16 Passive Income Ideas To Become Wealthy In 2023
16 Passive Income Ideas To Become Wealthy In 2023
Having a passive income every month can do a lot in someone’s lifestyle. If you’re one of those people who are looking for passive income ideas, I’m here to give you some tips and ways you can have multiple income streams.
Passive income provides financial freedom because it’s typically an income that comes in even if you’re working your regular 9-5 or while sleeping. Yep, passive income is one of those things a lot of people dream of when they want to become wealthy.
The fact is, making passive income will give you financial security knowing that money is always coming in. I’m sure a lot of people want to be able to live a stress-free life where they have enough to cover their bills, have money to travel, and buy what they want.
In 2022 and beyond a lot of people are realizing that they don’t have to be overworked and wrecked, living from paycheck to paycheck. They are looking for passive income ideas to help them get wealthy.
What is Passive Income?
Passive income is one of those creative income streams that is not coming from your 9-5 or contract job. According to the IRS, a passive income derives from two sources, a rental property or a company that one doesn’t actively participate in. Making passive income will require an upfront investment, but eventually provides a consistent income without you doing anything.
Common Questions about Passive Income
How can I make $500-$1000 a month passive Income?
There are several passive income ideas that will make you 1000 dollars a month. You can even create passive income with the things you already know.
What is the most Profitable passive income?
It’s hard to say what passive income idea is the most profitable because it depends on the situation and nature of how it’s being presented.
Passive Income Ideas to build wealth
Here are 16 income ideas that have proven to work. You will see that I go into a little detail about what risk is involved for each.
1. Rental Property
Real estate investing is my #1 passive income idea that will help you build wealth. There are some risks involved with rental properties but with creative real estate investing you can lower your risk and make more money as a real estate investor.
How to get started in Real Estate Investing?
There are several ways you can make passive income as a real estate investor. This blog will only focus on the continual income stream from a rental property.
With Rental property passive income streams, you can buy distressed homes and fix them with your own money then rent the property for $1000s monthly. However, you must understand how to calculate your ROIs. Having a rental property will generate passive income for you monthly without you doing much on your end.
Pros of a Rental Property:
- You can buy a house for cheap, with no mortgage balance, fix and rent for a good profit per month. For example, let’s say in the area where you’re buying properties, they are selling for 150k but you bought the home for 35k because it needed some work. You’d estimate the repair cost to see if it makes sense to buy, so let’s say the repair cost is 25k, which means you’d invest 35k, a closing cost of about 6k, and 25k to do the repair which totals 66k! That’s way below the market value.
- Your rental property can generate long-term passive income once you have good tenants.
Cons of Rental:
- Real estate rentals have a common problem and that’s when a tenant stops paying their rent. This will slow down or stop your passive income stream.
- Tenants that destroy the property can contribute risk to your rental property.
2. Affiliate Marketing
In 2022 affiliate marketing is one of the top ways to make passive income online. This passive income idea requires no upfront cost but you need to put in the time and work in the beginning. There are a lot of brands that will pay people just like you to promote their products for a commission. Affiliate marketing is one of those passive income ideas that will take consistency. To be successful at affiliate marketing you must put your affiliate products in front of the right audience with a value proposition.
Making a passive income with Affiliate marketing can be easier to accomplish if you already have a large audience on social media. But if you don’t then you can start creating valuable content that attracts people to want to learn more about what you’re promoting.
There are many affiliate networks out there where you can sign up as a beginner and start promoting different products in multiple industries. Flexoffers, Amazon, and Clickbank are some of the top affiliate networks for beginners.
3. Resell Products on Amazon
This is a nice way you can make a passive income fast. Making passive income by reselling products on amazon is a long-term and profitable passive income idea nowadays.
To get started you must first open an amazon seller central account and fill out the details for an Amazon FBA business. This allows you to ship your products from suppliers like Alibaba or Aliexpress and have amazon, fulfill your orders.
The Pros of reselling products on Amazon is that you can decide how much profit you want to make and better yet, this passive income makes money while you sleep. All you need to do is research the best suppliers, ask them to ship it to amazon’s warehouse, optimize all your product listings on Amazon and relax while you create consistent sales.
The Cons of reselling products is that you have to make an upfront investment and wait until a product is sold. It’s definitely recommended that you start within a budget that won’t cost too much.
4. Develop an App
Creating your own app can be a good way to generate passive income. You can create an app that will connect people to share their ideas or an app for games. Being creative is always a nice way to stand out and that will help you make a passive income for a lifetime.
Developing an app can be a very risky idea to make passive income but I highly recommend doing a lot of surveys and marketing before launching your app. The biggest downfall in this idea is that people may ignore what you have so it’s always important to prepare ahead.
5. Rent Out Your Car
Recently, I started doing this passive income idea and that’s renting my car out to people. Also, you can put up your car for a route taxi. This is where the driver agrees to take in the desired amount weekly or monthly. In other words, putting your car to work for you. In just a few months you can make back what the car is worth and still get continual income for years to come.
