19 Passive Income Ideas To Help You Earn Extra Money
Have you ever thought of making money while you’re asleep? Sounds crazy? Of course not! It is possible! How do you do that? By simply getting into different kinds of passive income ideas.
Passive income is a real deal. You may find yourself surprised by the fact that some of these ideas you were just ignoring or have never thought would bring you money at all.
We can’t blame you if you find passive income ideas crazy, but, what we can assure you are – these have been tried and proven to really bring in some cash. Like, who in the world wouldn’t want to earn extra without getting all sweaty and exhausted and working even at an ungodly hour, right?
Interested to know more about what passive income is and what are the ways to earn through it? Wait no further. Read on and hopefully, after you will get inspired to start building your own passive income.
What is passive income?
Passive income is basically referring to one’s earnings from the likes of a rental property or an enterprise or a limited partnership. It is an income you receive coming from a regular cash flow that requires minimal effort or none at all.
Like active income, passive income is usually taxable.
What are the qualifications to earn passive income?
Here’s the good news, anyone can earn passive income! As long as you get into the right path, you will surely earn something – depending on the risk you put into it, you could earn as much as $1,000 per month or more! But of course, if you are a little skeptical when it comes to money, the less risky you are, the lower income you get.
What are passive income ideas?
Precisely what this post is all about! As you read on, we aim to share with your different types of passive income ideas. Look into each item and discern whether or not the item or items will work for you.
So, here we go!
- Real Estate
We got you! You’re probably thinking the initial cost. Well, yes, you are right! Initial cost in investing with real estate could be mind-boggling, but, later on, you will eventually harvest what you sow – as they say – and more even!
Here’s a tip, the younger you invest in real estate, the better. Real estate cost changes year after year. So imagine, a property’s cost can double up in five to ten years or even earlier than that! So, we suggest that as soon as you find a property that you think you can manage to pay, go buy it! You will surely thank your younger self in the future once it starts earning on its own.
But wait! We’re not done yet. If you have $500 now, we suggest looking into a company called, Fundrise. With that amount, you can start and invest in over 48 real estate products. You just have to put your money into their real estate investment trusts. Those who have invested in it say they yielded a higher return than the typical real estate experience. Plus! You get rid of the usual managing of the properties.
- Dividend Paying Stocks
If you are someone who doesn’t need your money immediately, we suggest you go investing in stocks. Dividend-paying stocks, according to Brett Owens, contributor of Forbes, have the potential to mark annual returns on 15% up to as much as 25%. That is of course if you will choose the right dividend-paying stocks.
To start with, you can look into financial companies or do your own research, study how the stocks go, what stocks are profitable and will give you high dividend payments annually. You can also take crash courses about stocks investments online if you want further information.
If you thought you’re going this path, we recommend checking out Ally Invest. They have low trades – as low as $3.95. This is most applicable to those who don’t have an investment account. Take advantage of this low fee because most brokers would charge around $10 per stock trade. So, yeah, go ahead and check Ally Invest out.
- Affiliate Marketing
If you have a website or any social media platform with a huge following, then this is the route we recommend for you. Affiliate marketing is fairly new, but we swear, this one’s income generating.
You earn from affiliate marketing by promoting affiliates or other companies through your platform – website or social media site. For every use of your affiliate link to purchase the product the company is selling or service that they are offering, you get paid. Looks very interesting, right?
Whether you are a blogger, a YouTube influencer, someone who does a podcast or someone who happen to have a lot of followers on social media sites, we highly suggest you take advantage of affiliate marketing. All you have to do is look for affiliates that offer products or services that are related to what you are catering to. There are several affiliate marketing sites to choose from.
To inspire you more, some people get over $50,000 a month by simply putting up those affiliate links on their website or pages! Imagine, you do what you love to do, at the same time, earn money from it!
- Cost Per Click Ads
Unlike affiliate marketing or advertising, with Cost Per Click or CPC ads, the companies pay you for every click on their ad regardless what the happens next (whether they buy the product or avail the services that the company offers). So, no need to worry about or get pressured on making sure people buy something from the company just to get paid.
The payment for every click on the link to the company gets directly to your registered bank account. Ops! Before you even think of clicking the link by yourself all day, we suggest getting away with that idea. Trust us, these companies would know if you are fooling them. So better shape up and work on building up traffic on your website so more people get to see and click the ad every single day.
