Did you know that billionaires have, on average, seven sources of income? Financial experts agree that building wealth is possible only if you have money coming in from different directions.
For the average American, this isn’t always possible. Especially for those with a demanding 9-5 job. So, a great way to boost your total monthly earnings is to invest in passive income. By definition, a passive source of cash is income that doesn’t require too much work or time.
Would you like to make more money without putting extra work? If so, scroll down to find the best passive income ideas for 2020.
Table of Contents
- 1 What Is Passive Income?
- 2 How To Make A Passive Income?
- 3 Types Of Passive Income
- 4 High-Yield Stocks And Funds
- 5 Purchase Bonds
- 6 Invest In CDs (Certificates Of Deposits)
- 7 Private Equity Funds
- 8 Annuities
- 9 Real Estate Investment Trust (REIT)
- 10 Robo-Investing
- 11 Peer-To-Peer (P2P) Lending
- 12 Crowdfunded Rental Properties
- 13 Refinance Mortgage
- 14 Rent On Airbnb
- 15 Sublet Your Apartment
- 16 Rent Your Car
- 17 Rent Your Boat
- 18 Rent Your Parking Space
- 19 Rent Baby Gear
- 20 Rent Storage Space
- 21 Rent Your Backyard
- 22 Rent Your Garage, Basement, or Attic
- 23 Flip A House
- 24 Raw Land Flipping
- 25 Start A Blog
- 26 Display Ads
- 27 Affiliate Marketing
- 28 Dropshipping
- 29 Start And Etsy Store
- 30 Publish An E-Book
- 31 Create An Audiobook
- 32 Write A Book
- 33 Buy Royalties
- 34 Sell Stock Photos
- 35 Create An Alexa Skill
- 36 Create An App
- 37 Start A Podcast
- 38 Invest In Precious Metals
- 39 Become A Yoga Instructor Or A Personal Coach
- 40 Get Paid To Watch TV
- 41 Invest In Penny Stocks
- 42 Create An Online Course
- 43 Invest In Foreign Real Estate Markets
- 44 Start An E-Commerce Business
- 45 Buy An Existing Business
- 46 Buy And Sell Website Domain Names
- 47 Buy A Blog
- 48 Become A Social Media Influencer
- 49 Invest In A Batting Cage
- 50 Design Logos
- 51 Consulting
- 52 Become A Notary
- 53 Participate In Sleep Studies
- 54 Fill Out Paid Surveys
- 55 House Sitting
- 56 Pet Sitting
- 57 Sell Your Clothes
- 58 Car Advertising
- 59 Sell T-Shirt Designs
- 60 Vending Machines
- 61 Laundromats
- 62 Invest In Cryptocurrency
- 63 Cashback Cards
- 64 In-house Babysitting
- 65 Rideshare Driving (Uber Or Lyft)
- 66 Pay Off Debt
- 67 Sell Digital Products Or Services
- 68 YouTube Ads
- 69 Amazon FBA
- 70 Merch By Amazon
- 71 Flip Products on eBay
- 72 License A Product Idea
- 73 Fund Inventory Needs (Kickfurther)
- 74 Bing Rewards
- 75 Pei
- 76 Drop Rewards
- 77 Invest in Veteran-Run Businesses
- 78 Share Your Data
- 79 Start Building Passive Income Today
What Is Passive Income?
Book royalties, affiliate marketing, rent, dividends. All of these are different types of passive income. They all share one thing – they generate money long after your work on them is done. That’s what passive earnings are all about. They require no or little work to produce long-term cash flow.
Here are the main benefits of investing in sources of passive income:
- You get the freedom to spend your time in other cash sources;
- It reduces your anxiety of the future;
- It enables you to do focus on things you love;
- You can work and live anywhere in the world;
- It improves your quality of life and provides financial stability.
People often mistake passive income for residual income. When you compare residual income vs passive income, you’ll see that these are different concepts. The first is the profit above the minimum rate of expected return. The latter is the profit you get for doing little or no work.
How To Make A Passive Income?
To generate this type of cash flow, you need to employ a smart strategy. There are a few things to analyze before deciding which model suits you the best.
First, determine whether you can invest time and/or money in this goal. If you can’t spend both time and funds, then you’ll surely need one of them. For example, if you have extra cash and no time, you can invest in stocks that pay dividends. If you’re short on money but have time, you can start a dropshipping business instead.
It’s smart to check out our ideas and see which one suits your knowledge and interests the best. Then, pursuit that idea with all you have. For a project to work, you must dedicate at least one or two hours per day on it. The same applies to most passive income sources too.
