23 Passive Income Ideas and Tips To Make Money 24/7 (The Complete Guide)

It might sound cliché or unattainable, but there are real ways to make money while you sleep.

It’s called passive income.

It continues to gain popularity, partly due to millennials wishing to retire at an earlier age than previous generations.

In this post, you’ll learn:

• What passive income is
• How you can earn from it
• The different ways to earn money while you’re asleep
• The passive income apps to make money
• Pitfalls to avoid
• Among others

Whether you’re looking to speed up your path to financial freedom or just looking to earn a few extra bucks, this additional income could be for you.

And as millennial Sam Dogen, who makes $200,000 a year in residual income, would tell you, “starting as soon as possible” is key.

If you ready:

Read on!

 

What’s the difference between passive and active income?

Active income is exchanging money for services. It’s a payment for what you do. For example, a company pays an employee for working. It could be a salary, commissions, or tips.

Passive income is income you earn consistently for something you did once or is derived from an enterprise in which you’re not actively involved. Examples are rental property, dividend investing, etc.

Some passive source income ideas take a big deal of upfront effort and money like writing an e-book. Some don’t like investing in your retirement funds.

Why would you want it?

There are a lot of reasons that you would want to earn this type of income. Some of them include:

• Reaching financial freedom sooner
• Paying off debts
• Saving money for your kids (e.g., college funds and their future)
• Not wanting to live paycheck to paycheck
• And others

 

Three different types of passive income

We can sum up passive income ideas into three different types. Some will require you to invest, some will be free, and some will be in-between the two. Here are they:

• With no money and little effort. This is where you should start to earn extra money so you can go to the next type of passive idea without you having to shell out your own money.
• With effort up-front. Like blogging, some of these passive ideas need for you to put in the time and effort to get it started and going.
• From investments. Typically, these are investments that look for long-term passive source of income solutions.

 

With no money and little effort

Believe it or not, there is quite a few money making apps or ideas that can generate cash for FREE. Yes, you can make money without putting so much effort. Here are these ideas:

1. Learn the ways to make passive income through shopping

If you are going to spend money on just about anything, then you might as well make money doing it, right?

Now, there are cash back apps to help you earn cashback for almost any purchases you made online and offline for FREE.

How does all this work? You download them, use them, and you get money back. It’s that simple.

Believe it or not, These apps can help you learn how to make money in one day online. I’m referring to bonuses.

Recommended rewards apps (see apps section for more details):

• EBates: Get up to 40% in cashback online plus a $10 sign-up bonus.
• Affinity: Get up to 30% to 40% in cashback online plus a $20 sign-up bonus.
• Drop: Get cash rewards for whatever you spend on every day online and offline. You never have to look at which sites have coupons or deals.

Practical Saver Tip: Use several of these apps at once to potentially make more than what you paid initially for your items.

 

2. Run background apps as one of the best income streams

When it comes to the best passive income ideas, this is pretty much as simple as it gets, that is, let apps run in the background of your computer.

Believe it or not:

There are quite a few apps (some are survey for cash apps) out there, but they all mostly work the same: Simply install and earn money and rewards without doing anything.

While some apps provide a guaranteed monthly reward, others offer sweepstakes prizes.

If you don’t succeed in getting the sweepstakes prizes, then, it’s okay because you didn’t exert any effort. If you do win, then, it’s beyond excellent.

Here are four money making ideas through apps that are worth trying:

• Nielsen Computer and Mobile Panel: Gives away$10,000 per month in sweepstakes prizes.
• MobileExpression: Get a gift card after one week for having the app downloaded.
• Opinion Square: Someone made $100,000 through downloading.
• Survey Savvy: Get $5 per month for having the app downloaded.

 

3. Make a second source of income by not deleting your receipts

Fun fact:Deleting receipts cost me over $300.

Don’t let that happen to you because you could get money back with Paribus. See my Paribus review here. 

You’ve been in a situation where you purchased something and, turn around, the price went down a couple of later.

I know you know the feeling of wanting to return the product or feel angry that you didn’t wait for that price reduction. With Paribus, that situation is all gone.

Paribus tracks your confirmation emails and watches for price changes.

When the app detects potential savings, it lets you know and help you get money back.

It’s not a get rich quick scheme, but it’s an effortless way to help save money and make money online, too.

