Whether you are looking for a little extra spending money or you are trying to build long-term wealth, passive income can help you meet your financial goals. As a stream of income that requires little to no work, passive income allows you to earn extra money while you’re working your regular job, hanging out at home, or even sleeping. For many people, it even allows them to quit their 9-to-5 jobs and live the lives of their dreams.
There are all sorts of ways to earn passive income. Keep reading to discover some of the best passive income ideas!
Invest in Real Estate
Buying real estate is one of the best and most dependable options for earning passive income. One option is buying rental properties and becoming a landlord. Often, however, this option isn’t as glamorous as it seems.
Crowdfunding is an increasingly popular way to start making money in the real estate market. Money is pooled from several investors to finance one (or several) properties. The risk is generally lower since you don’t need to foot the entire bill yourself, and investors collect returns without having to handle the typical landlord duties.
Play the Stock Market
Investing in stocks is another good way to earn passive income. Getting started can be tricky, but there are all sorts of resources out there to help you. Apps like Robinhood provide a wealth of information and make it easy for even the most novice investor to get started. There are also robo-advisors that can do most of the hard work for you!
If you don’t have a lot of money but still want to start investing, check out Acorns. This handy app automatically invests your spare change and can help you build wealth with absolutely no effort (beyond signing up) on your part.
Become a Peer-to-Peer Lender
Peer-to-peer, or P2P, lending has become increasingly popular in recent years. When you become a lender, you can loan money to borrowers and earn interest. Sites like Lending Club are easy to use and can connect you with all sorts of prospective borrowers.
As a P2P lender, you have complete control over who you loan money to. This means that you can choose to invest in new companies you believe in, loan money for unexpected medical bills, or help others financially in any way you prefer.
Rent Out Space in Your Home
Have an unused bedroom? Turn it into a money-making machine by renting it out to people who are seeking short-term rentals. Sites like Airbnb have changed the ways in which people travel. In fact, Airbnb is the largest hotel company in the world, despite not owning a single property.
If you have an extra bedroom that you aren’t using, a loft above your garage, or any other sort of space that could be converted into a “hotel room” of sorts, you can make considerable income simply by renting it out. You’ll need to keep the room tidy and clean up in between guests, of course, but the minimal amount of work involved is typically worth the amount of money you can earn. When you rent out a room through Airbnb, you’re protected by the company, too. If someone is injured while on your property or causes property damage, Airbnb has you covered.
Become an Affiliate Marketer
If you want to earn money from home, being an affiliate marketer is a great option. All you need to get started is a computer and a website. As an affiliate marketer, you encourage people to buy from affiliate links on your website. When they make a purchase, you get paid a percentage. There is no extra cost for the buyer, and you don’t have to worry about things like inventory and shipping.
Build an Online Drop Shipping Store
E-commerce is huge. If you want in on the action but don’t want to worry about investing in and storing inventory or shipping orders, drop shipping could be right for you. As a drop shipper, you partner with manufacturers and sell their products on your website. When a customer places an order, the manufacturer fulfills it and ships directly to the customer.
Create an Online Course
Share your knowledge with the world and make money while doing it by creating an online course. It takes some time to create a value-packed course, but once you do, you can sell the same materials over and over again. Platforms like Teachable make creating and distributing your own online course super easy!
License Your Photos
Do you love taking pictures? If so, licensing your photos could be a good way to earn passive income. When you submit your images to a site like Shutterstock, you can earn a royalty each time they are downloaded. There are even apps, such as Foap, that allow you to get paid for smartphone photos.
Get Cash Back on Your Everyday Purchases
Cash back credit cards probably won’t make you rich, but they do allow you to make some money on the items you are already buying. If you use them to buy groceries, pay your bills, and fill up your gas tank and pay it off monthly, you will start accumulating cash back pretty quickly.
There are also rebate platforms to help you earn even more. Ibotta and Ebates are both popular options that pay you back for the items you buy every day.
Advertise on Your Car
If you drive frequently – especially in a densely populated area – you can earn extra money by turning your car into a mobile billboard. Sites like Wrapify pay drivers for simply driving around with advertisements on their vehicles. There are no upfront costs, and you get paid based on how large the advertisement is and how much you drive. Many drivers are able to earn a few hundred extra dollars per month.
Whichever option you choose, passive income is a great way to build your wealth and start earning money while you sleep or perform your normal daily tasks. The options listed above are some of the best passive income ideas, but there are all sorts of other ways to earn money passively, too! Spend some time researching to find the one that’s right for you.