You must be patient and dedicated to your goal. There’s no magic formula for instantly generating cash. It takes time for your investment to become profitable. Don’t despair or give up.
Types Of Passive Income
There are four standard types of passive income you can settle on. Below, we will list and explain each of them.
- Buying cash-flowing assets – Those who have money to invest can buy assets that generate income. This may be real estate, stocks, bonds, or even operational businesses. The idea behind is – purchase something that will bring you cash without demanding effort from your side.
- Building cash-flowing assets – If you have the time, you can always create assets that will bring you money in the future. Here, we have passive income strategies like creating an online course, building a dropshipping business, and publishing an e-book.
- Sharing and selling assets – Most people fail to recognize the potential of their assets like an extra room, the boat they’re never using, or a holiday house. Even staff you’re not using anymore can become a source of passive income. Rent your space or boat. Sell aluminum cans, used DVDs, or even books. That’s right! Everything you own has money-making potential.
- Reverse passive income – This is not exactly a method to generate income but rather to cut down on expenses. Saving money leads to more wealth and extra cash for investing. So, if none of the above seems like the right fit for you, you can always try reverse passive income. We have a list of 50+ ways to start saving cash quickly. Make sure to check it out!
High-Yield Stocks And Funds
This strategy focuses on investing money in stocks that pay dividends. By definition, a high yield stock is a stock with a yield higher than the benchmark average.
These provide competitive returns to those who purchase them. Plus, once you buy them, you won’t have to spend any additional time on them. Alternatively, you put your money in funds that employ this particular strategy and do the investing for you.
The best high yield investments can earn you tons of cash without any effort. Hence, high-yield stocks and funds are among the best investments for passive income in the long run.
Purchasing bonds is lending money to issuers that often are governments, municipalities, and corporations. You can buy bonds through brokerages, mutual funds, or directly through the U.S. Treasury Department.
As assets, bonds come with low risk and low returns. They are issued with a duration, which is expressed in years. This is when you can expect to get your investment plus some profit back. As bond interest is paid regularly, this investment is an excellent source of passive income. In fact, purchasing bonds today is among the top ways to invest $100 in 2020.
Invest In CDs (Certificates Of Deposits)
Do you wonder how to generate passive income with the cash you have in your bank account? The answer lies in certificates of deposits (CDs). These are time-bound deposits that come with higher-than-usual interest rates. The rates grow alongside the period you decide to leave the lump sum of cash untouched on your account.
CDs come with a different duration and in different types. For instance, you get to invest your cash for 3, 6, 12 months, or even longer. Interest may be paid monthly or once the period expires. Everything depends on the offer you go for.
Private Equity Funds
If you don’t have the time and/or knowledge to look for smart investments, you can always let professionals handle your cash. This is what private equity funds are all about. These will collect funds from individuals and institutions. Then, they invest the money, mostly in buying and selling businesses.
Investment of this type is a long-term one, lasting between 5 and 10 years. The annual returns of private equity funds vary but, on average, move around the 15% mark.
Annuities are the best income producing assets for Americans aged between 45 and 55. An annuity is a long-term investment that involves paying a lump sum or monthly payments. You profit from this investment during retirement when the cash is paid back to you at once or via monthly installments.
The average returns of annuities depend on several factors. Still, you can expect to get approximately 3.27% of the total amount you’ve invested.
Real Estate Investment Trust (REIT)
Does investing in real estate sound smart to you? It definitely is! Not everyone has the time to look for properties, though. This is when real estate investment trusts (REITs) enter the picture. These trusts collect cash from investors and then invest it in real estate.
REITs must distribute 90% of their income to shareholders regularly. With average returns of around 11%, REITs are a great way to boost your income without putting in any work.
Are you interested in progressive passive income for college students and beginners? If so, we have robo-investing for you! This a low-cost investment for people with up to $25,000 put aside. Robo-investing involves robo-advisors that provide expert financial advice or even investment management.
They consider your investment size, accepted risk level and desired returns to find appropriate investment opportunities. You must pay a modest fee for the services of robo-advisors. Still, this is a great option if you want to invest on autopilot.
Peer-To-Peer (P2P) Lending
Peer-to-peer lending matches borrowers with suitable lenders. P2P loans often go between $1,000 and $35,000. Meaning, you need anything within this limit to try your luck at P2P lending. The average yearly returns for lenders go from 5% to 7%, while 1% of transactional charges are applied on repayments. P2P lending is risky. Still, if someone doesn’t pay you back, you can sue them.
