Nine Ways to Make Passive Income in 2020
If you wish for financial freedom and sustainable wealth, you need to figure out some ways to make money passively. Most of the millionaires today have at least seven income streams to keep them financially stable.
Your income streams do not necessarily come from another job, and that is what a passive income is. Passive incomes help you get money from different sources without working as hard as you do on your primary income source.
What exactly is a Passive Income?
Limited partnership, rental property and other similar forms of income wherein the person earning money is not actively involved, is called a passive income. A passive income is taxable in the same way as an active income however, it may be treated differently by the IRS.
The following are some smart passive income ideas that you can use to build your wealth.
1. Invest in Stocks that Pay Dividends
Probably one of the more traditional methods of making passive income is to invest in stocks. But not just any stocks, you should be on the lookout for stocks that are paying out quarterly dividends. There are several companies in which you can invest e.g., Colgate-Palmolive.
Now, if you are looking to double down on those stocks, then you can reinvest those dividends instead of cashing them out. If you are content with cashing dividends, then it's perfectly fine for you to do so to have a consistent second income.
2. Earn Money on Your Savings
Perhaps another safe way of making some extra cash is to get your hands on a savings account, which pays excellent interest rates. There are many banks offering amazing interest rates on your savings, and can help you generate a good passive income.
3. Reward Points and Residual Income
A really easy way of making some extra bucks is to redeem money on your daily purchases. If you use Swagbucks or InstaDollar, you can earn points shopping online at Amazon, Starbucks, Walmart, etc.
You earn points as you watch videos, filling out survey forms, and browsing the web. These points can be redeemed for gift cards, you can use it at your favorite stores. These reward point schemes are a great way to make some extra residual income that always comes in handy.
4. Teach Online
Another great way to generate some passive income is to teach online. You can create a course of something you can teach and are an expert in. You can then sell this course online on platforms like Udemy.
The best part about teaching online is that once you have created and uploaded your course on the right platform, you don't have to do much. As people enroll in your courses, you make money.
5. Rent out a Spare Room
Airbnb has revolutionized the real estate industry and allowed a lot of opportunities for those looking to make extra money. If you have a spare bedroom around the house, then make sure you enlist it on Airbnb.
It is an easy way to earn money, and you have a lot of control with Airbnb too. You can set your daily rates and availability with the stroke of a finger.
If you are worried about strangers wrecking your place, then there is no need to be anxious as Airbnb has a million dollars' worth of insurance if something goes downhill. Moreover, you can access people's profiles where you can assess their ratings before handing them access to your place.
6. Affiliate Marketing
Affiliate Marketing helps you earn a commission on the sale of a product you promote. You should have enough information on the product and honestly believe that it is of good quality to make amends.
You can quickly begin your career as an affiliate marketer by signing up for Amazon Affiliate. Once you sign up, you can promote products listed on Amazon, and make a commission for each sale that you facilitate.
You can create a website or blog, and suggest people products you think are really good. As people use links on your site to get to those products, you will make a small commission on the sale of these products.
Amazon Affiliate, however, is not the only platform you can get things started on. You can always collaborate with other companies and do the same for their products. It is a way to make money without any real investment.
7. Crowdfunded Real Estate
Did you know you can start investing in real estate with as little as $500? With Fundrise, you can start investing in property without having large sums of money. Some estimates suggest that you can make about 12.25% as returns on your investment.
Similarly, there is RealtyShare. It is another platform where you can invest money in real estate, but the minimum amount is $5000. It is different from Fundrise in the sense that it gives you more control over your investments. Instead of relying on a portfolio's performance as in the case of Fundrise, you get to choose which properties you want to invest in.
Keep in mind that these investments aren't easy to liquidate, as in the case of stocks. You might have to wait a significant period before you can liquidate your investment and get the cash. The period can be anywhere between 6 months to 5 years, depending on the nature of your investments.
8. Make Money off Your Car
Uber driving is a profitable side income too. Like most people, you probably own a car and travel places every once in a while. You can turn to Uber driving whenever you are out on the road or running some errands. You can make short trips in assigned locations to make a quick buck.
Alternatively, you can rent your car when it is not in use. Apps like Getaround can help you rent out your car for a good return with plenty of other benefits. If you are a Getaround user, you get comfortable parking spots and primary insurance coverage as well.
9. Lending Clubs
You can always become part of a lending club. Lending clubs take your investments, lend it to people who need it to start a business, pay for medical care, etc. You can expect a higher than normal rate of return on these investments while also having a good conscience of having contributed to society.
There is practically no fee, and you can open an account in as little as a one-cent deposit. Investments can be as low as $25, and you can expect receiving payments every month. Moreover, you can always reinvest your money and even expect higher returns.👉 Check out our courses to learn more!