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Did you ever think you could make money while you sleep? Well, it’s not impossible, you actually can with passive income!
However, don’t think of these as get rich quick schemes, they do require work or money upfront. But once that’s done, you can start making money passively, or as you sleep.
Some of these passive income ideas only require some maintenance once in a while after you put in all the work at the beginning. These passive income ideas are a great place to get your creative brain going.
I would recommend starting one of these at a time and once you’ve done the work needed for that, then move on to build another passive income stream.
If you’re a college student, you can start working on one of these ideas on the weekends or after class or whenever your work is done.
Some may take more time than others to implement, it just depends on how hard you’re willing to work and how fast YOU can implement the idea.
Let’s take a look at these passive income ideas you can implement today to make money while you sleep!
Passive Income Ideas:
1. Lend Money
Possibly one of the oldest passive income ideas, lending money. You can lend money sort of as a personal loan and then charge interest on it. This is probably a little difficult if you were to go at it alone and without knowing many people that needed loans. Thankfully, there’s already a system built in place where you can do just that.
Lending Club is a website where investors and borrowers meet. As an investor, you can fund a borrower’s full loan, which is a lot, or fund multiple people with a small loan, as low as $25.
This way you’re only lending someone $25, if you choose this method. You can get a decent 4-6% return on your money that you loan to others through interest. If you have $25 that you would like to loan sign up with Lending Club!
2. Real Estate Investing
Another great way to generate passive income is through rental properties. You have two options on how you want to do this. You can either buy houses, duplexes and triplexes and such and rent them out. Or you can make it even more passive and invest in real estate online.
The latter seems like a better option for me! If you do however, already have some experience or have a good friend renting out their own properties than the first option may work better for you. Or you can do both!
For the online option, you can use the crowd funding platform Fundrise. Similar to Lending Club, you put your money in but this time instead of it going to a borrower, it’s invested into real estate deals.
Before, if you wanted to invest in some high end real estate deals, you would first need a LOT of capital but now you can invest in those deals with much less capital with Fundrise!
You only need a minimum amount of $500 to get started, and you can expect on average 8-11% of annual returns! Fundrise has various options you can choose from for how you want your money invested and it’s a fairly popular method for real estate investing. The platform was rated 4.9/5 stars by Google!
3. Investing in Dividend Stocks & Index Funds
There are two simple ways you can earn passive income from investing in the stock market. Both of these are some of the easiest and best ways to get started earning passive income. You don’t need a ton of money to get started, all you need is a stable income that you can use to invest in the stock market.
You can earn passive income through dividend paying stocks. Companies distribute a percentage of their earnings to their shareholders every quarter in the form of dividends. So, they will literally pay you just for being an investor in their company. This idea has been tested and validated for years!
Now, if you want a higher growth approach, you can invest in Index Funds! These are a type of mutual funds that track a certain index in the stock market, such as the S&P 500.
The way you can earn passive income with these is by having your investment on autopilot. You can also invest in some of these index funds yourself and once you are at a point you feel like you’ve earned a high enough of a return, you can sell your funds and receive your cash!
If you’re wondering what platform to use to invest with, then I would recommend Wealthsimple for earning a truly passive income with a hands-off approach. Wealthsimple is a well-known robo-advisor for U.S. and Canadian citizens.
You can start investing with any amount of money you have because there is no required minimum to start! Plus, the management fee is a fraction of what financial advisers charge. It’s 0.5% for $0 – $100k invested. If you’re interested in learning more about investing with Wealthsimple, click here!
4. Open A High-Yield Savings Account
If you’re looking for a much less riskier way to accumulate passive income, a great way to do that is with a savings account! But, most savings account will give you a measly 0.1% annual return on your money.
So, you have to be more strategic if you plan to go this route and open one that gives you better interest on your savings, such as CIT Bank. It’s an online bank, which means they are able to give out MUCH higher interest rates to their customers than traditional banks because the costs are way lower for them to operate.
In fact, CIT Bank is paying 1.55% interest if you open a savings account with them. And you only need a minimum of $100 to open an account. This makes for a great passive income stream with extremely low risk because it’s also FDIC insured!
5. Rent Out A Room In Your House
Another great way to make passive income is to rent out a room with Airbnb. So if you have an empty room, you can take advantage of it and start earning passive income. You can even rent out your whole house if you’re going on a vacation.
The great thing about Airbnb is that the people you will rent your room to will have reviews. So, before you actually choose who you want to rent out your room to you can read their reviews and choose the ones you prefer!
For these next ideas, you don’t particularly need much money to start them, but you will need to put in a lot of hard work at first, which will also require a lot of time. But, once it’s implemented you can start earning money while you sleep.
6. Start a Blog
You may be confused at first but let me explain how you can make money by starting your own blog. Many people actually make a living from their blogs. This blog currently does not generate any money but there a plenty of others that make thousands of dollars a month from blogging! Check out how this blogger made $79,000 in a month! How can bloggers make this type of money?
There are several ways that I’m aware of so far. If they have a large enough of a following, they make a good amount from ads being displayed on their blogs. In addition, they can make money with different ways, such as sponsored posts, partnership and affiliate programs, or by selling their very own products or services directly.
