You can break down passive income as “Making money while you sleep”. As fascinating as the idea sounds, knowing the 15 Best Passive Income ideas that will make you a millionaire is more intriguing.
Passive income can be a great way to help you generate extra cash flow, whether you’re running a side hustle or just trying to get a little extra dough each month. Passive income can help you earn more during the good times and tide you over if you suddenly become unemployed or voluntarily take time away from work.
With passive income, you can have money coming in even as you pursue your primary job, or if you’re able to build up a solid stream of passive income, you might want to kick back a little. Either way, a passive income gives you extra security. Let’s hop on to the 15 Best Passive Income Investment ideas to make you a millionaire.
What is Passive Income
Passive income is money earned with minimal activity through any venture that requires little daily effort or upkeep on the individual’s part. Passive income has a golden rule, and that is,
“For all of you are actively building a business or a side hustle, but for the income stream to truly be passive, it must require less and less effort to produce income, eventually requiring no effort (or very little to maintain).”
What is not Passive Income
Before moving on to knowing the 15 Best Passive Income Investment ideas that will make you a millionaire, you must have clarity on what cannot be considered passive income. Here is the list of a few income sources:
- Your Job
- Side Hustles
- Investing for speculation
- Consulting
- Freelance computer programming
- Freelance writing
- Working Construction
- Photography sessions
- Driving for Uber
Passive Income Investment Ideas
Here is the simplified list of 15 Best Passive Income Investment ideas that will make you a millionaire:
Stock Market
The 1st and most popular way of getting passive income among the 15 Best Passive Income Investment Ideas is investing in the stock market. Investment assets best considered is the “stock market”. Interest, ordinary and qualified dividends are paid and will eventually be sold for capital gains. Some private placements that are debt and equity instruments, which so far result in interest, are also good. 80% of our investable assets are in the stock market to give you a sense of scale.
Invest in Real Estate
Real estate investing has been a well-established method for building wealth for almost as long as real estate has existed! Real estate investing was once a tricky venture to undertake – requiring a lot of time, effort, and expertise. If buying properties seems a bit out of budget, you could also purchase a real estate investment trust known as a REIT. These investments generally pay generous dividends and follow the stock market’s performance.
Invest in High-Yield Savings Accounts.
Savings accounts might be the most boring investment ever invented, but they are also the safest. At 0.15 per cent interest or lower, you’d need to exceed the FDIC-insured $250,000 account limit to see any real action. However, online savings accounts offer rates well above typical banks. These rates are competitive with CD rates without locking in your money for several years.
Rental Income
Investing in rental properties is an effective way to earn passive income. But it often requires more work than people expect.
Suppose you don’t take the time to learn how to make it a profitable venture. In that case, you could lose your investment and then some, says John H. Graves, an Accredited Investment Fiduciary (AIF) in the Los Angeles area and author of “The 7% Solution: You Can Afford a Comfortable Retirement.”
Opportunity: To earn passive income from rental properties, Graves says you must determine three things:
- How much return do you want on the investment
- The property’s total costs and expenses
- The financial risks of owning the property
Affiliate Marketing
Again a critical point among the 15 Best Passive Income Investment ideas that will make you a millionaire is affiliate marketing. With affiliate marketing, website owners, social media “influencers,” or bloggers promote a third party’s product by including a link to the product on their site or social media account. Amazon might be the best-known affiliate partner. Instagram and TikTok have become massive platforms for those looking to grow a following and promote products.
Peer-To-Peer Lending
A peer-to-peer (P2P) loan is a personal loan made between you and a borrower, facilitated through a third-party intermediary such as Prosper or LendingClub. Other players include Funding Circle, which targets businesses and has higher borrowing limits, and Payoff, which targets better credit risks.
To cut the risk of losing money, you need to do two things:
- Diversify your lending portfolio by investing smaller amounts over multiple loans. At Prosper.com and LendingClub, the minimum investment per loan is $25.
