Are you looking for passive income ideas so you can start making more money?Learning how to realize passive income streams can significantly change your life by helping you earn more money and diversifying your income.
Building passive income is something I've been working on over the past few years.You see, I want to keep earning while being able to focus on my other goals, such as hiking more or biking (which will most likely never generate revenue).I also want to diversify my income so I don't depend too much on one source.
For me, coming up with passive income ideas is great because I can focus more on life instead of business, and I can do that while still earning a great income.
Unfortunately, many people think that passive income is simply not real, that it must be luck and not work, that you are a child of the trust fund or something else.
But that's not true at all!All the ideas about passive income in this article are real ways to make money.
Now, that doesn't mean that earning passive income doesn't literally require any effort (it's not a quick scheme to get rich) — there will likely be some effort to kick-start the passive income stream and perhaps some effort to maintain it for years to come.
It can take time or money to get started on most passive income ideas, but it's worth the investment.
If you want to learn how to start earning passive income, below you will find several questions related to passive income that you may have.We will discuss what passive income is, the positive aspects of passive earning, ideas about passive income, and the hard work that comes with it.
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What is passive income?Is it possible for the average person?
To begin with, we should probably answer the question "What is passive income?"
Passive income is when you are able to make an income that doesn't require a lot of work to maintain.
Obviously you have to do something at the beginning to start earning.That job can be a time or a financial investment.But after most of the leg work is done, the income comes continuously without much effort on your part.
There may be some maintenance here and there after setting it up, but overall the passive income stream should continue to work on its own.
Side note: I highly recommend checking your personal capital if you are interested in gaining control of your financial situation.Personal capital allows you to aggregate your financial accounts so you can easily see your financial situation.You can link accounts like your mortgage, bank accounts, credit card accounts, investment accounts, retirement accounts, and more, and it's FREE.
What are the positive aspects of learning passive income?
Passive income is great.Some of the positive aspects of passive earnings include:
- You can make money with little work to maintain it.This is a huge positive of passive income!Who wouldn't want to find a source of income that didn't require a lot of work to maintain?
- You can diversify your income.You want to diversify your income because one source of income may not last forever and you may be able to reduce your risk by having multiple income streams.
- You can do what you love while still making money.This will help you always have money for your bills and other necessities.
- You can retire and feel a little more comfortable knowing that you're still bringing in money.
- You can create a family, and earning passive income can help you spend more time with your family since you may be able to work less.
- You can travel a lot and enjoy wherever you are exploring.Passive income can help you while traveling.
As you can see, there are many reasons why you might want to come up with passive income ideas.
Why should I have more than one source of income?
Do you ever feel too dependent on a source of income?
Maybe you are afraid that one day you will lose your job or that something will happen to your main source of income.
The beauty of starting one of these passive income ideas is that it allows you to diversify your income.This means that you won't have to worry as much about one of your income streams having a bad month or disappearing completely – you'll earn income in other ways and be prepared.
By diversifying your income with multiple income streams, you will have a backup plan, you may be able to withdraw more easily and sooner, and so on.
What are the best passive income ideas?
Passive income sounds great, right?
You're probably wondering exactly how to make passive income?Some passive income streams may require more installation than others, and some are riskier than others.
Each of the ways below has its positive and negative aspects, so definitely do your research.
In this article, I will describe various ideas about passive income:
- Affiliate Marketing
- High-yield savings accounts
- Real estate rental
- Rent a room at your home
- Write a book
- Start an online store
- Create an online course
- Buy on cash back websites
- Earn credit card rewards
- Pay your debt
Of all these passive income ideas, this is my absolute favorite.
This is because I regularly earn around $50,000 per month through affiliate marketing alone.
Now, it is not always the most passive.But I am able to earn income while on vacation, I have no internet, I am sleeping and so on.
Earning an affiliate income is something I'm extremely grateful for, especially lately.We were so busy and didn't spend as much time as I would normally like to do.Having this source of passive income allows me to continue earning when I don't have much time for my business.
You see, even though I spend less time in the company, I still earn big earnings every month and this allows me to focus on a better work-life balance.
As you can tell, I'm a big fan of affiliate revenue.It's something I enjoy because of how passive it can be.It makes it so much more fun to travel full time when I know I can earn an income while enjoying seeing new areas.
But what is affiliate marketing?
Affiliate marketing happens when you try to make money by placing an affiliate link on your website, social media accounts, etc. and getting people to purchase a product through your own link.
An affiliate is a person or company that promotes a product or service offered by other businesses and becomes an affiliate when you promote an affiliate product.And as an affiliate, you are given a special link that tells the company that a customer is from your site.
