Top 15 Passive Income Ideas That You Must Try
There are two ways in which money can be made one is the traditional way of making money where an individual wakes up and goes to work to earn money after putting in a lot of effort both physically and mentally and the other way of making money is the modern way of making money where an individual without putting in a lot of effort earns money and that is called passive income.
Passive income can be defined as an income that comes from doing minimalist daily activities which do not require a lot of efforts like income from rental property, limited partnership, portfolio income like interest, and dividends.
It is a side hustle apart from regular businesses or jobs that we do but it does not require the same time and effort as our normal businesses to earn money. An active side hustle is not a passive income like driving an Uber is not a passive income but renting out our car is a passive income.
Initially, a few ways of making passive income does require hard work like for a week or month or a year or so but later on making passive income does not require a lot of effort rather it requires little to no effort. We can say passive income is an income where money keeps on flowing without putting in much effort.
During the COVID-19 pandemic lockdown, many small businesses suffered huge losses and a few of them even closed down. Individuals were stuck and did not understand how to earn their living. In those tough times, many people realized the importance of passive income.
Someone who had other sources of earning money where they did not have to put a lot of effort other than their regular businesses saved them during this pandemic. So, people realized how important it is to have other sources of income where they do not have to put in a lot of time and effort and that could save them during tough times.
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Now that we know what exactly passive income is let’s jump into the points where we get to know about various passive income ideas:
Investing our hard-earned money in stocks, bonds, CDs, or savings accounts is a great way of earning some passive income. When we invest our money in the stock market it gives us a steady income over the long term. One can buy high-dividend stocks for a regular cash flow or can invest in real estate or can invest in high-return savings account for low-risk investment.
There are plenty of ways in which one can make investments and earn some passive income. We just have to read about accounting and finance and get the knowledge of the stock market or we can even hire someone with knowledge of finance and accounting and can ask them to invest our money wisely on our behalf in stock, bonds, CDs, fixed deposits, real estate, high interest-earning savings account, etc.
This way we can make some money or have a passive income in the form of dividends, interest, etc. It is a great one among the great passive income ideas where one can make some money by just putting in little effort and time sitting at the comfort of our homes.
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Investing in Peer-to-Peer Loans
One of the best passive income ideas is Peer-to-peer lending which means lending money or loans to individuals directly without having any financial institution or a middle man in between. There are many websites like Faircent, LenDenClub, Lendbox, etc. who have started Peer-to-Peer lending where one can become an investor by creating an account with such websites and can invest in peer-to-peer loans for other consumers individuals, and businesses who need money.
The consumers also create an account and according to their credit history, they are offered the interest rate in which the loan can be given to them and an investor who is ready to buy the debt gets an interest and principal amount when the consumer pays off the debt every month on these websites. The investor gets the amount in his or her account that he or she has on the website. It is a great way of earning some passive income.
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Investing in Rental Properties
When we invest in properties that we want to put on lease such investment in rental properties is a good passive income idea. It does come with its disadvantages and risks like what if the property that we have invested in does not have a market or what if we don’t get good tenants who keep the property safely and do not damage it.
These problems can be tackled if proper market research is done and about the tenants, it’s more or less luck. So just keeping the luck factor aside one can do proper market research and then invest in a property to rent out.
This way few risks can be handled and about the tenants being good and non-damaging the owners need to keep a check on their property if it is taken care of or not. If things are done legally in the right way with thorough market research then one can earn good passive income by investing in rental properties. This can be one of the best passive income ideas for individuals.
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If someone has a house that he or she owns and has enough space or a spare room to rent out then one can make a lot of passive income by renting out their house in which they are staying to some roommate. Like all other passive income ideas, this one is a great idea where if the house is in a good area then getting a roommate is not a difficult task.
If one stays in a good locality where a lot of tourists visit and if one does not want to get a full-time roommate then they can simply list their houses or room on Airbnb to get travelers for a shorter period. This way they do not have to deal with the same person. They just have to do a little cleaning in between and can earn a good amount of money.
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Renting Out Car or Parking Space
Car owners can earn a good passive income by renting out their cars. This one is among the lucrative passive income ideas. All they have to do is register or list their cars online on sites like Turo which is a car renting platform. It is just like registering or listing out the property for rent online. Not just online if friends or relatives need the car one can give his or her car on rent and earn some extra money.