Oh, and did I mention it’s FREE?

Click here to start using Paribus.

 

4. Use cashback credit cards as a passive source of income

Practical Saver Tip: Make your purchases work for you by using a cashback credit card.

Think about it. If you’re already going to be spending the money, why not put money back into your pocket?

Cashback is, by far, one of the simplest money hacks one could ever see because if you’ve got a credit card with a cashback option, you don’t have to do anything else.

Granted, this won’t make you rich, but it will give you some kickback on money that you’d already been spending.

Check out the best cashback credit cards, according to NerdWallet.

 

With effort upfront

Then, there are some passive income ideas where you only need a few dollars and a little bit more effort.

The Practical Saver tip: Once you make extra money from the ones stated above, use those to put the income-generating ideas from this section.

5. Start a blog as a great residual income idea

Earning a living from a blog is a dream job for a lot of people. Guess what? It’s an entirely attainable dream.

I’m telling you, can start a blog and turn it into a money-making machine. Have you got proof? Yes.

I, for example, started this blog over two years ago. With zero blogging, coding, or technical experience, I have earned over $180,000.

By far, it is the best income idea I’ve ever executed. Partially due to affiliate marketing and keeping costs low.

So, what’s the deal with blogging?

A lot of people look for personalized take on how to do things, how to solve problems, etc. When you blog, you can share your experiences and people value that more than you know.

When you build your reader base, you can get more sponsorship, advertisements, among others – all of which tie back to more revenue.

Click here to create your blog in less than 15 minutes with Bluehost for as low as $2.95 a month.

 

6. Pay off/reduce your debt as one of the best passive income ideas

So, what in the world does paying off debt have to do with income-generating ideas?

Come to think of it. You pay interest every month on your unpaid balance. If you were to pay off debt, you’d really save money on interest month after month. That’s where the passive income comes in.

There are quite a few platforms out there making it easier than ever to automate debt consolidation.

Now, thousands of companies will lend money to you at very low-interest rates. Say goodbye to your traditional banks and lenders.

Recommended debt-consolidation companies:

• Upstart: Upstart is excellent for younger applicants with less credit history but high earning potential.
• Tally: Tally will pay off your high-interest cards and then charge you a lower interest rate on the same balance.

 

7. Invest in stocks (as one of the multiple sources of income)

Investing in dividend stocks is an easy way to create a passive source of income online because you’re effectively getting paid to own them! See more on how to invest in stocks here. 

As a company brings in earnings, part of the profits can be siphoned off and paid back to investors as a dividend, which can be reinvested to purchase additional shares or received as a cash payment. The cycle of making money goes on.

Online stock trading can be intimidating, but using software from a reputable company should ease your mind.

Luckily, there’s Ally Invest.

Pretty much, this is how investing using Ally Invest goes: Sign up, fund your account, search for funds you want to invest in, and buy. It’s that simple. You don’t need professionals to make a simple, straightforward transaction.

Ready to invest in dividend-paying stocks?

Start trading today with Ally Invest.

 

8. Sell your photos online as a potential income source

Did you know you could make more than $130 a month by just selling your photos?

That’s a pretty solid passive income stream for images you probably have just sitting on your phone! For those who like to take pictures anytime, they have an opportunity; they might as well sell their photos online and make some money.

The best part of it? You’re not only getting paid once, but you’re also getting paid month after month as some sites offer a percentage of their revenue to go towards photographers like you. That’s what passive source of income is about.

How do you get started? Simply pick a few of your best photos and send to microstock sites, such as istockphoto.com or shutterstock.com, for consideration.

Click here to learn more about the process.

 

9. Start a YouTube channel as an income stream

If you’re looking for passive income and like being on camera—YouTube may be for you!

YouTube reports that the number of channels that have hit six figures in annual earnings through the platform has doubled from last year.

Whoa—count me in!

The sky is the limit when it comes to what you want to do with your channel. You can choose to do make-up, travel guides, or anything you are interested in.

Once you gain followers and views, then, you can start making money through ads and sponsorships.

Click here for some tips from the pros for making money on YouTube.

 

10. Lean how to make residual income with you unwanted stuff

We all have a box crammed with things we know we’ll never use. I know I do!

