Basically, people looking to borrow money will make a listing on the site. Those borrowers are then placed into a category and given a “rating” based on their credit history and rate. You, as an investor, will contribute money to these loans and then be paid back at the predetermined rate of interest. Invest and see those monthly interest payments deposited into your account.
Of course, you can make honst money in Internet info-products, or affiliate marketing, or other such areas where people tend to get drawn to "passive income" fantasies. But, to make real money over the sustainable long-haul, you must treat these like any other business. In other words, you must provide real value to real customers with a real need.
After spending that time learning as much as I could, the next logical step, to me, was obtaining my real estate license. I thought having it might make me a more informed real estate investor, and perhaps I’d be able to benefit from buying an investment property as an agent and save on commissions. I also thought I would potentially have access to deals earlier than the general public.
If you love design and you are an artistic person, selling digital products on Etsy could be a great way to earn passive income. Digital products require little maintenance, your customers will simply receive a link to download them (which means you don’t have to worry about shipping and returns handling). All you need to do is spend time upfront to create beautiful artwork! (Easy right?)
There’s a saying that the biggest opportunity for improvement is at the margin. Boiled down, this means that you can reap big rewards for minor adjustments in behavior. Instead of using a check, debit card or cash to pay for daily activities and big expenses, using a cashback credit card can earn you a sizeable return each year. One of my favorite cards, the Discover it will even double all of the cash back you earn the first year!
While passive income isn’t always easy to come by, it is possible to create residual revenue streams — even as a beginner. Remember, not all options will make sense for you. And chances are you’ll find one that sounds the most promising. Not sure which that may be? The best way to find out is just to simply get started. Many of the options on this list are free or at least offer a free trial, which gives you a chance to try before you buy!
Bankrate.com is an independent, advertising-supported publisher and comparison service. Bankrate is compensated in exchange for featured placement of sponsored products and services, or your clicking on links posted on this website. This compensation may impact how, where and in what order products appear. Bankrate.com does not include all companies or all available products.
Affiliate programs are the current hot thing in monetising websites. The basics are that retailers like Amazon will pay you a percentage if you send someone to their website to buy something. The percentage ranges from around 3% with sites like Amazon all the way up to 60% or even higher for information products sold by other people looking to make passive income.
Obviously, you want the best tenants you can find. If you’ve chosen a property in a more affluent and stable neighborhood, your tenants are more likely to be responsible with your property and reliable about paying the rent. Properties in lower income areas are more likely to attract tenants that become delinquent in paying the rent, move out without notifying you, and damage your property. This is part of the higher risk of this type of investment property. You’ll end up with the expense of repairs and less income to spend on those expenses.
For those willing to take on the task of managing a property, real estate can be a powerful semi-passive income stream due to the combination of rental and principal value appreciation. But to generate passive income from real estate, you either have to rent out a room in your house, rent out your entire house and rent elsewhere (seems counterproductive), or buy a rental property. It’s important to realize that owning your primary residence means you are neutral the real estate market. Renting means you are short the real estate market, and only after buying two or more properties are you actually long real estate.
There are hundreds, if not thousands, of websites offering users the ability to get paid for taking surveys online. Same as with Cashback sites, if you encounter a survey site where sign up if not free, simply avoid it. I have not checked it myself, but a few online entrepreneurs suggest trying toluna.com. Also, you might want to try Cash Crate - In addition to getting paid for taking surveys, they offer cachbacks and other quick online income perks.
Instead of working in the service framework, passive income necessitates that we build (or otherwise acquire) something that inherently contains value, which can then be easily and repeatedly transferred to others with little or no work. Plain and simple, we have to create or buy valuable assets, preferably ones that deliver their value automatically. There are a lot of ways to do this, but they all fall into the 3 categories above, and realistically, a lot of them look like different flavors of the same thing.
There is a big misconception about rentals & people thinking that it’s passive.. rental income is far from passive. Many people flock to buy rentals as a way to “retire rich” but realize shortly thereafter that it really isn’t that easy or true.. Ask me how i know. I have bought a lot of houses from tired and burnout landlords. Luckily, there are better options out there.
Publishing a book isn’t just a way to create a new stream of income. It’s also a powerful way to build your authority and credibility. Imagine all the educational content you have created through your blog posts, presentations, articles and videos combined with the know-how that you have yet to share. Those insights can be used to create a powerful book (or more!) to attract customers and earn some extra money.
Investing in bonds: Similarly, bonds are an attractive way to engage in passive income. Over a recent 45-year period, bonds funds, as measured by Vanguard Funds, returned 7.1%. Of course, there's no guarantee that investments in stocks or bonds will always work out well, investing in them is by far the surest way to generate money through passive income.
However, I think for those who are willing to do what it takes, the sky is the absolute limit. As an example, I’m trying to take a page out of FinancialSamauri’s book and create an online personal finance and investing blog. It is an enormous undertaking, and as a new blogger, there is a seemingly endless amount of work to be done. That said, I hope that one day I can not only generate some passive income from the hours of work I have put and will put into the project, but I hope to be able to help OTHERS reach their financial goals.