Passive Income is a total buzz word these days. Making money while you sleep? Is that even possible?
Oh, it’s totally possible.
For example, yesterday I spent the day shopping and hanging out with family and still managed to make over $100 without even working for a second.
Passive income gives people the freedom to do whatever you want, whenever you want. When you’re earning passive income on the side you can find ways to invest more of your regular paychecks to earn more passive income and start a never ending cycle of wealth building for years to come.
Are you looking for some kind of passive income strategy that you can implement? Here are a few simple, easy to understand, passive income ideas that you could start this year to make 2019 the year for you!
Our blog posts often contain affiliate links, you can learn more in our very long (and very boring) affiliate disclosure!
What is Passive Income?
I’m going to assume that you’re a total beginner and you have no idea what passive income even is. I find the strategy of “explain like I’m 5” to be a great way to talk about personal finance, or anything really.
The term passive income just means any income that’s created without you having to do any more work. This means you’re able to do the work once and make money for months or even years to come. *There may be some maintenance required but it’s usually minimal.
For example, this blog is mostly passive income. I will write a blog post like this one and share it on social media and I’ll get income coming in for this post for years. I updated blog posts about once or twice a year but other than that it doesn’t take much maintenance.
Passive income gives you the freedom to do what ever you want. It’s the perfect kind of side hustle because it doesn’t require you to do hours and hours or work each day to make you money. You’ll find a lot of people working a part-time job in addition to their full-time job and that is just going to stress you out and make you pretty sad most of the time!
The goal is to work less for more money, right?
I’ve also noticed that most lower income earners think that passive income isn’t possible unless you have tons of money to invest. I made sure to add things to this list that don’t cost a ton of money to get started. Okay, ready? Let’s dig into some awesome passive income ideas.
Passive Income Ideas
If you have any kind of platform (a blog, a Youtube channel, a couple thousand Instagram followers, etc) you can start affiliate marketing. What is affiliate marketing you ask? Affiliate marketing is where a company will pay you money for directing traffic to their website or generating sales. How does it work? You’ll develop a relationship with a brand through an affiliate program and link to them on your platform using an affiliate link and you’ll receive money whenever somebody buys from it! Pretty simple right?
Two months ago I knew literally nothing about affiliate marketing and I knew that it’s a great way to get some income from this blog that I work so so so hard on so I did some research. I over and over again found great reviews for the course
Making Sense of Affiliate Marketing by Michelle Schroeder-Gardner and she deserves all the great reviews! After buying the course (for what felt like a crap ton of money but was totally worth it in the end) I have made a few hundred bucks with minimal effort and I’m super proud of what I’ve accomplished so far. If you want to learn more about Michelle’s course and support this website in the process you can click our affiliate link here! (Did you see that? Using affiliate marketing in the process of explaining affiliate marketing? It’s seriously that easy and I promise you that I support Michelle and her course and her blog 100%)
It doesn’t matter what kind of content you create, you can start affiliate marketing. Businesses are aware that social media and relationships with influencers is super lucrative and a way better way to spend their advertising dollars.
Start a Blog
Rental property is a more debated kind of passive income. Some people don’t see it as passive because you have to collect rent, and do repairs and answer to a tenant but the amount of work you actually have to do for the money you get is minimal. You’re also building wealth during the process because you’re increasing your equity in a home every single time you make a mortgage payment.
Obviously, this kind of passive income is going to take some money out front to start. You’ll need enough cash for a down payment and for taxes but you’ll get rent every single month and it will pay for itself in no time. If you have the time and organization skills to be able to organize a rental property this is a great investment and a great way to make passive income.
There are a lot of families who would love to have a cottage or a summer home but think they can’t afford it. Rental property is a great way to do this! There’s this incredible website called Airbnb where people put their properties up for rent! They’re so much cheaper than hotels and gives you the option to have an entire home for your trip. If you take the time to put up a nice listing with beautiful photos you could make thousands a month which will cover more than just the cottage rent. If you’ve never stayed in an Airbnb before, using our link to get $45 in rental credit and go on a vacation soon!
Anytime you create a book that sells for money you get cash every time someone buys it … forever. People have taken this to the next level by creating Ebooks for Kindle to sell on Amazon! I know this sounds crazy and it isn’t for everyone but there is big money in making erotic fiction. People are buying erotic short stories and novellas on Kindle for a few dollars a pop and it only takes a few hours for the author to write. I know I know. Who wants to tell people they write erotic fiction? It’s honestly a super easy way to make money. If you want to learn more, I stumbled upon this website called the erotica academy a few weeks ago from Pinterest, not sure how I got there but it happened. You can check them out here to learn more!
Dividends from Investments
I am terrified of investing. There, I said it. It scares me. I’m in the process of finishing off my student loan debt and then I’m planning to make my first investment in about a year but it still freaks me out so much. I’ve done a ton of research and I know that if you pick the right type of investment fund you can make a 10% return on your investment year after year. This means that if you invest $1,000 in a fund, you’ll make $100 in the next year. That may not seem like much, but the more it grows the crazier it is. Imagine if you managed to put away $250,000 in investments that give at least a 10% return. This means that you’ll make $25,000 a year that you could take out and use to pay for your life and your need for other income will decrease insanely quickly.
If you’re scared to make the jump, there’s a great Youtuber named Graham Stephan who talks all about investing and making money. If I were you I’d check out the video he made called The BEST ways to invest your first $1000. Graham has been a great resource for me and a serious source of inspiration.
Start a Youtube Channel
If you’re into making videos and you have a decent personality, you can easily make some extra money on the side from a Youtube channel. I consider Youtube to be passive income because you only need to make the video once and you can make money from that video for years to come. As long as you use good keywords and have great visuals, it can make you money forever. Having a youtube channel is a great way to take the leap into affiliate marketing as well! Building a community around you is a great way to build up passive income.
You can make youtube videos about just about anything. You can do tutorials, you can do beauty videos, you can teach people about money, there are so many options!