This idea though will take a very long time to get to a point where you can earn a decent salary. But once you’ll built up a great website with great content and have an audience, you can continue to make money while you sleep with maybe just a little maintenance from time to time.
Note: If you decide to go this route, you will need to purchase a hosting service, it’s relatively cheap to purchase. I recommend using BlueHost, this blog currently uses BlueHost’s hosting service, it’s very reliable and the 24/7 customer service is truly amazing. You can get registered for it here and you’ll receive a 50% OFF discount and a FREE domain name to start.
7. Start a YouTube Channel
Similar to starting a blog, you can start the video version of that and create videos on a YouTube Channel. Many YouTubers out there also make a living from just creating awesome videos. They also make money from ads, sponsored videos, affiliate programs and their own products and services.
Just like blogging though, this can require a tremendous amount of work upfront before you see any money coming in. You’ll need either great entertaining or informative videos and have lots of subscribers built up to start making money while you sleep.
8. Sell an Ebook
You might be thinking you’re not an author or even that great at writing. If you didn’t then great, this idea may be easier for you to start. But, if you did have that thought, not to worry, because you can still make money selling ebooks, keep reading.
Millions of people purchase ebooks to read everyday from Amazon’s Kindle Store! Think of those possibilities to make money! There are authors out there that are making thousands of dollars a month from ebooks that they have published on the Kindle Store. And they are making this money entirely passively because they already put in the work when they wrote or outsourced the ebook! There are two ways to go about publishing ebooks.
First, if you have some type of knowledge that could truly help and solve some people’s problems, then you can write an eBook for it. It doesn’t have to be perfect, you can get it proofread by friends and family and maybe even some English teachers before you publish it.
But the idea here is that if your eBook is easy to understand and if someone has a pain big enough that your eBook solves, then your eBook could sell and make you money.
Second, if you decide writing really isn’t for you, you have to think of a good book idea that’s informative and solves someone’s problem. Then, after you pick a topic you can make an outline and outsource the writing to a ghostwriter.
I’m not sure exactly how this process works but the idea is that you give someone your topic and maybe an outline and hire them to write the content of the eBook for you.
Once the ebook is written, you can put it up on the Amazon Kindle Store or another ebook platform and start making money passively!
If you’re seriously about making money selling ebooks, one of the best and highly rated programs out there you can get is Kindle Money Mastery!
9. Sell Courses
If you’re really knowledgeable on certain subjects, like standardized exams, marketing, gardening, cooking or pretty much any other topic you can make money teaching other people! The list goes on and on, you can make money from an abundance of different topics.
You can sign up on Udemy and start creating some courses in your area of expertise. Once again like the other ideas, you will have to promote your courses first before you see some sales.
But once you’ve created the courses, most of the work is already done, then you just need to market them. Now one your courses could be sold on Udemy at night even if you’re sleeping and making you money.
10. Design T-Shirts
If you’re not into either writing, or making videos, and instead you have a more creative mind, then you can make money from creating custom designs for T-shirts!
There are several platforms that allow you to upload your designs, put them on T-shirts and then sell them, all online. You don’t need to make the T-shirts, just the designs. The platform that you decide to use will take care of all the rest.
One of the most popular ones is Merch by Amazon. It’s all done on the Amazon platform. So, as you can see you can make a good passive income from this.
Again though, you may need to market your t-shirts at the beginning after your designs are uploaded and your t-shirts are up for sale.
There are also many different computer programs that are available where you can create beautiful graphic designs on. So, go out there, research some and create your graphic designs and sell t-shirts while you sleep!
11. Sell Stock Photos
Most businesses need stock photographs. This is how you can make money from them. If you’re skilled with a professional camera, or even with some smartphones these days, you can take some great stock photography shots and sell them online.
And if photography is already one of your hobbies, you’ll be having fun and you’ll be able to make some money from it! On platforms such as ShutterStock or iStockPhoto, you can upload your stock photographs and receive commission every time someone purchases your photo.
12. Create an App
As mobile applications get more and more popular than even desktop programs, there’s an opportunity to make money with apps. There are two ways you can make an app.
If you’re good at coding and know programming, you can learn fairly quickly on how to make the app yourself and get it on the App Store or the Google Play Store.
This process may require a tremendous amount of time and work, depending on the app being developed. But, if you’re not a programmer, then you’ll need a good app idea. Once you can think of one, you can hire an app developer to create the app for you.
Once the app is created you can make money from either ads, in-app purchases or by selling the app directly instead of listing it as free. If your app goes viral like iFart or Angry Birds, you could be making lots of money as you sleep!
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Are you inspired yet by these passive income ideas? I believe these are seriously great ideas to start from if you wish to build a passive income stream.
But, none of them will work unless you take action and put in the work! So don’t procrastinate, start implementing one of these ideas today so one day you can make money while you sleep!
Do you know any other ways to generate passive income and make money while you sleep?
I hope you enjoyed this post and found it useful. Feel free to leave a comment if you have any questions or anything, I’ll be glad to address them! Also, if you enjoyed reading this, then consider subscribing to Parhelia Finance’s email list and sharing it on social media!