28 Passive Income Ideas To Build Real Wealth

Joseph Meyer
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What is Passive Income?

Passive income, or residual income, is the money that you earn without doing much work. You might be earning income and not even know it!

This free course will show you how to earn passive income from your own business while working at home, looking after your family or even on holidays.

Passive income is money that comes in with little or no work from what you originally invested. In theory, it can take years to build and the rewards can be life changing, allowing for more time with family and making dreams become reality.

An income stream equals freedom.

Some of my greatest memories are of me sitting outside a bar watching my children ride their bikes, without me. Surfing and playing music in the sun.

The more passive income I build, the more freedom I have. With the principle of passive income, I can spend more time with my family, play more music, do more surfing and enjoy myself. I can be the father I always wanted to be. And the best thing is that I’m still creating value along the way.

Knowing what passive income is all about will help you to get clear about your own dreams. If you’re looking to do something from home with your laptop, this course is for you.

The golden rule of passive income – protect your time.

That’s the number one, crucial secret to having a successful passive income plan. Protect your time. If you have to get dressed, put on makeup, and drive to an office, then that income would be referred as an active income. Your time is the most valuable asset that you have. To really earn a significant income, you have to put your time into it, and if someone else is taking time out of your day to pay you, then either they’re paying you for the time that you waste, or they’re not paying you enough.

Before you invest any time working on your new passive income idea, protect your time first.

You may have to invest several weeks trying to figure out the right way to do your new idea, but the results will be worth it.

What Passive Income is not.

First off, passive income is not a get rich quick scheme. If you have an investment asset that appreciates in value, such as stocks, a rental property, or a portfolio of bonds, over a long enough time-span, you might be able to accumulate a significant passive income. But what kind of time-frame are we talking about? If you inhertited a nice chunk of change, and you're looking to make a good return on a short time-frame, then passive income probably isn't for you.

Next, passive income isn't just limited to businesses or investments that generate profit. When you earn income by doing something you love, such as playing poker online, you're most likely not going to keep referring to it as passive.

But most importantly, passive income isn't what people think it is, leading to the next big myth about passive income.

Your job.

It never seems to go away. It’s always there, consistently adding stress and pressure to your life.

If you’re working a job you hate, your job is slowly driving you crazy.

In fact, your job is what’s preventing you from building wealth, getting rich, and living the life of your dreams.

And at the same time, you know that you need to “get a job” in order to make a living and have a roof over your head.

Side hustles.

Bumps in the road. Sexy ways to make more money.

Whatever you call them, it’s the equivalent of a social media food chain for making money. You start off with low-level tasks, move up to more difficult but more profitable projects, and one day, you own the whole chain.

Part of the reason creating multiple avenues for money-making isn’t on the top of most people’s to-do lists is that they feel like it’s not secure.

Why? Because your business is only one man, or woman, out of hundreds. Whether you’re trying to make money through blogging or doing freelance photography or optimizing your Instagram, the same amount of hard work followed by the same amount of hustle is required. But it’s not always going to be rewarded equally.

The key to creating real residual income is to build multiple income streams. There are lots of ways to do this. And we’re not necessarily talking about duplicate gigging here.

These are the top ways to make side money in order to turn it into something worth waking up for.

Consulting.

Building a company from scratch is not for the faint of heart. You’re going to be faced with plenty of decisions and challenges along the way, and they’ll all come with financial implications. Having a team of money-savvy business consultants around that you can leverage gives you a huge head start over the competition. Hiring a business consultant can be a great way to ensure you have access to high-quality financial advice without having to pay hefty fees. Look for someone who is familiar with local business laws and economic trends.

Investing for speculation.

The purpose of speculation is the creation of wealth, just like the purpose of accumulation is the creation of assets. If your primary goal is the creation of wealth, there are many avenues to pursue other than investing, such as real estate investment, passive income, and even speculation based on your career choice.

However, your goal of creating wealth through investing is best served by selecting robust asset classes that have performed historically well. Two of the best options are high grade corporate bonds and U.S. Treasury bills.

While a completely passive investment, it does have a disadvantage, which is the loss of principal due to inflation.

