While compiling this list, I did my best to avoid scams, and stick with practical ideas that work. I have tried many (but not all) of these ideas. Some of these helped me earned a few dollars here and there, but there are some that helped me earn extra money on the side every single day — and some are still providing me with revenue! Note that not all ideas will fit your skills and abilities. What works for you depends on your abilities and your current financial situation.
Being able to generate passive income largely depends on your audience, and if they detect that you care more about making money than serving them, you won’t succeed. “Whenever I’ve seen people do something just for the money, they’ve failed because their intentions aren’t driving them in the right direction. It should always be about helping people and about the passion of making others feel better. The byproduct of doing that is generating money,” says Flynn.
Flynn has created many different products. While his LEED exam is what got him started, he has both earned a commission from selling other people’s products and offered a commission to others who would sell his wares, and also recently created his first software, SmartPodcastPlayer.com, after realizing that most online podcast players offered only the basic stop/start/volume features. He hired a development team to create a superior one, which was a success from day 1. “We sold out 250 beta licenses in less than 24 hours, because I was addressing a need but also, I had built up an audience and trust with them … When you build that amount of trust with your audience, whatever you come out with, they will love.”
If you really wanted to acquire residual income while you’re doing some important things, then you can create your own small business in the comfort of your home. You’re assured that this can lend you the best residual income especially if the products or services you’re going to offer really suits to the needs of huge numbers of people. If you don’t know where to start here is a business I’ve joined that may help you to make first steps towards residual income.
I have only dabbled in drop-shipping before when I had an eCommerce platform 6 years ago or so. I think it is something that you could do on the side, but you would want to do in depth research on the industry you want to get into before setting up shop. It may be a little less passive up front, but over time you could take your hands off the wheel.
Logan is a CPA with a Masters Degree in Taxation from the University of Southern California. He has been featured in publications such as Debt.com. He has nearly 10 years of public accounting experience, including 5 with professional services firm Ernst & Young where he consulted with multinational companies and high net worth individuals on their tax situations. He launched Money Done Right in 2017 to communicate modern ideas on earning, saving, and investing money.
Plenty of online marketplaces exist to sell web design, writing, and other common skills. But one marketplace in particular, People Per Hour, allows you to sell a well defined service. For instance, if you studied interior design, you could set a fixed price to design someone’s studio apartment. The marketplace is great and allows you to be more creative with what you can offer based on your actual background.
Hi! Short and sweet, unlike me ( I am tall and salty human). I like meditations and yoga. Can I create a patreon account and hook viewers into daily practices and mindful ideas? What type of background should I have? I live in New England so outdoors isn’t very likely. Any good tips for making it successful and contributing well to peoples lives? Lastly I am a Lyft driver. I have a lot of good interactions, uplifting, funny, human. If I record these and twerk it somehow is there some cash cab idea waiting to sprout? Thanks so much.
Get Out Of Debt - The less money you’re paying in interest to creditors, the more money you have in your pocket each month. Talk is pretty a simple form of passive income. Although it will take some discipline on this path. Getting out of debt quickly can increase your income even more because you’re no longer paying interest to creditors each month.
In order not to succumb to that, Flynn says it’s important to know your motivation. “Passive income is important to me not just for the financial security but so I can spend time with my family,” he says. “I’ve been able to work from home and witness all my kids’ firsts. I have a one-year-old and a four-year-old, and that's what drives me and gets me pushing through those hard times and why I keep creating new products and why I want to help other people do the same thing.”
Index investing may not be as attractive as choosing your own stocks and watching them go up and down but it will get you a good and consistent return over a period of time. A thousand dollars invested in a stock market index fund that earns 11% on average per year will grow to $13,585 in 25 years. Similarly, just $500 invested every year will grow to $8,400 in 10 years, $57,200 in 25 years. Over the years that you invest, the average annual return might be 9% or 13%.
I’m feeling inspired! I’ve been a PT for 19 years and I feel I have so much experience to offer but have been so intimated by starting a blog. I also subscribed to Michelle’s website but wasn’t sure it was for real. Is it for real? After reading this I feel like it’s time to take the plunge, I need to start a blog, I have so many ideas and even course ideas. I want to get away from the paperwork that plagues our healthcare system but not leave the field so the blog just might be the answer. I’ve been a landlord for 15 years now, great investment for sure, renters paid for the down payment of our house and should hopefully help pay for our kids college. I’d love to have one more! Thank you for the inspiration, wish me luck with my blogging!
Many people in the investment world also define residual income as revenue stemming from a passive source. This revenue is created without a direct input of effort or time. The investment itself creates addition revenues without having to be managed. Some examples include royalties, dividends, interest, and rent. Take a dividend stock for example. Once the money is invested once, it will keep producing a dividend every year without having to input additional time or resources. This concept is the Holy Grail for most investors.
Self Publishing is mainstream today. When you purchase an eBook off of Amazon there’s a pretty good chance you’re buying a self-published book. Self-publishing is also ridiculously easy. I tried this a few years ago and couldn’t believe how simple the process was. To self-publish a book you’ll first need to write and edit it, create a cover, and then upload to a program such as Amazon’s Kindle Direct Publishing. Don’t expect instant success though. There will need to be a lot of upfront marketing before you can turn this into a passive income stream.
Investing in a business: Another good way to generate passive income is to invest in a business --even a small one -- in return for a percentage of the profits - just like Shark Tank, only smaller. Lending $10,000 to a local business that, for example, is working on a mobile app for Apple phones could lead to a passive income-generated share of the profits when that mobile app starts selling like hot cakes.
Airbnb is a concept that has only been around for a few years, but it has exploded around the globe. Airbnb allows people to travel all around the world and to stay in accommodations that are a lot less expensive than traditional hotels. They do this by staying with participating Airbnb members who rent out part of their homes to travelers. By participating in Airbnb, you can use your residence to accommodate guests and earn extra money just for renting out space in your home.
There are a couple of problems with direct investment in real estate though. It’s expensive to buy even a single property, a minimum of tens of thousands of dollars, and there’s no way most investors can build a portfolio of different property types and in different regions to protect from those risks when you have all your money in just one or two investments.
This is such a fabulous piece. Thank you for your amazing efforts here. I was wondering -any initial thoughts on what one would charge an employer to post a job (for the idea about creating a site to help people with their resumes, etc)? I need to research for sure but was curious if anyone has any ideas on this. I have a background in the corporate world in management and recruiting and have been tossing this idea around for a while but am stuck. Thank you!
You can join Wealthy Affiliate for free and kick the tires, learn the basics and ask all the questions you wish. No credit card needed and you can build your first two websites absolutely free. Just about every other business opportunity out there will charge you upfront and simply leave you with nothing in your pocket and a lot of disappointment.
There is also an idea that we should work to build a passive income asset and then sit on the beach relaxing for the rest of our lives. The truth is that most people would get extremely bored with this scenario and will be eager to find something to do. That’s why the world’s billionaires continue to work… they love what they do and it stopped being about the money a long time ago.