If the idea of making money while you sleep appeals you, then you have to know a little something about passive income. Passive income is income you receive without actively working for it.
That means, you put in the work up front, then money comes in later. Some passive income streams, however, do not require any upfront time. For example, money in a high yield savings account just earns interest passively with no time upfront. Related: 4 Reasons CIT Bank Can Maximize Your Savings
Here are some passive income investments you can start today, so you can earn money passively later.
1. Start a Blog
Starting a blog is one of the ways to make money passively. All you need to do is to find a topic or subject matter you’re passionate about. Find a niche, and start blogging. In the beginning, there will be no money. However, once you have good traffic and a sizable followers, you can start monetizing your blog through hosting ads and/or promote products.
If you’re interested in starting a blog, I created a step-by-step guide that will help you start a blog of your own for cheap, starting at only $3.95 per month (this low price is only through my link) for blog hosting. In addition to this low price, you will receive a free blog domain (a $15 value through my Bluehost link if you purchase at least 12 months of blog hosting.
2. Buy Rental Properties
Any financial advisor will tell you that real estate investments are one of those passive income investment with the potential to make you very wealthy. In fact, some of the world’s wealthiest individuals have amassed their wealth through real estate. However, to start in real estate investing, you’ll need some capital. This can take the form of cash to use as down payment for a mortgage loan.
3. Affiliate Marketing
If you have a blog or a website, you can start making money immediately by promoting all kinds of products and services or offers. If you don’t have a website yet, read our guide on how to create one.
Sign up as a publisher at FlexOffers, browse through the merchant listings, grab your affiliate links and start sharing them with your audience. If someone clicks and buys through your link, you will make a commission.
4. Publish a Book
If you’re looking to make passive income, then write a book, publish it and start collecting money. This type of passive income, however, requires a lot of work up front. But once the book is published, and if it’s of good quality and targets the right audience, sky is the limit on how much you can earn passively.
Investing in stocks, bonds, 401(k)s, IRAs, etc. are other great passive income investments you can make. The idea is you put some money into an investment account and watch it grow exponentially. Investing in stocks is risky business. So, if you’re an a beginner, you might want to hire a financial adviser to help you choose the right investments. If chosen correctly, this passive income stream can pay off significantly.
6. Be a Silent Partner in a Business
If you co-own a business, but have decided that you don’t have the time to be involved in the day-to-day operation and management of the business, then you can become a silent partner. If your business has a solid moat around it, then you can get paid awesomely year after year without much of your help.
Read More About Passive Income
- How to Get Rich with Passive Income Investments
- 11 Ways to Double Your Paycheck with Passive Income
- 5 Effortless Ways to Make Money with Passive Income
- 5 Passive Income Streams That Will Make Your Rich
Working With The Right Financial Advisor.
You can talk to a financial advisor who can review your finances and help you reach your goals (whether it is paying off debt, investing, buying a house, planning for retirement, saving, etc). Find one who meets your needs with SmartAsset’s free financial advisor matching service. You answer a few questions and they match you with up to three financial advisors in your area. So, if you want help developing a plan to reach your financial goals, get started now.
Tools to Grow Your Savings
1. CIT Bank Savings Builder. If you’re looking to earn great interest on your hard earned money, then try CIT Bank Savings Builder. CIT Bank offers 2.45% APY, 25 times better than what a typical savings account is offering. You’ll need only $100 to open an account.
2. CIT Bank’s Money Market Account. CIT Bank’s money market account offers an impressive 1.85% and only requires $100 to open an account. This is better than most money market accounts out there. Check out CIT’s High-Yield Money Market Account.
3. Acorns. If you want to invest your spare change, then Acorns is right for you. Acorns rounds up your spending to the nearest dollar every time you make a credit card purchase and invest the difference in index fund and ETFs. You’ll get $5 Bonus when you sign up using my link.
4. Digit. If you have little money to save, then try Digit. Digit, one of the best apps for saving money, finds extra money in your budget and save that money for you automatically.