What are the best passive income ideas I can try today?
If you’re having trouble looking for passive income ideas, today’s your lucky day! We will show you the many ways you can earn money while you sleep. From side hustles to investments, we will explore how to make your money work for you!
We will jump right into our recommendations on how to generate passive income. As we said, we will tackle various side gigs and investments that could provide steady cash flow. Then, we will explain how you can find the method that suits your financial goals.
The internet brings us so many more ways to earn passive income. However, it’s this abundance of choice that confuses so many people nowadays. Read further to see your options and find the ones that match your needs.
Difficulty level: Easy
Have you ever thought of having an online business? You might have checked various websites to learn how to do it. Then, you realize how hard it is!
Don’t get us wrong. Of course, an online business is a great way to make money on the internet. It’s just that it has a steep learning curve.
Simply put, it’s not that easy to establish a business in real life or online. However, there’s another way of making money from online businesses: affiliate marketing!
All you have to do is promote a company’s offerings. You don’t have to make a product or service. You won’t have to hire people. No wonder it’s one of the best passive income ideas!
How does it work? Whenever other people do something that helps the company, you get paid. For example, you earn money when they buy a certain product. Read more for more details:
- Pay-per-sale – You earn part of a product’s sale price after a customer buys it. In other words, you’re in charge of gathering investors to a company’s offerings.
- Pay-per-lead – A lead is something a customer does that corresponds to a certain part of a sales funnel. For example, a business needs to get leads for the interest stage. You earn money once you convince people to fill out forms for its products and services.
- Pay-per-click – Some companies need more leads at the awareness stage. They need people to know more about their products and services. As an affiliate marketer, your job will be to generate traffic for the website.
You can find numerous affiliate programs on the internet. For example, you may check out LeadAdvisors. All you need is to fill out a few fields to register.
Rent a spare room
Difficulty level: Easy to moderate (based on several factors)
The best passive income ideas often come from stuff you already have. In that case, you may have a spare room that you may put up for rent. Airbnb can help you find renters.
Why stop with just a spare room? Perhaps you’re not using your driveway. You’re not using it, so it might as well help you earn money! Charge folks for parking their vehicle.
Let’s say you own a home you’re not using right now. If you have the time, you could be a landlord for that place! Perhaps you can turn it into a rental property.
Before you do, check your local government on how to register your rental property. Follow the law to avoid unnecessary penalties or problems.
What if you don’t plan on renting it out for long? In that case, you might want to try Vrbo. It’s the go-to app for large rental properties. If the place is small, try AirBnB instead.
It may seem easy to rent out your place. Just charge for the rental time upfront, then let them stay, right? If you’re not careful, a renter might thrash your place.
Difficulty level: Easy but risky
Have you ever heard of peer-to-peer lending? Otherwise known as P2P lending, it involves borrowing money from other people. Numerous online platforms facilitate this practice.
They usually follow a similar format, though. It shows a list of requests for a certain amount. Click on one, and you may negotiate the payment terms with the borrower.
On the other hand, you may list your request as well. Then, other people may chat with you about it. Either way, you must negotiate an agreement.
Once that’s done, the lender wires the funds. Of course, the borrower must repay it on time. It will involve interest rates depending on the agreement. That’s how you can earn!
Though it may not be the best passive income idea for certain reasons, P2P loans are usually unsecured. If the borrower doesn’t repay, you get nothing.
If you’re planning to borrow, be careful too. It has become a nationwide problem in South Korea. That’s why the country passes a law on peer-to-peer lending.
Using passive income apps
This just in—you can now participate in IPO investing with NO account minimums! We’ve officially waived the $3K total account value requirement, so everyone is eligible to get in on the action at the IPO price. 💥
— SoFi (@SoFi) June 30, 2021
Difficulty level: Easy
Remember the catchphrase, “there’s an app for that”? Well, we now have ones that give a passive income stream. Specifically, the app will invest in assets for you.
Provide it with funds and let it do the rest. It will invest your money based on your needs. You may place the cash upfront or in intervals. Then, watch your funds grow!
It sounds simple. No wonder it’s one of the best passive income ideas right now! Like all money-making methods, though, it’s not foolproof. Your app’s investments may not work out.
After all, real-world conditions still affect its assets. At the time of writing, the pandemic is still raging. It continues to devastate the global economy with rising prices and lagging supplies.
