These are some of the passive income ideas that will help you quit your job and live the life of your dreams. Many people are doing this and are happy today that they started to build their passive income slowly.
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I learned about this term passive income a few years ago. I joined an MLM company and went to their seminars on Sundays. In those seminars, I learned that there is another type of income, called Passive income. I was never serious about making money from MLM, but the idea of owning a business and creating passive income never went off my mind. Now I am working towards my goal of passive income gradually.
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There are many passive income ideas that can help you make money in the long run while you sleep. It requires little to no daily efforts. But to build a steady passive income, you have to build wealth from your active income. Start from today and see the result in the coming few years. It takes a lot of time and perseverance to create steady streams of passive income. But it is possible.
” Your determination and accountability along with the focus will take you towards the success of your goal.”
Before jumping into the bandwagon, you need to take some initial steps. I mean you should have some spare money to invest. If you are earning a good income from your present job, then start saving and investing today. If you are already conservative about money and like to save more than you spend, congratulations. Otherwise, change your spending habits gradually. Instead of spending your paycheck on the things you want today, curb your impulse to spend and start saving.
There are two types of income
- Active Income: This one is our normal day to day job or any business that needs us to be at the place of work to earn income.
- Passive Income: This income needs very little effort once the stream is set up and generate income without being physically present there.
There is some risk involved in some of the passive income ideas. But the profits far outweigh the risks. (Always do your research or take help of financial planner)
Risk comes from not knowing what you are doing. Warren Buffet
You need to make a plan for which ideas about generating passive income ideas suits your situation.
- Write down your ideas to generate passive income
- How much you can save/invest per month
If you have money to invest from your active income, then start from there, otherwise, you can start some side hustles. If you want to start a side hustle.
Read this post about side hustles to ideas to earn side income.
Also, you can have a look at these 13 genuine online job ideas that pay $20/hr or more
If you want to start an online business then here is a list of online business ideas to start with very low budget
Make goals about how much you have to add to your portfolio each month. Passive income streams take come time to build but once you have created these pools and started earning some money, it becomes easy and interesting. (Crunching numbers is a bit boring I know ?)
Passive income ideas that will help you quit your job
1.Investing money
Investing comes into mind whenever we talk about passive income ideas. It is a great way to start earning a passive income. Investing create income with the magic of compounded interest.
” The eighth wonder of the world.” He who understands it earns it; he who doesn’t pay it.” Albert Einstein
Start investing with Robo-advisors is a good idea.
If you want, you can take help of some broker or you can start investing with Robo advisers. There are many which can help you in investing money as a beginner.
Raiz ( Acorns )
I love acorns because it helps you to start investing money. They pay you $5 when you invest even $1. How convenient. And this is the best thing a beginner investor can do. Don’t think too much, just start this one today. Believe me, you will not regret it anytime. You can check yourself and sign up with Acorns (Raiz)
Betterment
Betterment is there for years and it has helped many people who did not have much experience in investing. Their fees are low at 0.25 to 0.40%. The best part is, there is no minimum to invest.
Wealthfront
Wealthfront makes it fairly easy for new investors because it is free for an initial $ 5000. Great for people with low amounts to invest and investing your first $5000 for free is the best part.
2. Start a blog
Start a blog to earn some passive income. It takes some time to build some income from the blog but you can see many people who are earning a good amount of money from their new blogs even.
If you want to create a passive income stream, creating a blog is really the best thing for you. It will take some time to make money and it is really hard as well as smart work. Because millions of blogs are created every day. And you need to stand out from those blogs. But with the right strategy to accomplish blog goals can lead you towards success.
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3. Create an online course
Creating an online course takes real hard work and a lot of time. But it is possible. Many people are creating online courses and selling them. There are many platforms which can help you create an online course.
This is really an online world. You shop online, you make friends online and reading/learning online is also common these days. If you have some skill which you can teach others and make them learn the skill to earn money, It will be beneficial to both of you.
eCourses can be made into ebooks or videos. Either way, it can be used. And you can use a platform like Teachable or Udemy for your course.
