13 Passive Income Ideas That Help you to Build Wealth in 2024

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passive income ideas

Have you ever wondered how to make passive income, money that really makes a difference in your life? Well, there are many effective ways to do this and a multitude of passive income ideas. So, start thinking outside the box and change your life forever.

So many of us go to work, day in and day out at a 9-5 job without the knowledge of how to make extra money. We work our fingers to the bone just to get from one week to the other. But wouldn’t it be nice to learn the difference between passive income vs. active income in order to build genuine wealth while sleeping? Is it possible? Yes, it is. It’s important to know that anyone can develop passive income streams. You can even learn how to make money online during holidays or from home.

What is Passive Income vs. Active Income?

Passive Income vs. Active Income

In order to fulfill your dream of building real wealth, it is imperative to learn the difference between passive income vs. active income.

First, we have our active income, and this is the job we go to every day, at a designated time, and for a number of hours set by a company. This active income is where most of us attain our financial security. Unfortunately, this traditional job is not always enough to survive, not to mention increase your wealth.

This is where passive income barges in. A passive income is a stream of money that comes from a serious project. This doesn’t include side jobs with minimal initial activity involved. Sometimes these passive dollars can come from online sales in your local community. Either way, it’s considered a passive income. If you’re lucky, this passive income can become much bigger than you expected.

How to Generate Passive Income: 13 Examples of Passive Income

How to Generate Passive Income

If you want to earn passive income, you must first discover your skills. Are you a good salesman, writer or artist? Maybe you can earn money building things. Remember what I said about multiple streams of passive income? Yes, you can utilize many of your great qualities.

When building passive income, be honest with yourself. Are you good at what you want to do? Do those passive income streams you’re dreaming about have a chance to become reality? Before you put all your eggs in one basket and depend on what you think is your best passive income investment, consider all the different options you have at your fingertips. Here are a few examples for passive income:

1. Try a Drop-shipping Store to Make Passive Income

One of the best passive income source is to build your own business. Of course, there are many ways to do this. Some people choose to invest in a drop-shipping store to make their online experience easier. One of the most popular examples of drop shipping is seen with Shopify. Shopify offers services both online and offline for those who wish to earn passive income.

How to Start a Drop Shipping business

While it might not be a quick startup, a drop-shipping business can be quite lucrative when it comes to earning extra income. First, discover what you want to sell. Enjoying entrepreneurship means selling something you are passionate about. You should sell products in a certain niche that has proven to be successful. Research your competition, this means analyzing other drop-shipping stores. When starting your online store, find a supplier and make sure they can keep up with the growth of your business.

Build a website for your eCommerce store. One of the simplest ways of doing this is by using Shopify, which has a rather ‘plug-and-play’ setup. After all this is done, marketing comes into play. Of course, smart entrepreneurs market their products and plan right from the start. Keep things optimized and updated. This helps you keep a fresh product and steady stream of customers.

2. Bidding as One of the Passive Income Ideas

Bidding for contract jobs consumer services can take some work, but it can also become a successful source while learning how to build wealth during your 20s to 40s. For instance, you can bid for all sorts of jobs in places like PPH, UpWork, and Fiver. But here’s where the real passive income rolls in sub-letting work through contract deals frees you from the actual work and helps someone else make a few bucks. Of course, you will take a percentage of what was made and you didn’t even do the job.

Some examples: Commissioned artwork, translation services, and bulk blog writing assignments are often found on bidding platforms. It’s possible to make thousands of dollars in a year’s time.

3. Generate Extra Money from Starting a Publishing Company

While some people want to write books, others go a step further with their dreams of passive income. Instead of writing a book, why not publish many books instead? Yes, starting your own publishing company, will take investing money upfront, and understanding marketing. You must wear many hats when first starting a publishing company, but when it comes to passive income ideas, it’s one of the best.

While there aren’t any simple steps in this process, there are many workshops to help you get to know the publishing business, with your competitors. After you understand how to navigate the publishing business, you can sit back and receive royalties, passive earnings, from each book published.

Remember, these promotions and marketing in the beginning, before the book launch will determine how much passive income is received. So, maybe this is an idea that can be profitable.

4. Investing in Stocks is a way to Earn Money

Investing in Stocks can be tricky, but if you have a little extra money set aside, you can start small. Some people start investing with only 10 dollars, which makes buying and selling stocks one of the best passive income streams.

Anyone can do it! But, one thing you must remember if you don’t have a large active income, it’s best to invest in something that is safe – something that is less risky, at least until you understand how to read trends.

Even if the stock doesn’t grow exponentially, it can deliver small dividends that can be used to buy more shares.

5. Make Money with Content Editing

If you’re not the author type, but you still love working with written words, you could find a great source of passive income in editing or proofreading. Because, in truth, it’s not always about selling products. Sometimes earning income in a passive way means selling services as well. Editing allows you to help authors while perfecting your grammar and English skills.

It can also lead to one of the most incredible passive income streams. Some reputable editors charge between $300-$1500 to edit a full-length manuscript. It depends on many factors, however, including book type and whether it’s the first manuscript of an author. Some editors give discounts to first-time authors.