An example would be selling Amazon books, where you link to a specific book on your website and try to convince people to buy the book through your affiliate link.Amazon and other companies want quality affiliates because they want all the help they can get to promote the products and services they're selling.
If you receive someone signing up through your affiliate link, the company rewards you for promoting their product.
This is what is known as conversion and is when a person completes a specific action designated by the affiliate program.It can happen when someone enters their email address on a company's website, when they make a purchase, fill out a form, or some other action via the affiliate link.
You can share an affiliate link with your audience in many different ways, such as:
- By adding an affiliate link to your blog (you can do this by placing a link within a post, page, email, etc.)
- Promote it on social media
- Sharing it in a podcast or webinar
- And more!
I recommend taking a look at my online course for bloggers, making sense of affiliate marketing.In this very informative course, I share the exact strategy and tips I use to earn over $50,000 per month through affiliate marketing.If you are a blogger, then you need this course.
If you want to know more about affiliate marketing, I recommend getting the free guide 10 simple tips to increase your affiliate income.With this time-saving cheat sheet, you'll learn how to earn revenue from your blog.These tips will help you quickly improve your results and increase your blog revenue in no time.
High-yield savings accounts.
This is probably the simplest of these passive income ideas to get into, yet so many people skip it!
High-yield savings accounts are a great way to increase your savings, but many people have their money in accounts with low rates.Unfortunately, this means that many of you are losing easy money!
If you're like most people, you probably don't even know what interest rate you're getting on your checking and savings accounts.You were probably told the percentage when you opened your account, but it could have been years ago.
If you're looking for a free checking account, as well as an above-average interest rate on your savings account, look no further!
With Betterment Everyday, you can start earning 1.85% with a balance starting at $0.01.
It's all great news for the average person who doesn't have a really high account balance: a high-yield savings account like this is really valuable to everyone.
How does it compare to the national average savings rate?That's a very sad 0.09%.This is a BIG difference from what Betterment Everyday offers.If you get only 0.09%, you lose easy and passive money.
Savings accounts at brick and mortar banks are known to have very low interest rates.This is because they have a much higher overload: pay for the building, pay for the detectors, etc. Daily improvement is an online option, which means they have lower costs, so they pass the savings on to you.
Over a 10-year period, the same savings balance with a balance of 1.85% would earn you an additional $1,850, while a savings account with an interest rate of 0.09% would only earn you $90.
Your money is as safe in a Betterment Everyday account as in a brick and mortar bank.You're just gaining more interest, which is something everyone who wants to learn how to get rich can take advantage of.
Improvement is just a great place to save money and earn high interest on it, whether it's your first $500 toward a rainy day fund, $2,500 cashback, your savings in general, a down payment for your next home purchase, or money you're saving for your next vacation.It's money you're earning risk-free, and it's a great feeling!
To get started and open a Betterment Everyday account:
- Registration is super easy. Click here and register.
- If you sign up for the Betterment Daily Checklist, they will increase the percentage of your Betterment Daily Savings Account to 1.85%.
See, super easy!
Read more about How to earn over 20 times the national savings rate.
Real estate rental.
I don't have rental properties, but this is one of the passive income ideas we've been thinking about lately.
Earning rental income each month would increase our cash flow.It would likely be a steady stream of revenue that we earn every month.In addition, we may also be able to earn much more for the property when we sell it years later.
But not everyone considers rental property passive because rental property may not always be rented out and it takes work to maintain it.
However, if the rental property is in good condition and you have good renters, there may be little work that needs to be done to continuously bring in an income.This becomes even more passive if you outsource property management functions and home maintenance tasks.
Here are two great interviews I did with two people who are active in real estate for rent:
In these interviews you will learn:
- How each of them entered real estate investment.
- How were they able to afford so many rental units.
- What they look for in a rental unit.
- The types of properties they invest in.
- How much time and money it takes to invest.
- How they handle rentals that are not in the same part of the country.
- Their worst tenants.
- The sacrifices they had to make to make this possible.
Rent a room in your home.
While you may not want to buy rental properties, there are other ideas about passive income that are similar.
And, that is, renting a room in your home.
We had several roommates when we lived in a house, so I'm very familiar with this source of passive income.
Renting a room in your home will most likely not make you rich, but it may earn you a good amount of secondary income.I know some people who rent many rooms in their house and have been able to pay for their house completely because of it.
And while this is a little less passive than having a roommate, renting a room in your home (or your entire home) on Airbnb is another similar idea.
There is still some work to be done to make sure the room is always clean and ready to stay. But if you live in a tourist area, this can be a great way to earn a secondary income that seems rather passive.