- Display Ads
We’ve discussed affiliate marketing, CPC ads, and now, let’s talk about display ads. Like the previous two, this is something website owners should take advantage of. Can’t you see, the best thing about having your own website is, you can monetize it in different ways! Imagine, you just invest in a little amount, yet the possibilities of earning are endless.
Anyway, going back to display ads, it basically works as an online billboard. You get paid by posting the ad on your site. Of course, like CPC, you better work on your web traffic or the number of people coming into your website so that ad networks would choose to partner up with you.
Display ads are entirely passive, which makes it the best thing ever. You can earn a huge amount of money even while asleep – like, literally!
- YouTube Ads
There are endless possibilities online, indeed. If you are fond of making videos and uploading them on YouTube, then why not turn that passion into something that will make you earn passive income? All you have to do is post ads on your videos and that will turn into additional revenue for you and your family!
The secret to YouTube success is focusing on a certain niche, so you have a specific group of audience to capture. For instance, if you are passionate about food, then share your family recipes. If you love make-ups and tutorials, then share your makeup reviews and teach how to put on make-up. In the same way, you get to attract the right ads for you as well.
As the number of your followers grow, and as your video views get high, the better chances at earning big!
It’s actually amazing how some YouTube video content creators earn so much! No wonder why a lot of people are actually taking a chance in making videos and posting them on YouTube because you could earn millions in a year or even every month – depending on the number of followers you have.
- Peer-to-Peer Lending
Alright, lending will always have a risk. Well, just like all the other passive income ideas we have here. But what do we mean by this, really?
It is this simple – Peer-to-Peer Lending means you lend your money to those people who need it but unfortunately, are not qualified for the typical financing. The returns may not be that high, but still, higher than just putting your money in the bank, right?
If you think you can’t handle it yourself, you may want to check out the website called, Worthy. Worthy offers $10 bonds and pays a 5% return. Not bad at all, right? Also, what makes them stand out from the rest is that your money is liquid, which means, you can get your money back anytime you want to.
- E-Book Writing
Ebooks are very in-demand nowadays. People would rather scout and buy books over Amazon or other online shops than buying in physical bookstores. Mind you, there are a lot of people out there who earns thousands by simply writing an e-book.
If you are fond of writing, then you better try this out.
Here’s the trick. As a start, you can write something like an online challenge for a certain topic, say, earning a thousand dollars while asleep. That’s quite interesting, right? You offer it for free and then, you give readers an option for an upgrade by paying a certain amount. When we say upgrade that means they get to access more in-depth revelations on how to earn that huge amount of money while sleeping. There’s actually a little marketing strategy in there.
By selling via online shops like Amazon, you get to have the chance to get paid every month by doing nothing. Well, except for writing a book!
We mention marketing earlier, and we got to tell you this, developing a marketing strategy for the book to sell is vital. The more you spend marketing your book, the more chances of getting paid a higher amount of money.
But wait, before you start writing your e-book, we got to tell you one top secret in making a best-selling book – write something that offers a solution to a problem. There are a lot of problems in the world. All you have to do is choose one that is close to your niche, and write about it.
- Licensed Photos
If you have a passion for photography and you have really good photos, guess what? You can earn from licensing them!
You may check websites like Shutterstock where you can send your photos and once approved by the administrators, you’re on your way to earning passive income. How? For every download of your photo, you get a royalty fee. Amazing, right?
So look into your stock of photos and choose the ones you think is saleable and send them over to photo websites to start earning some cash.
- Mobile App
Are you that kind of computer geek who has the skills in creating a mobile app? Well, you better put your geekiness to something that could earn you thousands of bucks.
Create a unique mobile app or improve an existing one that helps make other people’s lives better. Well, you can also join the bandwagon of mobile games! You will get surprised at how much you can earn.
- Online Business
There’s actually a lot of opportunities when it comes to setting up an online business. While it is nice to have your own website or online store, there are a lot of free online business platforms like the infamous Amazon or Etsy where you can put up your store.
What’s good about using these platforms is it’s for free! All you have to do is set-up an account and then, you’re ready to set-up your online store. Of course, there are options for upgrades if you want a better experience. But you can do that later on when you are already earning.
