I was into a traditional 9 to 5 job for several years and eventually, I got flamed out. I wish no one ever have to face such a situation, but people like me who did, understand what it feels like. Don’t we?
All I wanted was more liberty, and the thought of passive income seemed quite tempting. I had seen a plethora of people quitting and swapping their full-time job with passive income, but in my case, I didn’t have the slightest idea of where to begin.
Well, this quest led me to introduce my own blog where I now earn around $5k – $6k every month; however, this isn’t the only way to initiate residual income in your life.
What exactly is passive income?
To begin with, passive income is where we get paid repeatedly for the work we have done once. I have multiple passive income streams, some of them I have mentioned below.
Passive Income Ideas
The right source of passive income helps us to invest our time in the way we want to. Certainly, the passive income is a way to have more time.
We get so many opportunities to make an enduring income in terms of network marketing. This does not mean we have to do some “vague things.” These are the legit ways that will help you to make money while you sleep and which can fit your passion, expertise, or experience.
1. Invest in Crowdfunded Real Estate
Investing in real estate can be one hell of a great way to make money while you are asleep. Though it costs way too much to purchase a home, using a platform like crowdfunding, which can help you to invest in the real estate, can be an affordable alternative.
If you are looking for an easy and low-cost alternative to invest in the real estate, then you can consider another low-cost platform like Fundraise. You can begin with $500, or I must say you only need this much amount to get started, and through the real estate investment trust, you can also invest in over 48 real estate products.
The real estate investment trust is a company that owns, finances, and operates the income-producing real estate.
If you’re looking for other options then Realty Mogul is another company, whose minimum investment starts with $1000. Although their minimum investment is higher as compared to the Fundrise’s, their annual fee is lesser, as they are between 0.30% and 0.50%, depending on the type of deal.
Fundrise’s investment has an annual fee of 1%. In addition to this, they carry upfront fees up to 2%.
One of the easiest and accessible ways is through Rich Uncles, where you can begin with $5.
Although to start, they propose their option at $500, you can borrow their offerings, once you register for free. In fact, they have a Student Housing real estate investment trust with the minimum investment of $5.
Their prime objective is to make the investment in real estate available for everyone, and this is what they have been doing unerringly.
2. Dividend Income
Dividend income is the money paid in the form of cash to the shareholders of stock. The dividend stocks are extremely fascinating for the people who want to make a living with the help of passive income, as while investing in this, they’ll get payouts within every 3 or 4 months.
If you’re planning to through this route, ensure to educate yourself and pick the solid stocks, so that you can count on dividend income for the coming years.
You can check out Ally Invest, if you don’t have an investment account, the trades here are as low as $3.95.
This fee is splendid, as most of the brokers charge around $10.
3. Peer-to-Peer Lending
Peer-to-peer lending is when you lend money to other people who are not eligible for traditional financing. A company like Lending Club, with the investment returns up to 3-8%, can get you high-income results than having a typical saving account.
For lower risk options, you can go for Worthy, they pay 5% return and offer $10 bonds. Your money is liquid, this is a distinctive thing, so if you want, you can take out your money any time.
By this, I mean, for any possible reason if you want your money back, you can access it easily and quickly.
4. Rent out a Room in Your House
Do you have a spare room in your house, which you barely use? Why not rent it out? There are several people who are looking for short-term rental rooms, you can check on Airbnb. Millions of people use this site to find out a place to stay instead of checking into a hotel.
If you are wondering about the mess, then you can hire a maid to clean out the room after the guests leave. This will eliminate the burden of work at your end, and you can make passive income for sure. I’ve rented out my spare bedrooms, and I make around $1000 per month.
5. Open a High-Yield Account
If you are looking for the least risky ways to make a passive income, then opt for opening a high-yield saving account. You can check out an online bank, like CIT Bank, which pays more than other traditional banks. This bank is currently paying 1.55%.
However, it won’t make you filthy rich; it is one of the safest ways to make a steady income and not lose your money.
6. Write a book
This can be a way to source your creativity for some extra pennies. Once the initial stage of writing is finished, you’re left with selling out the book. This can be an amazing way to produce an extra income. For every book sold, you can get a minimum of 10% income.
Once your book is available on the top-most websites like Amazon, you can receive checks, just a one-time investment. Isn’t it? It is vital to consider spending the time of developing an effective marketing plan. Obviously, the more your book will reach to the people, the more money you’ll make.
7. Get Out of Debt
The less money you pay to the creditors, the more you have in your wallet. To be honest, this is a simplest and easiest form of passive income. Getting out of debt will quickly increase your income, as you won’t be paying interest to the creditors anymore.
To speed up your debt, you need to low your interest rate. Having a high-interest debt will only let your money out. To have a low-interest debt, check out Credible. It offers loans at 4.99% to refinance your credit card debt.
8. Affiliate Marketing
The idea behind affiliate marketing is to promote the products of other people. While using an affiliate network, you can earn a commission if people end up buying a product through your marketing.
This is an amazing way to make passive income, a plethora of people are opting for this. This is simple when anyone clicks on your affiliate link, you receive a commission.
If you have a website, then this is a no-brainer. But if you don’t, then you can build one for less than $3 per month, the price for a website host. You can choose Bluehost, as it offers one of the best-managed hosting services in starting for 3.95 per month.
As you can see, there are several ways to make passive income. I hope this list might have helped you out to narrow down which source of income is best suited to you. If you are tired of using the traditional ways for making money, implement any of these strategies, so you can make more while working less.
Have tried any of these strategies? Have any of them proved to be beneficial to you? Then share in comments.