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January 10, 2020

Need Extra Cash? 10 Ways to Generate Passive Income

If you think your job is the only way to earn an income, you might want to think again. The income you gain from your employer is certainly important, but it is not the only game in town.

Employment is an example of active income, i.e. payment in exchange for your labor. But there is another option for earning income, one that may not require you to do a thing. With passive income, you can enjoy recurring payments without a second job, and the earnings potential may be higher than you realize. Here are 10 ways to start earning passive income today.

  1. Dividend stocks – Passive income is not new; chances are your grandparents knew about it. Retirees have long used dividend stocks to supplement their income, and you can too.
  2. Rental properties – While direct ownership of rental properties is anything but passive, real estate investment trusts allow investors to participate in the profits and generate passive income.
  3. Peer-to-peer lending – Thanks to the internet, peer-to-peer lending has taken off in a big way, and many early adopters are already reaping the rewards. As with any type of lending, safety is a key consideration, so choose your loans with care.
  4. High-yield checking and savings accounts – If you look around, you can find checking and savings accounts that pay 20 or 30 times the national average. Parking your money in those high-yield accounts can be a great way to earn some passive income.
  5. Bank certificates of deposit – If you can afford to have your money tied up longer, investing in a bank CD could yield a steady stream of passive income. Building a CD ladder with varying maturities allows you to have access to your funds while maximizing the amount of passive income you can earn.
  6. Mutual funds – Some mutual funds are excellent sources of passive income, especially those that invest in bonds or dividend stocks. The amount of passive income will vary, as will the safety of the investment, so do your homework before investing.
  7. Blogs – Writing for your own blog and hosting ads on the site could bring in passive income and let you profit from your knowledge. It can take time to get a new blog off the ground, but top blog writers can earn a very good living.
  8. Royalties – If you are an inventor or have a great idea for a new product, you may be able to sell that idea in exchange for a steady stream of royalties. This type of passive income can be very attractive, especially if you are brimming with new ideas.
  9. Selling stock photos – If you are handy with a camera, you could turn your favorite shots into cash. Stock photo sites let shutterbugs upload their images, giving contributors a share of the income every time a buyer makes a purchase.
  10. Writing ebooks – The ebook market has taken off in a big way, and that is good news for budding authors. If you have a great book idea, selling the results online could provide a steady stream of sales and the passive income that goes with them.

Whether you need extra cash to make ends meet or just some additional money to enjoy the finer things in life, earning passive income could be the perfect solution. There are many ways to earn passive income, and taking advantage of those opportunities could simplify your finances and help you rest easier at night.

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