But deep down inside you know you’ve always wanted more. More money, freedom and flexibility. And so you finally decide that it’s time to take action. This article breaks down 15 ideas for how to generate passive income while keeping your full-time gig. So you can finally get more than you’ve ever dreamed of.
Passive income doesn’t need to be complicated. If you’re trying to make money while you sleep, there are many simple ways to do it that don’t require any special skills or training. The more passive income ideas you have in your business plan, the more chances you have of making money each day, month, and year. Use these 17 ways to build wealth through passive income in 2022 as inspiration to make sure you don’t miss any opportunities to make money without lifting a finger.
What is Passive Income?
Investopedia defines passive income as unearned income that is generated without a direct input of effort or time. The idea behind generating passive income streams is that you can build sources of income that work for you, and generate revenue while you sleep.
Then, once your initial investment has been paid off, each additional dollar of income that your stream generates goes straight into your pocket while you do other things or simply enjoy life. If all of that sounds appealing to you, read on.
Active Income vs. Passive Income – Which Is Best for Me?
You know about active income, but you may not have considered passive income. For example, royalties on an invention, investment interest or profits from your company’s services are considered passive income. One big drawback of passive income is that it usually doesn’t lead to a pay increase unless you put more hours into your business.
Another is that some types of passive income aren’t taxable and must be tracked with IRS form 1099-MISC. The easiest way to tell if you’re making active or passive income is by how much time you spend working at it: Active – You work at least 40 hours per week at your business (excluding vacation time). Active businesses require a lot of up-front planning and administration before anything else happens.
17 Ways to Build Wealth Through Passive Income
The Internet offers hundreds of ways to make passive income online, but with so many different options to choose from, it can be hard to figure out where to start. That’s why we’ve put together this list of the top 23 passive income ideas that you can begin using today in order to build wealth in 2022. Each has its own unique set of pros and cons, so be sure to choose those that fit your skillset and circumstances the best before getting started.
Here are they:
1) Find a Personal Finance Guru
Learn from a personal finance guru! By investing your time, effort and money into learning from a professional, you can improve your returns and reduce your risk. Personal finance gurus are passionate about what they do and they love to help others become better with their finances, too. Find someone who has experience or expertise in passive income that aligns with your goals, then take the time to learn at their feet.
Depending on how much time you’re able to devote and how long it takes you to grasp whatever advice they have, there may be an associated fee for taking their advice. In return for their investment of time into teaching you—you’ll have learned invaluable knowledge that will help increase your passive income.
2) Learn About Investing
The easiest way to get started investing is by opening a Roth IRA. (A Roth IRA is a retirement account that allows you to contribute up to $5,500 per year without paying taxes on your investment gains.) To make it easy, we’ve created a resource on our sister site MyMoneyDesigns where you can open an IRA and have us help you invest with no minimum balance. To build wealth through passive income in 2022, consider learning more about different types of investments like stocks, mutual funds and ETFs. You may also want to look into peer-to-peer lending platforms like Lending Club as an additional source of investment income.
Another great way to make extra money is through affiliate marketing. This means promoting another company’s products and earning a commission when people click on your link and purchase their product or service. There are countless products you can promote, but we’ve created a resource on our sister site MyMoneyDesigns where you can list these different companies’ affiliate programs. Simply enter your niche, what type of traffic you want (traffic from facebook, twitter or other social media sites) and wait for affiliates that have relevant offers for your audience to find you! If done right, affiliate marketing can become an easy and passive way to earn some extra cash each month with no added work on your part.
3. Start a Dropshipping Store
Dropshipping is one of the most profitable passive income sources you’ll find online. With dropshipping, you can find trending products on marketplaces like AliExpress that you can then sell online to customers around the world. You can sell products in various dropshipping niches from fashion to home decor to beauty.
The magic in dropshipping is that you build your own business and control how much you charge for the products. In fact, out of all the passive income ideas on the list, dropshipping is the one where you have the most control over your earnings. To start dropshipping today, you can sign up for Shopify. Once you create an online store, installing one of these dropshipping apps to find high-quality products to sell.
the dropshipping model
A close alternative to a dropshipping store – but one with a lot more input into product selection and quality control – is buying products wholesale to sell on your store. Using a wholesale marketplace you can connect with local, US-based suppliers, purchase products at wholesale prices, and sell them on to your audience. You can even combine this option with dropshipping by holding some products and dropshipping others.
4. Run a Blog
The most popular passive income stream tends to come from blogging. Blogging has helped countless entrepreneurs earn passively through affiliate links, courses, sponsored posts, products, book deals, and more.
It’s true that it can take quite a bit of upfront work to build a successful blog. However, it’s one of the most sustainable ways to generate an audience through organic and social traffic or by building an email list. The biggest perk of creating a blog is that you can turn that one asset into several different streams of income. So if you’re looking for an easy passive income idea, blogging might be the perfect option for you .
