25 Best Passive Income Ideas That Can Make You Good Income

This post lists the best passive income ideas. So, how do you earn money in your sleep? There are several ways and the good news is that you don’t need to reinvent the wheel to make passive income. There are free educational resources to help you learn how to create passive income daily. Although, there are few ways to make money with no effort. However, there are more ways to make plenty of money with a lot of effort. At the starting stage, you will spend money, put in the time and expert skills to start creating passive income.

Also, when the income starts snowballing, you may be able to live on passive income and retire if you like. To help you with ideas to invest your money to create a passive income, here is a list of the best passive income ideas that you can bank on.

Best Passive Income Ideas

30 Best Passive Income Ideas That Can Make You Good Money

  1. High-Yield Dividend Stocks & Funds

As you are aware, many stocks pay dividends of only 1.5-3.5% at best, and a minority pay high yields in the range of  6-8%. Also, you don’t have to be an expert in investment to take the opportunity that is available.

Learn as much as you can and the look at Ally Invest as a great option. In this brokerage firm, Stock and ETF Trades are FREE and they have many brokers.

  1. Real Estate Investment Trusts (REITs)

Investing in Real estate investment trusts is one of the best passive income ideas, that you can try right away. Real estate investment trusts, or REITs, pay liberal dividends. They do so because REITs usually invests in income-producing properties or high-interest debt service.

So, if you want to diversify your portfolio into real estate, but you don’t want to invest directly, you can use REITs to earn high-yield returns passively.

  1. Rental properties are near and dear to my heart

For best returns that beat stocks you can start buying Rental properties. But, before buying a rental property, you should learn how to forecast cash flow. Because you can predict the returns and passive income.

The real problem is that you won’t be able to predict them accurately. So why not use a company that like Fundrise to invest in rental properties passively. You can invest a small sum of $500 to get a Fundrise investment.

Also, many people are able to invest through them due to the low minimum investment amount yet they give you plenty of options for property investment. And your money does the work for you and earns you a good passive income.

  1. Peer to Peer (P2P) Lending Websites

Peer to Peer Lending Websites is among the best passive income ideas that you can try. The strategy here is to lend money to individuals through peer-to-peer lending websites. You can choose the loan and borrower you like, by going through the loan requests on these websites.

The returns start from a 6-10% spectrum. You can start by lending small amounts at first until you are more certain of what you are doing. For instance, in Prosper, you can start with a minimum of $25. You can also spread your investment in many loans. But the limitation is the state minimum net worth that is required for you to qualify to invest.

Note that in Prosper and Lending Club you could lose your principal if the borrower defaults in paying back a loan. Secondly, FDIC does not protect your investment like it covers Savings investment in a bank.

  1. Buy Bonds

Bonds are the typical, traditional passive income stream makers. Many retirees invest in bonds because it is safe. How these investment works is that you lend money to a government or corporation through the purchase of a bond at a certain interest rate and term of say 10 years.

And the borrower pays interest to you for 10 years. And at maturity of the Bond, you get your principal investment back. The average return is 2.5% and the risk is low. So If you are old, you can buy bonds but, if you are young take some more risk and buy volatile stocks for higher returns.

  1. Certificates of Deposit (CDs)

If you are risk-averse you can invest in these Certificates of deposit. This investment is among the best passive income ideas 2020 to try. So, if you want to keep your money safe and insured by FDIC, invest in CDs. It will reduce your losses to inflation. The earning is low at 1.5 to 2,.5 %. You may try Citibank no-penalty CD.

  1. Robo-investing

Robo-investing is a way to invest in a diversified portfolio that uses algorithms to improve yields. The aim of Robo-investing is to give your investment strategies the highest winning edge in the market. Also, it saves you a lot of time since you don’t do lengthy research on stocks that you want to invest in. This strategy will help you ride the market despite the volatility and earn some passive income.

  1. Start a blog

Starting a blog is in this list of the best passive income ideas that creates real money continuously. You could start a website to sell any product online. Build traffic and monetize the traffic by mentioning affiliate products or services.

You could also use the blog to sell your own products and hire others to market your product as affiliates. You may also publish ads on the blog, sell your services and build as many passive incomes as you desire.

Best Passive Income Ideas

  1. Sublease to Housemates

You can start this easily. For example, if you buy a big house and you are not married, what will you do with the big house and all the spare rooms. To monetize the spare rooms,  advertise on Craigslist and Zillow and display your property. Next, screen applicants and then sublease it to a roommate and use the rental to pay part of the mortgage.

  1. Rent Out Rooms (or Full Units) on Airbnb

Renting out rooms is a welcome part of the best passive income ideas . You may rent your spare bedroom(s) to short-term guests. You can pick a plan that you like and only rent out your space when you feel like it. So if you have visitors coming next month, you can block off those dates on Airbnb. You can also buy rental properties just to rent them out on Airbnb, so the company takes care of screening and leasing to long-term tenants.

  1. Rent Your Car or Parking Space

You start with Turo to rent your parking space on a short term basis. Turo manages minimum insurance with all bookings, and options for car owners to add more protection if desire it. Before you start this business, make sure you calculate the risks involved. Also, understand all risks and liability for your car before renting it on Turo.

Did you know that most average vehicles are parked 96% of the time? So if you live in city Parking spaces are priceless. Rent it out to make passive income.

  1. Private Notes

Do you know you could lend real estate investors money for their deals? You may try the use of private notes in this list of the best passive income ideas . You may choose to lend directly to investors by a private note and negotiate an acceptable interest rate to both you and your borrower.

Private Notes can be a high-risk venture. So if the borrower defaults, you may have little recourse, unless you attached their property’s deed, as a lien for the private note lending. Don’t start with this type of business until you have enough resources.

