can potentially earn thousands of dollars a year by renting your car to third parties when you’re not using it. The average annual cost of a car is close to $ 9,000. If you rent your car at Getaround, you can return part (if not all) of this money.
As the owner of a Getaround car, you get parking in the best areas of the city, a car loan of US $ 50 per month that you can rent, and the main insurance coverage of a car. million bucks.
To use this passive income opportunity, you must create a free Getaround account. Your rental income increases every month and payments are made on the 15th of the following month.
Advertise with Wrapify
Wrapify is an application that allows you to promote brands and businesses on your car. According to their website, drivers can earn more than $ 400 a month.
Before you can start, you must download the app and follow your path. Once you have met the minimum requirements, you will be notified when a campaign is available in your area.
Take your car to be packed and earn a passive income with the driving you already do.
3. Open a high yield savings account
If you have a bank account, the interest you receive is probably ridiculous. Consider yourself lucky if you win something! Fortunately, online banks have surfaced with really tempting interest rates. More interest = more money than you earn with your savings.
Here are two online savings accounts generating residual income:
CIT Bank – I recently deleted my Bank of America account, which made me keep my money and tried to try the CIT Bank experience.
With the CIT Savings Builder Account, you can earn 2.45% APY by opening your account for at least $ 100 and paying $ 100 more per month. Of course, I will not get rich with this “investment”, but it’s still free money. And since there are no monthly fees, I think the CIT Bank is making a double profit.
Or, an alternative option:
Discover – Like CIT Bank, Discover offers competitive rates on its savings accounts. Today, most online savings accounts are close in terms of interest rates and fees, so you can not go wrong. The big advantage of Discover is that there is no minimum opening balance.
Passive Income Ideas to Make Money in Real Estate
Real estate is one of the best-known sources of wealth creation. In fact, the vast majority of millionaires over the past two centuries have at least partially acquired their status through real estate investments.
Related: 7 best short-term investments for money growth
Here are some ways to use real estate investment opportunities:
4. Rent a room in your house
Get a passive income with Airbnb – Renting a bed and breakfast is like a roommate who can kick you out at any time. You decide when the room is available, set the daily rate and set all the rules.
One of my favorite ideas for passive income is using Airbnb when I’m traveling. I rent my entire apartment and earn about three times more than when I rent a room.
It may be strange to know that strangers are at home, especially when you are not there. Fortunately, Airbnb offers up to a million dollars of insurance in the event of an accident. There is also a rating system that allows you to see a renter’s reputation before you decide he stays with you.
5. Invest in crowdfunding Real Estate
Invest with Fundrise to get passive real estate returns- If you have an additional $ 500, you can now invest in real estate through a start-up Fundrise portfolio. With Fundrise, you get the benefits of an REIT (Real Estate Investment Trust) with more flexibility and potentially higher returns. In the latest Fundrise performance report, the portfolio had a return of 12.25%.
With Fundrise, you can also choose an investment plan based on your financial goals. They have projects that generate residual income, diversification or long-term growth.
Another crowdfunding real estate platform:
RealtyShares – This sounds like Fundrise, but the minimum investment is $5,000. So you have to add an extra zero to start. You can choose the properties in which you want to invest. This platform therefore offers more control. Instead of relying on the performance of the entire portfolio, you can do better (or worse).
Whether you decide to invest in just one of these modern REITs or both, remember that these are not equities, but private funds. You can not simply settle your investment and access your cash immediately. Depending on your investment, plan to keep your money tied for six months to five years. However, you will probably still receive monthly or quarterly payments, depending on the chosen investment opportunity.
6. Buy your first investment property
Roofstock is an online platform that allows you to acquire rental properties and earn passive income.
Roofstock– Investment in rental real estate is one of the passive income ideas, which can be extremely intimidating, especially in the search for tenants. With Roofstock, you can buy real estate that has only 20% less and where tenants already live. This means that you will be paid on the first day of your investment. You do not even have to visit properties!
This is an ideal strategy if you live in an area where real estate prices are too high to invest realistically, or if you do not want the hassle and expense of traveling across the country to go to potential properties. visit. If you’re investing for the first time in single-family homes, it’s a great way to get your feet wet.
Once you have purchased the property, one of its licensed property managers will contact you to manage common rental tasks, such as rent collection and maintenance.
Another option: consider creating your own real estate investment group. It’s a great way to connect with other retail investors, pooling your money or simply learning from each other. Joseph Hogue, CFA of PeerFinance101.com: “The common bond in all real estate investment groups is to help each other compete against big players for the best results.”
Other Passive Income Investments
When most people think of investment opportunities, they think of stocks, bonds, and precious metals. Although these investment opportunities remain among the most common, the platforms have evolved and the options are more numerous than ever. Gone are the days of paperwork, high brokerage fees, and inaccessible minimum accounts. Now you can invest on your own terms.
7. Invest in dividend payments
Ally Invest – The oldest of passive income ideas that invest in equities distributing quarterly dividends remains one of the best ways to generate cash without too much work.
