HOW TO GENERATE EXTRA CASH IN 2020 WITH AWESOME EASY PASSIVE INCOME IDEAS
Are you tired of spending 40+ hours a week working in an office? But still, you can’t make money without it? I too came to the same dilemma which made me start looking for some passive income. At first, I had no idea how to start and to make my dream reality.
So I started to look for ways about how to make passive income online and after some research, I found many interesting and quick ways of doing it. Here I am going to share some tips that you can use if you want to make money even when you’re sleeping.
You may ask; is that possible?
In order to understand how to make passive income, first of all, you should know what passive income is and how it differs from active income.
Active income means actively performing some kind of labor for and exchange of money. Selling your time and effort in order to get money. All of us need money to live. We have lots of stuff to buy; we should pay our bills and so on. But we can’t make that money if we don’t go to work. That’ why, we are inclined to do office work and spend lots of time in our workplace to get that money.
But did you know that you can also earn that money without working that much?
The essence of this is that you should work at the beginning but after a while, you won’t work so much anymore and you’ll continue being paid.
This is what passive income means.
The most important thing here is that you should keep in mind that passive income isn’t a gift. And if you really want to make money, dreaming isn’t enough.
Initially, you do have to put in some effort and potentially a little money in order to make your dream come true. Remember, that what you will waste today will bring you much free time and money after some period.
And what is most appealing, if everything goes successfully, you’ll finally get lasting financial freedom.
To be more motivated I want to, first of all, introduce some benefits of passive income and you’ll be convinced that it’s definitely a wonderful idea.
Passive Income Benefits
- You have lots of free time which you can use going on vacation with your family, visiting different wonderful places with your friends, sleeping, read your favorite books and really whatever you want.
- You don’t need to wake up early in the morning and rush to the office and stay there late into the evening. To get your passive income you just need to do some work and you can do it whenever you want.
- The most important thing is that you can start chasing passive income in your favorite sphere, so you can stop spending hours a day in the office doing boring work.
- You will not be afraid all the time about being fired after doing something wrong in your workplace. In this case, you are the boss and your income is 100% secure.
And the last but not least, here is some relevant advice:
This isn’t easy at the beginning, but that doesn’t mean that you should give up after trying a little bit. So don’t even expect the income and success immediately.
Passive income requires lots of hard work, research, and time in the beginning. Be creative, generate new ideas, and never lose your motivation.
Concluding we can make a list of the things you need before starting:
- MONEY
- TIME
- CREATIVITY
- HARD WORK
Below you will find all the passive income ideas I researched over the years (including the things I am doing to build my passive income streams). Some of these passive income strategies require more work than others upfront, and some of them come with financial risks that you will have to evaluate before jumping in.
The ideas that I going to introduce to you are both efficient and at the same time difficult. Some of them require financial risks. Some of them are easier to make into reality others require more work and money. So we can make a list of evaluation including in it all the important factors that you should consider before starting. These are:
- MONEY. I have already mentioned that at the beginning you should invest some money, to make the strategy work.
- RISK. You should also take into consideration how risky is the strategy of getting passive income idea.
- TIME. How much time you should spend at the beginning to make your idea work. This is also a crucial factor.
- GAIN. You should also understand how much passive income your idea can bring to you. And then you should ask yourself if it’s worth to the amount of money and time you’re going to spend.
21 Effective Passive Income Ideas
1. Open A High-Yield Account
Do you have savings in your bank account and still you don’t know where to invest it? Then this idea can really great for you.
Most bank accounts pay almost nothing for savings but there are also banks through which you can get up to 155x more than traditional banks. The most important part is to find much better interest rate.
Let’s have a look at CIT Bank. They offer 1.85% for your savings and at the same time they keep no fees. At the beginning you just need to put $100 a month. This is required for earning their top interest rate.
Another advantage of this strategy is that you also don’t spend too much time on it. All you need is just to put aside every month some money from your income and you’ll see how your savings are growing
Here are just some examples of high-yield accounts available on the market now:
CIT Bank – 1.85%
Barclays Bank – 1.90%
Synchrony Bank – 1.90%
2. Peer-to-Peer Lending
The idea of this strategy is just loaning money to other people. There companies, like Lending Club and Prosper, which offer 4-10 percent returns. But at the beginning you should do research and evaluate risks and find the right way of doing this as it’s very risky strategy.
3. Invest In Dividend-Paying Stocks
Becoming a part-owner of the business? Why not? When you invest your money in dividend-paying stock and get a share of the company then you become the shareholder of the company and will be paid by that company.