Fortunately, there are ways you can sell stuff for cash fast and a ton of selling apps and websites out there to help resell your things!

Some people have made thousands of dollars of extra money every month just selling unwanted clothes they have or selling items they intentionally bought from stores on clearance.

Best places to sell used belongings:

• Decluttr: Helps sell your games and electronics.
• Poshmark: Helps sell your fashion clothing and accessories.
• eBay: Helps sell pretty much anything under the sun.

You can also look at making local sales, and advertise those in the following platforms:

• Craigslist
• Facebook Marketplace
• Letgo

These sites don’t take any cut of your transactions, which is good. That said, you’re responsible for connecting with buyers, meeting them in person, and making the exchange.

 

11. Write an ebook as passive source of income

Writing a book is not as hard as you think (no literature degree required!), and is actually a very lucrative income stream.

In fact, you could earn more than $2000 a month! That’s residual income right there.

All you need to start is a topic you’re passionate about and a writing schedule you can stick with. From there, you can start earning an income and deciding how to sell your ebook.

Sounds pretty awesome, right?

Click here to learn more about writing your first ebook.

 

12. Make passive income with affiliate marketing

Affiliate marketing is one of the simplest and quickest ways to generate income and is a must if blogging or creating a YouTube channel is part of your passive income strategy.

What’s that? Affiliate marketing is where companies provide you with links to promote their company’s products.

What do you get in return? Companies pay you for each click that turns into a sale.

Here are eight steps to get you started with affiliate marketing.

 

13. Rent out your stuff to earn residual income

If you’ve got a lot of things that you don’t use that often but want to make some money out of them, then, it’s time for you to rent them out to other people.

You don’t need to exert a lot of effort. All you need is to find the right platform to rent them out.

Fortunately, some sites allow you to list your items for rent, making it easy for renters to find you.

• Style Lend – You can rent women’s fashion items such as accessories, bags, and clothing. If you have dresses, bags, and others that you don’t use, this is where you can post your belongings for rent.
• BabyQuip – You can rent baby items from cribs to toys and everything in between. If you are located in an area that has a lot of tourists who need baby items for their kids, then, you are in luck.
• Fluid Market – You can list your truck for rent.
• RVshare – You can list an RV for rent.
• Boatsetter – If you have got a boat that you don’t use or find a use for, list it out for rent.

 

 

14. Start or buy a business to add quick income stream

Starting or buying a business can be scary and time-consuming. But there’s a solution to it.

What’s the solution? You can start or buy a low-maintenance business.

The truth is, any business can be a passive source of income if you only put time and effort into it. Some businesses don’t require a lot of capital and not even manpower (except you). Learn more of Dave Ramsey’s Baby steps here. 

If you are looking for something that doesn’t require high-maintenance, some of the business you may want to look into are automatic car washes, storage rental facilities, and vending machines.

Just make sure you look into business insurance that can cover your business when unforeseen situations arise.

 

15. Turn your car into an advertisement to make passive funds

If you have a car and drive it to wherever even for a few minutes only, then, you might as well get paid to do that.

How? By using it for advertisement.

Several companies match up advertisers with car owners (those want to make some extra money on the side). There are several ways by which companies would put an ad on your car.

It could be rear window ads, panel, or even a full wrap. The wrap is just a sticker that won’t damage your car. These stickers might also protect your vehicle from color fading.

You can make between $50  and $400 per month. Some of the companies in this industry include:

• Carvertise
• Free Car Media

 

From investments

Then, there are those income ideas where you need money up-front to earn cashback. These are not pyramid scams. These are ideas you could do from day one and see returns in a month or so.

16. Invest in high-yield savings to make passive income

One ultra-simple source of income that can help kick your finances into gear is opening a high-yield savings account.

That’s how to make passive income online.

Many banks now offer an online saving account that exceeds the rates of return you’d get from your local brick and mortar bank.

Right now, with just $100, you can open a CIT Money Market account, which currently offers one of the highest interest rates on its savings accounts at 2.45% APY (that’s over 11 times the national average!).

Check out CIT Money Market account here.

 

17. Invest in crowdfunded real estate to earn a second source of income

Want to achieve your financial goals sooner? Adding a residual income stream to your portfolio could be the trick.

Real estate crowdfunding is a newer income investments strategy.

