Featured, Make Money Online, Passive Income

Top 10 Passive Income Ideas

Sharing is Caring!
Follow by Email
FACEBOOK0
GOOGLE8
http://debtandsweat.com/top-10-passive-income-ideas/
TWITTER13
Pinterest318
Pinterest

passive income ideas

Is there anything better in the world than making money while you’re asleep?  I don’t think so!

Imagine waking up, having a cup of coffee on the porch, checking your account balance and seeing the  balance grow over night.  Passive Income, also known as residual income can be achieved easier than you think.

What is Passive Income?

The definition of passive income (residual income) is earning money without being actively involved.  With very little, to no effort, you will continue to make income and create a cash flow.

Instead of going out into the world to find a second job to earn earn a second stream of income, you can easily build a passive income stream yourself.  There are many ways that you can create passive income that will continue to create cash flow each and every month.  In many situations, you can build/buy something once and then reap the benefits of it for years afterwards (that’s the fun passive part!)

Imagine being able to create passive income while you sleep in order to throw the extra earnings into your debt snowball and pay off debt?  That could really expedite your journey to pay off debt quicker.

Earn passive income and avoid having to “get a part-time job”.  Sounds good, doesn’t it!  Let’s take a look at the best passive income ideas that you can start today.

10 Passive Income Ideas You Can Start Today

1. Write an eBook

Times have changed and it’s easier than ever to become a publisher.  You can create an eBook to sell online and continue to make a profit each time the book is downloaded.

There are even websites that you can pitch your book idea to, pay a ghostwriter to write your book and then post the book for sale on Amazon.com to sell it.  This is the most passive route to go with just a little bit of upfront cost to have the book written and possibly some images for the cover.

Upfront Cost: $375

Upfront Time: 2 weeks (If you’re not writing the book yourself)

Passive Income Potential: $45/month per book (will vary greatly based on price of the book and amount of purchases)

(Estimates above are based off a personal experience on ArmanAssadi.com ) 

Now, think about how much you could make if you publish one book a month to Amazon.  If you had 10 books published, you could be bringing in $450 in residual income each month!

2. Create a YouTube Channel

I’m sure by now you’ve heard of the term “YouTube Star”.  Those crazy personalities who you hear stories of who “made it big on YouTube” aren’t as crazy anymore after you look at the potential of earning passive income off of previously posted YouTube videos.  It’s actually possible to make a LOT of money off of your own YouTube Channel.

All you have to do is start a YouTube Channel, have a niche you’re interested in (or a crazy interesting personality – that always helps!), throw some ads on your videos, create continuous content, get viewers to subscribe to your channel and start earning cash every month.  The more videos posted, the more likely you are to get views, which in turn means more cash flow for you!

Upfront Cost: $0  (Unless you decide to buy the top of the line Cannon 70D video camera for high quality YouTube videos of course)

Upfront Time: None – You just need to hit record on your smart phone or fancy camera and can have a video posted the same day.  You will want to post good content and often if you want to attract viewers who will want to subscribe to your channel.

Passive Income Potential: $1,800 per day

(Estimate above is from the popular YouTube Star/comedian, Miranda Sings, who gets an average of 1.2 million hits per day.  Obviously this is a rare occurrence but I wanted to show the possibilities!)

Typically, YouTubers will get paid between $2 – $5 per one thousand views after YouTube takes their cut.

3. Start a Blog

Starting a blog was one of the best financial decisions I’ve made in my life.  As you can see in my How To Start A Blog post, you’ll see how simple it is to get a blog up and running.  You can easily get your new blog up and running within a few days and it’s up to you to create content on a regular basis.  Similar to the YouTube channel and eBook above, the more content you have, the more money you will end up making.

My tip would be to find a niche topic that you think you could ideally write a new topic about every week.  When you pick a topic that is truly interesting to you, it’s not hard to come up with content.

Upfront Cost: $60 (for hosting and a domain name)

Upfront Time: It usually takes me a few days to get a new blog up and running.  I’d suggest having a few posts ready to be published within the first few days as well. The total time it takes to get up and running could be less than a week.

