In this post, we will be going over 10 passive income ideas that you can start implementing today.
And even better, once started, will take little to no effort to maintain over time.
Passive income is money you earn that takes very little effort. This is why it’s called passive.
If you think about your business or job, that’s actually considered active income because it takes a lot of time and effort to earn money from it.
But with passive income, you can literally earn money in your sleep.
Do keep in mind that most of these passive income ideas take a lot of work upfront, an investment of money and time.
But eventually, your passive income streams will start snowballing and can even cover your monthly expenses.
Let’s go ahead and list down these top passive income ideas!
Top 10 Passive Income Ideas For 2021
1. Crowdfunded rental properties
90% of the world’s millionaires made their wealth through real estate. And there’s no reason why you can’t be a part of that.
So if you want to invest in rental properties but don’t have a 20% down payment for it, then this is a good option.
With crowdfunding real estate, you can invest in real estate with as little as $500 and become a shareholder in a rental property.
Depending on your ownership share and risk tolerance, you can earn 4 – 8% in dividend income.
And this doesn’t include the appreciation earning you could earn once the property is sold.
You can check out Fundrise or DiversyFund to get started with this.
2. Bank CDs
Bank Certificate of Deposits or CDs is a low-risk savings account offered by banks.
It provides you with higher than average interest rates for leaving a lump sum of money untouched for a certain period of time.
Most bank CDs require you to hold your funds in the account for at least 6 to 18 months but can be as long as 3 or 5 years.
The longer you keep your money in a CD, the higher return you can expect.
This is a relatively safe way to earn passive income since bank CDs are typically FDIC insured up to $250k.
3. Investing in high dividend stocks
Some public companies actually pay out dividends to their shareholders quarterly or even monthly.
In this way, you can get paid in 2 ways.
One by stock appreciation and two by dividends.
These companies literally do all of the work by operating the business, making sure it is profitable and you get to sit back and collect on it as a shareholder.
4. Cashback credit cards
Most credit card companies offer some kind of cashback reward as an incentive to use their credit card.
And basically, you can get actual cash back in your pocket on purchases that you would make anyway.
The key here is making sure that you pay off your balance every month so you don’t start collecting interest fees.
Speaking of credit cards, be sure to check out our post on the best business credit cards next.
5. Create an online course
We’re actually in the process of doing this one ourselves.
By creating an online course, you can sell this digital product over and over again without much effort in maintaining it.
You will have to do some updates occasionally but the bulk of the work will be done on the front end.
But once it is complete, you can kick your feet up and enjoy those passive earnings.
6. Outsource your business
If you own your own business, then you know how much effort and activity it involves in maintaining it.
Why not outsource what you do for your business to someone else?
This does require you to relinquish some control. But in this way, you are buying back your time and still earning money from your business.
7. Vending machines
You can purchase a new or used vending machine and as people buy soda or candy throughout the day, you would be earning money on that.
Vending machines do require a little work in supplying the inventory and machine maintenance, but an affordable way to increase your passive income.
As you start earning more money, you could reinvest that money into more machines in more locations.
8. Vehicle advertising
If you don’t care about your car being a mobile billboard, then this is an effortless way to earn some good money.
There are sites like Wrapify that can help connect you to businesses that want to advertise on personal vehicles.
9. Starting a YouTube channel
This one might take an initial time investment.
But as we’re sure you know, there’s plenty of YouTubers making 5, 6, and even 7 figures on YouTube.
But in addition to the ad revenue, as you start building an audience, there will be opportunities for product endorsements or affiliate marketing.
You just need to pick a channel niche that you’re interested in, and surely there will be an audience also interested in that same topic
10. Paying off your debt and/or cutting your spending
This is known as reverse passive income.
We know this one doesn’t sound as exciting but as they say, a penny saved is a penny earned.
You’d be surprised at how much you overspend on things like eating out or interest on outstanding loans.
You may be unintentionally spending more than you need to month over month.
Consider refinancing high-interest loans or making some tweaks to your spending habits, and you could free some additional cash to reinvest into other opportunities.
Bonus passive income idea: Buying royalties
This is sort of a unique one.
But there are platforms where you can buy royalties from a movie or song, and every time it is purchased or played, you get paid royalties.
This is a good way to diversify your portfolio and potentially get high returns with relatively low risk.
This one requires a larger upfront investment though, which is the reason why it is a bonus passive income idea.
But the earning potential is infinite especially if you choose a good piece of work that is expected to be replayed over and over again.
And for more ideas on how and where to invest your hard-earned money, we have wealth management services to help you. Head over to our website now!