6. Selling Courses Online
One of the most profitable passive income streams right now is selling the information that you know. A lot of people want to learn how t do this that will help them make more money or function better in work and personal life. Selling courses online is a proven way to make passive income even why you sleep.
You’ll dedicate some hours upfront to design and create the materials for your course and then promote it on your blog, website, or social media. The reason why this is one of the most lucrative passive income streams is that you can sell this same course so many times without meeting anyone or trading time for money.
7. Starting a Blog
A blog is a good way for you to leverage passive income. Whatever your passion is, share it in a post so others can learn too. Blogging takes time but it’s definitely a good resource for people to consistently visit and this is how you’d make passive income.
You can start a blog for only $2.99 and get a free domain for the year. Once you purchase your hosting from Bluehost, you’ll install WordPress and a nice theme. After you’ve set up your WordPress blog, start creating SEO blog posts and be consistent. You should also add your domain to google analytics and google search console to track your website performance.
Bloggers make money through affiliate links, sponsored posts, their courses, and or display ads on their websites.
8. Sell Digital Files on Etsy
Printables, digital downloads for DIY projects, and resumes are some of the top ways to make a passive income on Etsy.
Can you imagine spending an hour creating digital downloads and being able to get thousands of people to buy that same file multiple times?
That’s the power of creating a passive income, it’s one of the best ways to get wealthy.
9. Peer to peer lending
This is a creative passive income idea where you’d offer a personal or unsecured loan to someone that is facilitated through a third-party lender, such as LendingClub or Upstart.
With this type of passive income, it’s very risky and you must take into care full consideration each borrower. This means that you must investigate each borrower’s credit history to ensure that it’s good. With a lot of people losing their job because of Covid, it’s even riskier.
10. Invest in High Yield CD
Investing your money in a high-yield certificate of deposit is a smart way to make passive income online. It’s even better when you have been investing for years and can reap the benefits from your investment when you’re ready. Below are some of the best places you can get started:
11. Sell your artwork on Print On-demand Sites
You can use free tools like Canva to design artwork you can sell on T-shirts, mugs, and other items. Top print-on-demand websites include Zazzle, Printful, Teespring, Printify, Redbubble among others. Once you upload your designs, add your keywords and optimize your listing, you just sit back and enjoy sales coming in. These print-on-demand sites will fulfill the customer’s order and ship the item for you.
The Pros of using Print on demand websites are that you don’t store inventory and they do all the heavy lifting. You don’t need to invest a lot into marketing as they already have good website traffic that will see your product once it’s optimized effectively.
The Cons of Print on demand sites is that they take out a large percentage of the price of the item.
If you have an eCommerce website like Wix commerce or Shopify, you’ll be able to generate more profits. However, if you do this, you’d need to put down an investment to get the printers, items, and also money to run ads for marketing.
Real Estate investment trusts are companies that own income-producing real estate, such as a rental.
The Pros of investing in REIT stocks are that you can generate passive income and most of these top-performing companies increase their annual dividends. Vanguard Real Estate is a great REIT if you want to become wealthy over time.
The Cons of Investing in REITs is that you can be affected by the pitfalls of the economy and lose a lot of money.
13. Youtube Channel
How can I make a passive income fast as a beginner is a question I get asked a lot. One smart passive income idea to start is a Youtube channel sharing what you already know. People like to support others that share relatable topics and someone who shares their creativity. Whatever you know, you can share it with people on your Youtube channel. Starting a Youtube channel is definitely a long-term investment that will make you passive income.
14. Dividend Stock
Shareholders received annual or quarterly dividends from companies that invest in high-yield dividend stocks.
How it works is that you would purchase stocks from these companies and they will pay you a profit from the shares annually or quarterly. The downside to this passive income idea in buying dividend stocks is that if the economy fails then you would see a cut in your dividends.
15. Sell Your Photos
Everyone uses photos once in a while to share an idea. Setting up your own website that sells photos or listing your photos on sites like Getty Image, Istock, or Shutterstock.com are some popular places to find beautiful images. You literally have nice photos in your phone right now that can make you passive income.
16. Sell Recipes On Pinterest
I think this is one of the best passive income ideas from home. You can take your recipes and add them to Pinterest where most of the audience are females. This is a nice way to help people find new ideas they can use inside their homes. I mean foods are something that we all have to eat right? And some people really love to cook and some may want to learn to do it.
Understanding Passive Income Vs Active Income
Your active income is money that comes in from your side hustles or contract jobs. With active income, you have to continue the process for it to come in but passive income is the opposite. Passive income is a nice thing to accomplish because it comes in consistently without you doing anything.
Which one is better Passive income or Active income? Umm, that’s a question… but think about it, would you rather enjoy life knowing that you have an income that comes in without you worry, or would you rather one that doesn’t if you don’t show up?
How much Passive Income Can You have?
Making passive income will require an upfront effort for it to work in your favor. This is not a get-rich-quick scheme and you have to put in the work to make it happen. You can make a lot of money with your passive income stream but you need to know which is right for you.
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