Passive income, in simple terms, is income you earn without being actively involved. Whereas active income is income you earn while you are actively involved. Earning income from working at a 9-to-5 job is active income; earning income from collecting rent as a landlord is passive income.
There are several ways to earn passive income or earn extra cash. They include building an app, rent out unused space with Airbnb, high yield savings accounts, creating a YouTube Channel, or real estate crowdfunding. These passive income streams will earn you money, but not the kind that will make you rich. See, “Make $500 or more a month by taking surveys” if you would like to make quick cash right away.
This “passive income ideas” article will discuss how you can make good passive income that will make you rich.
In the beginning, they are not entirely passive. To build passive income, you have to put a lot of work up front, usually with little to no returns for extended period of time. You can go months even years without a single dollar produced from these passive income ideas below.
But once the work is done, they can become completely passive and make you really rich.
Now that does not mean these passive income investments can be completely ignored. No, quite the contrary. It’s important to track every passive income stream, no matter how automated it might be.
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5 Passive Income Streams That Will Make You Rich
1. Invest in Real Estate
Real estate is my number one passive income ideas to make great money and become rich. It has long been the source of passive income for ages. After all, some of the rich people like Donald Trump, made their billions by investing in real estate.
So, investing in real estate is not only a great way to make passive income, but it is also a great way to becoming rich. At first, it can be an active venture. As with all income streams that are passive, it takes a significant amount of time and effort on the front end.
It also requires time to seek and acquire properties, to come up with finances, etc. But when all of that is done and your property is fully rented, it’s mostly a matter of managing the property and keeping it performing well.
Property management can make the investment much more passive for you. Those property managers can manage your property for you, usually 10% of the monthly rent.
2. Invest in Stocks and Earn Dividends
Some common sources of passive income are dividends from stocks. When you buy stocks that pay dividends, you earn dividend income on a monthly or quarterly basis. Depending on how many stocks you have, you can generate massive passive income by doing practically nothing.
3. Peer-to-Peer Lending
Another way to generate massive passive income is to earn interest when you loan money to others. This is made possible by peer to peer lending. Peer-to-peer lending companies such as Lending Club make it easy to invest in people business and generate passive income from interest payments.
The way peer-to-peer lending works is that people who have money are matched with people who are looking for a personal loan, through an online platform.
These peer-to-peer lending platforms can get you a much higher rate results than a typical savings account.
Need To Make Easy Extra $500+/Month Taking Surveys?
Taking surveys in your spare time can be a great way to earn some extra cash fast. Check out:
- Ebates (Earn up to $40 cash back)
- PineCone Research (Earn minimum $3 per survey)
- InboxDollars ($5 sign up bonus – has paid its members so far $40 million. Watch videos, take surveys, shop and more.
- Global Test Market (Earn $10/hour – Best International Paid Survey Sites)
- YouGov (There is a registration bonus of $2 and you can easily earn $8 – $10 per hour.
- MySurvey ($2 Sign up bonus +You make $5 per survey.)
- MySoapBox. You can easily make $15/hour taking surveys. They even have a sign up bonus of $2.
You can make anywhere from $500 to $600+ per month taking surveys.
4. Start a Blog
A blog, regardless of the niche, can provide you with tremendous amount of income.
Again it is not entirely passive, it requires a lot of time and work to succeed. But it’s certainly more passive than getting up every day to go to work.
I created my WordPress blog on Bluehost. BLuehost is one of the best hosting companies out there. You can start your blog with Bluehost for as low as $3.95 a month. The regular price is $7.99 a month, but you get it for $3.95, which is 50% off the regular price.
Once your blog becomes popular, it gives you the platform and audience to generate multiple streams of revenue by monetizing your blog.
You can monetize your blog in two ways: (1) Affiliate marketing, (2) Ads. Affiliate marketing can be a great way to make passive income because when people click on the affiliate links, you receive a commission at no cost to them when they product or service.
The second way you can make money by starting your own blog is from advertisements that you put on your blog. A good example is Google Adsense or Commission Junction. When someone clicks on your ads, you get a commission. See our beginner’s guide to making a blog.
Related: How to Start a Blog and Make Money
5. Write and Publish an E-book
An e-book is one of the best passive income ideas. Although you have to put a lot work upfront on the e-book, once it is done and marketed, it can provide you with thousands if not hundred thousands of passive income streams for years.
You can either sell the e-book on your blog or offer it as an affiliate arrangement with other websites that provide content related to your e-book.
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