Made possible by the JOBS Act, now everyday investors can invest directly into real estate crowdfunding projects online!

Real Estate Investment Trusts (REIT)

A REIT is comprised of money from different investors, that is, in turn, managed by professional real estate investors. The fund is primarily invested in real estate, and any returns are returned to the investors.

The best part of all of this REIT transaction is that investors like you don’t have to do anything (i.e., no landlord responsibilities even though you technically own a portion of the real estate investment the REIT invested in).

Through using platforms like Fundrise, the average investor can buy into private commercial and residential properties by pooling their assets through an investment platform.

Believe it or not:

The average rate of return from this investment is around 12%/year. That’s a lot.

Look:

You only need $500 to start investing with Fundrise.

Click here to start using Fundrise today.

 

18. Invest your cents to earn passive source of income

So you’ve got cents or free change.

What if I told you could make your cents count, and make it one of the best residual income ideas ever?

Well, you can when you use Acorns, an app that invests your spare change automatically without you having to think about it. See my Acorns review here. 

Acorns rounds up your purchases to the next dollar. Once your account accumulates $5, it invests your money.

It’s by far one of the best answers to the question of how to get free money. Plus, you don’t need to invest an amount of money that you can’t let go.

Take it from me:

That’s what I did, and my cents turned into over $2,000—a 12.5% return rate in just seven months. 

Try Acorns now, and get a FREE $5 bonus to start!

 

19. Try peer-to-peer lending to earn residual income

Looking for the best passive source of income ideas to add to your portfolio? Peer-to-peer (P2P) lending might be for you.

The cool thing about P2P lending is that it allows you to lend out money to peers in the forms of personal loans, similar to the way that banks and other lenders produce income.

The best part?

Now with sites like LendingClub, you can open an account and start your residual income venture today.

Here are the 12 types of loans you can invest in with this club:

The platform also allows you to make investments semi-automatically, so you don’t continually have to monitor your investor or reinvest returns.

Click to get started with Lending Club today!

 

20. Invest with a robo-investor for residual income streams

A newer breed of income, robo-advisors are automated investments software that creates a low-cost portfolio tailored to your goals.

Through platforms like Betterment and Personal Capital, all you have to do is fill out a short survey answering questions about your financial position and future goals.

From there, the robo-advisor puts together an optimal portfolio for you and manages it, so your investments stay on track with your goals.

Here are my two favorites:

• Betterment: There is no minimum balance to open a new account—great for those new investors looking to get their toes wet.
• Personal Capital: Targets $100,000-plus investors with a hybrid model combining robo-advisor algorithms and human advisors that may make you more comfortable than having everything handled by a computer.

 

21. Invest in CDs to earn consistent second income source

Also known as certificate of deposits, CDs are another very low-risk investment option.

You can earn a higher interest rate from CDs that traditional checking and savings accounts. That said, your funds could be tied up for a while – depending on the CD-term you choose – and may cause you a steep penalty and other fees if you take them out early.

But there’s a solution to this? It’s called a CD ladder. 

Ladder means that you get CDs with different maturity dates. This way, you can access your funds a specific time (typically sooner).

Here’s an example of what a CD ladder looks like:

• $1,000 in a one-year CD
• $2,000 in a two-year CD
• $3,000 in a three-year CD

Of course, the longer the CD maturity date is, the higher the interest rate. But you have to think about the drawbacks of locking on a single term, primarily when an emergency arises.

Check the current CD rates here.

 

22. Rent your space to make extra income

Rent or own, chances are you pay a lot for your space.

But did you know you could earn money from your space?

Whether you have an entire flat or just the occasional spare room, there are quite a few ways you can earn rental income from your space.

It depends on the location, size, and access to your space, but using Airbnb rental properties can make your passive real estate investment dreams come true!

Click here to start hosting with Airbnb.

 

23. Build an e-commerce site as a way to earn more money

If you’re willing to put in some up-front work, building an e-commerce website is one of the better passive income ideas out there.

Believe it or not:

When you create an online presence, you can make a long term (not a short term) residual income.

Take it from Trevor Chapman, who, in 92 days and only spending a few hours a night building e-commerce site turned $300 into $1 million.

Starting an e-commerce website might sound like a massive undertaking, but it really can be boiled down to three steps:

• Step 1: Choosing an industry and product.
• Step 2: Finding manufactures with great products.
• Step 3: Setting up the website.