Crowdfunded Rental Properties
Real estate crowdfunding was huge in 2019, and this trend is expected to continue in 2020 too. This concept involves collecting funds from multiple investors and investing them in real estate. All properties are then rented and generate regular passive income for the investors.
What places crowdfunding rental properties among the good passive income investments is its flexibility. Individuals can invest as little as $500, which makes it an excellent option for people with modest savings. Plus, it doesn’t require any actual work from you as an investor.
Refinancing your mortgage is a no-brainer in 2020. For rookies, refinancing any loan means paying it off by replacing it with a new one. By doing this, you reduce your interest rate, which is the main benefit of refinancing a mortgage.
Not every refinancing is right, however. Sometimes, the fees may end up more substantial than the total amount you save. So, make sure to do the calculations and find the best offers before going for this option.
Rent On Airbnb
Considering that the average monthly income of Airbnb hosts is $924, you may want to try this idea. Airbnb is a platform that lets people anywhere in the world, the USA included, to rent their living space to travelers. You don’t even have to list an entire apartment. You can rent a single room instead.
Cleaning up the place and greeting guests takes time, though. So, we consider renting on Airbnb to be among passive side hustles rather than the traditional passive sources of cash.
Sublet Your Apartment
Subletting or subleasing is leasing the apartment that is leased to you to a third party. This helps you keep the studio during a temporary financial crisis or while traveling for a longer period. If you’re a good negotiator, you can try to sublease the apartment for a higher amount of the one you’re paying. This is pure profit for you.
Rent Your Car
Did you know that your car can generate passive income for you? That’s now possible thanks to platforms like Zoomcar and Turo. These let you list your car for rent. Hyrecar is another top platform on the market. Reportedly, its members make up to $14,000 annually for renting their vehicles.
The services will provide insurance and perform checks on customers. Hence, this is an excellent option for anyone who owns a car. Some people go a step further by purchasing several vehicles and then renting them for passive income.
Rent Your Boat
On average, people use their recreational boats between 10 and 15 days. Put differently, they’re a waste of money unless you find a way to generate cash with them. So, among the best ways to create passive income for boat owners is renting their boat.
Not sure where to start? Well, check services like Boatsetter, Click and Boat, and Get My Boat.
Rent Your Parking Space
Renting is the easiest method to make extra cash. One of the things people living in popular neighborhoods can rent is their parking space. As you long as you personally own the spot or your landlord does and agrees, you’re good to go.
SpotHero is a popular service that lets users rent their parking spots. The respective average monthly price for a place in New York and San Francisco is $400 and $295. That’s not bad, considering it takes zero effort from your side.
Rent Baby Gear
Did you buy tons of baby gear when your kiddo was born? Strollers, highchairs, cribs, beds, car seats, toys, and whatnot. All these items are expensive yet underused. If yours are in good condition, you can make cash by renting them!
Babies Getaway, Babysway, and Babyquip are top platforms where you can get started with these. This is an easy way of making passive income online. It requires virtually no effort besides making sure nothing is damaged and spending time on listing the items.
Rent Storage Space
Another thing you can rent for cash? Storage space! Depending on your unit size, you can make anything from $40 to $200 per month. The prices depend on the unit’s location too. Still, renting a storage space requires no effort or work. So, if you happen to have one, make sure to list it today.
Another strategy here is to invest in multiple storage units and then rent them. For this, however, you’ll need to have money aside, as taking a personal loan won’t make sense financially.
Rent Your Backyard
Whenever someone hears the concept of renting a backyard, they wonder who needs an empty yard. The trick here is that you rent the area for someone to build an apartment studio on it. This is much cheaper than investing in a vast plot, and many people opt for this option.
This is among the best passive income ideas for those who own a large backyard. Otherwise, it quickly gets crowded, and you may end up hating your new neighbors. The best way to get started with this adventure is through Rent The Backyard. This is a startup that rents yards and pays up to $12,000 per year for them.
Rent Your Garage, Basement, or Attic
Any unused space can be turned into an income source. Do you have an empty garage, a nice basement, or a beautiful attic? If yes, check if there are people who would pay to use them. Your neighbors may need extra storage space, or tourists would like to leave their luggage somewhere safe. Either way, the market for in-house storage is thriving. So, make sure to join it quickly!
Flip A House
This isn’t the easiest or the cheapest way to make cash. Flipping a house means you buy a property and then sell it for more. Thus, making a profit in the process.
To do this, however, you need a good eye and at least some knowledge in how the real estate market works. Most importantly, you need money because the house won’t pay for itself. Either way, flipping houses is among the best residual income opportunities in 2020.
