We all work our day jobs and may even have a few side hustles to help generate some fun money, but wouldn’t it be wonderful to generate cash without filling your schedule?
That’s the beauty of passive income — a little work upfront sets you up to continue bringing home supplemental income without lifting a finger.
While it may sound too good to be true, there’s a passive income stream for just about any skill set, you just have to know what suits you best and how to make it happen. To get you started, here are 18 passive income ideas for you to consider.
1.Invest in Index Funds
Index funds are lower-risk investments that are designed to align with a designated financial market. The mix of stocks and bonds allow you to diversify your portfolio easily, but you may not make as much as quickly as you would with riskier investments
2.Consider High Dividend Stocks
If you’re looking to make money quick, high dividend stocks are riskier than index funds, but also offer the opportunity to make more money. In addition to being riskier, these investments also have an earnings cap, so not everyone is eligible.
3. Check Out Money Market Options
Money market investments are short-term debt securities that allow you to make money off of interest. It’s a highly stable investment with low risk, but there may be fees associated with them and earnings are likely to be relatively low.
4. Pay Your Debt
It may not seem like a passive income opportunity, but if you have large sums of debt then your best investments may be to paying it off quickly. The interest adds up fast, and keeping more of your own money is the best boost to your discretionary income.
5. Consider Real Estate Options
If you’re looking to settle down in an area longterm then consider purchasing your home rather than renting. While you’re on the hook for repairs, these are all investments in your property that add to the home’s value in addition to its natural accumulation of worth.
6. Try Peer-to-Peer Lending
Peer-to-peer lending allows you to help a friend reach their dreams of owning a business or buying a new car, and you get to earn the interest. Just make sure to involve a lawyer and draft a contract to protect your finances and friendship.
7. Rent Your Unused Space
If you have an extra guest room, apartment, or even vacation home, consider renting it out when you’re not using it to generate extra income. You can control when the property is available and rent to short term guests, or build a relationship with a returning guest to guarantee earnings.
8. Start a High-Yield Savings Accounts
This is a great place to start if you’re new to investing. High-yield savings accounts offer higher interest on your payments than typical accounts and you have full control of your investments.
9. Collect Cashback Rewards
Cashback rewards cards are an option for individuals who may not have enough extra cash for larger investments. Cashback rewards cards allow you to earn money back on your necessary expenses and often offer sign-on bonuses. Be sure to check out the details because they often have fees after a year or so of use.
10. Try Affiliate Marketing
If you have a popular blog or social media page, then consider how you can promote the products and services you love. Companies will provide custom links that track when your followers click them and you earn money for your recommendations.
11. Sell Stock Photos
If you’re a photographer by profession or hobby, then you can earn money by posting your photos on stock sites for others to purchase. Some stock image sites will charge fees or commission for you to use them, but if you have a huge collection of photos you can earn a pretty penny easily.
12. Write an eBook
If you have a specific skill or story that others would enjoy, consider writing an eBook and self-publishing online. It can be about any topic, from fitness to finance, but it is your responsibility to promote it. If you don’t have a large following it may be slow to sell.
13. Sell Your Items Online
Clean out your garage, closet, and hobby room and sell what you don’t need online. Some sites like eBay may include selling fees, but others like Facebook Marketplace are totally free and local buyers can save you on shipping.
14. Build an App
It may seem intimidating, but there are plenty of resources to help any creative build an app. Find a gap in the marketplace and fill it with your idea to generate money through sells or advertising.
15. Create an Online Course
If an eBook isn’t your style, consider other ways you can deliver unique information and help people learn. Create a course through a professional blog or video series and you can charge for access as well as build your professional reputation.
16. Design T-Shirts
If you’re a creative looking for ways to sell your art, t-shirts are a great place to start. Not only are they wearable advertisements for your business, but they’re more affordable than custom art and more utility than art prints, making them much easier to sell.
17. Begin Blogging
Starting a website is easier than ever, and has a relatively low start-up fee. Once your blog gains a consistent following, you can make money through affiliate marketing, advertisements, or by writing for other sites that appreciate your content.
18. Start Freelancing
Freelancing is a great way to take charge of your schedule and earn more each hour than your day job likely pays. Your flexible schedule can allow you to travel the world while you work if you choose.
You are responsible for paying your taxes and maintaining your work equipment, which requires some budgeting practice.
Infographic Courtesy: Mint.com