I recommend reading a complete guide to renting a room for extra money.
Dividends from the investment portfolio.
This is one of the best passive income ideas that many take part in. It takes some money to get started, but this is something you can work on even if you don't have a lot of money to get started.
Here's how Investopedia defines dividends:
"A dividend is the distribution of the premium from a portion of the company's earnings and is paid to a class of its shareholders.Dividends can be issued as cash payments, such as shares or other property, although cash dividends are the most common. "
By investing in dividend-paying stocks, you may be able to earn considerable passive income with very little work to do.This is one of the riskiest passive income ideas, because there's no way to know exactly which stocks will earn money and what the stock market will do over time.
While it's not super passive, especially at first, it's one of my favorite ideas about passive income.But it's hard work and can take pretty much all your time on the first start.
However, as discussed earlier, there are ways to make your blog revenue more passive (like earning affiliate revenue), so you can have more freedom.
Learning how to start a successful blog is no easy feat.If it were easy, then everyone would do it!
That said, one of the best things I've ever done in my life is learning how to create a blog.
Blogging changed my life completely, and it's funny to think that I literally had no idea what blogs were until I started one in 2011.
So even if you have no idea how to start a successful blog, you can!And I'm going to tell you how.
I also have a free course on how to start a blog.With this free email course, I'll show you exactly how to easily create a blog, from a technical point of view (it's easy – trust me!) Until you earn your first income and attract followers.
Here's a brief description of what you'll learn:
- Day 1: Reasons why you should start a blog.
- Day 2: How to determine what to write a blog about.
- Day 3: How to create your blog.In this lesson, you will learn how to start a blog on WordPress.My tutorial makes it easy to start a blog.
- Day 4: How to make money with blogs.
- Day 5: My tips for earning passive income from blogs.
- Day 6: How to increase traffic and followers.
- Day 7: Various blogging tips that will help you succeed.
Write a book.
While writing a book is definitely not easy, it can become a passive income after you've finished writing and finished launching your book.But this is one of the ideas about passive income that requires very little work to continue generating income for months and years afterward.
For example, I interviewed my friend Alyssa to learn how to make passive income by writing a book.
Alyssa self-published her first book and has sold over 13,000 copies.
He now earns over $200 a day from his book – $6,500 last month alone!
Alyssa is the author of the best-selling book A Beginner's Guide to Living in a VR , a book about how anyone can start traveling full-time in a RV.
She is also the creator of From Blog To Book, a course that will help you write, launch, and market your first book.I have already enrolled in the course and the experience he shares is absolutely incredible.Some of the modules in your course include:
- Mapping your book's content
- Strategies for writing your next 30,000 words
- Where to publish your book
- Tutorial: Get Your Book on Amazon
- Design your own book cover
- Set prices for your book
- Create your marketing plan
Another really great interview I did with someone to earn passive income from book sales is How to Make Money Novels Novels with Self-Publishing on Amazon.
Start an online store.
Yes, you can open your own online store and you don't have to have tons of experience or a lot of money to do so.Many people start without a background, which means that if this is one of the passive income ideas that interest you, then you should definitely read.
I had the chance to interview the ecommerce creator and Prosper , who explains exactly how to start an online store and earn extra income.
Jenn is a corporate mom turned ecommerce store owner and blogger.
He started his online business just over three years ago and has since developed and developed three successful online ecommerce stores earning an average of $19,000 per month.
He is very successful despite spending only about 5-10 hours a week in his ecommerce business.
Its Ecommerce and Prosper course teaches you exactly how to open an online store.He reveals his successful rinsing and repeated formula to students in his course.It's the same formula he uses to earn an average of $19,000 per month. In his course you will learn:
- How to start an online store.
- Winning tools for e-commerce success.
- How to boost e-commerce success.
- How to start making money in THREE days.
Create an online course.
Creating a course isn't the easiest of these passive income ideas, but it can be a great way to earn revenue all day.Much of the work is done at the beginning, so there are some maintenance work along the way to keep the course up to date, help students, and so on.
I created Making Sense of Affiliate Marketing, my first online course, in July 2016. After three years, I earned over $1,00,000.
This was without webinars, Facebook lives, guest posts, a "launch" period, or whatever.It is an evergreen course that has spread mainly through word of mouth.
Most people are completely shocked to hear this, because when most people think about teaching a course, they think of an intense sales period with a great team and lots of live videos.
However, my course was pretty much me, no big promotions or videos.
This does not mean that creating my first course was easy for me.