Raw Land Flipping
Raw land flipping type of business model is acquiring a land lot or a property for a cheap price (usually the ones that have been neglected over the years). You then clean it up and resell it on a monthly plan.
It might take up to a year to recover the investment, but after that, it’s all about the profit. You might end up looking for land or property for months. Once you get it, though, you are set to an income of several thousand dollars per month.
Start A Blog
The digital era made it really easy for people to start their own blogs, and even easier to make money from it. The profit won’t come with your first post, though. You must post new content consistently and make the blog search-engine-friendly to reach the desired number of visits per day. When that happens, you can start publishing ads, feature relevant products or sell your own products or services.
If you have a website, one of the first ways you can start earning money is by displaying third-party ads. Google AdSense is the most used program that will pay you money whenever someone clicks or sees the add.
The ads that will appear are relevant to the text and theme of the site. The number of ads you can have depends on how much space there is, and the amount you get paid per click depends on the number of visits on your site. Still, the profit per click mostly goes between $0.1 and $1.
If you wonder how to make passive income for life, displaying ads is a thing to consider. It doesn’t require any investment from you except a little bit of effort.
Affiliate marketing is when a retailer assigns an affiliate or associate program to partners that recommend their products. This is accomplished by putting the retailer’s link to the affiliate’s website. Depending on the agreement between the retailer and affiliate, there is a specific commission paid.
Earnings come whenever a product is sold through the affiliate’s link, or even when someone clicks the link to visit the retailer’s site. Increasing the traffic is useful for promotion, so affiliate networks pay for visits too.
With dropshipping, you can sell all kinds of products to customers. Now, this sounds like a regular reselling of products. The difference is enormous, though. Here, you buy items from suppliers and sell them directly to the customers, without keeping the products in stock.
The best thing is that you choose which types of products you sell and how much you will charge for them. So, at the end of the day, you determine your earnings. Established dropshipping businesses make thousands of dollars per month, while most of their operations are on autopilot. Thus, dropshipping belongs among the best passive income ideas.
Start And Etsy Store
If you have a knack of making crafts, you can make your virtual store on Etsy and sell them. Sign up for an account on Etsy free of charge, upload photos of your creations, and put prices on them. Etsy charges a specific commission on each sale, but at the same time saves you a lot of headaches with the shipments and payments. If the business goes well, you can make a legal income through Etsy.
Publish An E-Book
To write an e-book, you must find a topic that interests you. Make the structure and the cover and publish it. The go-to platform for self-publishing authors is Amazon. The commission charged depends on the price of the book.
You collect royalties from each sale of your book as long as it’s available on the platform. On Amazon, if your book is $0.99, the service keeps 65%. If the book costs between $2.99 and $9.99, Amazon keeps only 30%.
Create An Audiobook
Are you interested in beginner passive income? Creative people can always unleash their imagination and do an audiobook. Narrating an audiobook is a pretty easy way to make money. If you are a beginner and you have some skills, you can earn between $10 and $50 per hour.
It’s smart to become a member of online platforms that sell audiobooks and seek narrators. You will get paid for narration services. If you own part of the royalties, you will be paid each time someone buys your audiobook.
Write A Book
While you think that an e-book is much simpler than a paperback, Amazon will prove you wrong. They have a KDP print service, which makes it as easy to publish a traditional book. You don’t have to go through the entire stress of printing and keeping stock of your book. Amazon will offer both digital and printed versions and will print on demand. The commission they charge again depends on the price of the book.
Royalties belong among the best residual income opportunities. Once you own royalties of a product, you make cash whenever someone buys the right to use that product. If you don’t own a royalty to sell, you can purchase someone else’s and make money out of it.
There are online sites that sell them. Sometimes, the rightsholders have the option to offer a part of their royalties through an online auction too. The prices for buying royalties vary. Still, you only buy them once, and you collect earnings for a lifetime.
Sell Stock Photos
There are plenty of platforms where you can sign up for free and sell photos online. You cannot sell just any photo. Usually, there is a process of filtering on which photo makes it to the worldwide web. Each platform has its own rules and publishing criteria. Most won’t accept low-quality photographs, for example. Whichever platform you choose, the commission they charge is between 30-70% depending on the license of the photos.
Create An Alexa Skill
New products and services often open new markets that become the perfect passive income sources. This is the case with Amazon’s Alexa. To perform various actions, Alexa needs specific Skills. These skills are basically apps, which individuals can create and then sell.
Back in April 2018, there was a story about a student who earns an impressive $10,000 per month by building Alexa Skills. This could be you if you’re willing to put in the work. There are three methods of earning cash this way: in-skill purchasing, Amazon Pay, and Alexa Developer Rewards.
