With the ongoing high rate of inflation and the potential for a recession, millions of people are searching for quick ways to increase their income. According to a recent Quickbooks survey, 66% of respondents who said they planned to launch a new business in 2020 stated they would continue their day job, and 666 percent said they wanted to launch a business to increase their income in the face of inflation.
“Today’s economic environment is anything but stable. In addition to increasing your bank account and financial security, having a side business has psychological advantages, according to Christina Curtis, the founder of Denver-based executive coaching company Curtis Leadership Consulting. “Having extra money saved up for a rainy day makes you more courageous and willing to take calculated chances that can help you progress in your career. ”.
Still, you can benefit from extra side income without having to invest in starting a large business. Using technology to complete small tasks and jobs can help you quickly make extra money.
In today’s world, everyone is looking for ways to generate income. Whether you’re looking to supplement your current income, build a nest egg for the future, or achieve financial freedom, there are many ways to make money
One popular option is passive income Passive income is money that you earn without having to actively work for it This can be a great way to create a steady stream of income that can help you reach your financial goals,
In this article we’ll explore 17 different passive income ideas that you can use to generate income. We’ll cover a variety of options, from investing in stocks and bonds to starting your own business.
17 Passive Income Ideas to Consider
1. Dividend Stocks
Dividend stocks are a great way to generate passive income. These are stocks that pay out a portion of their profits to shareholders on a regular basis. The best dividend stocks increase their payout over time, helping you grow your future income.
2. Dividend Index Funds and Exchange-Traded Funds (ETFs)
You can also invest in index funds or exchange-traded funds (ETFs) that hold dividend stocks. This is a form of passive investing for those who prefer a more hands-off approach.
3. Bonds and Bond Index Funds
Bonds are a way for investors to lend money to companies and governments and collect interest income. Bonds are considered a safer investment than stocks, but they also generally earn a lower return on your investment.
4. Real Estate Investment Trusts (REITs)
REITs are companies that own commercial real estate, such as office buildings, retail spaces, apartments, and hotels. REITs tend to pay high dividends, but they vary in complexity and availability.
5. Money Market Funds
Money market funds are mutual funds that invest in lower-risk securities like short-term government debt or corporate bonds that pay income. In some cases, that income may be tax-exempt.
6. High-Yield Savings Accounts
High-yield savings accounts are a type of federally insured savings account that earns an interest rate that’s often much higher than the national average. The interest paid by savings accounts is added to your balance, so it can grow over time.
7. CDs
A certificate of deposit (CD) is a type of savings account that’s used for a fixed period of time. CDs often pay higher interest rates than savings accounts, because they require you to lock up your money for a set period of time.
8. Buy a Rental Property
Investing in real estate to earn rental income is another way to build passive income. Long-term rentals can provide a reliable source of cash if they are located in a healthy market for renters, but they also carry long-term stressors like maintaining those properties, as well as paying multiple mortgages, property tax bills, and other costs.
9. Rent Out Your Own House
If you can’t afford to buy an entire rental property, you can consider renting out your own residence while you’re away on vacation. AirBnb and Vrbo allow you to set exact dates when people can rent your spot. If you’re away for the summer or over the holidays, it may be an opportunity to earn some extra cash.
10. Get a Roommate
If you’re looking to get into real estate, you can also start small: Rent out a room. Getting a roommate will provide regular, most likely monthly, passive income. Unfortunately, it may mean you have to share a bathroom and fridge space.
11. Peer-to-Peer Lending
Peer-to-peer lending is an alternative to traditional bank loans. It’s riskier than putting cash in a high-yield savings account or money market fund, but it also potentially can earn more interest.
12. Private Equity
Private equity is a form of investment that involves investing in privately held companies. This can be a good way to generate passive income, but it’s also a high-risk investment.
13. Crypto Staking
Crypto staking is a way of growing your holdings in certain cryptocurrencies by using them to help verify activity on an underlying blockchain network. When you stake a cryptocurrency, you can be rewarded with more cryptocurrency.
