Are you looking for passive income ideas so that you can make money while sleeping? Great. Creating passive income sources can help you achieve a state of financial freedom.
The concept of passive income is often misunderstood. Most people think that you don’t have to do anything and money keeps coming into your pocket. But, that’s not true at all.
What is passive income?
Passive income is something which you receive again and again for the work once done.
Building a passive income stream needs an investment of both your time and money in the initial stages. You need to work initially and once you do it the right way, it starts giving regular income to you without much work at later stages.
This is the beauty of passive income! You work one time to create a passive income source and the revenue is generated multiple times. Thus you can make money while you sleep with the passive income streams.
Benefits of learning how to make passive income?
There are plenty of reasons and benefits of making passive income. A few of them are;
- Work once and earn multiple times.
- A little work is required to maintain the income stream that lets you earn money while you sleep.
- You can spend more time with your family and friends.
- Passive income can help you live your dream. You can explore new things and travel the world while earning passively.
- By building passive income streams, you can diversify your income sources.
Excited to earn passive income? First, answer me. What is your mindset about money?
Are you a person who wants to trade your time for money and do a 9-5 job throughout your whole life?
Are you someone who wants to earn money passively and enjoy your life without worrying about your next paycheck.
Warren Buffet says,
“if you don’t find a way to make money while you sleep, you will work until you die”
I became obsessed with earning passive income when I read Robert Kiyosaki’s Rich Dad Poor Dad (must read).
You can also start earning passive income by finding the best passive income opportunities and building them as one of your passive income streams.
If you want to learn how to make passive income and what are the best passive income ideas, continue reading.
Best Passive Income Ideas and Sources
- Starting a blog
- Make YouTube Videos
- Affiliate Marketing
- Invest In Dividend Paying Stocks
- Sell eBooks
- Peer to Peer Lending
- Create online courses
- Start an Online Store
- Rent out your Space
- Sell licensed Photographs
- Open a High Yield Saving Account
- Insurance Agents
- Invest in Real Estate
13 Best Passive Income Ideas in 2020
Here are the best ideas to earn passive income while you sleep:
1. Start A Money-Making Blog To Earn Passive Income
Blogs are a great source for earning passive income. If want to build a stream of passive income with low investment, consider starting a blog in 2020. This could be your best decision to make money while you sleep.
As you start sharing more and more content, your blog will get more traffic and better monetization. Bloggers mostly use Google AdSense and affiliate marketing to monetize the blog.
Till the period your content is relevant and helping people, it will earn passive income for you.
2. Make YouTube Videos For Earning Passive Income
Among other best passive income ideas to make money while sleeping is making YouTube videos. You create videos in your area of interest and put it on YouTube.
For YouTube monetization, you can attach Google AdSense to your channel. This is the most common way to make money on YouTube. You get paid when the viewers saw the Ads on your YouTube videos. So, you need to create great videos so that it will get more subscribers and viewers.
It is a great source of passive income because people keep watching the videos even after many years.
3. Earning Passive Income With Affiliate Marketing
Affiliate marketing is among the most popular passive income ideas for online hustlers running a blog, website or YouTube channel. Here you promote third party products on different platforms and get paid a commission for every sale made through your affiliate link.
You can be an affiliate of thousands of companies and promote their products. Some of the most popular affiliate marketing networks are Amazon associates, Clickbank and Cj affiliate.
4. Invest In Dividend Paying Stocks
Stock investment is one of the best passive income ideas you should consider. Investing in high dividend-paying stocks can build a great passive income stream for you. These stocks will pay more than any bank investments and earn regular passive income.
However, this is a risky option to make money because no one exactly knows what will happen in the market and which stock will perform better.
5. Selling eBooks Online
If you’re good at writing, selling eBooks online is a good passive income opportunity you can make money with. Create eBooks about the topic you know about and sell it online either through your own site or third-party websites.
Amazon Kindle Direct Publishing allows even a newbie writer to publish an eBook and sell. However, the publishing process is easy but making passive income with it requires upfront marketing.