Desirae Odjick makes passive income
Desirae Odjick, Founder of Half Banked, explains: “I started my blog to make talking about personal finance more approachable, and as part of that, I tend to share a lot of personal stories. They often included shout-outs to the tools that I was using and found helpful, so it was a natural transition to add affiliate links as I joined those companies’ programs.
Now that I’ve been covering personal finance for almost four years on my blog, those links reliably bring in four figures every month as people discover my articles and start to get their finances in order – and I feel fantastic recommending them, because I do personally use all of my affiliate products. It’s a great way to add passive income to your business, especially if you don’t have passive products of your own to sell (…yet!)”
5. Become an Airbnb Host
Airbnb is on track to offer more than 5 million stays in 2020, up from nearly 4 million bookings and 3.5 million stays offered through its platform today. Becoming an Airbnb host can help you generate passive income by renting out extra space in your home or renting out a room. Depending on where you live, you could turn your spare bedroom into an Airbnb for $50 to $100 per night — just make sure that you do it according to city laws! To read more about how much money people are making as Airbnb hosts, click here .
If you have extra space in your home and can offer a comfortable place for someone else to stay, becoming an Airbnb host is a great way to earn some extra money on nights when there aren’t any guests in your own home. To find out how much you could make as an Airbnb host, click here . Just be sure that you follow local laws and don’t violate any leases or agreements with roommates. Find out more about getting started as an Airbnb host here .
6. Start Selling on Etsy
The arts and crafts market has exploded thanks to sites like Etsy, which let artisans sell their work online. If you have a skill or unique creations that you can turn into a physical product, there’s a decent chance that you can start an Etsy store and sell your wares for some quick cash. There are plenty of sites that teach you how to make money on Etsy. In fact, there are even books dedicated solely to teaching people how to build an empire out of crafting and selling their own designs on Etsy!
You don’t need any fancy skills or background—all you need is a unique item that people will pay money for. For example, if you have an eye for vintage items, look around your house and see what you can find that someone else might want to buy. If nothing comes to mind, take some time and think about different items you might be able to make or turn into a product. Maybe it’s handmade jewellery, hair clips or fun decorations for your home. The best thing about selling on Etsy is there are no upfront costs, so get started by browsing through items similar to yours.
7. Company Stocks
Yup, your 9 to 5 job can also become a passive income stream. No, it’s not the hours you work. However, your company stocks or any company-matching retirement plans can help you score some pretty decent passive income.
I actually used this passive income method to pay for the downpayment on my condo. And it only took two years. Of course, you’ll likely need to invest some of your own money too, but the extra bit that the company adds in is a nice perk if you’re willing to try it. (And trust me, few people ever do.) If you’re starting a new 9 to 5 job, be sure to ask for company stocks as part of your hiring package. You’ll thank me later.
8. Create YouTube Videos
YouTube is the passive income stream that just keeps on giving. From sponsored videos to ad revenue, you’ll find that you can make recurring income from your YouTube channel.
The secret to creating a successful YouTube channel is creating content on a consistent schedule for a long time. That’s it. If you stick with it for the long haul, you’ll eventually start reaping the passive income rewards. Already have a YouTube channel? Check out our article, How to Make Money From YouTube, for ideas on how to monetize your video content.
9. Sell your Photography
While being a photographer may seem like an active income business, it’s actually not. Photographers don’t only make money from taking photographs. They sell them too. Stock image sites, magazines, and canvas printing for your clients are some of the ways you can make the big bucks in the photography biz. All you need is a great camera to get started.
But these days, you can even use your phone to take photos and sell them to make passive income You could even take high-quality product photos and market them to ecommerce businesses. All you need is a good product photography course, a smartphone, and some inspiration to get going.
Jacob Hakobyan makes passive income with his photography business Shotlife Studio. He shares, “Having profound business education and what some may consider as very stable office jobs, we felt that we had the potential to do more. Not financially, but spiritually. With our CPA knowledge coming to aid, we prepared a clear strategy on the growth of the business and managed to double our profits from year to year, reaching a five-figure side income.“
10. Help Businesses Bring in Clients
Are you a savvy marketer or salesperson? If so, there are tons of businesses who will pay you referral fees for bringing them more business. Real estate agents are always looking to help more people find a home they love. Freelancers, DJs, photographers, and other solopreneurs will often be willing to pay a referral bonus for finding them a client that signs a contract.
So if you love helping people make money, you can start building passive income through your connections. All it takes is a couple of emails or messages and you could earn passive income for very little effort.
11. Write an eBook
Ebooks exploded onto the scene in 2009 and 2010 and are still a hugely popular content medium. Even though they first became popular a few years ago, there’s still a pretty good chunk of people who make passive income from writing ebooks to this day.
Sure, it’s an insanely competitive market. But if your writing chops are stellar, you could find yourself with a decent slice of the profits. By creating how-to ebooks on popular niches and marketing them, you could build a fanbase of loyal readers.
