Introduction
It’s nice to think about how you can “make money while sleeping”. After all, one of the goals of financial independence is to have passive income and build wealth without wasting time. Then you will enjoy your life and be able to do what you want to do.
The fact is that creating a passive source of income is usually not passive at first. You need time, money, skills, or all three. But where do you start? The first step is to create a mini savings account that you can use later. We will talk about this in this article.
Creating multiple passive income streams has additional short-term benefits. It can increase resistance to recession.
Passive income is a long-term option that requires a short-term bonus. If you’re willing to spend resources on your next steps and ideas, you can easily win the next few years.
You must understand how to begin your journey and choose the tools you want to use to continue with your passive income ideas.
Here are some passive income ideas to grow your income in 2023.
1. Dropshipping
Dropshipping means running an online retail outlet. Here you will use another vendor in sending the goods. In the case of dropshipping, it is not necessary that you touch the item you’re selling. The major distinction between traditional retail shops and dropshipping is that the sellers are never with the goods themselves nor do they have any physical stock of goods. Rather, the dropshipper buys the goods from the manufacturers or wholesalers when customers need them and delivers to them.
This business does not require a lot of initial capital. This is because you don’t have to buy the products you need for sale. Even if you don’t have inventory, you can succeed in dropshipping business with a low start-up cost. It’s not necessary that you know how to design a website for you to start a dropshipping business. BigCommerce, Shopify, and Wix are websites that you can use to get started with today’s dropshipping industry.
2. Stock Investment
For many, owning stocks and bonds does not seem to be one of the best passive income ideas. However, this is the basis of an individual annuity account. Buy investment trusts, including stocks, bonds, and both, so that you can live on passive income when you retire.
Companies need money to raise money for their businesses, so they raise money by borrowing or sharing shares through an IPO. Initial public offering (IPO) refers to the process of generally issuing shares of a private company along with newly issued shares.
By investing in a company’s stock, you become one of the “owners” of the company. This is the best time to buy stocks when the market is down. By proactively saving money and looking for high-value stocks and dividends, you may be able to generate large amounts of passive income before the traditional retirement age. Diversify your assets to reduce the risk of losing all your assets in the event of company bankruptcy.
3. Open and Run a Blog
The most common source of passive income often comes from blogs. Blogs help countless entrepreneurs passively profit through affiliate links, training, sponsored posts, product and book trading, and more.
To be sure, creating a successful blog can require a lot of preparatory work. However, this is one of the most sustainable ways to attract an audience, either through natural and social traffic or by creating an email list.
The biggest advantage of blogging is that you can convert this asset into several different sources of income. Therefore, if you are looking for a simple passive income idea, blogging may be your ideal choice.
4. Selling Stock Photos Online
If you like taking lots of pictures, stock photography can be a good source of passive income. You can pay to sell your photos online through photo sites like Shutterstock. You can get these images from anywhere, whether it’s travel, food, or the sport you want to report on. You can view the photos you want to sell as a freelance photographer on various stock photo websites.
If you’ve already taken thousands of good photos, it can take some time to add them, but if you want to take them, you can enjoy the whole process and the time it took. After all, one of the goals of financial independence is to build wealth, enjoy life, and do what you love without wasting time. This is a great passive income idea as it motivates you to do what you want to do.
These are some of the best photo sites where you can sell your photos and photos online to generate passive income. You can open an account and start creating this passive revenue stream: Deposit photos, SmugMug Pro, Shutterstock, Pixabay, iStock Photo, Etsy, Getty Images, Stocksy, Adobe Stock, and Twenty20.
5. Digital Downloads
A digital download is a tool to quickly solve customer problems. Rather than creating a complete e-book, these digital products can help you create products people can download. The products work on their own and are useful to your clients. Great ideas for digital materials you can sell include email templates, spreadsheets, how-to guides, and checklists.
Our advice is that you make your research to know what materials are in demand. It’s best to start by finding out what your competitors are selling. Google-related keywords to see what you see. This is your competition. Research the products they offer and learn how to create these products for your audience.
6. Lending to People
P2P lending is the idea we love most. The concept is to lend money to people and businesses while they pay back with interest.
Suppose an individual wants to offset debt with $10,000. They’ll open a LendingClub account based on their credit history, whether they have received loan interest, etc. Also, you’ll have your LendingClub account which you’ll use in purchasing debt. The borrower’s monthly repayments will be accredited to his account with LendingClub.
Many businesses accept peer-to-peer loans, and others such as LendingClub also have loans for personal use.
