- What if I told you that you could make money while you slept, partied, or did anything else but work?
- Would you be interested in learning how?
In this post, I will share with you seven passive income ideas and the level of effort each will take to get started:
They'll make you money whether you're working or sipping margaritas on the beach...
Idea #1: Leverage High Interest Bank Accounts
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If you have money laying around in the bank and have never thought twice about it, you're more likely than not to maximize the return on these funds.
While using bank accounts to make passive income won't make you rich overnight, moving your money into higher yielding accounts can help your money grow at a faster rate than you'd normally be experiencing.
You see, as of 2022, the average savings account interest rate was a measly 0.09 percent, but what a lot of people don't know is that there are several better options available. For instance,
If you're looking for a low-risk, high-interest earning cash account, Betterment Every Day currently offers a 2.44 percent APY, which is more than 27X the average, and this account is fee-free, meaning that the difference in the interest you earn is yours to keep. You're probably thinking about how much of a difference this will make every year as well.
if you add $20,000 in a standard savings account earning just 0.09 percent annually you would earn just $18 a year however in this high interest bank account earning 2.44 percent annually would leave you with $488 or $470 more than you would have had.
If you haven't moved your money yet again, I know this will make you rich, but with an effort level of one out of five, this is a quick win you can use to make money possibly.
Idea #2: Dividend Investing
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A dividend is a distribution of a company's profits, and when you own stock in a company directly or through a fund, you may receive dividends.
Now, dividends are not always distributed to shareholders. Whether or not a dividend is declared is up to the company's board of directors. These dividends can be paid to shareholders in the form of cash payments, shares of stock, or other property. It's essentially a reward paid to shareholders for having invested their money into the business.
I will admit that dividend investing does take some upfront capital, but it is one of the most preferred methods of passive income creation due to how hands-off it is, which is why I think it has an effort level of one out of five.
Effectively, all you have to do is set up an investing account and purchase stock in a fund or a company that produces regular dividends, and this can be quite lucrative. Take the Washington Prime group.
As an example, this company returns an annual dividend of $1 per share, which is almost 30 percent of its total share price. At 350 a share, with $10,000 invested, you can buy more than 2,800 shares, which would equate to almost $3,000 worth of passive income a year.
Idea #3: Start a Blog
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If you're a good writer or even a mediocre one, starting a blog can be an excellent way to make a positive income. However, starting a blog does take a good amount of upfront work.
Once you have your content online and it starts gaining traction in the Google search engine, you'll be making money whether you continue to publish the content or not, so you're thinking.
How does a blog make money?
So let me explain. As your blog gets views, i.e. traffic, readers will interact with your site. This could be by following your affiliate links and buying products you recommend, purchasing courses you create, or simply helping you make money using Google Adsense.
Starting a blog does take a good amount of upfront work, which is why I think it has a level of effort of 3 out of 5. This is because in order to gain traction on your site, you will need to research, write, and market your content.
But like I said, after the content is live, you will make money month after month. One of the big upsides of starting a blog is the low startup costs. All you really need is the domain name and web hosting, which will run you about $15 and a hundred dollars every year, respectively.
Idea #4: Sell an Online Course
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Information is the most valuable asset in the 21st century, and one of the best ways to take advantage of the information age is to sell digital products like online courses.
And don't worry, that's normal. The good news is that there's a market for almost any information product online, from web development courses to productivity and even journaling opportunities that you can find in a variety of fields.
There are skills in which at least one of these can be used. Create a Value Pack Course Because course development takes a lot of time to research and develop the final product, I rate this passive income method at 3 out of 5 on the effort scale, which makes things easier though.
This is because there are several platforms where you can host your course and avoid the heavy marketing efforts you wish. Skillshare allows you to host your course, and because these platforms have already received thousands The number of visitors a month only counts until you start seeing an increase in course sales.
Idea #5: Invest in real estate investment trusts (REITs)
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Is it a real estate investment trust and is it basically a company that owns real estate that produces income?
You can think of a REIT as a mutual fund that invests in real estate. And like the fund you own, the way you see it, by buying stocks. When you buy a share in Red, you share in the profits from that real estate investment.
Share and you will get your share. The best part was that there was no transaction arrangement with the tenants, and it was known that the rent payments had to be chased, so I thought of this passive income idea as 100 per 5 per cent.
Give it a try if it looks like this. You may also want to see how fundraising Fundraising allows people to invest in commercial real estate online through e-reading, and the best part is that you don't need thousands of dollars to do it like in Trady. National Real Estate Investing in some portfolios starting as low as $500 has a barrier to entry low enough for anyone to start making passive income.
Idea #6: Creating an Online Store
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With the explosion of e-commerce comes the opportunity to generate a passive income using an online store. Drop shipping, in particular, has become very popular, and if you're unfamiliar with it, here's how it works.
You create an online store that offers specific products. Manufacturers A person goes to your site for a product, and then your system sends the order to the specified manufacturer, and then the manufacturer fulfills the order by shipping it directly to the customer.
There is no need to order inventory; the customer pays for the product, you collect the profit, and the manufacturer stores and ships the product to the customer It's that simple, and that's why I give it a two-out-of-five level of effort because it takes some time. Take some time to set up your store and research winning products.
Idea #7: Start a YouTube Channel
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Every day, regular people like you and me are making money on YouTube. You can use YouTube to pass time or learn something new, but for many people, YouTube is their livelihood and most of the income comes in a passive form that you see every time.
Someone watches your video, which may show ads, and you can earn money from these odds. Now, the reality is that running a YouTube channel is anything but passive in nature, as it takes constant work to build an audience, but once the video is released, it acts as a digital asset. But let's say you've relied solely on ad revenue to generate passive income. Your revenue stream might look like this:
Just take a look at the channel. On average, the channel receives more than 3 million views per month, earning the owner more than $10,000 in advertising revenue.
Of course, it's a big channel alone, and it will take time to get to that point, but it's possible to make a few hundred dollars a month even with a small channel, and there you have, seven passive income ideas to get you started. can use Thanks for watching Money While You Sleep If you want to move from your life to the life you deserve, hit the subscribe button now.
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