The more income streams you have, the easier it becomes to recover if one of them disappears.
Even now, I dedicate some of my time to building various income streams to support my family.
I prefer not to rely on just one source of income because a single stream can vanish unexpectedly. If you only have one income source and it disappears, you’re in a tough spot. If you have multiple income streams and one falters, it’s merely a setback.
To create passive income, you would typically need to invest either time or money. Since you’re busy, and time is not readily available, you may need to invest money.
1. Dividend Stocks
It involves investing in stocks of companies that regularly share their profits with shareholders in the form of dividends. To give you a clear idea of how it works, let’s look at two well-known companies: Verizon Communications and Johnson & Johnson.
As of October 2024 Verizon Communications offers an impressive trailing dividend yield of 6.41%. This means that if you invest $1000 in Verizon stock, you can expect to receive around $64.10 in annual dividends. If you decide to invest $10,000, your annual passive income from dividends would be approximately $641.
Johnson & Johnson has a trailing dividend yield of 3.14%. If you invest $1000 in Johnson & Johnson stock, you would receive about $31.40 in annual dividends. With a $10,000 investment, your annual passive income from dividends would be approximately $314.
2. Invest In Farmland
Farmland may not be the most glamorous investment, but it offers several advantages in the world of real estate investing.
It’s a slow and steady asset that provides consistent rental income, and it’s a fundamental need since everyone has to eat. What’s more, it tends to be less volatile compared to other types of real estate.
For those interested in farmland investing, there are two major companies to consider: FarmTogether and AcreTrader.
3. Rental Income
If you want to make money with real estate and prefer a more hands-off approach, property management companies can be your solution.
Renting out your vacation home, house, apartment, or even a single room can be an excellent way to generate passive income. You might assume that beachfront properties are expensive, but there are still coastal towns where you can purchase a home for less than $100,000.
Sites that work well with property management companies for listing your property are VRBO and Airbnb.
These sitess provide opportunities for homeowners to earn income by renting out their properties, making it a viable choice for those seeking additional income streams in the real estate market.
4. Buy a Website
Yes, you can generate passive income with a website. While it’s not as easy to find great deals as it used to be, there are many marketplaces for online businesses to buy a website.
To make the most of your new blog or website, you’ll need some digital marketing expertise.
Websites typically sell for around 24 times their monthly income. For example, if the site generates $500 a month in income, you can likely acquire it for no more than $12,000. In other words, a $12,000 investment can yield you $6,000 per year in cash flow.
5. Real Estate Crowdfunding
If you’re hesitant about directly investing in real estate, or if you haven’t yet reached accredited investor status, that’s perfectly fine. There’s a way for you to benefit from real estate investments, and it comes in the form of REITs – Real Estate Investment Trusts.
REITs are investment vehicles that own diversified portfolios of real estate assets, and as an investor, you get to share in the profits, gains, refinances, and even potential losses of these properties.
Our recommended platform for investing in REITs is Fundrise. With a low entry requirement of just $10, they are accessible for a wide range of investors.
6. Rent Storage Space
Many people find themselves in need of extra storage space, as their homes often can’t accommodate all their belongings. This is where the storage industry comes in, providing a solution for those with excess stuff. And guess what? You can tap into this space!
You have the option to purchase a storage unit and rent it out, or you can make use of the extra space in your basement to generate passive income from the area you aren’t using.
When establishing a storage unit business, it’s important to consider how to make it as hands-off as possible. This might involve implementing features like keypad entry and security cameras to ensure everything remains secure and hassle-free for both you and your customers.
7. Rent a Billboard
You’ve probably seen billboards along highways, grabbing your attention as you drive. What you may not know is that these billboards are a source of passive income for their owners.
Companies pay rent to display their ads on these billboards. You can invest in a billboard and lease the advertising space to earn passive income.
Location matters here. Billboards in high-traffic areas, especially near highways in densely populated regions, tend to generate more income from ads.
8. License Your Photography, Video or Art
Six years ago, I licensed a couple of videos and even today, I earn around $100 a month from them.
The same can be done with images or artwork. This process involves granting others the right to use your creative content, creating a steady stream of passive income.
9. Invest in Franchise
There are franchises that can be a source of passive income. ATMs, for example, have the potential to generate steady passive income. When individuals use ATMs that charge a fee for withdrawals, that fee doesn’t just benefit the bank; it also goes into the pockets of the ATM owner.
Securing a strategic, high-traffic location for your ATM can lead to a reliable and hands-off passive income stream.
10. Develop an App or Software
If you have a great idea for an app or piece of software, developing it (or hiring someone to develop it) can be a substantial initial investment of time and resources, but it can pay off in the long term if the app becomes popular.
11. Peer-to-Peer Lending
A few years ago, I made a decent amount of money lending to others, using Reddit. Yes, there’s a subreddit for that. It’s a bit risky, though.
For a more secure approach you can use Lending Club or Prosper. They provide a structured environment to lend money to individuals or small businesses, enabling you to earn interest on your loans with greater security.
12. A Tool Website
If you’ve ever thought of a handy online tool, like a unique calculator, you can actually create one!
Developing a website or an app for a specific tool can be a great way to attract steady traffic, especially if it fulfills a niche need. Once set up, it can become a source of passive income through ads or premium features.
13. Sell Digital Files
Printables are one of the best selling items on Etsy. If you’re skilled in design, you can create and sell digital files such as planners, art prints, or organizational templates. After designing and uploading these files, customers can buy and download them for personal use.
14. Sell Design on Redbubble
When you upload your designs to Redbubble, you open up the opportunity to earn royalties from your creativity. Redbubble allows you to place your designs on a wide range of products, such as t-shirts, mugs, and more.
Each time one of your design products is sold, you earn a royalty. This setup is ideal for artists looking to monetize their work without the hassle of production, inventory, or shipping, as Redbubble handles all these aspects.
15. Invest Automatically In The Stock Market
If stock picking and market trends aren’t really your thing, you can still invest in the stock market effortlessly.
This is where robo-advisors come in. Think of them like your personal investment assistants, automatically managing your portfolio. You just set your financial goals and how much risk you’re comfortable with, and they handle the rest.
With regular, automatic contributions, your money is put to work without you needing to monitor the markets constantly. Companies like Betterment or Wealthfront make investing straightforward and stress-free, perfect for a more hands-off approach.
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