- Analyze historical data on the prospective borrowers to make informed picks.
Buy or Start a Blog
A great way to earn money with minimum effort is with a blog. Of course, this will take time and effort to build, as you will need to write the blog regularly and build an audience. Still, you can earn an impressive income with a blog via affiliate marketing or even selling ad space on your website.
If you’re unsure how to start a blog, you could also make money by buying an existing blog. This is a great “cheat,” You can benefit from the traffic and cash flow already established.
Become a Silent Business Partner
If you would love to own a business, you might want to consider becoming a silent business partner. In other words, you contribute financially to the company but leave the day-to-day operations to your partner.
After your investment, you’ll be paid a percentage of the profits regularly, and your money will be backed by percentage ownership of the company.
Don’t trust your dodgy mate’s business idea enough to invest? Many websites for entrepreneurs looking for a silent business partner to invest in their business.
Write an eBook
While writing a blog and monetizing it is a good passive income idea, writing an eBook is an even better example of passive income, as you only need to write it once! Every time someone buys a copy, you’ll receive royalties. Royalties for a printed book tend to be between 5-20% of the book’s price. eBooks are even more profitable, paying around 25%.
Audiobooks usually pay royalties between 10-25% and are the best idea among the 15 Best Passive Income Investment Ideas.
Also | Checkout step by step guide on How to Write an eBook
Create Online Courses
It’s easier than ever for educators to sell courses online. Whether it’s marketing, illustration, or entrepreneurship, you can create classes and start selling with few limitations. Like digital products, you can sell online courses repeatedly without holding any inventory or stock.
Teaching online requires some upfront investment in time. You’ll need to outline your course, record it, and make downloadable assets like templates for students to walk away with.
Sell Stock Photos
Are you a photographer or someone who enjoys snapping pictures? Put that talent to use! If you want to make extra money for your photos, you could consider selling your images as stock photos. The easiest way to make your photographs available for sale as stock images are to use a third-party site, such as Adobe Stock, Shutterstock, Alamy, etc.
If you have the skills and resources to do so, you could also sell your stock images on your website.
License Your Music
Are you passionate about making music but not passionate about performing live? Or have you tried to perform live and not make enough income?
One solution would be to license your music.
Licensing your music means that people and companies pay you in exchange for the rights to use your music in a project. Here are six different ways that you can make money licensing music:
- YouTuber
- Wedding/Videographer
- Indie Film Soundtrack
- Indie Film Trailer
- Corporate video
- Advertisement
Did you know you can earn money simply by having a thriving social media presence? Social media influencers are people with high follower counts and high engagement rates who get paid a commission for sponsored posts, affiliate marketing or even hosting/attending events.
It would be best if you were committed to your social media strategy and prepared a portfolio illustrating the engagement levels of your audience that you can share with brands interested in collaborating with you.
Start a Vending Machine Business.
Vending machine businesses are a surprisingly profitable and low-maintenance small business idea that almost anyone would get involved in. Buy a few vending machines and hire them out to local businesses. Then, every couple of weeks, drive around to replenish the stock and empty the cash.
You could even hire someone to do the cashing and replenishing for you. It doesn’t get much easier than that!
Rent Your Car
Last but not least, among the 15 Best Passive Income Investment Ideas is Renting your car. Your free space is not the only thing you can use to earn passive income. You can also offer your vehicle up for rent with Turo service.
If you already use your car for Uber, you can sign up with platforms like Carvertise or Wrapify to earn extra money as you take trips around town.
Another option is to look for someone who needs a car for Uber or Lyft. So instead of actively driving around in your free time, you can pull up a Netflix show while your vehicle works for you.
Write down in the comments section which among the 15 Best Passive Income Investment ideas that made you a millionaire and how much money you made while sleeping!!!
Since you read 15 Best Passive Income Investment ideas that will make you a millionaire. Also, Checkout more ways to save your money by getting through the 8 Best Money Saving Apps in the Netherlands to Save That Last Euro.