6. Make Passive Income from Photo Selling Websites

If you are a decent amateur photographer, you can create a passive income stream by selling your stock images. One of the best ways to start out is to try your luck with a site like Shutter stock. If you notice your work is gaining in popularity, you can even create your own website to advertise your artistic ability. Many people go on to work at weddings, and even take on Senior portrait photography, which can bring in over $500 a session in some circumstances.

7. Earn Passive Income through Reselling Goods Online

To be honest, this one can be fun as well as a great passive income driver. Buying and reselling items can bring in quite a lucrative flow of money. All it takes is a bit of research pertaining to what people are buying, a great source of buying cheap good items, like thrift stores or yard sales, and then finding the best site to offer your gently-used, or sometimes new items, including home improvement and health books you often see in stores.

Many people use eBay or Amazon to sell items like these. For instance, buying a collector’s item may not cost much if a particular store isn’t aware of its value, but reselling this item online can be profitable on the worldwide stage. Someone may be looking for exactly what you have to sell. So, load up your eBay account, sit back and relax. If placed, priced, and promoted effectively upfront, the items will sell themselves. You can make thousands in resale.

8. Earning Passive Income from Car

If it wouldn’t bother you to drive around town with an advertisement on your car, you can really make a great source of passive earnings. Some companies pay up to $1200 for a campaign, which is usually paid in increments of $100 a month. If you do enough campaigns, you can keep making money this way for quite some time. While some of these advertisements can be rather large, if you just think of the money earned, you can deal with it.

9. Selling Information Courses to Generate Passive Income

Passive income means letting your work speak for you. With information courses, you have a large variety of ways to earn income by barely lifting a finger. An information course could consist of workshops to help others start their own business, help people who are interested in the stock market understand how to read trends, and assess risks.

The initial startup with information courses takes the most work. As individuals buy subscriptions to courses, your passive income starts to flow in this area. While some courses sell for a one-time price, usually in the hundreds, some workshops and information courses can work on a subscription basis. This is where passive income is truly showcased.

10. Consider Online Networking for Easy Income

Networking is a powerful way to make passive income. The best part about networking is making connections with others who share similar goals as you do. As you network, using professional/social sites like LinkedIn for instance, you build a web of professionals who many tools to offer. As your brand or persona spreads through networking, more opportunities for easy income start to flow closely behind.

For example: Maybe you had to look for work in the beginning, but with networking, clients start connecting with you instead. When clients come looking, you set your own prices much easier. This could mean a great earning potential.

11. Invest in REITs for Passive Income

Publicly traded Real Estate Investment Trusts offer a cost-effective and straightforward means of gaining exposure to real estate for passive income. These REITs, listed on stock exchanges, distribute 90% of taxable net income as dividends to maintain their IRS-approved status.

With shares often priced under $100, investments in REIT present an affordable investment opportunity. The passive nature of REITs requires minimal effort, involving only research and monitoring. Additionally, their liquidity is advantageous, allowing easy buying and selling through brokerage accounts.

Despite over 200 available options, a real estate entrepreneur must navigate market volatility and choose wisely. Furthermore, poorly managed REITs may face financial challenges during economic downturns, potentially impacting dividend payouts.

For this reason, we highly advise prospective investors taking up a high-paying job in REIT first to learn the tricks of investing in REIT.

12. Starting a Podcast is Modern Passive Income Venture

Podcasting stands out as a prime modern passive income venture, allowing you to express opinions while earning. Identify a passion, build consistency, and deliver quality content to build a loyal audience. Monetization avenues include sponsorships, ads, and exclusive premium content. Despite requiring commitment for planning, recording, and editing, podcasting offers steady income once a solid listener base is established.

The simplicity of needing just a headset and the comfort of home adds convenience. However, challenges include potential zero listeners and revenue, as finding a compatible audience takes time and effort. Yet, exploring diverse niches makes podcasting an accessible business model for those willing to invest time.

13. Passive Income Through Rental Property

Renting out unused space for extra income has become increasingly accessible, offering numerous options for side hustlers. Neighbor, a platform akin to Airbnb for storage space, allows hosts to earn money by renting out spare rooms, basements, attics, parking spots, garages, and sheds. Hosts set their rental rates and rules for access, earning monthly payments with a 4.9% plus $0.30 transaction fee. Despite the fee, Neighbor provides a free and convenient way to make money from unused spaces, particularly in larger cities where finding customers is easier.

Another option is renting rooms through Airbnb. With no upfront costs for hosts, Airbnb charges a 3% fee per booking. Many hosts automate aspects of the process, making it a low-effort income stream. Various websites, such as VRBO and Rent Like A Champion, offer similar opportunities to rent spare rooms or entire units.

House hacking is another popular strategy that involves getting a housemate to help cover your mortgage costs. While this approach guarantees steady rental income, living with roommates may pose challenges. Some landlords successfully implement this tactic, especially those with separate rental units. Search for various YouTube series on making money with rental properties to get some insights.

Conclusion

These aren’t the only ways to make a good passive income. No, not by far. But if you try some of these options, you might realize just how innovative and imaginative you can be when it comes to improving your life financially. I hope some of these ideas really work for you.

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Hamza is a lifestyle blogger who loves to travel. He has written extensively on money matters and is always eager to share his two cents with families looking for financial advise