Do you like making passive income? How about making money while you sleep? Who doesn’t, right?
Passive income lets you to diversify your income and have multiple income source revenue. You will feel more comfortable knowing that you have lessened your risk of not having any money in case one source of income doesn’t last forever.
Some people even live off from passive income if they could generate enough money to cover their monthly bills and expenses. You don’t necessarily have to be a millionaire or a billionaire to start making money from passive income.
Right from college going student to average working people could generate extra income through passive income streams.
Ready for the good stuff? Here are 5 ways that you could use to generate the passive income of $1000 or more.
5 ways to Make Passive Income
1) Rental Room
It definitely helps to own a rental property and lease it out to the tenants so you could make money out of your property. However, if you don’t own any rental estate properties (most of us are in this boat); you could share a room in your apartment or house with others and make income from there. This will be 100% passive income.
2) High Yield Savings Account
This is one of the easiest ways to make passive income. There are several banks and financial firms that provide decent interest rate for just putting your money in their savings account. For example, Citi Bank gives 1.8% interest for at least $100 deposit on their savings account. That is equivalent to $18 for every $1000 that you invest in their savings account per year.
3) Real estate Crowdfunding
Real estate Crowdfunding could be one of the ways you could make passive income from. Most RE crowdfunding companies require you to be an accredited investor to invest through them (e.g CrowdStreet). However, there is one RE crowdfunding ‘Fundrise’ through which you could invest in real estate properties across the U.S. and earn dividend from your investment. If you have $500 dollars or more to invest; you could invest through Fundrise to reap the benefits of both dividend and property appraisal.
4) Dividend Stocks
It is very easy to make money from dividend stocks or mutual funds. You would need some money beforehand to invest in stocks/mutual funds though. Basically, you would create a brokerage account with financial firms like Fidelity or Vanguard and buy dividend stocks (e.g. at&t provides 5.59% dividend). Alternatively, you could also buy the mutual funds (e.g. VTSMX) that provides quarterly dividend. After you buy the stocks / mutual funds; the remaining income from these stream is 100% passive.
5) Affiliate Marketing
This is not necessarily, 100% passive. However, a lot of people make handsome chunk of money through this method. Affiliate Marketing is when you put a link for a product or service on your social accounts, website or blogs and other people purchase this product/service by clicking on your link. The companies that sell this product/service would provide you with a commission amount and that is how you make money through affiliate marketing. For example, Amazon provides affiliate links (to people who want to share these links) and people could promote the products and services on their blogs or social accounts. Whenever, customer makes purchase through your links; you get paid some commission for the sale.