But first of all you should do lots of research in this sphere do understand what companies are the best to choose for investing dividend-paying stocks and also take into consideration if that company have the possibility of growing and making much money.
There are several blogs where you could find information about this trick, such as Dividend Growth Stocks and Dividend Mantra.
4. Buy Index Funds And ETFs
If you have money but you are short of time and energy. If you want to make your money work for you but you don’t want to do hard work and face risky strategies, this one is for you.
Here also good research is required as you should first of all be familiar with some techniques before starting your ay in this sphere
You can find the information about it in books and also in blogs. Among the best books are “The Simple Path to Wealth”, “The Bogleheads’ Guide to Investing”. I also advise you to read about it in the blog “J.L. Collins’ Stock Series”.
5. Invest with Robo Advisors
At first let’ understand what Robo Advisors are?
They are digital platforms the aim of which is using algorithm-driven technology to make automating investing.
This is highly recommendable if you have little money to start with and invest. If you don’t want also to spend much time learning about investing, Betterment is a good robo advisor for you. You should definitely trust it.
Among the advantages of choosing this strategy is that there isn’t a minimum amount money which you have to invest and the fees are quite low.
You just need to open an account which will take only a few minutes. Tell Betterment a little bit about your financial status, what you want to invest for, and so on. After that, it will offer you the best investment plan that suits your situation.
Another option is to use Blooom for this purose.
6. Rent Out Your Spare Room
Are you living alone in a big house which has lots of rooms or one or two of them which you don’t use? What about renting them and getting money from your house? You don’t have to do anything and you will be paid money at the end of each month by your new tenants.
Also, take this idea into consideration when you’re leaving for vacation! Instead of leaving your house empty and “alone” you can rent out it.
6. Crowdfunded Real Estate
Another good idea is Crowdfunded Real Estate. It’s easy to start because you don’t need to have to invest much money upfront and the effort is quite passive.
When you make an investment in crowdfunded real estate, you are actually funding loans. Later these loans are used to buy and improve real properties. Then you get your money back plus interest. The returns average around 7-10 percent. The concept is similar to peer-to-peer lending.
PeerStreet can be helpful for you if you decide to choose this strategy. As always, you should be very careful and do enough research before starting as it’s a new market.
7. Invest In REITs (Real Estate Investment Trusts)
Investing through REIT is also a great way of making passive money.
What is REIT?
With the REIT the capital growth is ensured. In this case, you don’t even need to own and manage a property, because the REIT company already does these steps. Investing in a REIT allows you to invest in a portfolio of real estate assets. After the properties appreciate in value, you get a return on your share of the income. Find a local REIT Investment group to contact about investing. Many malls and commercial properties are involved in REITs.
8. Invest in a Rental Property
One of my favorite ways of making passive income is investing in a rental property. This, at first sight, may seem not so passive but the difficulty is only at the beginning. You can choose to either find the rental property which is in good condition or find a cheaper property to fix up. Then you can rent it out to tenants.
While renting out a home and being a landlord does provide passive income, there is work involved. You have to make sure to find good tenants and conduct background checks on them, you have to keep up with the local and state laws, you have to pay property taxes, maintain insurance and you’re also the in charge of managing all repair requests and maintenance.
Having said all that, if you are careful to setup your rent home with good business systems, it can be a great source of passive income.
10. Rent a property
Do you have a car, parking space or a bicycle? Rent it!
There are several companies where you can list your personal properties for rent. Among them are Turo, and Splinlister. They have policies that give back your money in the event that your bike or car gets damaged.
11. Get paid to shop
We all spend money shopping, no matter how frugal we are.
So why don’t you get some money back after doing the shopping?
Here you don’t even need to invest any money. You just need to set it up and you’ll get back 2-7 % of your money. There are lots of platforms for this.
Swagbucks: if you often to shopping from Amazon, Target, or Starbucks, then this website is for you. It includes almost 1500 shops. You just need to find your shop, click, and get back your cash!
Rakuten: is another app and website which you can use for this purpose. Just find the shop where you did your shopping and earn your cashback. Moreover, when you sign up you get a $10 bonus.
Ibotta: somehow differs from the other ones. In this case, you’ll need also the pictures of your grocery receipts, snap a pic of them in the app. It’s very fast and easy. So give it a try! It also gives you a $10 bonus when you sign up!
12. Start your own online store
An e-commerce website is surely a wonderful idea for passive income. You can find lots of business models for it. At first you need to invest some money and spend time on it to make the idea work.
Dropshipping is one of the popular ideas with online e-commerce. In this case, you don’t own any of the inventory in stock; you don’t need to worry about shipping and delivery. You just sell other people’s products. You put the product in your online store and when the client wants to buy it the manufacturer will worry about shipping and delivery.