So, when a person is not using his or her car, they can simply put it on rent and make some passive income without much of a hassle. It is also a great way of utilizing a car’s benefits when it is just sitting in our parking areas without giving us any returns. It is a great way of using our cars for some extra money.
Nowadays most of the societies provide car parking facilities to the people staying in the society’s apartments or extra parking for the guests in cases like that where we have an extra parking space with us, we can give our parking areas on rent to those who require it.
It is also a great passive income idea where people who do not have cars can give all the parking areas that they have on rent and those who do have cars can give either the guest parking area or their parking area when not in use on rent. These are great ways of making some passive income.
Selling Online Courses
One of the greatest passive income ideas is selling online courses as these days especially after this COVID-19 pandemic the demand for online courses for any and everything has increased tremendously so creating a course on any subject or topic of our choice and then sharing it after monetizing it on sites like Skillshare, teachable.com, etc. which has millions of students is a great way to earn some passive income.
Initially, it might take some time and effort to create the content like planning, making lessons, creating chapters or editing the content, etc. but once the content is shared on these sites or one can also upload them on his or her website then it gives passive income every time someone enrolls for that course. It’s like a one-time investment and an income for life. This is a great way of earning money without putting in a lot of effort.
When we talk of passive income ideas, we have to mention blogging. Blogging was initially called “weblog” which allowed internet users to log their details in diary-style entries and then people saw that this can be used like traditional websites for doing business. These days almost everyone uses the internet and that’s why blogging can become a good source of earning some passive income.
In between supreme passive income ideas, this ace the race as it lets the person polish one’s passion to earn income. Blogging includes every media that can be published online like writing, photography, etc. One needs to publish original content on either their website or anyone else’s and then can earn a good amount of money if they can attract traffic on the content created.
One needs to keep updating it frequently unlike traditional websites and also it should be able to engage readers and should not be one-way communication. These days people blog about various things like parenting, makeup, fashion, product reviews, traveling, places, courses, information, etc.
The limit is endless and one can earn a good amount of money if their blogs can attract traffic. There are many famous bloggers like Amit Agrawal, Harsh Agrawal, Varun KrishnanFaisal Farooqui, Shradha Sharma, Srinivas Tamada, Ashish Sinha, Arun Prabhudesai, Jaspal Singh, Amit Bhawani, etc. who earn a decent amount of money via blogging.
If you look at different passive income ideas, affiliate marketing is a fantastic way of increasing sales by product owners. It lets others earn a commission by targeting the same audience by recommending the product to others. This is a great way of earning passive income by recommending products and making the sale to available consumers without having to create their products.
The commission earned by doing affiliate marketing varies from 50% to 5% depending on the product and its demand. Many programs also provide flat rates on the selling of products. So, one should think wisely before joining any affiliate marketing program. There are many benefits of doing affiliate marketing like a seller does not have to look after developing, supporting, or fulfilling the offer rather they just have to focus on the marketing of the product and convincing people to buy those products.
It provides ease to affiliate marketers. Companies like Amazon Associates or the Shopify Affiliate Program are great platforms for doing affiliate marketing. There are many sites like AffiliateNetwork, AvantLink, CJ by Conversant, ClickBank, FlexOffers, LinkConnector, RevenueWire, ShareASale, etc. where one can look for affiliate marketing options and earn some passive income.
Network Marketing is a business model that is dependent on person-to-person sales by representatives who are independent and mostly work from home. So, it comes in the list of good passive income ideas.
It is known by a lot of names like multilevel marketing, cellular marketing, affiliate marketing, consumer-direct marketing, referral marketing, or home-based business franchising, etc. It is a great way of making some passive income for people who have high energy and strong sales skills and can build a profitable business with a modest investment.
In network marketing, a business can be a single-tier program, whereby an individual sells the products, or multi-tier where an individual recruits various salespeople. Companies like Young Living Oils, Avon, Pampered Chef, AdvoCare, etc. are good platforms for doing network marketing and earning some passive income.
Selling Apps or Software
Anyone who knows how to develop an app or software can earn a good amount of money by selling them. Selling software and apps is one of the most interesting passive income ideas. People who are tech-savvy or know how to develop even a simple app can earn some passive income. Even simple apps or software when get viral give good returns.