Create An App
Creating a native iOS or Android mobile app isn’t easy. For a person to do this, they need proper education and experience. Still, it’s not impossible and can be very lucrative. On average, about 25% of iOS application developers make more than $5,000 from their apps. About 16% of Android developers achieve the same.
Creating a native mobile application takes time and effort. It doesn’t require a massive cash investment, though. Plus, once online, the app will generate income and require little or no work.
Start A Podcast
Podcasts are pre-recorded audio files focused on a single topic or niche. Podcast hosts often release an entire series with multiple files. Alternatively, they release installments that together create a bigger picture. So, if you’re passionate about a specific topic, you can start a podcast.
Don’t expect to make money right from the start. On average, podcast hosts charge between $25 and $40 per 1,000 listeners. Meaning, you’ll have to build your brand before the cash flows. Since podcasts require determination, they aren’t one of the easiest passive income ideas. Still, they can be very profitable.
Invest In Precious Metals
Gold, silver, and platinum. These are the precious metals that can be your favorite streams of passive income. What exactly makes these an excellent investment opportunity? Well, their price tends to remain stable throughout the years.
There have been some fluctuations in the past, of course. Still, precious metal investing remains among the options with the lowest risk. To invest in precious metals, you can actually buy coins or bars. Alternatively, you can let exchange-traded funds (ETFs) do the work for you.
Become A Yoga Instructor Or A Personal Coach
For any of these two to become a passive income stream, you must do them regularly on your own. That way, you simply transform a healthy habit into a source of money. If you hold certificates, your chances of finding customers will grow.
Either way, some people just want a company and someone to guide them. So, make sure to leave pamphlets throughout your neighborhood and get essential equipment. Even with a single customer, you’ll be generating profit.
Get Paid To Watch TV
Do you love watching TV? If you would spend any night watching a good movie rather than partying, this may be the best idea for you. There are several ways to make cash by watching TV. First, you can get in touch with companies that air movies and TV shows. They often need objective feedback from their viewership and are willing to pay for it.
Second, you can start your own YouTube channel where you review episodes from famous TV shows or blockbusters. Once your audience grows, you’ll start making revenue from displaying ads. Being a Netflix Tagger is another lucrative position here. It’s, however, tough to get it.
Anyway, getting money for watching TV is among the best passive income sources. It’s as passive as it gets. Plus, it often grants you access to content you’d have to pay to watch otherwise.
Invest In Penny Stocks
Penny stocks are just that- shares that cost a single penny. This is the right investment strategy for people who like to gamble as it’s high in risk. The value of these stocks often changes quickly and can always go both ways.
You will find penny stocks under several names like micro-cap, OTC, small-cap, and nano-cap stocks. These are offered by small public companies and therefore have such low prices. If you want to do the work, you can purchase and sell yourself. Otherwise, you can get the services of brokers who will do the trading for you.
Create An Online Course
Creating an online course is another top pick from the best investments for passive income. Here, you do the work once and then just resell the course to an infinite number of customers. The course can be on any topic, really.
Best-sellers tend to be courses that teach people a specific skill like Social Media Marketing or SEO Practices. The majority of online courses are cheap and cost between $5 and $40. If your specialty is in high-demand and specific, you can sell your course for up to $250.
Invest In Foreign Real Estate Markets
Many Americans limit themselves to investing in the domestic real estate market. Hence, they miss out on fantastic opportunities abroad. For example, Italy made headlines with its cheap properties of as little as $1 in Sicily. Buying seaside properties in Greece is another smart move.
These not only are cheap but have a high earning potential too. Plus, there are real estate agencies that will handle everything from renting, cleaning, and doing your tax payments. You’ll simply get your monthly or annual profit without moving your finger.
Start An E-Commerce Business
E-commerce covers selling any type of product or service online. Meaning, only the sky is the limit for you. You can make arts and crafts and then sell them. You can print T-shirts, cups, caps and reach a worldwide audience with your e-commerce business.
E-commerce startups manage to cash in up to $39,000 per month if they have a good business model. That said, you must have a clear goal in your mind and do proper research. Operating on autopilot is what places e-commerce businesses among the other good passive income investments.
Buy An Existing Business
If you have cash on the side and want to invest in something already profitable, consider buying a business. You heard that right! Many people decide to sell their profitable business for whatever reason. They plan to retire or move to another state or country. Sometimes, they may even want to try a different experience and start a whole new business.
This is when you step in as an investor. Grab the chance, take over the business, and reap the profit. Just make sure to perform due diligence. Make sure the company is legit and actually profitable. Otherwise, you may waste your savings on something that’s not worth it.