The expected yield is in the range of 5% (depending on regulations and loan types). This is not exactly the return on equity, but in most countries, interest rates higher than 5% are higher than bank interest rates.
7. Build an App, Service, or Product You Can Sell
If you have skills and services that you can share with others, you can create applications and products to sell. For example, if you are passionate about fitness and familiar with creating exercises, you can create an exercise app. If you want to create it instead of an application, you can also create physical or digital products, such as e-books and physical books.
Hiring someone to create an application for you can be expensive. If you want to learn, you can create your own barter app or service. Building applications and products is an important source of passive income!
Selling the products you create is also helpful. Sites like Etsy can sell unique, personalized, and handmade products. The display cabinet is easy to set up and get started.
Sites like Kickstarter can also help you complete creative projects. You can join Kickstarter to start a project or support other projects. This platform is a great way to carry forward your ideas, check whether your products are in demand, and then get financial support. Since Kickstarter was launched in 2009, 18 million people have supported the project.
8. Cashback Websites
Passive income generated by cashback sites is a passive income method, just like other methods. You must live your life as usual, but you must focus more on the goods you decide to buy. Cashback sites combine spending money with making money. This may not help you retire early.
But you can still make money without trying. Needless to say, it is completely free. All you have to do is register for a refund on your shopping website. These shopping portals return the percentage of the total amount used by members for eligible purchases.
For example, using the Swagbucks online shopping site in purchasing goods will give you cashback and points you can use in surfing the Net. According to Swagbucks, it paid more than $400 million to its members. Countless members earn up to $12,000 through Swagbucks. This is even the only way for teenagers to make some pocket money.
Another example is MyPoints. It provides several means of gaining reward points. You can receive your cashback by buying goods any of the stores in their partnership using the shopping site. Also, you can receive points by streaming videos, being part of surveys, reading emails, or playing new games
TopCashback is a bit different, it returns all commissions to its clients and generates revenue with another means. You can continue to earn extra income. It may not sound like much, but the prices are high on all websites. There are also special offers that can provide you with coupons and provide greater cashback.
9. Being a Silent Business Partner
One of the best passive income ideas that most people have never heard of is to be a silent partner in your business. Instead of borrowing money, buy company stocks. Then, pay a certain percentage of profits, and your money will be backed by a certain percentage of the company’s assets. On some websites, you can search for companies that are looking for silent partners. You can choose thousands of startups or small businesses to choose the restaurant that suits you best, instead of spending thousands of dollars to buy a 10% stake in the restaurant. In addition, you can reduce risks by investing in various startup companies.
This is one of the best passive income ideas for those who have been thinking about starting their own business but don’t want to do all the work. Knowing these passive income ideas requires due diligence, careful study of the number of companies, and ensuring that your rights as an investor are protected. You can also fund the business of friends and family. Then they can run the business for you.
If you are dealing with an ongoing business, you should check the financial situation and other aspects of the business before performing any operations. However, when investing in a new entity, you need to know whether your business partner is trustworthy. This will not reduce your financial risk, but knowing that your money is in your hands, you can sleep peacefully at night.
10. Affiliate Marketing
Affiliate marketing is working with business owners in promoting their goods and services. You will earn commissions on every sale you make in return for advertising those goods or services. It’s an easy way to make income on the side as you can advertise and get paid for other people’s products.
Affiliate link promotions include social media, email marketing, YouTube channels, podcasts, and blogs. Some of the most famous affiliate marketing platforms are Amazon Associates and ShareA Sale. However, there are many platforms to choose from.
Reliability is very important here. The moment you advertise a low-quality product is when you lose your reputation. Try to promote just the goods and services you use and trust.
11. Renting Your Car
Car owners can use popular car rental apps that keep in touch with car rental companies to earn passive income by renting used cars. You can provide a small discount to increase the demand for cars, and set the minimum rental days to ensure that you earn more money in your own time. Therefore, if you have a car that you can rent in cash, this is one of the most unfavourable ways you can earn extra income online now.
You can rent a car on these platforms and earn hundreds of dollars a month. For example, Getaround is a car-sharing app that allows car owners to connect with people who need to rent a car. Similarly, you can share your main car with Turo when you don’t use Turo to make monthly car payments or earn extra cash.
You can recover the full cost of the car within a few months, which is a good return. Remember, many things can be liquefied in this way. They are not just cars. Depending on where you live, you can rent a rich parking space. You may be able to rent items you own. The question to ask is what you want to borrow and what is the demand for these items in your area.