Top Passive Income Ideas

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These days, passive income is one of the holy grails of personal financial planning. And it’s easy to see why; it’s always wise to diversify, and relying solely on one income stream is rarely a good idea. However, you can’t exactly work two high-paying jobs; you probably don’t have the time or the energy. That’s why passive income streams are the ideal wealth-growing method. And even more importantly, they provide additional financial security, especially if you have more than one. If one of your passive income streams stops being profitable, you can always rely on another to fill that gap.

With that in mind, let’s look at some of the most popular passive income ideas right now – and see how you can get started on each one! Of course, remember that some of these ideas require a bigger upfront investment than others – so choose the ones that fit your personal finances the best!

A Savings Account

One of the simplest ways to put your money to work is by putting it in a high-yield bank savings account. Sure, it won’t do much more than stave off inflation – but it’s one of the most hands-off methods you can find.

Buy Into A Business

If you have the money for a significant upfront investment, consider buying into an existing business instead of starting your own. Even with the best business idea, getting a company off the ground, properly scaling it, and managing its day-to-day operations is challenging – and certainly far from “passive.” However, if you recognize a cash-strapped business owner with a great idea who just needs a silent partner to succeed, you’ve got your ticket to a passive income stream, provided the business doesn’t fail. Choosing the right business to invest in is the most important decision if you decide to go down this route.

P2P Lending

These days, crypto-based peer-to-peer (P2P) lending has become an incredibly easy way to earn some money on the side. You can find plenty of crowd-lending platforms where you can stake your money with others and start earning interest. You’ll sometimes earn more than you would by putting it in a high-yield account with a bank.

Rental Properties

Every long-term passive income stream requires some money for an initial investment – however, real estate is probably the priciest of them all, especially if you’re investing in the U.S. Provided you have the money to buy a decent rental property, however, you’ve got access to the most stable type of passive income. You can find a reliable ongoing tenant, or if you’re ready to do some more hands-on work, you can use platforms like Airbnb or Booking to find short-term renters. Managing short-term rentals requires more involvement, but it’s also usually more lucrative.

Of course, many of us don’t realistically have the means to buy an entire property. In that case, take a look at crowdfunding real estate platforms. They let you invest with thousands of others – and on some platforms, you won’t need more than $500 for your first investment.

Affiliate Marketing

Do you have an active social media following or a niche blog about a topic you’re interested in? If that’s the case, affiliate marketing is one of the best ways to monetize it. You can find affiliate programs for almost any type of product out there – and as long as you post links along with relevant content on your pages and social media posts, you’ll receive a commission for every item others buy thanks to your link. There are countless affiliate programs, but Amazon Associates is one of the most popular ones right now.

Rent Your Car

Did you think that people only rented out their apartments and houses? Nope; in today’s gig economy, you can even rent out your car. And if you already have one but you’re not driving it very much, it’s the perfect way to make it worth your while. Platforms like Turo pretty much function as Airbnbs for vehicles. You can earn thousands of dollars per year by basically doing nothing but letting others drive your car and paying for maintenance expenses.

Do you want to earn money through your car but don’t want to give up driving it? Well, you could always contact an ad agency that puts ads on cars. There’s no extra work involved; you just let them put an ad on your car and go about your business as you usually would; drive your car around town, do errands, etc. This comes with a couple of caveats, though; you need a newer and spotless car, and your driving record has to be just as immaculate. Logically, brands don’t want to risk someone getting into a traffic accident with their logo plastered all over the vehicle.