You want to make money without doing anything.
I’m not surprised – so do I!
Passive income is an easy way of making money (because it requires very little work on behalf of the earner – hence the term “passive” – duh).
There are many ways of making 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.
I make passive income in a few ways, and because of my efforts to make passive income and always come up with plans to create MORE, I have been able to make upwards of $900/month in passive income.
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
This passive income idea is probably one of the more controversial ways of investing, however, it is effective and a feasible passive income stream.
What peer-to-peer lending entails is just as it sounds – you are lending money to a peer (or an individual/group of individuals) and acting as the lender, instead of a bank or credit union.
There are many reasons why somebody might opt to be funded by a peer instead of a bank, but this should be taken as an opportunity to make money.
Banks make a TON of money from lending – whether that’s through credit cards, business loans, or personal loans – and you can cash in, too.
One way many people do this is by signing up for a P2P lending platform. Probably the most popular lending platform is LendingClub.com which will connect you as a lender to borrowers, and as a borrower to lenders, and make it all possible. Thousandaire.com has a pretty good write-up of how much money you can make from Lending club.
Passive Income Idea #2: Investing
Investing is one of the most successful methods of making passive income, and one of the best passive income ideas out there. If you do your research and invest intelligently, you can make a substantial amount of money in interest, dividends or bond coupon payments.
The average historical return when it comes to investing is around 9-10%, which is 9-10% return on truly passive income. There are many ways to start investing, but the best way to do it is to just START. Don’t procrastinate. Start by learning about investing. Some great classic books starter books are Stock Investing For Dummies and The Bogleheads’ Guide to Investing. Finally don’t get stuck in analysis paralysis, just get started. You can always start with some small investing positions.
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.
Many bloggers make a lot of money through these channels. If you make enough to outsource the work and still make a profit, then it truly becomes passive.
Blogging is also really fun, so that’s a huge bonus when it comes to earning passive income.
Passive Income Idea #4: Become a Landlord
While this isn’t 100% passive (though nothing really is), many people make money by becoming a landlord. I say this isn’t completely passive because you are at the beck and call of broken appliances, rowdy tenants and the whims of the market.
You can either purchase an income property (be careful with this one), rent out a room in your house, or convert a floor or separate building on your property into a suite.
We have had success with this one, and because we have a family member in our basement suite, it truly is passive. All we have to do is collect the money from him every month.
As you can see, creating a passive income stream is not difficult, you just have to get started. What are your passive income ideas?