For this strategy, I will recommend Shopify. It’s definitely a wonderful platform for online shopping and offers awesome design for your e-commerce websites.
NOW LET’S SEE WHAT PASSIVE INCOME WE CAN GET FROM DIGITAL CONTENT
13. Starting a Blog
At the beginning, this idea may seem a little bit unbelievable. But it’s really possible. You can definitely make money from blogging. But you also need hard work and dedication.
Choose an interesting topic about which you can write blog posts or make videos and start. Make sure to choose a topic that a lot of people are interested in and are searching for (not just one that interested you). After a while, you can get a huge amount of traffic. The more traffic you get, the more money it promises you.
Many people make money from blogging, and if they can do it, you can do it too.
14. Write an E-book
E-book writing is a great idea if you also like writing about your experience, expertise, memories, emotions, and so on. Becoming an author has never been so easier than it’s nowadays.
Writing a fiction book is great but if you want to make money in a short time you should write non-fiction books about personal development, motivation, finance, design etc. – Basically something that helps people solve a problem that they have.
Also you should realize that this requires a little bit money and much more time. You should advertise your book through bloggers and influencers to get results.
One of the most popular platforms for online book publishing is Amazon Kindle Direct Publishing platform is an easy way to get your e-book on Amazon as quickly as possible and start making some money.
15. Affiliate Marketing as a Passive Income Source
Another idea for beginning a passive income strategy is affiliate marketing. Again like blogging you should have a website with lots of traffic.
If you create a platform that will interest many people then you can make this idea a reality and get a huge amount of passive income.
16. Teach Your Expertise
Who are you by profession? Do you have skills that you can teach others? Then why not making money through your skills?
You just need to create an online course. You can make videos, blog posts, how-to articles and share your skills, or sell your skills.
There are lots of online platforms that you can use making this idea, among them are Teachable, Udemy, and SkillShare.
17. Flip domains for profit
Domain name are the web URLs that people buy to start websites, blog or online stores. If you have a knack for finding great domain names, you can earn some pretty good money flipping them for profit.
An original domain name costs about $8.00-12.00. Once you buy it, it’s your own domain and you can sell it at high prices and make money.
I don’t recommend you to invest more than $100 in this strategy unless you know for sure that you are selecting good domain names. Do lots of research before buying a domain in order to predict which names of the domains can be more popular.
18. Create a YouTube Channel
This one is rather difficult at the beginning because you need to invest some money and spend a lot of time creating video content. But once you offer the right content you’ll also get the traffic you need to make money.
After getting enough traffic you can put ads on your YouTube videos and every time somebody watches your video you get money. One of the advantages of YouTube content is that nowadays people prefer watching short videos to learn something new instead of reading about it.
19. License Your Photos
Are you fond of taking creative and beautiful photos? Do your friends keep telling you what fantastic photos you take every day? Then perhaps you should try selling your photos.
There are several websites where you can upload your photos. Depending on how many times people downloaded your photos you’ll be paid by that platform.
You can choose such websites as Shutterstock, iStock, Adobe etc. Also, you can find lots of instructions on the Internet about how to sell your photos online.
20. Develop an app
If you have creative app ideas, you can find the people, who have the skill required for app development, create a fascinating app, and upload it to the ios App Store and Android Play store.
Every time people download your app, you get money. It’s difficult at the beginning, but once you create and advertise your app in the right way you can be sure your huge passive income is ensured.
How to choose an app to develop?
You have to do research and find what kind of problems people face mostly and create an app that can help them to solve those problems. Or you can look for the apps which have been downloaded several times but aren’t that wonderful, make something like those but in a better way and upload them.
21. Sell Printables on Autopilot
If you’re an expert in design downloadable digital items you can use Etsy for selling products and make a huge amount of passive income. With Etsy you don’t need to worry about shipping and delivery, just use your time creating wonderful and awesome stuff that will attract many people.
You can create for example Greeting Cards, art prints, or invitation cards, to name just a few. So make your imagination work and bring you great passive income.
Summary of Smart Passive Income Ideas to Generate Income
All these ideas I have introduced for generating passive income are quite promising, but as I have already mentioned at the beginning you’ll make them work only when you don’t give up after trying for a while and invest the money and time required for getting the necessary results.
If you work hard success is inevitable.
If you want to start making passive income, choose one of these great ideas, and start working – hard.
I have already chosen some of them and started working on them. Among my favorite ones are: writing an E-book, creating a YouTube channel, and starting a blog. What about you, which ideas do you think you’ll try out?
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