6. Peer To Peer Lending
In Peer to Peer lending, you give loans to those people who don’t qualify for traditional financing. You create an account with the lending companies and deposit the amount with them. Similarly, the borrower also creates an account and borrow money. When the borrower repays the amount borrowed with interest, you get your principal and interest paid.
Few popular companies for Peer to Peer lending are Lending Club, Worthy and Street Shares. You earn around 4-6% return on average. So, Peer to Peer lending is a great idea to earn passive income.
7. Create Online Courses
Online courses are a fantastic option to earn passive income. Based on your skill and knowledge you can create a video course and put it online. You can create a separate website to sell your courses if you’re popular enough to promote it to a large audience. But if you’re not so popular, it is better to create an online course and sell it on sites like Udemy.
Udemy is a very popular online platform to sell online courses. You don’t need to find students for your courses because people are already looking for online courses on Udemy. You create a course one time and sell to many people over time, thus earning you passive income.
8. Start An Online Store
Having your own online store can be a good source of passive income. Select a few products to sell on your online store and promote them. You can start your business with as low as $100 and grow it to over six figures.
You can start your own website to sell your own products which can earn you more but this requires a large investment. On the other hand, you can use Shopify dropshipping services if you want to build a passive income stream with low investment.
It is easy to set up an online store with Shopify within minutes. When people purchase a product from your store, you don’t need to worry about packaging, delivery, and payment. You only receive the profits.
9. Rent Out Your Space
One of the most common passive income ideas is to rent out your space. Traditionally, landlords generally rent out their room (s) to students who are out of their home for studies, working professionals for jobs or a family shifted to a new place.
If you have an extra room that you’re no longer using, it is good to rent it out to make extra cash. The best way is to list your room on Airbnb where millions of people are looking for rooms to stay at. You need to provide a clean room to visitors with facilities described by you on the Airbnb website. This way you can make passive income by renting your room or space.
10. Sell Licensed Photographs
Selling stock photos is another great idea to make money online and earn passive income. Do you ever wonder you can make money by selling photographs? The online websites, blogs, and magazines using different beautiful images buy them from stock photo websites.
If you think you’re good at photography, you should definitely sell your photos to earn passive income. You only need to submit your photos on stock photography websites like Shutterstock.
If your photos are approved by them you can earn money passively every time your photos are downloaded. Such a cool way to make money while you sleep.
11. Open A High Yield Savings Account
Saving accounts generally give you very low-interest rates, which is why you earn nothing out of them. If these interest rates can’t lower than the inflation rates then instead of earning you’re losing your money and you don’t even realize it. That is why you need to find a high yielding savings bank account to keep your money growing.
Generally, online banks offer more rate of interest as compared to their offline counterparts. This is because the cost of operation and maintenance in online banks is lower than offline banks with more physical branches.
Here are some banks offering high yield savings accounts to grow your money with and earn passive income.
12. Become An Insurance Agent
Becoming an insurance agent is also a great way to earn passive income with very little effort. I realized this when I bought my Life Insurance from Life Insurance Corporation (LIC) of India. Many insurance agents approached me to get a plan from them so that they could earn passive income later on. You need to get a customer one time only and you earn commission on every premium payment till the end of the insurance term.
13. Invest In Real Estate
The real estate investment is one of the most popular ideas to make passive income but it is not very much beginner-friendly. This is due to the high investment cost and skill required to find a great property. Because every property will not give you good returns and so it is very important to analyze the right opportunity.
However, you can invest in real estate through Real Estate Investment Trusts (REITs). Through REITs, even a common man can invest in commercial real estate. This is a great way to make money while you sleep.
Earning passive income takes both time and money. It can’t be created overnight. However, some of the passive income ideas listed above take more time and some take less. But if you’re ready to work hard in the beginning to create passive income streams, you can earn regular passive income later on.
Are you interested in any of these passive income ideas to make money while you sleep?
So, what are you waiting for?
Plant the seeds of passive income today with ideas from the above list.