Buy And Sell Website Domain Names
Domain flipping is another gig to consider if you have the time. This cash source belongs among the passive income ideas with little money. The concept is simple. You find available domain names and buy them. Then, you offer them for a higher price, thus making pure profit. For this to work, however, you need a good eye to recognize potential. If you purchase domains nobody wants, you’re just wasting money.
Buy A Blog
Many people these days have their own blogs. The longer a blog exists, the better the ratings it gets. So, instead of starting one yourself, you can buy someone else’s blog instead. Don’t forget to check its stats and niche. If you recognize potential, go for it.
Building a profitable blog is much easier when you have the foundations. Plus, most brands come with a fan base, even if it’s a small one. Make sure to gain access to all the social media profiles too. Then, build your empire on top of it.
Become A Social Media Influencer
If you’re charming, communicative, and fun, stop wondering how to generate passive income! Wait no more to become a social media influencer. Some examples of this are YouTube stars, Instagram celebrities, and Twitter darlings.
Social media influencers, on average, get $1,000 for every 100,000 followers they have. Achieving this isn’t that easy. You need to post new content regularly, be creative, and stand out from the crowds. Still, compared to doing actual work, it’s not that hard either.
Invest In A Batting Cage
Baseball is huge in the USA. That’s why the market for batting cages shouldn’t be overlooked. According to the “Entrepreneur” magazine, you’ll need between $10,000 and $50,000 to start this type of business.
On average, you can expect a revenue of around $48 per hour, which isn’t that bad. If you have regular customers, you can earn back your investment and generate profit within a few years. Just research the market first and see if there’s potential for a batting cage in your area.
If you’re creative and know how to use tools for creating logos, you can make good cash. Designing logos is among the most popular passive side hustles in 2020 among young Americans. To get started, join platforms like Upwork, Fiverr, Craigslist, or Freelancer. Find gigs, send quotes, and build your portfolio.
Designing logos is an excellent opportunity to unleash your creativity and do something you enjoy. Online logo designers charge anything from $20 to $150 per hour. The average income per hour moves around $45.
Are you an expert in a specific field? In the USA, operations, financial, HR, strategy, and risk consulting are in high demand. If one of these is your expertise, you’re in for a treat. Companies are willing to pay lots of cash to individuals with vast experience in these areas.
Freelance consultants in America make an average of $27 per hour. So, if you do this for an hour every business day, you can scoop an extra $540 every month. In most cities, this covers half the average amount that American families spend on bills.
Become A Notary
The US government appoints individuals to be notaries and serve the role of an impartial witness. They are needed when critical official documents are signed. Anyone can become a notary public if they’re over 18 and legal residents. This position if off-limits to people with a criminal record.
Becoming a notary is among the best ways to create passive income as a side gig. Notaries make, on average, $13 per hour. Depending on what type of documents they get and where they live, this amount can go up to $22 per hour.
Participate In Sleep Studies
Get a good night’s sleep, and make cash! It sounds like a dream, right? Well, this is entirely possible if you participate in sleep studies. Researchers are willing to give bucks to qualified individuals. Each sleep study has several stages. The first stages pay between $25 and $100. That’s not bad for doing nothing but they won’t make you reach.
Making it to the final stages, however, will get you the real cash. During the last stages, you may need to stay up to the center where the study takes place. For your services, you can expect anything between $4,000 and $10,000.
Fill Out Paid Surveys
Marketers, manufacturers, and businesses want your opinion. Discovering what their target audience likes and dislikes helps companies improve their game. So, they’re willing to pay eligible individuals for their stance on various topics. This created one of the most popular ways of making passive income online.
Survey Junkie, Swagbucks, Amazon mTurk, and Inbox Dollars are several legit platforms that connect researches with participants. Find suitable surveys, complete them honestly, and collect your coin. The income per survey depends on how long and complicated the questionnaire is. Plus, specific target audiences make more cash too.
Imagine if you could sit around, doing nothing, and making money! Yes, you’re hearing this right. That’s possible with house sitting. What does house sitting involve? Well, that depends on your agreement with the owners. Most of them will expect you to take care of their home, clean it, and maintain the lawn.
With Americans traveling more than ever, house sitting is in high demand these days. Depending on where you leave and what your responsibilities include, you can make anything between $25 and $45 per day. Considering that people usually travel between one and two weeks, one gig can get you a nice amount of extra cash.
People love their pets more than anything and want them in good hands. That’s why pet sitting is so popular these days among pet owners. This service can be done in your home or at their home, depending on your agreement.
