Most, if not all, would dream of making money while sleeping.
Who wouldn’t? If you’re stuck with your 9-to-5 job and only earn enough money for your necessities, having a passive income would be truly helpful if you aim for a better and comfortable life.
What does having a passive income mean anyways? It is simply a way of earning money that requires little to no maintenance. However, it doesn’t mean you’d ignore it after setting it up. It’s still important to track the passive income stream no matter how automated it is.
If you’re ready to take the big leap and add more to your sources of income here are easy passive income ideas to try this 2020.
This is an easy passive income idea that would need some start-up cash in the beginning.
Simply put, you earn passive income from purchasing stocks from high-potential companies and getting a return of investment from dividends. Dividends are a portion of the company’s profits divided into different shareholders.
The amount you receive depends on how much you have invested and how much profit is there to divide. This type of passive income idea could give you an annual return of 15% or even up to 25% if the right stocks are picked.
One place to start investing for dividend stocks would be M1 Finance. Its platform enables investors to create different portfolios and make use of different financial tools. Moreover, it is completely free to individual investors.
Related: 7 Clever Ways to Make Extra Money
Robo-advisors use a set of algorithms to help you manage your investments. With fewer fees to pay compared to hiring a human account manager, all you need is your willingness to invest.
One of the leading robo-advisor platforms is Betterment helps you in reducing any taxes you have to pay in your investments and provides great financial advice based on their algorithms.
If you prefer to talk to a human and get more explanation in detail, Betterment provides you this option too. Other Robo-advisor platforms you can choose from is Acorns, E*Trade, and M1 Finance.
Starting a Blog
One of the well-known passive income ideas is to create a website and start a blog. You don’t need to have advanced knowledge in programming to build a website.
In fact, there are sites like WordPress that enable you to create your website by simply choosing from hundreds if not thousands of customizable templates depending on your needs.
Starting a blog would require a lot of effort at first; you need to design it, add content, and build an audience after all. As the amount of blog visitors start to increase, you could then include different ways to get income from it such as:
These are ads featured on websites set up by advertising networks who serve as middlemen between you and advertisers. They basically pay you for letting them use a space on your website to promote your products. The heavier the traffic is on your website, the better the income will be!
Usually included as a link within your blog post, affiliate marketing is a way of promoting other companies or ‘affiliates’. When someone clicks on that link and avails a product or signs up, you’d get paid.
Cost Per Click (CPC Ads)
The difference of CPC Ads among the two mentioned above is that you get paid simply when a person clicks on an ad on your blog, even if he/she decides to not buy or sign up afterward.
Blogging isn’t the only option to earn passive income using this method. These are completely flexible and could work on social media such as Youtube too!
Nowadays, earning money from real estate isn’t just about purchasing a house and lot, flipping it if needed, and looking for a deserving tenant. It doesn’t involve a large sum of cash to start with either, making real estate more possible with middle-class or even low-class investors interested in it.
Crowdfunded real estate is a new and much easier passive income way involving real estate. This method lets you own rental property without the headache from being a hands-on landlord.
One of the best platforms to try is called Fundrise.
Unlike other platforms that would require you to be an accredited investor (having a net worth of $1,000,000 or earning at least $300,000 annually), Fundrise lets you get started through real estate investment trust for just $500.
This would be used to invest your money in different commercial and residential properties around the United States.
Once your account balance reaches $1,000, you would be able to invest in their advance plans which lets you earn up to 12% of their annual dividend yield.
High-Yield Checking and Savings Account
Opening a checking and savings account is now quick and easy. It is one of the safest types of investment ever invented. All you have to do is put your money in and let it grow.
However, let’s be real: banks, in general, don’t produce as much output we want when it comes to our money. For a 0.15 percent return, you’d only get to feel the cash flow when you’ve invested a huge amount of money into your account.
To get the best of it, try to research on which bank to place it in terms of convenience and interest rates. Every percent counts so it’s best not to belittle the small difference of rates between each bank.
After all, when money starts coming in and your savings start to increase, that small percent difference would matter.
There are a lot of easy passive income ideas you could try. But every idea requires one or more of these three: time, money and effort.
So just like picking a job, make sure that what you pick as a passive income will be something either you’d enjoy or earn lots from (or even both!)
A lot of times we may be afraid of the risk, but through research and planning, you’ll eventually find the right passive income that’s best for you.
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