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20 Passive Income Ideas To Build Lasting Wealth

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20 Passive Income Ideas To Build Lasting Wealth

Passive income is one of the most delightful ways to make money. Passive income is the money you earn regularly and requires less effort.

When creating passive income, you need to put in a lot of work upfront. After that, you now need to put in less amount of work regularly to make sure everything is going well.

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For example, creating an online requires a lot of work upfront. After that, you need to put in some work updating the course regularly.

Key Highlights

🎯 Passive Income Isn’t Completely Passive; you still need to put in some work regularly to make money.

🎯 Passive Income Gives You the Choice to Do Nothing, but the truth is there is little work you have to do.

🎯 It takes time to develop passive income.

🎯 Real estate is one of the most popular ways to make passive income.

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🎯 You need some upfront capital to make a passive income. Depending on the side hustle, the upfront capital could range from little capital to a lot.

SEE ALSO: 10 Ways to Balance your Side Hustle with Your 9-5 Job

SEE ALSO: 6 Ways to Test Your Side Hustle Before Going Full-Time

SEE ALSO: 15 Side Hustles That Make A Lot Of Money Without Selling Your Soul

1. Create a print-on-demand store

Are you an artist, designer, or entrepreneur; start a print-on-demand store. A print-on-demand store is a way to bring in passive income.

It helps you express and monetize your creativity.

If you choose the dropshipping model, you could create the designs and send them to a print-on-demand supplier to make them for you.

2. Rent out your spare room

If you live in a house and have a spare room, you could rent it out to people. People are always looking for an affordable place to rent. You can use services like Airbnb to rent out your room.

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Airbnb is a service that connects homeowners with people looking for a place to stay for a brief time.

3. Sell digital products

Digital products are assets that get distributed online. Some examples of digital goods are digital media, such as e-books, downloadable music, streaming media, fonts, logos, photos, and graphics.

Digital Products is a great passive income source because they have high-profit margins, with low work upfront.

Digital products are now a popular source of income. Popular digital products are kits, printables, files, personas, flowcharts, and wireframes.

4. Sell photography online

Photography has always been a service-based profession, which means you get paid for your time. The only thing here is there is no passive income generated.

But services like Shutterstock, iStock, and Getty Images make it easy for a photographer to generate passive income. Photographers take pictures that thousands of people will like to use, not just one. With services like Shutterstock, you can upload your images and get paid anytime it gets downloaded.

5. Lend money to peers

Do you have some cash just lying around? Instead of living it there, why not lend it to people and receive extra income when the money gets returned.

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In simple terms, P2P lending involves lending money to borrowers. If you don’t know how to start p2p, some companies make the process of lending money easy. You can use services like LendingClub, Prosper, and Worthy. These services connect lenders to borrowers.

6. A bond ladder

With laddering, investors purchase multiple financial products with different maturity dates. Laddering also allows you to decrease the risk in your investment. 

With bond laddering, you can sit back and collect your interest payments, and when the bond matures, you can remove the principal and invest it in new bonds.

7. Become a blogger

It is a bit hard to get your blog popular, but it has become a successful form of passive income. Building a blog is simple; you can use WordPress to create one in no time. The best way to get a blog going is to have a focused niche.

One way to make passive income from blogging is by affiliate marketing, sponsored posts, selling your products, running ads with Google AdSense.

8. Buy and sell websites.

 You can make a good amount of money buying and selling websites. You can sell just about any website.

Most websites make money through ads, membership, and affiliate marketing. You can use a site like exchange Marketplace to sell your website.

9. Run an affiliate marketing business

The process of affiliate marketing is simple. You help promote a brand’s product, and if a person purchases through you, you get a reward. Affiliate marketing requires you to have some audience. This audience can be from social media, blogs, or advertisements through paid ads.

10. Start a YouTube channel.

Did you know 74% of adults in America use Youtube? That is a lot of people. With Youtube, you can generate passive income if you build an audience. Building an audience on Youtube requires a lot of work upfront.

The best way to start a youtube channel is to create quality content and focus on a particular niche.

The ultimate list of 50 side hustles that trends in 2022

11. Earn through Royalties.

A Royalty is a payment made by one party to another that owns a particular asset. This party pays for the right to ongoing use of that asset. This asset could be anything from images to music.

You can license your digital work to people and earn money anytime it’s been used.

12. Stake cryptocurrencies

If you invest in Cryptocurrency, you can earn about 10% passively. With crypto, you get higher interest than savings.

Before investing in crypto, you should get educated on the subject. You will learn about Cryptocurrency, coins and, Blockchain. You should also use fake money to learn how to invest.

Once you are ready, you can use crypto exchanges like Kraken or Coinbase to buy crypto.

13. Buy a rental property.

If you want to build long-lasting wealth with passive income, invest in real estate. If you have a lot of money, you can buy and rent out properties. Renting out apartments can generate a good amount of passive income monthly.

If you don’t have enough money to buy a property, you can always join an investment pool. You can use a real estate investment trust (REIT) platform like Fundrise to start investing.

14. Advertise on your car

You can earn passive income by just driving your car. You don’t have to carry anybody; all you have to do is show ads. They are now ad agencies today that will evaluate your driving habits and, if you meet the requirements, will pay you to advertise on your car.

Some requirements you have to meet

  • Have a car in good working condition.
  • Drivers should have a clean driving record.

15. Invest in the stock market

Investing in stocks requires a learning curve. You need to educate yourself in stock investing before you put money.

The top mistake newbies make when investing in stocks is;

  • Thinking short-term gains instead of long-term.
  • Not having proper the required knowledge before investing.

Try diversifying your portfolio to reduce risk and keep up-to-date on the stock news. You can learn about stocks and keep up with the latest information with sites like Investopedia.

16. Create no-code apps

The innovation in the no-code space has gotten better. You can now create an entire app with functionalities without writing a single line of code. You can use services like Appy Pie, Adalo, or Bubble to build apps without writing a single code. Before you create your app, first decide on the niche.

You can monetize apps through Subscriptions, Ads, or Pay to download.

With no-code tools, you create a fully functional app in no time.

17. Invest In A Business

You can earn passive income by becoming a silent partner in small businesses. Investing in a business is always risky, no matter the amount of research you do. You can make a lot of money when the company you invested in is sold or goes public. You could also lose money if the company fails.

If you want to reduce risk, you can invest small amounts in businesses by lending them money in bonds.

18. Licensing Music

If you know how to create music, you can earn passively by licensing and earning royalties when they get used. This music gets used in YouTube Videos, movies, and commercials.

There is a rise in the use of music in YouTube Videos, movies, and commercials. People are willing to pay for licensing your music.

Try learning how to license your music before giving out your music.

19. Car Wash Service

Starting a car wash can generate passive income. It will require a bit of upfront capital to get started. A car wash will require regular maintenance and a couple of workers. You don’t need advanced equipment; you only need the basics. If you want fewer workers, you can build a drive-through car wash.

A car wash is a business and passive income hybrid.

20. Vending Machines

Vending machines are another way to make passive income with low risk. A vending machine is an automated machine that provides items like snacks and beverages to consumers after cash.

You can buy a vending machine and put it around the neighborhood. A vending machine is a profitable business. The average vending machine can make $50 a week but, if you place it in a good and secure location with high traffic of people, you could earn $200 a week.

Final Thoughts

The bottom line about passive income is to let your money smartly work for you as opposed to running a business by yourself. With passive income, you have the time to pursue your passions while you earn with less effort regularly.

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