Many videos are available online through which one can learn how to develop an app or software and can easily make good money. Initially, it might take some time and effort but it will give good returns lifetime if the app or software gets viral.
Apps such as the story of Flappy Bird, Candy Crush, Temple Run, etc. are simple apps but are quite famous and people are earning a good amount of money by running ads on them. So, we can try giving it a try and earn some passive income.
Publishing e-books and selling them is a great idea like all other passive income ideas. Yes, it will require some time and effort to write an e-book but once that part is done, we can publish e-books on various portals like Amazon Kindle and monetize it to earn some passive income every time the book gets downloaded by any individual.
This is a very good way of earning passive income. One does not have to do the effort to write an e-book regularly one can just write it once and can earn some passive income throughout his or her life every time it gets downloaded. So, all of those who are interested in writing can write and publish an e-book for some passive income.
Selling Stock Photographs
We all see beautiful pictures online or in our favorite magazines and books but never wonder where do they get such beautiful pictures. Sometimes they do hire professional photographers but many times they buy photographs from sites that sell stock photos.
We can also submit our photos to these stock photograph buying sites and earn some passive income. All we have to do is submit the pictures that we have clicked and are there with us on our devices and just share those pictures with these stock photograph buying sites.
So, all those people who love clicking pictures and didn’t know that those randomly clicked photographs could also be used for earning some passive income can now sell those photographs and earn some extra money. Isn’t it a great passive income idea?
Vending Machines and ATMs
We all find and need vending machines and ATMs everywhere yet we do not think about the owners of these vending machines and ATMs. We never think about being one of those owners. Being the owner of vending machines and ATMs is highly significant in the list of great passive income ideas. Many people own them as a way or medium of earning money during their retirement days.
When we buy or rent an ATM or vending machine all we have to do is place them in a lucrative location and every time someone uses these machines, we earn cash from the fees charged by these machines for using them.
All we have to do is maintain the stock of cash in ATMs and snacks or drinks inside the vending machine. If we are unable to maintain the stock in ATMs or vending machines then we can outsource it to trustable third parties who can do the maintenance on our behalf.
Housesitting or Babysitting or Pet sitting
This is another passive income idea where we do not need to take a lot of effort.
Housesitting means taking care of someone’s house in their absence. The work varies according to the owner’s requirement, sometimes the owners just want somebody to stop by their houses in between and check if the house is in good condition or not or if it requires any maintenance or not if any pets need to be fed or watering the plants.
Some owners want somebody to stay at their place and look after it when the owners are away. In that situation, one has to stay in that house as if it’s theirs and look after everything properly. So, it depends on the owners and their requirements. But, it is a great way of making passive income without taking much effort. People can register themselves on sites like TrustedHousesitters to find the gigs and make some passive income.
Babysitting is similar to housesitting where one has to take care of the babies in the absence of the parents. Parents who are either working or are going out due to some reason ask people they can trust to look after their babies in their absence and pay a good amount for doing so.
Someone, who likes being around kids and is good at taking care of them can babysit for those parents and earn a good amount of passive income.
Pet Sitting is very similar to babysitting. Just like babysitting all we need to do is take care of the pets of the owners in their absence. So, people who like being around pets can simply look for owners or parents of the pets who want to hire pet sitters and pay for them. A great way of making some extra cash while having a great time with the pets.
These days most of us own credit cards so we can make sure that we have one such card that offers cash back rewards on paying off our bills with that card. One can let the rewards accrue for some time and then put the money earned towards any other passive income venture or simply can use it to buy something else or pay off some other bills or in any way that we like.
Apart from the rewards that we earn from using credit cards, there are other ways also of earning some cashback like sites or apps which give cashback on doing online shopping by using their sites like Cashkaro, petty shops, etc.
These sites and apps work very simply, one has to register themselves on these sites and then do online shopping like they do by using this website and once the payment is made or item ordered is received by the customer and not returned during the returning period then the cashback is confirmed and then the customer can either transfer the amount in their bank accounts or can make any other payment using this earned cashback. So, we can say this is also a good way of making some passive income without having to do much work.
Concluding thoughts on Passive income Ideas
Above mentioned points are a few passive income ideas that can be used to make some extra money. There are many other ways which can be taken for making some extra money and we all know that extra money doesn’t hurt. So, why not take up these ways to make some extra income.