In 2016, when I was pregnant with my son, I started an Amazon Kindle Publishing side hustle to hopefully earn just $500/month by the time he was born so I could avoid going back to the office. While I didn’t quit working immediately, 18 months later I had a six-figure passive income business that enabled me to do so. Biggest win? This business still runs mostly on auto-pilot to this day. I work on it 1-2 hours weekly and take 3-4 weeks off at a time while still raking in the dough!”
12. Sell your Stuff
Looking to follow Marie Kondo’s advice and start decluttering your home? Well, you might want to turn that clutter into cold, hard cash. We all have those piles of boxes filled with stuff we haven’t thought about in years.
You can either hold onto the stuff for a chance to end up on an episode of Hoarders or you can sell it online to help you make passive income. You might have to dig deep, but you will find that you have some items that are worth some serious cash. So if you don’t know where to start when it comes to passive income, your closet might be your best bet.
It started off with me volunteering to declutter my elderly aunt’s house. Over 60 years of stuff had to be sorted, dumped, donated or sold. I found a box with a huge doll inside. She turned out to be an antique Shirley Temple doll in pristine condition (had to Google it). I did my research, sold it on Ebay and split the proceeds with my cousin. Word got out to other family members and I had a nice side gig. It’s still ‘work’ and the extra cash is nice.”
13. Sell Digital Products
If you’re looking to create your own products instead of selling someone else’s, you can create digital products. You can create a Shopify store to sell your digital products online. Digital products can include ebooks, online courses, PDFs, custom graphic designs, stock photos, or other digital goods.
Selling these products is the epitome of passive income, as the entire process can be automated on Shopify with instant downloads.
Kelan and Brittany Kline, the duo behind The Saavy Couple, tells us, “Last month we launched a Shopify store with a few digital products to sell to our readers. Specifically, we made The Budgeting Binder to help people learn how to organize their finances and start to budget. Since the launch, our shop has made us over $1,500 in sales and continues to grow each week. Since all of our products are digital this income is completely passive. As long as we continue to funnel readers to our shop we continue to get sales.”
14. Use Passive Income Apps
Passive income apps work exactly as they sound – you install them on your smartphone and perform a few actions to earn money. The actions can range from doing everyday activities such as watching videos to turning a small financial investment into a passive income stream. There are plenty of apps to start putting your mobile device and time to better use. Some good ones are listed below. Fundrise – Fundrise lets you invest in real estate projects with an initial minimum investment of $1,000.
It comes with the option to take quarterly dividends, which serve as your passive income. InboxDollars – InboxDollars offers cashback for doing activities that you’re likely to do anyway, such as shopping, watching TV, and searching the web. The cashback and the $5 bonus for signing up are your passive income. Dosh – Dosh gives you the option to link your debit and credit cards to its system. When you pay for something using these cards, you earn passive income in the form of cashback.
15. Create an Audio Track
If you have some audio skills, why not put them to work? An audio track can be something as simple as a jingle or a podcast intro. Making audio tracks for other people’s use is a great way to earn extra cash, as people are constantly looking to brand themselves with the right sound.
You can license your tracks out on platforms like SoundCloud and Audiosocket if you want to create full songs and earn some passive income via royalties. All you need to do is research your audience and find out what kind of content is trending. From there, you can quickly start building your portfolio of tunes. You never know — it might transform into something bigger. If you find your passion for creating audio, you can experiment with a wide range of different products, from intros and outros to full albums and mixing samples.
16. Rent Out Unused Space
Space is a valuable commodity that most of us don’t have enough of. Whether you’re currently only using your storage room part-time or having extra space in your home, there are tons of ways to create some extra income with that unused space. For instance, you can rent out storage spaces on sites like Neighbor.com, so people have an extra place to keep their belongings.
17. Become a Consultant
If you have any kind of specialized skill or expertise, you can use that skill or expertise to provide your services as a consultant. For example, if you’re great at baking and have a knack for creating delicious pastry desserts, set up an online bakery and sell your sweets online.
If you have a gift for fixing things around your house but don’t have time to do it yourself, offer your services as an on-call home repair service (We Work Remotely is one such company). There are many ways to build wealth through passive income opportunities. Make sure that when you take advantage of them, they align with your goals and personal values first!
In Conclusion
You can take actions now that will pay you back handsomely over time. If you want to build wealth, then passive income is a great way to go about it. No matter what your budget, there are some strategies that you can use right away. If you do nothing else now, just pick one and get started!
The sooner you start working on building passive income streams, the sooner you’ll see results. The best part of all is, once they’re up and running they require little or no maintenance so they give an ongoing source of residual income into your life for years to come!
However, if there is anything you think we are missing. Don’t hesitate to inform us by dropping your advice in the comment section. Either way, let me know by leaving a comment below!
Read More: You can find more here https://www.poptalkz.com/.
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