This post is an updated version of the 2014 version about passive income ideas.
You know it’s possible to make passive income.
And you want to start making more of it.
But you don’t know where to start. There is so much information out there, and it’s all a bit confusing.
But 2015 is the year that you are committed to conquering the passive income itch.
And I’ll help you make that happen.
In this post, I’m going to show you how I make more than $900/month in passive income.
There are many ways to make passive income, but coming up with passive income ideas can be difficult for one reason: mental blocks.
Mental blocks may include lack of knowledge, the idea that the topic seems complicated, and risk adversity.
In reality, you just need to take the plunge.
Here are a few ways that I make passive income, as well as some popular methods that others use.
Passive Income Idea #1: Peer to Peer Lending
Is Peer-to-peer lending still controversial?
I can’t imagine how – it’s simply lending money to a peer (or an individual/group of individuals) instead of a bank or credit union.
The ethics of banks are questionable to begin with, so many people want to get funding from a peer instead.
For you, this is an amazing opportunity to make passive income.
The main income model from a bank is lending. Whether that’s through credit cards, business loans, or personal loans, they cash in.
And you can, too.
One of the only legitimate ways to do this is to sign up for a P2P (peer-to-peer) lending plaform.
The most popular lending platform is Prosper.com which will connect you as a lender to borrowers, and as a borrower to lenders, and make it all possible.
The link to Prosper is an affiliate link and if you decide to do P2P lending with my affiliate link, it will give me a small kick-back – which I will use to buy ice cream (ha.. ha..)
Passive Income Idea #2: Investing
Okay, I know you’ve heard of investing.
But if you still haven’t taken the plunge into the investing world, you are missing out.
And so many people are scared of this income generating machine.
But you shouldn’t be!
Tell me: how is it normal that we “invest” $50,000 in a 4 year degree for a career we aren’t sure we’ll love, yet shut down at the thought of investing $1,000 in an ETF and turning that into a compound interest generating machine?
If you do your research and invest intellegently, you can make a substantial amount of money in interest.
Historically, the average return when it comes to investing is around 9-10%, which is 9-10% return – absolutely passively.
Just START. Stop procrastinating. Read a book on investing, and then stop making excuses.
Open an account with eToro – this is the coolest platform becuase you can actually look up other Traders on eToro, see their returns and copy their portfolios with their OpenBook feature.
Then, start by investing $100.
Passive Income Idea #3: Monetizing a Blog
Blogging is, in and of itself, not passive. You have to write articles, comment on other posts, format, learn search engine optimization, have a presence on social media, etc.
Even so, if you are a hobby blogger and are already blogging, you can monetize your blog by adding Google Adsense or affiliate marketing.
I’m not a huge believer in ads by any stretch of the imagination, but I make some decent money by recommending products that I actually stand behind.
And if you want it to be truly passive, hire a team of writers and/or virtual assistants and let it generate money.
Passive Income Idea #4: Become a Landlord
This is definitely not 100% passive, but inreality, nothing really is.
As a landlord, you are at the beck and call of broken appliances, rowdy tenants and the whims of the market. Unless, of course, you are smarter than that (but who can really vet their tenants that well?)
Renting a room out in your house is the most passive, or convert a floor or separate building on your property into a suite.
See, it’s not that hard to make passive income. You just have to DO something.