Making money with minimal or no effort is the dream of just about everybody, and luckily I’m here to make that dream come true for you. Here are five ways to make passive income.
Can you buy stuff? You can? Perfect! That’s basically all you need to be able to do to earn dividends. Find a high quality stock that pays a dividend, buy some shares, and then just sit back and wait for the money to roll in. This is about as passive as it gets. The part about finding a quality stock is important though. It’s not very helpful if the money you gain through dividends is offset by the price of the stock dropping over the long term. Find a good one and you can have the best of both worlds with a stock that grows in price and also pays out a solid dividend.
2.) Rent Out a Property/Room
Renting out properties is one of the best ways to earn passive income because not only are you receiving money for the rent but the property is likely also appreciating in value at the same time. Even if you don’t have the extra money to buy a rental property that doesn’t disqualify you from earning rental income. You can even just rent out a spare bedroom. I’d recommend doing some extensive screening if you go that route though. No one wants to live with the creepy dude or the 37 year-old aspiring drummer that’s “on the verge of a big break”.
3.) High Yield Savings Account
The days of receiving almost no interest for savings accounts are over. There are a lot of good options out there that offer about 2% interest and while that may not seem like a lot, it’s MUCH better than the .01-.05% that many banks offer. Sure, you won’t get rich off of 2% interest, but it’s basically risk-free so this is a great place to park your emergency fund and extra savings and let it grow.
4.) Make YouTube Videos
If you’re a creative person, making YouTube videos could be a great way to make a side income. Actually, even if you’re not creative you still have a shot; people watch anything nowadays. Consistency is key, so make sure you’re passionate about making videos and the topics you cover. It will likely take awhile to build up a following, but if you can pull it off it can be pretty lucrative. By the way, a 6 year old made 11 million dollars by reviewing toys on YouTube. The internet is a crazy place.
5.) Cash Back Credit Cards
Saving money is often overlooked when people are looking to increase their net worth, but the truth is it’s usually easier to save money than it is to make more of it. One way you can save is by using cash back credit cards. Everyone buys stuff so why not get some cash back on what you spend? While you probably won’t get a ton of money back (about 1-5%), it all adds up over the years.