14. Write Content
Creating content can be a lot of work, especially for work that is engaging and reaches a large enough audience to generate income. But once you’ve created something that people are using, it’s possible to generate revenue through display advertising, sponsored content, or affiliate marketing.
15. Publish a Digital Course
Have a unique skill? You can create and publish an online course teaching others to do what you do. Keep in mind, creating a course may involve a lot of upfront work. You may have to write lesson plans, film videos, and update the courses depending on the platform where you publish your course.
16. Wrap Your Car with Ads
Did you know you can get paid to have your car wrapped in advertising? According to Carvertise, drivers can make between $100 to $500 a month just for driving around. Be careful when vetting companies as there are lots of scams when it comes to car wrapping. Check out Carvertise and Nickelytics, but be aware that these companies do have some negative online reviews.
17. Rent Out a Parking Space
If you live in a city, near a concert venue, or any area that can attract a crowd, the Spacer app allows you to rent out a parking spot. You’ll need a few photos of the spot, the dimensions, and details on the spot’s security, access, and distance from public transit.
These are just a few of the many ways to generate passive income. With a little creativity and effort, you can find a way to make money that fits your lifestyle and financial goals.
Additional Resources:
- 25 Passive Income Ideas for Building Wealth: https://www.nerdwallet.com/article/finance/how-to-make-money
- What is Passive Income, and How Do I Earn It?: https://www.nerdwallet.com/article/investing/what-is-passive-income-and-how-do-i-earn-it
Frequently Asked Questions (FAQs)
What is passive income?
Passive income is money that you earn without having to actively work for it. This can be a great way to create a steady stream of income that can help you reach your financial goals.
What are some examples of passive income?
Some examples of passive income include:
- Dividend stocks
- Dividend index funds and exchange-traded funds (ETFs)
- Bonds and bond index funds
- Real estate investment trusts (REITs)
- Money market funds
- High-yield savings accounts
- CDs
- Rental income
- Affiliate marketing
- Selling digital products
- Creating online courses
How can I start generating passive income?
There are many ways to start generating passive income. Some of the most common methods include:
- Investing in dividend stocks or ETFs
- Buying rental property
- Starting a blog or online business
- Creating and selling digital products
- Offering freelance services
What are the benefits of passive income?
There are many benefits to passive income, including:
- It can provide you with a steady stream of income. This can be a great way to supplement your current income or even replace it altogether.
- It can help you reach your financial goals. Passive income can be used to pay off debt, save for retirement, or invest in other assets.
- It can give you more freedom and flexibility. Passive income can allow you to work less and enjoy more free time.
What are the risks of passive income?
There are also some risks associated with passive income, including:
- The value of your investments can fluctuate. This means that you could lose money if the market goes down.
- Your income may not be reliable. Some sources of passive income, such as rental property, can be subject to vacancy rates or other disruptions.
- You may have to pay taxes on your passive income.
Generating passive income can be a great way to build wealth and achieve financial freedom. There are many different ways to generate passive income, so you can find an approach that fits your lifestyle and financial goals.
If you’re looking for ways to generate passive income, be sure to do your research and choose a method that is right for you.
How to make money fast
If you’re looking for quick cash opportunities without requiring a large initial investment or specialized skills, take a look at these options.
Sell unused gift cards
A 2022 study by CreditCards.com found that 47% of Americans have at least one unused gift card. So if you have gift cards from holidays past collecting dust, consider selling them online at a discount for cash.
Raise is an online marketplace where users can purchase your gift cards when you list them for a discounted price. Once a sale is completed, a 2015 percentage fee is subtracted and the proceeds are deposited straight into your bank account or PayPal account. If you don’t want to deal with the hassle of trying to find buyers, a website like CardCash will pay you in advance for your gift cards (up to 2092 percent of their value) so you can resell them.