Making money without doing anything is one of the best things. Right? If you are like me, you’ve always looked for the best passive income ideas. Otherwise known as an investment or residual income, earning a passive income is currently the real deal.
But what is passive income? Passive income refers to the income that you make regardless of whether you are physically working or not. Apart from being the most lucrative source of income, it can also give you more time to concentrate on what you really want to do.
When it comes to passive income, you do the upfront leg work, but after a while, the work that you did ensures that your income keeps coming, albeit usually in smaller amounts. But as much as dreaming is fine, most residual income ideas require you to put a lot of effort at the beginning.
The good thing is that the amount of effort that you put at the onset doesn’t matter, later on, you’ll start making money without investing a lot of time.
Great things about passive income
- While passive income requires you to put a lot of effort at the beginning, it will be able to generate income day after day.
- Once your income starts streaming in, passive income does not depend on how many hours you work. Isn’t this a great motivation for you to look for passive income ideas?
- You will have time to concentrate on what you love while still making money and paying your bills.
- Since your job is not 100% secure, passive income will provide you with the security that you need.
25 Passive Income Ideas
By choosing the best sources of passive income, you can invest your time and effort the way you want. With so many opportunities out there to make residual income, you can actually start making money while you sleep. Here are 25 of the best ways to make passive income.
1. Invest in crowdfunded real estate
One of the easiest ways to start earning passively is to invest in income-producing real estate. Although you need a little money to start with, after a short while you will begin earning. With crowdfunding, you don’t have to invest or take the risk alone so its its easier to get into. Their goal is to ensure that anyone can invest in real estate and is a great options for those looking for something physical.
2. Invest in dividend stocks
By investing in high portfolio dividend stocks, you can create a regular passive income that’s much higher than what you get when you invest in banks. Since these are stocks, the capital is likely to appreciate. This means you’ll earn passive income from both capital gains and stocks.
3. Using peer to peer lending
This refers to loaning funds to those who don’t qualify for other forms of lending money. With an investment return of over 3.8%, if you invest in these companies, you can get much higher yields as compared to the money market account or typical savings. One unique thing about these companies is that you can take your money out anytime.
4. Invest in CDs
Although CDs are simple and straightforward, they are not one of the most exciting ways to make passive income. However, if your goal is to make passive income, there is nothing as good as investing in CDs. Also known as the certificate of deposit, CDs refers to savings accounts where you can’t touch your money before they mature. Since your interest rates are locked in, they can be an excellent sources of passive income.
5. Get out of debt
The less the money you are paying out, the more amount of money you will start earning each and every month. Since you are no longer paying interests to creditors getting out of debt quickly can significantly increase your income. The most ideal way to do this is to lower your interest rates. Try to bargain with your creditors or consolidate for a lower annual percentage rate and pay off as much as you can monthly.
6. Use Bond investing
By investing in bonds, you’ll be buying the debt owed by the government or other entities. This means you’ve loaned money to the entity with the promise of repayments at a future date and with an exchange for interest repayments. Although bonds are more conservative, your money is safer and counting your interest is also easier.
7. Open a high yield account
If you are out looking for a way to start earning passively, you need to open a high yield account. With only $10 and without any monthly service fees, you can open one these accounts. Although they will not make you rich, it’s a much safer way of earning consistent income.
8. Rent out a room in your house
If you have an extra room in your house, you can use companies such as Airbnb to rent it out. Instead of staying in hotels many people prefer such kinds of houses. After the guest has left, you can hire someone to clean up the room. This will not only eliminate the work on your end but also help you to start earning passive income. If you are living the minimalist lifestyle then you have even less to worry about with clutter and organization. Most Airbnb renters seek out such calming and minimal places in which the owner reaps the rewards and extra finances.
9. Start a blog
Blogs are perhaps some of the best ways of earning a passive income. Did you know that you can start a blog with very little money and start earning from it? If you can use your blog to sell something that people value then you can greatly increase your changes of making some extra cash. By posting more content, your site will start bringing more traffic and more traffic means more revenue. Learn How to Start a Blog here.
10. Write a book
Once you have done the initial task of creating a book, book sales can be one of the best sources of passive income. Once you’ve made your book available on sites such as Amazon, you could earn some cash every month for doing absolutely nothing.