If you are good at writing and can write something valuable, start writing an ebook. It is not easy and very simple to write a book and make money though. You have to do really smart marketing your self so that you will be able to sell your ebook/eCourse.
Megan from Lovefamilyhealth is earning good amount of money from her one course Pinterest ninja. I must emphasise, this course is great and has helped me in setting up my Pinterest account and technical part of it.
There are many other people who are earning a good amount of money from online courses. The only catch is that the course should provide value and solve a solution. Megan’s course is great for Pinterest beginners and intermediates. It feels like she is holding your hand at every step of setting your Pinterest account.
4.Affiliate Marketing
Affiliate marketing can make you some serious money in the long run. Michelle from Makingsenseofcents is earning around 50,000 dollars a month from affiliate income alone.
Affiliate marketing is a form of marketing where you earn money for referring people to the product and you get paid the commission for the referral.
There are many forms of affiliate marketing. You can become an affiliate for a product/course or you can create an affiliate program for your own products or courses. Either way, you will earn money.
Some people make very niche-specific websites with great SEO and start affiliate marketing. If you have started a blog, then earning money with affiliate marketing will be much easier. If you are a beginner and want to learn affiliate marketing then this Affiliate marketing course is really good for you.
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5. Rent out a room in your house
This is my favourite. If you have spare rooms in your house, you can rent them. You are not doing anything else to earn this money. This will help you earn money while sleeping. When we rent our room, we make an extra income which we will make in one week.
You will add an extra 12 weeks to your year. Now, instead of 52 weeks, a year contains 64 weeks. ( I love this idea.)
If you are a bit worried and want to be more secure, you can rent it through Airbnb. This income is truly passive.
6.Dividend Income
The income you will get from dividend stocks will definitely be passive income. Even Warren Buffet says that he loves dividend stocks. Because dividend stocks pay you regularly in cash to your bank account. But you need to be careful with the stocks you choose. You may take advantage of compounding with the dividend stocks.
What are dividends: Dividends are regular payments paid to the shareholders by the company from its earnings.
Before jumping into this world of dividend stocks, educate yourself. It is believed to be risk-averse but it is not. Like all other investments, dividend stocks also have some risk associated with them.
To learn some points before investing in dividend,read this
Introduction to dividend stocks
7. Invest in REIT
REIT is a company that manage, operate or finance an income-producing real estate. Real estate investment trusts are historically considered to be the best asset class. The rent generated from the properties is distributed to the shareholders.
REIT works similar to the mutual fund and trade and allows the individual investor to invest in the big project and own a part of real estate which otherwise is difficult. Learn more about REITs here.
8. Invest in CDs
CDs are a great way to earn passive income and the best part is they are less risky. I am very conservative in money matters and love all those ideas where there is less risk. CD laddering may not be the best idea of investing for a long time but if you need to make money from your money without losing it, go for CD laddering.
9. Invest in crowdfunded real estate
Peerstreet is the third largest real estate crowdfunding site. It works as a middleman between the investor and the borrower. It is a peer to peer lending for real estate projects. Here the borrowers are considered to be the professional investors who purchase the property, fix it up ad sell at a higher price.
Peerstreet claims to have a lower fee than other similar platforms. Also, it gives you good returns. If you feel comfortable then you can invest in this crowdfunding platform and start earning passive income. It is said to give you around 5-6 % return on your money invested.
10. Sell Digital Products on Etsy
Selling digital products can be a passive income stream. Once you create a product, you don’t have to do anything to the product. I know it is not easy but with initial hard work, you can reap the benefits.
There are many digital shop owners who are making good money from their Esty stores.
You can read more about earning more money along with your conventional job.
- Best apps and survey sites that pay referral money
- 13 work ideas mothers can start today to earn side income
- 57 best places to find freelance work as a beginner
If you are looking for the best side hustle, you can learn here
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