This is a collaborative post. I was compensated for this post, but all opinions are mine alone.
Passive income is income earned that doesn’t require a lot of active effort. There are many ways to earn money while you sleep. Today I will be sharing some ideas on how to earn money passively.
1. Invest in real estate!
Real estate has always been a fabulous way to earn passive income. Whether you are investing in residential or commercial real estate, there are multiple ways to have real estate work for you financially. The most passive way is to purchase property and lease it out. As long as you maintain the property, you can collect the rent checks. Of course, this typically requires a substantial upfront payment, so it may be necessary to save up for this one.
2. Buy dividends!
Dividend income is paid to shareholders of stocks in the form of cash. Only certain stocks are eligible for dividend income. Keep in mind that dividend payments usually get paid out each quarter. When investing in dividends, always look for stocks with solid fundamentals so you can rely on this stock for many years.
3. Open a high-yield savings account!
Savings account used to have interest rates close to 5%. While rates that high are (mostly) unheard of nowadays, it is still possible to earn some passive income when you invest your money in a high-yield savings account. Use a site like bankrate to find the best rates. Never leave significant money in a checking account – the interest rate is usually minuscule.
4. Write a book!
Do you have a way with words? Are you an expert in gluten-free recipes? Maybe you love to create DIY projects on a budget? Share your passion with the world. You can write & publish either a traditional book or an e-book. Either way, getting the book off the ground will require an initial investment of time and effort. However, once the book is published, any sales go into your profit without additional work. Books are definitely a fabulous way to earn some passive income.
5. Start a business and have someone else run it!
There are many business models, where you can have someone else manage it on a daily basis. Once you get all the systems set up and in place, you can simply have a trusted adviser take care of the daily operations. Some ideas include a tutoring business (and hire tutors) or start a landscaping business (and hire workers).
6. Start house sitting or pet sitting!
If you have a flexible schedule and don’t mind traveling, you can get paid to watch someone’s house or pet. While this may not be for everyone, it can be an easy way to make some extra money on the side. Yes, it’s not 100% passive, but it’s definitely an easy job.
7. Rent out your stuff!
If you have a lot of stuff, consider renting it out to those who may need it for a short time. Online marketplaces, like Craigslist, offer a venue where you can list items available for rent. Some items that people are always looking to rent include party tents, power tools and tall ladders.
I hope these tips have inspired you to earn some passive income this year. Do you try to earn some money on the side? Have you tried any of these ideas?