  1. Write an E-Book

If you have knowledge or expertise in any area, there are people who could need your e-book. The thing is to write the e-book as a tutorial step by step guide. With the internet, you can publish the book using the kindle Amazon platform with zero cost and start selling it on Amazon.

Besides, whenever someone buys and downloads your book, you get Author royalties. The only cost could be book cover if you want a fancy one advertising. Try this passive income method that will continue to pay forever.

  1. Create an Alexa Skill

Another best passive income ideas 2020 is relying on your technical skill. The equivalent of apps on Alexa is Skills. Skills are programs that work with Alexa’s voice-based system to make content for the end-user.

So if you are able to make a useful “skill”, you will make a lot of from those that use Alexa. But you need to have technical skills. If you do, create Alexa skills and reap passive income.

  1. Transcription

Transcriptionist work needs to have some skills and patience. What you do as a transcriptionist, is to listen to audio files and transcribe them. You will be paid per audio hour. So if an audio file is one hour long, you are paid for one hour of work. You can use this method to create passive income too.

  1. Buy Royalties

You can buy other artists’ royalties, already making waves as a source of passive income stream. Today you have websites that buy and sell royalties. This strategy is among the best passive income ideas.

You can visit Royalty Exchange to examine the kinds of royalties that are available for sale. And then buy royalty rights that are likely to continue generating sales in the future. Some art forms have a short lifespan. So beware,

  1. Start a Podcast

If you have charisma and love the microphone, try starting a podcast instead of a blog. Just like a blog, you can earn money from affiliates, advertisers, or from selling your products and services. And you can start with little cost. Go to Amazon and search for the best podcasting headsets that sell less than $50 and start your podcast.

Best Passive Income Ideas

  1. Create Software

If you have Technical skills to write software, you can create code that other people will pay to use. This another one of the best passive income ideas you can invest in. Look out for a need in the market that is not being met and meet it.

Even if you do not have technical prowess, you can hire someone else to create the software, and then you sell it as a passive income stream. Marketing software is the key to earning a passive income. You may use freemium, subscription models, annual subscriptions and a reseller licensing fee and so on.

  1. Laundromat

This business is designed from start-to-finish with a goal of creating passive income streams. That is why it is one of the best passive income ideas. If you look at Laundromat business that put a washing machine, at every location. This automated worker generates passive income every hour of every day continuously.

  1. Manage Social Media Accounts

Small businesses know that they need a social media presence to succeed in today’s marketplace. However, many small business owners do not have the time to maintain their social media pages.So, if you have a skill with social media, you can help local businesses maintain their simple social media pages for certain amounts or fees monthly.

Though this is not as passive as other options on this list, why not turn the time spent aimlessly scrolling on the internet into a profitable time you spend posting on your client’s social media sites.

  1. Acorns

The Acorns app allows you to make automatic investing. You may invest some money on Acorns’ main feature called Round-Up. How it works is that when you make a purchase worth $27.40 from any store, the app sets aside 80 cents from your checking account and invests it automatically in a mutual fund. This app helps you to build up an investment portfolio and save your money gradually and it is part of the best passive income ideas .

Another way the app works for you is by using “Found Money.” Acorns have participating stores at chosen retailers that let you earn money each time you shop. For instance, if you spend $100 at Wal-Mart. The app computes a percentage of that $100 (which can be as high as 10% for some retailers) and adds it to your investment account. This is free money.

This app increases your portfolio by investing your spare change and found money. Acorns have over 4 million users and is one of the fastest-growing financial apps now. The app has over 4.7 ratings out of 5 and a review of over 488,600. So, visit the app store and download the app for your iOS and Android devices.

  1. Start a YouTube Channel

There are many ways to earn income passively through a YouTube channel. You can earn by reviewing products, giving your opinion on local events and performing entertaining work. Also, YouTube rewards channels with higher viewer counts.

But the easiest way to earn money on YouTube is through product endorsements. You could use your own products like e-books or secondhand sales, or you can use affiliate marketing to create a one-click revenue.

While on the video product review, you could earn a lot of views depending on the item. And if your site draws in thousands of viewers daily per video, you can make passive income easily.

Best Passive Income Ideas

  1. Foap

Foap lets you make money by selling pictures you take with your phone. What is nice is that one photo can sell many times, and let you make passive income. And so it is in this list of the best passive income ideas .

However, the best way to earn is by entering contests, where Foap teams up with a particular brand to show how regular people use that brand. Foap pays you each month by PayPal.  And the store rating for the app is 4.5 over 5 and it has over 9,300 reviews. So, visit the app store and download the app for your iOS and Android devices.

  1. Build an Affiliate Marketing Niche site

This method is always among the fast money makers and so it is part of the best passive income ideas 2020. You can do affiliate marketing to earn money all year round. And you don’t need to sell your own products.

Just sell other people’s products instead. And to sell products, you need to set up a website to do affiliate marketing easily. The tough part is to send traffic to the website. And this takes time so be patient.

  1. Trim

Trim is another popular new favorite service that you can use to make money. This is not an app on itself but works in Facebook’s app. what this app does is to find out savings opportunities that happen when you make purchases. You can make money using this app as it finds cash-back deals and automatically activates them for you.

Each time the app finds a deal, you’ll receive a Facebook message from Trim. The app does all the work and you just sit back and collect the earnings free. So, visit the app store and download the app for your iOS and Android devices.

Conclusion

In this post, you have the best passive income ideas that you can use to create massive earnings. In most cases, you need to do the work before the earnings start coming on autopilot. And you can’t have earnings without putting either your time, money, or expertise at the initial stage. Try any of these methods as they are sure to swell your bank accounts.

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