Pet sitting involves feeding and cleaning the animal. When dogs are involved, they require walks too. Pet sitting for a day ranges from $20 to $40. Overnight pet sitting is even more expensive. If you love animals, this can be like getting paid for doing your hobby. Pet sitting is a leading passive income for college students because it doesn’t require any long term or short-term investments.
Sell Your Clothes
Do you have tons of clothes in your wardrobe? It’s widely known that people shouldn’t keep clothes they haven’t worn in the past two years. If you have plenty of such items, you can make bucks by selling them. There is a huge market for second-hand clothes that aren’t damaged or stained.
You will have to invest some of your time to go through your clothes, find suitable pieces, and photograph them. Also, you will have to list them on a website for used clothing or online marketplaces like Craigslist. Then, just sit and wait for buyers to reach you.
If you own a car, you can generate passive income by getting it wrapped. Companies in this business pay from $100 to $400 per month. The exact amount you make depends on various factors, such as where you live and how much you drive your car. Either way, this money stream doesn’t require any actual work from you. Drive and earn!
Sell T-Shirt Designs
Did you know that the average yearly income of T-shirt designers goes around $39,000? As a T-shirt designer, you don’t actually print and ship shirts. Instead, you just create cool designs and let services like TeePublic or Amazon Merch to handle the rest.
This money source belongs among the best passive income ideas because it doesn’t require any cash. You just need your creativity and a laptop. For every T-shirt with your design on it, you collect royalties. Meaning, a single model can earn you cash for life.
Imagine this situation. You’re hungry and want a snack. You notice a vending machine, and the rest is history. That vending machine could be yours! Statistics reveal that most such machines make about $5 weekly. Depending on their location, however, they have the potential of making over $100 per day or week.
There are no rules in the world of vending machines, but a good location with tons of traffic is a must. You’ll need a starting investment of at least $1,000 to set up a vending machine. Plus, you’ll have to restock it occasionally.
Coin-operated laundromats can be the best income producing assets with the right strategy. The annual earnings of such businesses have a wide range from low $15,000 to a fantastic $300,000.
You’ll need at least $20,000 to start this type of business. Meaning, you need proper planning and a healthy savings account. Once up and running, however, laundromats can become quite the money-making machines for you.
Invest In Cryptocurrency
One thing that’s constant about cryptocurrency is their price fluctuations. Bitcoin paved the way for tons of other popular cryptocurrencies on the market. Some of these include the Litecoin, Ripple, and Ethereum.
You can make sweet coins by investing in all or some of these cryptocurrencies. Beware, this is a high-risk investment as the prices quickly grow or drop by 20% or even 50%. Sometimes, people hit the jackpot, and other times they suffer heavy losses. Still, buying and selling cryptocurrency remains among the most popular passive income sources in 2020.
For cashback cards to work, you need to spend cash. Namely, all these cards will give you cashback between 1% and 20% on eligible purchases. Once you collect enough points, you can redeem them for real cash or gift vouchers. So, with smart planning and dedication, you will be generating money without doing any actual work.
Babysitting isn’t for everyone. It requires patience and specific skills. Most families will search for qualified individuals, but students can do it too. It all depends on the agreement and the kid, really.
Rather than going to the child’s house for babysitting, you can save cash and time by doing in-house babysitting. The parents will drop off their kids and then come to get them. What’s in it for you? Well, you save cash on transport, avoid traffic jams, and have the comfort of your home.
Ridesharing companies like Uber and Lyft are actually transportation network businesses. These use native mobile apps to link drivers with passengers. The first use their own vehicles to generate extra cash. The latter get access to affordable transport.
If you own a car, ridesharing driving can be one of your perfect passive income sources. After driving expenses are removed, ridesharing drivers usually make between $8.80 and $11 per hour. Meaning, even if you drive for two hours per day, you can make around $200 per week.
Pay Off Debt
Debt is a terrible thing. It limits your opportunities, it tends to grow bigger and ruins your credit score. One way to improve your financial situation is to pay off your debt. You can achieve this by getting a side gig that will generate extra cash. Once your debt is gone, you can save more money and grow your wealth. We have a great list of fantastic work from home job opportunities you can start today.
Sell Digital Products Or Services
eBooks, photos, videos, courses, music. All these things belong in the digital products category. Writing, translation, design. These are some in-demand digital services. You can sell any of these online to make cash. While products like music and videos can earn you royalties regularly, providing services demands working. Either way, both options are great for making passive income online.