Suppose you buy shares of the Colgate Palmolive stock. Not only will the stock price increase over time, you will also be paid for every stock you own. Over the past seven years, Colgate-Palmolive has paid between $0.34 and $0.68 per quarter for each share held by its shareholders.
Depending on your long-term investment strategy, you may want to reinvest these dividends. However, if you are strictly looking for ideas for passive income, you can also pack the money.
When you invest, Ally Invest offers free classes that you can visit. If you want advice from financial advisors, you simply need an initial investment of $ 2,500 and professional support of up to 62 cents per month. Y
8. Loans between Individuals
Lending Club – If you want a higher than average return on investment and want to contribute to the company, you can do both with the loan club. The Lending Club takes your investment and allows people to borrow to start a business, consolidate debt and pay for medical care.
Here’s how the loan club works:
- Open an account and transfer a minimum deposit of at least $ 0.01.
- Build your portfolio: Invest in a range of loans in increments of only $ 25
- Get paid: get monthly payments when borrowers repay their loans
- 99% of investors in lending clubs with more than 100 note portfolios generate positive returns
- Reinvest payments or withdraw
Like the Lending Club, Prosper is also a peer loan group, but with a twist. You can choose the loans you want to finance and see exactly how much your income is. The return, in turn, depends on the risk you want to take, but I like the transparency of the platform.
The risk assessment is displayed for each loan. Low risk, low yielding AA credits add just over 4% to the high-risk category, which can yield 30% or more.
It also gives you specific information about each loan, including the borrower’s use, his state of life, the repayment term, the monthly payments, and the interest rate. This will give you a better idea of your risks and allow you to better control your investment.
9. Start investing with a Robo-advisor
Wealthfront: Automate your retirement savings so your budget is smoother. Robo Advisor balances the competitive environment by enabling individuals to use the same power and intelligence as the world’s largest brokerages.
Robo consultants such as Wealthfront perform a variety of automated tasks, such as artificial intelligence, such as portfolio allocation, to diversify risk, reduce the tax burden, and reduce transaction costs. You can also manage up to $ 10,000 without paying fees.
Betterment – Betterment was the first Robo-Advisor to hit the market nearly a decade ago. You have automated the entire investment process. So you just have to monitor the growth of your asset portfolio (in the long run, of course). They charge an annual fee of 25% of your account. So if you have $ 100,000 managed by Betterment, you will spend a little over $ 20 a month.
Earn your passive income online
Now we come to the right things! If you are looking for passive income ideas with unlimited revenue potential, the Internet offers many opportunities.
Each of these sources can generate passive sources of income that can change lives, but they will all start working. But once you’ve started them, you can free yourself from gas and make a living online while you sleep.
10. Affiliate Marketing
You’ve probably heard about affiliate marketing – when you earn a commission by promoting a product. The product you advertise online should be something you know and value high quality. Common sense, no? You’ll be surprised how many affiliate marketers forget this principle, but it’s a different story.
There are many ways to start as a partner. You can have an affiliate relationship with a specific company (directly or through a commissioning platform such as Commission Factory, RewardStyle or ShareASale), or you can sign up as an Amazon affiliate. I recommend both!
That sounds good in theory, right? But how do you start?
You need a blog. Here is a simple example:
Suppose I want to earn a commission if someone buys a mattress online. Since most mattress manufacturers pay a 5% commission and the average price of a good quality bed sold on the Internet is about $ 1,000, I would earn $ 50 every time someone tells me to recommend buying a bed.
But I need an online presence to be able to share my knowledge and make recommendations. The most logical place to start would be a blog.
A blog gives you all kinds of sources of income. With affiliate commissions, you can not only get passive income online, but you can also earn money with advertising.
Ready to start? In this comprehensive guide, you will learn how to turn blogs into a slot machine.
Blog with a website hosted by Hostgator for $2.75 per month
- Find your niche: something to write on (you do not have to be a world-class expert).
- Set up your blog: we recommend Hostgator (costs only $ 2.75 / month)
- Write content that helps readers solve a problem.
- Build an audience. Pinterest is a good place to start.
- Earn money in advertising, affiliate marketing, products – you choose!
11. Buy a blog that is already making money
If you prefer to skip the start-up phase, you can buy a blog already created and generating revenue. It’s actually pretty easy because a lot of people start blogging and then get bored. Creating a blog is a labor-intensive process and it is not uncommon for people to give up before reaching their full potential.
passive income in line with imperial fins
Empire Flippers tend to have more established and profitable websites and blogs for sale. Expect prices ranging from $20,000 to over $2 million. However, most of them have several sources of income. The advantage is that you support a website that earns money from the first day.
Flippa’s inventory is not as prestigious, but you could find hidden treasures. This is an auction format, so bid on the website that interests you. The auction starts at $1. If you’re lucky, you might get a blog ready for only $ 1,000!
12. Start a YouTube Channel
In January 2018, the rules for making money with a YouTube channel changed. However, this remains an option. All you have to do is adjust your strategy.