Read on about these steps here, and be on your way to making a passive income online.

 

Passive Income Apps: 19 Apps To Use Now

Earning thousands or one million dollars from your phone isn’t a new thing. The only new thing is people not taking advantage of these money-earning income apps.

Here are 19 apps you need to use now.

Swagbucks

What is it?

Swagbucks is the total package when it comes to making money online. Since 2008, they have awarded $300 million to its users. See my Swagbucks review here.  

Rewards:

PayPal and points are redeemable as gift cards to major retailers, including Wal-Mart.

How it works:

Everything you typically do on your computer can be done through the app.

You are rewarded Swagbucks (SB) for everything you do – including watching ads, shopping, playing games, using a search engine, and, one of my favorite ways to make money online, filling out surveys for cash.

Yes, you can be paid up to $35/survey for just a few minutes of taking a survey. That’s unbeatable.

Our review: Swagbucks is the “make money whatever it is that you do over the internet” juggernaut in the industry.

I have made over $1,500 using Swagbucks already – in only a few months. If I can, you can too.

Click here to start with Swagbucks for FREE and earn a $5 bonus when you sign up.

 

Digit

What is it?

A popular savings app that analyzes your bank accounts to determine when it’s safe to save money for you.

Rewards:

Dependent on your lifestyle.

How it works:

Through sophisticated algorithms, Digit is capable of understanding your lifestyle and spending habits and can determine from day-to-day how much money is safe to save for you.

You tell Digit what your goals are, and it will secretly save up for it.

Digit uses the same level of security as the military, 256-bit encryption

Our review:

Digit uses the same level of security as the military, 256-bit encryption. You can trust Digit will securely track and move your money from your checking to your savings.

To start saving for your next vacation or an emergency fund, click here to start saving with Digit.

 

Paribus

What is it? 

The company that will find the money owed to you after an online purchase from over 20 major retailers for FREE. See my Paribus review here. 

Rewards:

Depends on the difference from the lower price and what you paid. Retailers typically refund you to your original form of payment.

How it works:

Paribus searches through your emailed receipts (from participating stores), and when it discovers a price drop from your purchased price, it will issue a refund to the store on your behalf. How cool is that?

Our review:

If you shop online frequently, then this passive income app is for you. No credit card is needed to sign up and is 100% free to use.

Click here to start having Paribus scan your email receipts and save some trees while in at it.

 

Lending Club Invest

What is it?

Largest, beginner-friendly Peer-to-Peer lending group. Whether you are trying to refinance or loan money, Lending Club can help you make an amount of money entirely passively.

Lenders have earned an average return of 9.65% since June 2015.

Rewards:

Investing in peer-to-peer lending.

…. an average return of 9.65% since June 2015

How it works:

Investors all pitch in on loan in the Lending Club marketplace.

They each receive a percentage from the interest paid on for the loan. You, however, more than likely, will receive a lower interest rate compared to major banks since people and not the bank fund the loans.

Our review:

You are more likely to get a better rate and higher approval chance than with most major banks.

Once you meet your state’s requirements to become a lender, you can then start making money by loaning it out for as little as $25.

Start using LendingClub today.

 

Fundrise

What is it? 

Fundrise is a real estate crowdfunding investment platform. This is a form of income relatively new to passive income ideas.

Yes, you don’t need rental properties to invest in real estate. Fundrise addresses that.

Rewards:

Average rate of return is 12%.

How it works:

You need a minimum investment of $500 to invest in either or both types of real estate investment trusts, one for immediate income and the other for growth.

You can track performance on your phone.

Our review:

When dealing with the stock market, it can be both frightening and thrilling.

Fundrise is the easiest way for a new investor to start investing in commercial or residential real estate.

Diversify your portfolio quickly from your phone and try Fundrise.

Click here to start investing with Fundrise.

 

Acorns

What is it?

Micro-saving company like Digit, but instead of putting your money in a savings account, Acorns puts your spare change in the stock market. See my Acorns review here. 

Rewards:

Ranges depending on your portfolio decision – conservative or aggressive. I went from cents to $2000 – a rate of 12.5% return in seven months. 

That’s thousands of dollars right there.