- Be Debt-Free
You are probably wondering why getting out of debts is on this list. Well, truth is, the lesser money you spend in paying debts means getting extra money for you and your family! Makes sense, right?
Imagine how much interest you’re paying for every time you are paying your debts. When you gather them together, it’s a big chunk from your supposed savings, right?
So start getting rid of your debts. One way to speed that up is to lower down your interest rate. Check out the website called, Credible. They offer loan rates for as low as 4.99% specifically for refinancing your credit card debts.
So what are you waiting for? Start getting rid of your debts, today!
- Room Rental
Do you have that extra room that no is using? Then why not turn that into something that creates passive income? Make money from that space by renting it out.
Airbnb is a boom nowadays. There are a lot of tourists out there both local and international who would rather rent space than spend money staying at luxury hotels. Some of these people are staying not just for a day but even months! So, imagine how much income is that for you.
Renting out a place or a room via Airbnb is easy and the best thing of all, it’s for free! You just have to sign up, post photos and descriptions and house rules, and you’re ready to accept guests anytime.
With less effort from your end, you can earn as much as $1,000 a month by just renting it out! So, what more if you have more than one space that you can rent out, right? Maybe you won’t need to work anymore! That’s pretty enticing.
- Storage Rentals
You know the saying that goes when coming up with a business idea, you look for a certain problem that people encounter regularly, and then find a solution, once you found it, sell it!
Storage is one of the common problems especially for those living in tiny spaces. So, why not take advantage of that need? Of course, mounting a storage rental business means you have to spend, but once your business is up and running, you will eventually receive your ROI (return of investment).
Now, if you are still interested in this business but does not have the money to put up your own, you can invest in storage rentals through REIT with a minimum investment of $500.
- Car Rentals
You have a car but hardly uses it? Why not make money out of it instead? Of course, you can do that! Like listing your place for rent, you can also list your car for rent.
One of the platforms that let you rent your car out is Turo. What nice about Turo is once your car is already up for rent and someone is renting it already, they handle everything else. We suggest though that you make sure that both parties do have the right rental agreement. Also, make sure that you get paid in cash beforehand, a photo ID and a proof of address for security purposes.
Once you have done all these, can just sit down and relax, and let the money come in.
- High-Yield Account
If you are someone who’s quite afraid of financial risks, then this one is for you.
You just have to look for an online bank where you can open a high-yield savings account. For instance, Aspiration Bank pays 19 times more than the typical banks out there. Plus, they pay up to 2.00%! That’s huge compared to traditional banks, right?
To open an account, you got to have at least $10. Another best thing about it is that they do not charge any monthly service fees.
Although this route will not make you super rich, it is at least a safe way to make a regular income. You don’t need to worry about losing money because they are FDIC insured.
- Design a T-Shirt
If you are gifted in arts particularly in designing shirts, you make passive income out of it. Wondering how? Well, websites such as Café Press allows its users to custom design different kinds of items like t-shirts.
You create a design, and once it becomes popular and creates sales, you will earn from royalties. Other sites that are into this kind of business is Amazon. They call it Amazon Merch wherein all you have to do is upload your designs and Amazon takes care of the rest – from printing it to shipping it out to customers.
- Vending Machine
Yes, you read it right. Buy a vending machine and make passive income out of it. The success of a vending machine business depends on the kind of product you are selling and the location where you will park your machines.
However, with so many smaller brick and mortar businesses in town, you can contact them and check if the need a vending machine, what particular product or products do they need and make sure to always stock them up.
- Cashback Rewards
Do you have credit cards? Well, you can actually earn passive income from it through its cash back rewards. We highly suggest you accrue your rewards for some time – well, better if you wait until the end of the year before using your cash back rewards – because the longer it takes for you to use it, the bigger it becomes.
Just a gentle reminder though, make sure your card does not have an annual fee or else you rewards might get canceled.
To sum it up, there are actually a lot of passive income ideas to choose from. But of course, like any other businesses, you better choose the one that you are most interested in. Your success depends on how knowledgeable you are on the route that you are pursuing.
Also, while it may seem easy, to be honest, it requires time as the key investment. It can take months or even years before you get to enjoy the return of your investments. So better assess yourself before diving into any of these. Because if you are someone who wants easy money, definitely, this is not the path for you.