In the past, almost everyone could monetize their YouTube channels. This means that you allow advertisers to place videos (that is, ads) at the beginning of their content. If you get a certain number of points of view, you will earn money.
There are hordes of people who use them to create living things. People are filming make-up tutorials, travel guides, unpacking videos, anything you can think of. Since YouTube is a very popular platform, there is enough room to draw the public into the darkest niche.
However, starting in January, you must have at least 1,000 subscribers or 4,000 hours of respected content per month to qualify for this program.
This means that the 19 cents I made in this video disappeared overnight.
It’s not just the little guys like me who sneak into constant updates. Even the best YouTube creators were unhappy with the changes to the YouTube monetization platform. It changes and evolves constantly, so you must be ready to adapt. It is also useful to have a blog so you do not count on one platform or your income.
What I recommend is the use of the aforementioned partnership strategy. It works the same way as affiliate links in your blog. You simply add them to your YouTube videos.
13. Create and Sell an Online Course
Clipboard with spreadsheets and documents You can be well informed about a subject. Or maybe you have very specific skills. Skills you have acquired over a very long career. Skills that make me a nightmare for people like you. Oh, wait a minute. It was Liam Neeson’s speech from Taken.
What I understand is that you can create a course that teaches everything from algebra to guitar, starting with a platform like Udemy or Teachable. The beauty of this strategy is that once you have created the course, you continue to get paid.
Which platform should you choose?
Teachable and Udemy are two of the many examples, but they are the most popular, the most intuitive and the most user-friendly. With Teachable, you control more your prices and the appearance of your course, but you do not get an integrated audience. Instead, you have to do all the marketing yourself. Udemy has an integrated student base, but you do not have much control over them and they take more of your income with them.
A blog gives you all kinds of sources of income. With affiliate commissions, you can not only get passive income online, but you can also earn money with advertising.
- Create a free class: all you need is an email address to get started.
- Upload your content: seamlessly download videos, sound, presentations, images, and text.
- Personalize it: customize your school to your brand, colors, logos, etc.
- Start: attracting students and selling courses online
14. Create an e-commerce site
In addition to my revenue potential, one of my favorite passive income ideas is having an ecommerce site that offers wholesale prices for everything.
Most e-commerce sites require a lot of work and I have developed several models. I, therefore, share the advantages and disadvantages of each e-commerce site:
Sell your own product: you produce or source your own products
- Benefits: You have the ultimate control and the highest profit margin.
- Disadvantages: It’s a lot of work and often requires significant capital.
Sell other people’s products: buy products from one or more companies
- Benefits: You get a variety of products at wholesale prices.
- Disadvantages: a lot of work and competition for the price. It can also be difficult to differentiate.
Dropship: If a customer orders from you, the manufacturer sends the order.
- Pro: you do not have to worry about inventory and the workload is lower than the models described above
- Disadvantages: the margins are not so good, you have no control over the quality, the achievement, and the customer journey.
Affiliation: a bit like a blog, but that looks like an e-commerce store
- Advantages: the least amount of work; You do not have to place orders
- Disadvantages: I think it’s a little risky because people “buy” on your site, but then move them to another place to make a purchase.
Create a dropshipping store with Shopify
- Learn from Corey Ferreira, who made 8,000 sales last year.
- He did not stock inventory, did not pay for the products, and did not send anything himself.
- Step by step to create your own online store.
- So you can find great products that you can import quickly and sell immediately.
15. Sell your Photos Online
Have you ever wondered how you can get paid for taking pictures? In fact, it’s actually pretty simple.
Shutterstock is one of the best websites to make money with your photos. Since its inception in 2003, Shutterstock has donated more than $500 million to its contributors. Because of its popularity and low barriers to entry, this website can be a passive source of income, regardless of your level of experience.
Create an account, upload your photos and earn money every time a customer uploads your photos. The amount you earn for download depends on the type of customer who purchased the image. When a customer with a monthly subscription downloads your image, you receive less than one paying customer specifically for your photo.
The more you win over time, the more you can win for each photo.
Here’s how you select the best passive income stream for you
Finally, you can choose a combination or try them all.
The right path for you depends on your short-term and long-term goals, the time you have, the amount of money you want to earn, and the number of hours you are willing to work.
The simplest methods we talked about at first will not make you rich, but as I said, they literally do not require any work.
Real estate is a route recommended by many experts. An investor named Louis Glickman attributes this quote to the following quote: “The best investment on Earth is the Earth.” There are statistics indicating that 90% of millionaires acquired this status by being real estate owners.
Although real estate is a great option, it requires a large upfront investment. Whether or not your source of passive income is right for you depends on your current financial situation. It can be easier to start with an investment strategy that allows you to raise money until you have enough money to invest in real estate.
My favorite ideas for passive income are the ones I can control. I like the idea of creating something, whether it’s a blog, a YouTube channel, a course or a shop. And while it may not be technically passive at first, it can be a life-changing experience that brings enormous wealth and satisfaction.
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