How it works:

Every purchase you make, Acorns will round up to the next whole dollar. $5.64 + $0.36= $6.

The $0.36 will be put into your account, and when you reach $5 in your account, it will then be invested into your portfolio.

Our review:

Acorns makes it easy for new investors to build an investment portfolio.

The app analyzes your current financial situation and recommends the type of portfolio that will work for you. You do have the option to choose how you want to invest manually.

In the long run, this could be the highest paying income app.

Click here to start investing with Acorns. Also, get your FREE $5 for signing up.

 

Trim Financial

What is it?

Since 2015, Trim has saved its users money by cutting unused subscriptions and negotiating contracts to find better deals for its users. See my review Trim app review here. 

Rewards:

Cancelled unused subscriptions, lower rates on contracts, and automated saving. If you’re asking the question “I need money now?”, this is the best app to start with.

How it works:

Like Digit, Trim analyzes your accounts and determines where you can save by canceling subscriptions for you, setting aside an amount of money in your savings, and finding cash back and refunds for you.

What makes this passive income app unique is its ability to renegotiate contracts for better deals.

Our review:

Talking bout passive income apps, Trim negotiated my on-contract Verizon phone bill and cut it by $16.75/month. This feature alone makes it one of the best income apps out.

Click here to start saving with Trim.

 

Nielsen Computer and Mobile

What is it? 

For over 90 years, Nielsen has been the world’s leading provider of media and marketing information.

You might be familiar with Nielsen TV, but now Nielsen has tapped into the computer and mobile market.

Rewards:

$10,000 monthly sweepstakes and more rewards for additional devices you have with Nielsen.

How it works:

You install the app, and that’s it. The app runs in the background non-invasively and gathers information about how you use your device and you are entered in the sweepstakes.

The more devices you add the app to, and the longer you have them installed, the more rewards you have the potential to earn.

Our review:

You have nothing to lose with this panel app and much to gain with this income app.

It doesn’t hurt the performance of your device, and you have the chance to make money from home.

Download here for FREE to enter in to make money with Nielsen.

 

Savvy Connect

What is it?

Survey site that’s not a survey site. It collects information from you on how you use your connected devices.

Rewards:

Cash paid via PayPal

How it works:

Join for free, install the app, and earn $5 per device per month up to $180 a year. You will also receive surveys emailed to you.

One member received a $200 Visa gift card for completing a survey.

Our review:

My wife and I make $10 each by having this app installed on our devices.

Easy money to make for no effort, and that doesn’t include the emails we receive with high paying surveys.

This is one of the highly recommended income-generating apps you should install.

Click here to start making quick money with Savvy Connect.

 

Ally Invest

What is it?

Ally Invest is an online dividend brokerage that allows for self-guided or robo advisor guided investment decisions.

Rewards:

Dependent on your portfolio and how you choose to invest – conservative or aggressive.

How it works:

You create your profile and Ally Invest walks you through how to begin investing in dividend stocks – something to help you get cash flow later on.

Ally Invest gives you the option to have your portfolio managed professionally for you, and when you feel comfortable, you can make financial decisions yourself.

Our review:

The stock market can be scary for many. Understandable.

Fortunately, Ally has been a reputable business for years that can walk you through the entire investment process.

The best part is its low fees – making it easier for new investors to dabble in the stock market.

Click here to begin investing with Ally Invest.

 

Ebates

What is it?

The most well-known affiliate reseller since 1998 that shares the cashback rewards with its users. Ebates has a partnership with over 2,500 online retailers.

Rewards:

Cashback via free PayPal money or check in the mail.

How it works:

You create an account with Ebates then begin shopping through its sales portal. You find a store you want to buy at, then look for categories that offer cashback. See more cash back sites here.

For example, Best Buy may offer cashback on the category DVDs. When you buy a DVD, your account is credited the cashback, and you redeem the money.

Typically, most stores offer 5% cashback.

Our review:

If you shop online frequently, then this app is for you. Cashback is a perfect passive source of income idea. You make money while shopping.

Start making cashback with Ebates.

 

Ibotta

What is it?

Cashback provider at over 500,000 locations. You read that right, 500,000. See more grocery list apps that save you money. See my Ibotta review here. 

Rewards:

Cashback via PayPal, Venmo, or gift cards. Plus, $10 bonus for signing up.