11. Rent out your car, rv or bike
Got car, RV or bike? You might want to consider how you can rent it out. Just like renting out that extra space in your home, renting your depreciating vehicle is a great way to recoup some dollars lost. While doing this will require some work and maintenance, you’ll definitely start earning some good money. If you live in a metropolitan area, you’ll be surprised at how much you can actually make from this.
12. Engage in affiliate marketing
If you already have a website or blog, then this should not be too hard for you. As a matter of fact, some people are already making over $50,000 a year. If you don’t own a site, you can start one for less than 3 dollars every month. With affiliate marketing, you only need a website and computer.
13. Cash from credit card rewards
Since credit card companies offer cash back rewards, you can always use them to create a passive income stream for yourself. Apart from using gift cards to shift your spending, you can also maximize your bonuses and even take advantage of business rewards cards.
14. Sell products on Amazon
Since most people shop on Amazon, you can actually sell products there and earn some cash. Are you aware that can sell your own products on Amazon and have Amazon ship them to your customers? So many people have performed really well with this kind of business. The amazing thing is that you don’t have to be there in person or own a brick and mortar location ever.
15. Advertise with your car
By advertising with your car, you can earn even up to $1200 during a campaign and make even up to $100 every month. You only need to avail your car as an ad space and immediately start earning money.
16. Create an online drop-ship store
With the recent expansion of e-commerce, drop shipping has become one of the most popular types of online businesses. You just need to create an online store that provides products from different companies. When a person visits your sites and orders, the system sends the information to the manufacturers who then complete the process by shipping the order. It becomes a touch system and a fantastic passive income idea.
17. Create YouTube Videos
Many people are currently using YouTube to make money. Each time someone watches the videos and ad appears you can quickly make money from those ads. The key to making money through this platform is building a large viewer or subscriber base. Although you need to invest a lot of time at the onset, once your videos become live, you can start making some great money.
18. Create an online course
Creating an online course and teaching are some of the most fantastic passive income ideas. However, before you start earning, you will have to invest a lot of time. Nowadays, there are plenty of people who are making money using this method. To maximize your chances of selling, create different courses at different prices. Think knitting, cake making, logo design, coding, or even nutrition.
19. Start a business and have someone run it
As long as you have the right person to manage your business, owning a business is an ideal way to earn passively. Whether you are opening a new venture or you are buying an already established one, a good idea can be the right source of passive income.
20. Become a silent partner
Do know of any successful businesses that requires more money for expansion? If so you can easily become a silent partner to that business. Instead of offering a loan to the business owner, you can treat this business opportunity and become a partner. With these businesses, you can diversify your portfolio, earn passively, and support a business in need.
21. License your photos
Do you know that you can earn passively by taking pictures? Are you skilled when it comes to taking good photographs? If so, you can advantage of websites such as Shutterstock that give money in exchange for beautiful photos. You only need to send them your photos, and once they are approved, each time someone downloads your photos you get to earn a small commission. You may enjoy our article on ways to make money selling your photos online, to give you 12 places to try.
22. Buy a vending machine business
Vending machines can also be a good way of making money passively. The idea is to find a right place where you can install your machine. You can check out with traditional mortar and brick business and ask them whether they need vending machines. You also need to inquire from the workers the kind of goods that they need. You can then hire someone to help you manage it.
23. Outsource your business
Outsourcing your business will free you up so that you can engage in doing other things that will give you more income. If you don’t want to employ people, then you can consider hiring those who work on contracts. Look for those who have strong work ethics so that they give you the results that you need.
24. Create an app
If you are good with the technical stuff, you can come up with a unique app that can help make people’s lives better. Did you know that every app on your phone is making money for someone? Super nice passive income ideas within the app space for sure! Since there are plenty of people who are already doing this, why don’t you try it out?
25. Engage in product design
Another good way of earning a passive income is by designing shirts and other products. Even with no prior skills, you can use websites such as Redbubble to create coffee mugs, t-shirts, laptops among others. Shoppers will then visit your site, and if they purchase your product, RedBubble will pay you. The amazing thing is that they handle all the shipping of the goods.
As you can see, there are so many ways of earning passively. So, in case you are tired and bored with the traditional methods of making money, implement a few of these passive income ideas so you can start making money while you sleep today.