Famous YouTubers earn millions of dollars per year. You don’t necessarily have to become a celebrity, but you surely can generate some extra cash from this source. To make money via YouTube Ads, you need a channel first. Then, you should connect the channel to AdSense and start getting paid for every ad view.
On average, 1,000 YouTube video views will earn you about $10. To generate income, however, you need actual videos that attract viewers. Meaning, it takes time for your channel to grow and make cash.
Who would want to use the Amazon resources to grow their business, right? Fulfillment By Amazon (FBA) lets businesses to store their products in the company’s fulfillment centers. Amazon will do the picking, packing, and shipping. Heck, they will provide customer support too.
Subscribing for FBA saves you lots of hours and lets you focus on running your business instead. Still, you need an Amazon store and products for this to succeed. Meaning, FBA doesn’t belong among the passive income ideas with little money.
Merch By Amazon
If you are a creative soul with tons of great design ideas, Merch by Amazon is worth your attention. This service doesn’t include any upfront costs as it functions as a Print-On-Demand (POD) platform. Collaborators there create designs, set their prices, and collect royalties whenever someone purchases their product.
Amazon recommends a price per shirt of $19.99, for which you get to keep $7. Considering you reach millions of customers via the Amazon marketplace, we say it’s worth it!
Flip Products on eBay
Antiques, appliances, collectibles, wood furniture, toys. All these items are in high demand and can make you rich if you’re willing to put in the work. With eBay being the biggest online marketplace in the world, this is the best place to pursuit product flipping.
Buy valuable items cheaply and sell them expensively. This is the general idea behind product flipping. Unlike the other streams of passive income, however, this takes time and effort. It requires you to do market research. Otherwise, you can easily spend your cash on useless items nobody wants to buy.
License A Product Idea
Are you looking for passive income strategies that don’t require too much work in the long run? Do you have at least one good product idea? If so, you should consider licensing your invention and generating cash from royalties!
Patenting an idea takes time, though. You must make sure your product is original, research your market, and file an application. Then, you must find possible licensees to sign an agreement with. Finally, relax and collect your royalties.
Fund Inventory Needs (Kickfurther)
Before funding inventory needs, you need to understand the concept first. This is lending money to a business to purchase goods – inventory. The store will, hopefully, sell these products for profit and return your loan. Naturally, you get pre-determined returns for your help.
The most popular platform for inventory funding is Kickfurther. Investors can find projects they want to participate in via the service. The co-op profit margin for every project is clearly stated and mostly goes between 10% and 15%.
Search. Find. Earn. That’s the motto of Bing, the Microsoft search engine that nobody’s using. Well, the smart people are using it, actually. Trying to promote the search engine, Microsoft has launched the Bing Rewards Program. It grants users points for every search through the service.
These points can be redeemed for games, gift cards, movies, and more. While this isn’t cash income per se, it still helps you save money by using the gift cards instead.
Pei is a top pick among the top passive income ideas with little money. This service provides automatic cashback for users in cash or Bitcoin. Pei is free to use and offers cash rewards of up to a fantastic 20% on your debit or credit card purchases.
The main benefit of this platform is that it comes without any tricks or hidden fees. Just download the app from the Apple App Store or Google Play. Sign up with the service and start generating passive income with every purchase you make.
Drop is a popular loyalty program that gives users points when they make purchases using linked credit and debit cards. This is a free app to use that helps members to earn free gift cards and exclusive deals. Drop was launched in 2015 and has had a successful story so far.
Amazon, Starbucks, Grubhub, and Uber are some of the brands within the Drop Rewards network. Use the native iOS or Android Drop App to book flights, go shopping, or buy food. Collect points effortlessly and redeem them at popular stores. It’s as simple as that.
Invest in Veteran-Run Businesses
Can you guess one thing that can make you feel good about yourself but also earns you money? Investing in veteran-run businesses is our pick here! If you’re wondering how to make passive income for life without working, investing in another company is the way to go.
One way of supporting veterans is to purchase Veteran Business Bonds. These come with returns of about 5% and work the same as traditional government-issued bonds.
Data is among the most valuable assets these days. It helps towards targeted marketing, rating products, and more. So, sharing your data for cash is an actual way of making money in the 21st century. Some popular services to do this include Powr of You, Bitsabout.me, and Killi.
The latest studies reveal that the data of Americans are valued from $0.20 to $0.40. Still, with millions of businesses trying to get it, the potential income is significant.
Start Building Passive Income Today
Anyone can find a great fit from our extensive list of top passive income ideas. The most important advice, however, is to start building your source right away. Don’t waste time waiting or feeling anxious. Create a working strategy and get started today. After all, every day spent working on your dream takes you one day closer to your financial stability.
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