How it works:

Download the app and register. Select stores you shop at, find deals within that store, purchase items before the deals expire, then scan your receipt to receive cashback.

Think of Ibotta as digital coupons that you use after the purchase instead of right there at the register.

You may have to complete a survey or watch a video to unlock some of the deals.

Our review:

Ibotta is a must for when you buy groceries.

Grocery bills can add up, and the best way to combat that is with an app that will help you save on the stuff you were going to buy anyways. See how to save money on groceries here. 

Ibotta is a must-have passive income app you should be using while you are planning your food budget.

Click here to start saving with Ibotta.

 

 

Myths about passive income ideas

Sure, you can make consistent money day in and day out from these ideas, but not everything is what it seems. There are myths you need to know about these passive ideas. Knowing them will help you understand which ones to use and which ones to avoid.

Here are they:

1. You can just “set it and forget it” your revenue streams

Wouldn’t it be a great idea if a revenue stream like that ever occurs?

We like the idea of doing one thing for one time and let the money flow in. But the reality is far from that.

When you have a passive idea like blogging or selling something online, you still need to do additional like marketing, bookkeeping, among others. If you’re not putting some form of effort in your revenue stream, chances are your side gig will run dry.

Having a passive source of income still requires you to work even for a little bit.

 

2. You need money to start earning passive money

Many people assume that income-generating ideas need funding to start earning cash flow. That is not always the case.

For example, you can start blogging for just $2.95/mo, put some effort and time, and make money online in a month or a few months.

That’s what happened to me. I jumped into blogging. Three months later, I made over $600. Three years later, I am making over $20,000/mo.

There are other ways to make passive funds without having to shell out a lot of money. You’ll find those ideas in this post.

 

3. You need an innovative, brilliant idea to make money online

The answer is not all the time. Some great passive income ideas don’t have to be different for you to make money out of them.

For example, you can invest in the stock market and earn dividends. Also, you can make capital appreciation on your stocks.

There are also other ways to earn income like investing in rental properties without owning and managing your rental properties. You can do this with Fundrise – an online real estate investment firm with 8.7 – 12.4% historical annual returns.

Imagine making that return year after year. That’s a substantial amount of money without putting too much effort.

 

4. You need to put all your money into one revenue stream

There are so many income-generating ideas that you can put your money into. While one may help you make more money than the next one you know, don’t put all your eggs in one basket.

For example, don’t put all your money in the stock market. If the stock market crashes, then, you’d be losing a lot of money.

This means that you need to diversify your revenue streams as much as possible.

You’d want to find those passive income ideas where you can diversify your portfolio to maximize your returns and minimize your risks.

 

5. Real estate is the best, safest form of passive income

While real estate is a great way to make more money, it isn’t always the best route to go for.

Aside from the subprime mortgage crisis that happened in 2008 or 2009, owning a real estate or rental property has its drawbacks. For one, you need to upkeep your property, deal with tenants (both good and bad), deal with unexpected expenses that will eat up your profit, etc.

The lesson is that if you’re looking for ways to earn extra income, always consider the pros and cons of your chosen ideas.

 

The full-proof income (passive) framework

Making extra money isn’t always a walk in the park. Many times, it takes time, effort, and money to make extra money.

Here are the concepts you need to know about this kind of income:

1. Start

That’s the one word that scares people a lot. If you want to start earning more money, you need to start doing it.

Don’t be afraid to begin your journey to this type of income. It’s the hardest thing to do, but it gets more comfortable with time, especially when you’re doing it consistently.

Mark your calendar and go from there.

What I personally do? 

When I decided to start blogging, I marked my calendar and blocked a couple of weeks so I could work on my blog. I took distractions and focused on what I was doing until I was comfortable with how my blog looked. 

 

2. Find out what you are good

Find out what you are great and capitalize on it. The worse thing you can do is do something that makes you a lot of money but one that you don’t like. Why is it the worst? It’s because you’ll eventually lose interest or dislike what you do and miserable at it one way or another.

When you do something you love and you make money out of it, you will feel good knowing that you do what you love and still get paid doing it.

What I personally do? 

I invest in the stock market, like there’s no tomorrow. I make money from it. If you like to invest but don’t know where to start or don’t have funds right now, you can try Acorns – an app that lets you invest cents. I turned my cents into over $2,000 in just a few months using it. 