Creating an online course requires a lot of work, no matter how you do it, and I decided to create my own courses on my own terms.I want to be comfortable with the way I develop and run my courses and make sure they fit the rest of my business plan.
Don't get me wrong, videos and a great launch period can be great for others, but for me, I wanted something a little simpler and something that reflects who I am.
I was very nervous when creating Making Sense of Affiliate Marketing.It was the first product I ever sold, and like all online course creators, I was afraid no one wanted it.
Learn more about how I earned over $1,000,000 from my first course without a big launch.
Buy on cashback websites.
This isn't one of the passive income ideas that will earn you a lot of extra income, but it's an easy way to earn some money while shopping like you normally would online.
Cashback websites like Ebates offer you a percentage back of every purchase you make when you buy through one of their partner stores.The money you earn is passive because you're not doing any extra work to shop like you normally would.
Here are some examples of stores and the percentage of your purchase you can recover:
- Walgreens 6%
- Amazon 5%
- Macy's 6%
- Space 8%
- Kohl's 3%
These are just a few, and these stores and the refund amount change from time to time.There are also stores that offer in-store cashback or a dollar amount on certain purchases.
Learn more about Use Ebates for a free refund and get a free $10 refund.
Credit card rewards
This might sound a little different, but I still think it can be passive income as you could earn an income using credit cards just like you usually do, as long as you normally use them responsibly.
Credit cards with travel rewards are extremely popular right now.I have been interested and have been using them for a few years, and it seems that everyone who goes on vacation talks about them these days.
Note: Here you can find your credit card with travel reward.
I absolutely love the award cards for travel.In fact, I have had many extremely affordable holidays thanks to credit cards with travel rewards.I also received a lot of free cash back, they allowed me super cheap first class flights and more.
Actually, a couple of years ago Wes set off on a 3,000-mile trip to Europe, and when he finished, I was able to use travel rewards to book a last-minute flight back to Arizona (where I was with the RV).He was able to sit in business class on a 12.5-hour flight (London to Los Angeles, I think) and cost less than $100 after points.It would have cost even less if I had booked it more than a few days before.After a month on a boat sharing a bed with another crew member, we wanted to offer him a more spacious/comfortable seat and our credit cards with travel rewards made it super convenient!
Credit card companies aren't just giving away points and cash back because they're cute, so I'm sure you're wondering what the trick is.
They work like this: Credit card companies offer these great bonuses and rewards because they hope you become a loyal customer.They know that having more customers means that they will be able to make more money, which they make in various ways, such as:
- Take a percentage of each transaction when using your credit card in a store
- Annual fees
- And more
So, credit card travel rewards are not a scam or a myth.They are part of how credit companies gain new customers, earn more money and are just a reward if you use your cards responsibly (always paying the balance every month!).
I wrote an entire blog post on this topic here – Are Travel Rewards credit cards a scam?
Pay your debt
I know this doesn't sound like the rest of the passive income ideas on this list, but the truth is, your debt is costing you money.With student loans, credit card debt, and/or a mortgage, you could spend thousands of dollars a month on your debt.
But the part that's really costing you is interest, and the longer you have your debt, the more you pay in interest.
Writing off debt relieves some financial stress, and it may feel like you're earning a raise.You will then have more money to invest in other things on this list, such as buying rental properties or getting dividends.
Now I know that debt is something that a lot of people have, and I know it's something that's very difficult to get out of.And debt can be useful: you can use it to buy a house or pass college.But that doesn't mean you have to live with debt forever.
Focusing first on paying off high-interest debt, such as credit cards, is one of the best ways to get started.After eliminating that debt, you'll have more to spend paying off other types of debt.
- Pay off the debt and free yourself from the debt cycle – you can do it!
- 2 strategies and 3 habits that helped me pay off $93,000 in debt over 3.5 years
- How Amanda paid off $133,763 in debt in 43 months
Is it difficult to earn passive income streams?
As you've probably noticed in each of these passive income ideas, starting a passive income stream won't always be the easiest.Most likely there will be a lot of legwork that needs to be done at the beginning.
Some of these passive income ideas take time, some require money, and some are easier than others.If they were all easy, then everyone would do them all!
Passive income through one of the passive income ideas above may take hard work, but it is attainable.
Earning passive income is definitely not a way to get rich quickly.To build your passive income stream, you may have to sacrifice sleep, work more jobs, and more.Passive income usually requires a lot of hard work at first, but later simple maintenance.
If you want it bad enough, though, earning passive income can be worth it.If you do it right, you may be able to earn well in the future so you can focus more on doing what you love and less on what you're doing to earn an income.
Are you interested in any of these passive income ideas?Why or why not?