This post was most recently updated on November 27th, 2019
If your 9-to-5 job isn’t financially full filling enough, it’s time you set up passive income streams.
This is possibly the best decision you can make for yourself just as long as you’re willing to put in the extra hours.
To get you started, we’ve come up with passive income stream ideas that aren’t too difficult to execute.
List of Passive Income Ideas
Alternatively, you can also check out passive income apps but these apps mostly pay token amounts that won’t get you too far. So, if you’re looking for more long-term passive income streams, here are a couple of ideas you could try:
1. Peer to Peer Lending
Banks don’t lend money to people because they believe in charity. They do it to gain profits and you could virtually benefit from the same. Peer to peer lending (P2P) is when you lend money to people and earn from an interest rate. Because this process does not involve a financial institution, borrowers don’t have to worry about qualifying for traditional loans and meeting other tedious requirements.
In most cases, you can earn a higher interest rate compared to other passive investments, the numbers could go as high as 10%. But you can’t be lending money to random people on the internet without any scrutiny or rules.
Hop online and search for reliable P2P lending companies. Once you’ve found the perfect match here’s how it goes: simply create an account and start lending money to people. We suggest you distribute your investment among multiple borrowers to minimize financial risks. Since the market is saturated with a number of P2P companies, make sure you do thorough research before hopping aboard.
2. Dividend Investing
Investing in dividend stocks is another neat way to earn passive income. Dividends are basically a portion of company profits that are allotted by the board. The profits can be distributed in the form of stocks or other cash payments, depending upon how the company wants to reward its loyal shareholders.
The amount may also vary depending on a number of factors such as how much stock you own along with other relevant details. In the long run, dividend investing can be a steady way to generate income, as long as you keep reinvesting. You can also use Google Finance Stock Screener to look for stocks, the best thing about is that it’s completely free.
If you’re a beginner, don’t be discouraged by all the technicalities of the process. Simply keep an eye out for high-income dividend stocks and you’ll be good to go.
3. Set Up a Storage Facility
Ever notice how most people have a ton of crap in their homes? Old books, CDs and heaps of clothing that are probably never going to see daylight again. For this reason, people are always in need of more storage space. Consider offering a storage facility to people in your neighborhood where they can rent space.
The most notable advantage of a storage facility is that it doesn’t require the same kind of maintenance as rental homes or rooms. Since these units are practically self-serve all you have to do is find storage facilities using platforms such as LoopNet.
If you have a limited budget, you may invest in a REIT that deals with storage facilities such as ExtraSpace Storage Inc.
A lot of people assume rental property is the epitome of passive income. But what do you do if you don’t have that kind of investment for your breakthrough?
In this case, we would advise you to take up REITs aka real estate investment trust. These companies basically own profit-generating real estate so thanks to REITs, you can experience the benefits of real estate investing without burning a hole in your budget. This also shuns you from the responsibilities of being a property owner.
For added convenience, opt for crowdsourcing platforms such as Fundrise. This’ll allow investors to pool in as less as $100 as opposed to the hiking prices in the open market.
5. Sell an Audio Book
Audiobooks are the latest craze among busy millennials and businessmen who commute for hours at a time. Plus, listening to audiobooks is a lot more convenient than putting on your reading glasses, trying to take in meticulous works of literature.
If you already have an eBook, opt for the easy route and convert it into an audiobook. This can quite easily be done using Audible’s ACX platform. Plus, you won’t need any high-tech gear to get started
Or… you can hire someone to take care of the job for you. Once, that’s taken care of, you can sell your audiobook using AudioBook Creation Exchange. This’ll give you more time to ponder on the creative process and perhaps come up with a new book.
6. Buy Royalties
Are you a bathroom singer looking for your big break? Well, what’s keeping you? It’s time you unleash your talent for the rest of the world to see.
For the rest of you tone-deaf folks (we’re only joking), try earning passive income by buying royalties. Since royalty rights aren’t affected by financial markets, it’s a relatively steady way to earn passive income. Try your luck on websites such as Royalty Exchange to finally get started. Buying royalties is undoubtedly one of the best fuss-free ways to set up passive income streams.
List of Passive Income Streams: Ending Note
We hope this post will encourage you to pick up a new side hustle and stay motivated to do more.
Did you enjoy reading about passive income streams on this list? Well, tell us about it in the comments section below.