 

3. Figure out what you’re not good at

On the flip side, find out what you are not good at. When you have identified that, either go through an extra mile to be better at it or let someone who has the expertise in the area where you lack it. That’s called outsourcing.

Don’t be embarrassed or ashamed for lacking in a specific skill or two. We all have our weaknesses. It’s never bad a thing when you acknowledge your lack of that skill and do something about it.

What I personally do? 

I’m never good at marketing. So, I have someone who works for me to do just that. While she’s focusing on that, I am focusing on growing my income through my blog. 

 

 

4. Save your money

One of the things that people don’t think about is saving their extra money.

You’ll never know what’s going to happen tomorrow. You don’t know if you’re going to make extra money or if something unexpected is going to happen.

Save money like there’s no tomorrow. Save as much as you can because when rainy days come like an emergency, you won’t have to think twice to shell out money where it is needed.

What I personally do? 

I fund my and my wife’s retirement accounts, our kids’ college funds, emergency funds, among others. 

 

5. Find out how much money you need to make to be happy

Some people keep on working and making money with no end in sight. If you ask them how much they need to make to be satisfied, a lot of them would be able to answer such a question.

Everyone has a different level of happiness. Some are happy with just a few hundred dollars, and some are happy with more.

It’s good to earn so much passive income, but if it doesn’t make you feel any happier, maybe you could donate or give money to specific causes or charitable institutions.

What I personally do? 

A portion of my blog income goes straight to my church. It’s my way of helping others and giving back to a great cause.

 

6. Always create a plan

You don’t go to war without making and executing a plan like when you want to create a budget. The same goes for trying a new way to earn income.

You must make sure you research the type of income idea you want to put your time, effort, and money. List down all the pros and cons and how you would address problems you’ve identified.

List down where you’re going to use your extra income and track it. Are you putting it back to your gig? Or are you saving that money?

Not having a plan is a recipe for disaster and a disaster waiting to happen.

What I personally do? 

I map out where my extra income is going. Every month I follow my strategies on how to create a budget to ensure I wisely and effectively use my money.

 

7. Don’t take out your investments too soon

For those income-generating ideas, especially those ideas that involve funneling of investment funds, don’t suddenly pull out your investing. That goes along with the idea of creating a plan and following it to almost a tee.

There’s always negative, monetary effects of pulling out your investments all of a sudden.

For example, there’s a compounding effect of withdrawing your money from the stock market. This means that if you pull your money, your money won’t earn interest on top interest anymore.

What I personally do? 

I do long-term investing, whether it’s in the stock market or real estate. This way, my investments continue to grow until I need those in due time. 

How to pick the right idea for you

With so many potential ideas to choose from, it’s easy to get confused and much easier to quit because you want to start everything but falls short of starting even a single one.

There are several tips on how to pick the right money-making ideas for you. Here are they:

• Interest
• Potential earning
• Longevity

Those are the top three considerations when it comes to choosing the right idea for you.

First 

You need to choose a side hustle or two that clearly align with your interests. That’s because it will be easier for you to put more time and effort on things that you value the most.

If you like to write, maybe you can start a blog, do freelancing, or something else. If you like selling, perhaps you can start your e-commerce site.

Either way, think about what you really like to do and find out how you can turn these interests of yours into a side hustle or a business.

Second 

You need to look into how much money other people are making from the idea you want to bring to life.

Ask yourself if they’re making money or if they’re barely making it through the month?

As much as you want to bring your passion or interests to life, passive income is about earning money.

Third

You need to find out how long can you do your chosen idea. Are you able to continue it for a very long time or just in the interim?

This question is specifically essential to those who want to go into a retail business. You want to make sure that your products aren’t just a fad that will go away after a few months.

 

Conclusion: Passive Income Ideas To Make Money

When it comes to creating the ideal lifestyle, a passive source of income is the way to go.

Best yet:

The amount of money you need to put in isn’t always significant. You can start at $2.95, for example, to put up your e-commerce site.

It can not only put cashback in your pocket but can also buy you more time to do what you love.

And who couldn’t use more time and cash? I know I could!

What do you think of these passive income ideas?  Are you now ready to make money in your sleep?