However, investment apps have another purpose. They could teach you how to invest in assets yourself. This brings us to another one of the best passive income ideas.
Investing in the stock market
Difficulty level: Challenging
In the previous section, we talked about passive investment apps. However, did you know they can teach active investing in the stock market? They provide nifty tools to get you started.
For example, the Investr app simulates the stock market in a video game. Your goal is to invest make-believe money to turn a profit. It lets you try the stock market without real money.
Once you’re ready, most of these apps provide access to the stock market. In other words, they may serve as your first brokerage app. Before you buy assets, you should note a few things.
Learn about the available assets before investing. If you’re not careful, you could lose money. Check various websites to learn more about stocks. See the companies that own them too.
Even better, you might want to invest in dividend stocks. They can provide regular payments based on how the stock’s company is doing.
You may choose more popular brokerage apps too. For example, Robinhood might be a great choice for beginners. Again, check your options before using them.
Investing in cryptocurrency
Cryptonomics: Earning Passive Income with Crypto Explained#Crypto offers many opportunities such as airdrops, staking, affiliate marketing etc. which you can take advantage of to make extra money on the side.#BSCNewshttps://t.co/8irDEDdqg5
— bsc.news (@news_of_bsc) July 17, 2021
Difficulty level: Challenging but risky
Since we’re talking about investments, let’s talk about the hottest one right now. We’re referring to cryptocurrency. It’s a digital asset that’s changing the world in various ways.
At the time of writing, the crypto market is on a roll. Most of the coin prices are rising. That’s why it’s one of the best passive income ideas right now.
What’s more, some crypto investment apps let you do more with your cryptos. Take the Binance app as an example. It has Savings options that work like the one from your bank.
The only difference is that you get more cryptos. Just leave a few in there, and watch it grow daily interest. However, we must warn you that cryptocurrencies are well-known for volatility.
In other words, the prices go up and down rapidly. If you’re not careful, you may lose all your money. Similar to stock investing, learn all about the assets before buying cryptos.
What is passive income?
8 WAYS TO BUILD PASSIVE INCOME 🤑
1. Investing in Funds
2. Investing in Real Estate
3. Storing People’s Stuff
4. Renting Out Your House
5. Starting a Blog/YouTube Channel
6. Selling Digital Products
7. Using Affiliate Marketing
8. Advertising on Your Car
— ANTHONY ONEAL (@AnthonyONeal) June 24, 2021
Now that we’re done with the list let’s be clear on what passive income is. Some believe passive income is money you get for doing nothing! This isn’t true, of course.
Instead, you need to make a minimum investment of time and money. You have to spend a few bucks, then wait for it to grow in value. This is different from active income.
That one mostly involves a full-time job. You perform tasks for a set duration to earn money. With passive income, you place funds that may grow in the long term.
Let’s take one of the best passive income ideas as an example. You buy a few stocks in the short term. The prices increase in the long run. As a result, you turn a profit.
Your source of passive income will depend mostly on you. You may have choices available to you but not to others. For example, you might have a spare room for rent but not your neighbor.
Moreover, you should base your passive income stream on your personal finance goals. If you’re paying off credit cards, perhaps you could get temporary part-time jobs for it.
This is our list of the best passive income ideas. Of course, there are many options we didn’t include. These include real estate investing, social media marketing, and selling digital products.
We didn’t include other options due to the pandemic. For example, you may rent out your car for passive income. However, you may risk getting infected with COVID-19 this way.
Some might be too complicated. For instance, you may post YouTube videos for passive income. However, you’ll have to learn video editing, which might not be everyone’s forte.
Learn more about passive income ideas
How do I generate passive income?
You may participate in an affiliate marketing program. Also, you may rent out a vacant room at your home. You can also invest in real estate, stocks, and cryptocurrency.
What is the best source of passive income?
The best passive income idea will depend on your needs. If you need money for a specific purchase, a temporary job might do. If you’re building retirement funds, investments might be better.
How can I get rich ASAP?
There’s no easy way to get rich, even with passive income. You will have to spend time, effort, and even money to make it big. Be patient, and you could become wealthy as well!
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Disclaimer: This article is not the official guide to the passive income process but is based on the author’s research or own personal experience.