Passive Income Potential: $41,700 per month+

(Estimate above is from JustAGirlAndHerBlog.com from her income report for the month of December in 2016.  Making money through blogging is absolutely possible and I can personally attest for that myself as well!)

4. Buy an Existing Blog

If starting your very own blog intimidates you, or you don’t think you could come up with enough content, there’s always the idea of buying an already established blog.  Some investors will seek out blogs with good content and high traffic and purchase it to take all of the content creation work out of the picture.  Investors will then choose to either sit back and watch the income roll in every month, or continue to add content to the site for more growth.

You can find sites to buy on Flippa.com.

Upfront Cost: $1 – $100,000 (depending on maturity and cash flow from the site)

Upfront Time: None

The website is already built for you and has traffic coming in.  All you have to do is maintain and add to it if needed.

Passive Income Potential: $800/month+

(Estimate above is from a website purchased on flippa.com for $9,500 and produces a cash flow of around $800/month USD.- Source)

5. Buy a Rental Property

Buying rental properties is one of the best ways to earn passive income. Although the cost of purchasing a rental property is high, the benefits of owning rental property are excellent.

In my own personal experience, I am able to have my renters pay down my mortgage while at the same time they pay me an additional cash flow just to live in the home.  Owning a rental property can be time consuming when dealing with renter’s issues, so hiring a property manager to do this is your best bet for an excellent stream of passive income.

The extra benefit of owning a rental property is that along with it cash flowing every month, the home’s value also appreciates every year.  Your renters pay down your mortgage for you and the value of the home goes up!  That’s an ulimate win/win!

Upfront Cost: 20% down payment on a home (It’s always best to put 20% down to avoid paying extra PMI payments each month).

Upfront Time: Varies – Just make sure to do your research before buying, and then do more research, followed by more research!

Passive Income Potential: $500/month per property

(Estimate above is from my own personal rental properties.  Each of them cash flow around $500 a month on top of my renters paying the mortgage and my property management fees)

6. Rent out an extra room on Airbnb

Have an extra room in your house? Why not rent it out for the weekend?

Airbnb.com has become one of the most popular and trusted ways to travel.  It’s perfect for a quick getaway or even a business trip when you want to stay in a home rather than a boring hotel room.  Oh… and because I love my readers so much, here’s $40 towards your first Airbnb experience – Get $40 for free!

Upfront Cost: NONE! You already have that empty bedroom sitting in your house.  Time to put it to work for you!

Upfront Time: NONE! Well okay maybe you should wash the sheets and towels to be a good host. In general though, there’s not much time other than listing your property’s space once and then reusing the listing and maintaining your calendar to show what days you can host guests.

Passive Income Potential: $350+/month 

(Estimate above is based on rates in my area for a one bedroom “private room”.  An average private room in my area of Charleston, SC would go for a little over $50 a night.  If you rented out your one extra bedroom for just one week out of the month, you could make this amount!)

Now imagine if you doubled that and rented that room out for TWO weeks a month or rented your whole home out for triple the cost.  You could make some serious cash on Airbnb to help pay down debt.

7. Buy High Dividend Stocks

Earning passive income through dividend stocks is probably the most hands off strategy on this entire list.  The upfront cost will be high but once you’re invested, you will truly be hands off.  As with any investment in the stock market, there are risks involved, but if you can handle the uncertainty of the stock market, buying dividend stocks may be a great option for you.

What are high dividend stocks?

According to money.cnn.com, “A dividend is a payout that some companies make to shareholders that reflects the company’s earnings. Often paid out quarterly (every three months), dividends give stockholders a steady return, regardless of what happens to the stock price.”  You simply get paid for having ownership in that stock.

Best case scenario…invest in dividends young, and let your dividends reinvest into the account to allow them to compound.  Once you’re ready to start receiving checks each month, you will switch your dividends payout to be paid directly to you instead of going back into the fund.  Let the fun begin!

