It’s not easy to make it today on a single income. With how expensive housing and other things are getting, you may be looking to make extra cash. And when 45% of Americans have a side hustle, you aren’t alone.
The good news is that you don’t need to invest much time to make this happen if you have some savings. You can invest money to make passive income.
If you’re interested in investment ideas for passive income, this guide will help. Below are some of the best passive income ideas for building a passive income.
Buy Dividend Stocks
Not all stocks pay a passive income. If it’s an active stock focused on growth, you’re relying on the stock to increase in value to improve your net worth. You won’t get passive income unless the stock switches to profit and starts paying dividends.
But there are tried-and-true stocks that already focus on profits. These are dividend stocks, and with enough money invested, they can produce a decent monthly income.
Think about investing in these stocks instead of growth stocks. You’ll get a dividend payment every month or three months. With that income, you can reinvest in the stock or take the money out of the market as income.
Purchase Real Estate
Although real estate can be an active investment, it doesn’t have to be. Depending on the method of real estate investing you choose, you can take a step back and watch passive income come in.
One of the most popular ways of doing this is with rental properties. You’ll need to invest time initially when finding properties. But once you find a property management company to handle the heavy lifting, you can sit back and collect payments each month.
Another popular way to invest in real estate is with a REIT. These are real estate investment trusts. Instead of investing money on your own, you invest in a fund that invests on your behalf — and get a dividend based on the profit the fund makes.
Build a Website
Building websites has become one of the most popular forms of passive income in the past several years. It isn’t passive in the sense that you can sit back and do nothing — but once you build a popular website, you can collect income without needing to do nearly as much work.
It will take some time for you to get a website going. Some people will build for a year before they see any reasonable income.
However, once you get to that stage, it’s not as challenging to keep growing to replace your income from a full-time job. And if you have extra cash, you can invest in a pre-built website to get a head start.
Create an Online Course
Do you have a unique skill that you consider yourself an expert at? If so, there are likely tons of people online that want to learn from someone like you. And with how easy it is to set up a camera and record videos, you can create an online course to discuss what you’re good at.
Online courses are a great way to create a product once and continue reaping the rewards in the future. You will need to answer some questions from time to time. However, you won’t have to work for your income actively.
The thing you’ll need to think about this is your personal brand. People need a reason to trust you, so you may need to work to make yourself known online as an expert before you can launch a successful course.
Invest in Crypto
You’ve probably heard of the crypto markets. There have been countless stories of people making a ton of money when the markets go high.
The good news is that these markets have passive income opportunities if you’re interested in investing in crypto.
One of the best ways to do this is with staking. Purchase a proof-of-stake cryptocurrency and stake your coins on a staking server. You’ll get a portion of the transaction fee to help validate transactions.
Check out The Crypto Merchant to learn more about crypto topics and products.
Use Peer-to-Peer Lending
If you have a larger net worth, you have more options available for investing. For those people, peer-to-peer lending is one of those options.
With this investing method, you invest in other people. Individuals sign up for loan websites and indicate they are looking for a loan. Individual lenders on those websites can fulfill part or all of those loans and receive payments in return.
You’ll eventually get your money back once the loan finishes — along with any accrued interest. You can also look at the borrowers’ financial standing to ensure the person you lend to has a high likelihood of paying everything back.
Use a High-Yield Savings Account
If you want to avoid risk, you don’t have to put much money into investment accounts. But at the same time, you probably don’t want to leave it in a regular savings account where you barely earn interest.
The good news is that there are savings accounts today that don’t have this problem. There are many high-yield accounts that will offer a better return on your money.
Investigate your high-yield saving options to see which one makes the most sense for you.
Use These Investment Ideas for Passive Income
You can get far by getting a job and making a good income. You’ll be able to save money and eventually put enough away when you decide it’s time to retire.
But that doesn’t mean you only have the option of stashing your money in a bank account. There are many investment ideas for passive income that will help you when building wealth. Think about using the ideas above to see the benefits of investing and reach your income goals faster.
Did you find this guide useful and want to learn more about making the most of your money? Check out more investing advice on the blog to learn more.