Upfront Cost: $10,000 (This is just one scenario.  Your investment could be whatever you want!)

Upfront Time: None other than researching which dividends you want to invest in.  Make sure to pick one that pays consistent dividends and remember you will have to have a lot of patience with this strategy.  The longer you let your dividends grow, the more passive income they will generate.

Passive Income Potential: $700+/year

(Estimate above is based on a 7.2% return off of an original $10,000 investment.  In 10 years, you would have earned $7,200!  Let those dividends reinvest back into the fund and your future dividends payout will be even higher.)

8. Open a Website linked to Amazon products

A good example of this type of “fake storefront” would be the website FitGirlStore.com.  This website looks like a personal storefront yet in reality, it’s run completely off of Amazon products.  This website uses a special WordPress plugin to feature Amazon products on their site (which even updates prices when Amazon updates their prices!).

Customers simply add products to their cart like a normal e-commerce website but when a customer goes to check out, all is done through Amazon.  Not only is this extremely secure since payments are done through the powerhouse, Amazon.com, but you can also find just about anything you’d ever need on Amazon.com to fill your “fake” store.

As the website owner, you would get a percentage of all sales.  Although the percentage you earn off a sale is never more than 10%, it can really add up considering you don’t have to actually carry any of these products or deal with customer service or shipping!

After your Amazon storefront website is built and you start gaining traffic, you’ll start earning passive income directly through Amazon.

Upfront Cost: $100 (My post How to start a blog shows you how you’d start this storefront – it’s the same exact way plus a WordPress plugin that will connect your site to Amazon products for around $50)

Upfront Time: None other than researching which dividends you want to invest in.  Make sure to pick one that pays consistent dividends and remember you will have to have a lot of patience with this strategy.  The longer you let your dividends grow, the more passive income they will generate.

Passive Income Potential: $275/month

(Estimate above is considering you created an Amazon storefront specializing in selling and reviewing tools.  Amazon affiliates/associates earn 5.5% on each sale.  If you were to sell 50 $100 tools in a month, you could make this amount.)

9.  Peer to Peer Lending

Instead of keeping your savings in a bank, why not act as the bank and lend your money out to others in need?

What is Peer to Peer Lending?

Peer to Peer Lending (P2P) is a method of lending money to other individuals and earning interest on that loan.  Instead of going to a bank to get a personal loan, people are now going to peer to peer lending sites like The Lending Club or Prosper.com to find actual investors with cash who are willing to lend you the money.  Instead of paying the bank interest, the interest will go directly back to the investor (you!).

This method of debt financing removes the middle man out of the equation but may involve a little more risk since you’re dealing with lending your personal money to other people.

Tip: If you start investing with Lending Club, here’s a free $75 bucks towards your first investment, just for being a reader of DebtandSweat.com!

Upfront Cost: Whatever you’re comfortable with (Depends on how much you want to invest!)

Upfront Time: None!

Passive Income Potential: $410/per loan duration

(Estimate above is using the percentage of 8.2% that I currently make on my LendingClub investment.  If you originally invested $5,00 into a 36 month grade B notes, you could earn this amount.)

 

10. Design Clothing

There are quite a few websites that allow you to design your own clothing and make a profit off of any of your designs that sell.  Sites like Zazzle.com or CafePress.com will allow you to upload your own designs and place them onto hundreds of their blank products.  When other users like your design, you make a royalty off of it.  Design these once, and let them earn cash for you!

Upfront Cost: It’s FREE to join these sites!

Upfront Time: A couple hours designing products to start.

Passive Income Potential: $100/month

(Estimate above is using the average Zazzle.com return of 7% on products.  Assuming you sold just over 70 of your t-shirt designs per month that were $20 each, you could make this amount!).

Sharing is Caring!
Follow by Email
FACEBOOK0
GOOGLE8
http://debtandsweat.com/top-10-passive-income-ideas/
TWITTER13
Pinterest318
Pinterest