Examples: What is and is not passive income

There are many types of passive income, which can be classified into two categories: active and passive.

Active income requires you to be an active participant in the financial performance of an organization or business in order to get paid. Some examples of active income include salary, wages, tips, bonuses, commissions, and self-employment income.

All of these passive income ideas are categorized as active income. The royalties will start coming in as soon as your book gains a few best-seller rankings, and your royalty checks will become larger when the book sells more copies.

If you have a book, you can sell it on Amazon or pull in passive income by promoting your book through a website.

If you have a skill, such as teaching or writing, you can offer your services to local business in exchange for cash or favors.

If you have a talent for management, you can use your skills to start and manage a business. Keep in mind that the profits will be significantly larger than the amount you receive from passive income streams. For example, if you have a skill for writing, you can write and publish a book. In this way, you can actively use your writing skills in the management of your book.

If you have an entertaining skill, such as painting, you can make and sell paintings. If you have a singing voice, you can perform at weddings and other events.

How to Start Building Passive Income

In this post we are going to explore the concept of passive income and the different ways in which it can be used to build real wealth.

As a generally accepted definition, a passive income stream is an income that is generated without the use your active, primary talent or skill. Other sources of income, such as your salary, secondary to your primary skill or talent, are considered active income.

The main characteristic of all passive income is that a lot of hard work and planning is required to make it. A passive income stream requires an initial investment of time and money and in most cases, requires continued work and maintenance.

Wealth building through passive income streams is one of the most powerful money management philosophies available. Of all the money management techniques and money management tools, passive income is the most guaranteed to provide true financial independence.

This is because passive income allows you to create your own work schedule, determine your own time frame, and control your dollar earnings.

While creating a passive income stream may not be possible for everyone, the concepts behind passive income can provide you with control and success in managing your financial future.

Start building a nest egg

Passive income is money that’s generated on a recurring basis without requiring active participation.

We all WANT passive income. The good news is that now more than ever we have unprecedented opportunity to create income streams that we can leverage to develop patterns of prosperity.

One problem:

The challenge is that there’s so much information about passive income, and it can become overwhelming pretty quickly.

What kills me the most is when I see people following a blueprint for passive income success and get no results!

When I started in the personal development business years ago, the first thing I did was to do everything that I was told to do to be successful. I was trying to conform to the status quo of success thinking:

  • TESTIMONIALS
  • MORE TESTIMONIALS
  • STATUS SYMBOLS
  • MORE STATUS SYMBOLS
  • EFFORT
  • MORE EFFORT

Almost all the so called experts I listened to would tell you that you needed to go after more effort and more testiments, the people who taught me those things are broke today and I do much better than they do by not following the status quo of success.

Assess your skills

To increase your passive income potential, you first need to evaluate your skillsets. What skills do you have that you can monetize? Add up your annual income and subtract your expenses. Everything you make after this is your passive income.

Make a list of skills that are in demand that you can earn a paycheck doing. Do a quick Google search for skills in demand in your area and see if there’s anything you may be able to profit from. I recently went to the library to get a book on starting a dogsitting business. Here are a few other passive income ideas you can look into.

  • flipping houses
  • online real estate investing
  • Etsy
  • WordPress plugins
  • building iPhone Apps
  • Dogsitting
  • Photography
  • car detailing
  • freelance writing
  • website creation

Assess your time, money and effort. Be realistic about your commitments

Make a list of your hobbies skills. Skills are often overlooked sources of income because people are conditioned to believe that you have to work hard to earn money.

Realize that your time, money and effort are actually an asset. Potential passive income sources can be looked at in the same way as your job or current investments, it’s basically, either a way to earn money without having to work or make more money in comparison to putting that same effort to work in your existing job

Determine which activities hold the most value in your business. E.g. if you want to do freelance writing on the side, which skill set will get you the highest value for the least time?

Consider your network and audience—who are your potential customers or clients?

It is important to note that you don’t have to invest all your time, money and effort to make maximum profit from your hobby. You could put in part-time effort and still expect a part-time income.

Ideate and choose

The one you like.

28 Passive Income Ideas

In April 2016, I wrote a post to share my passive income ideas for those who are interested in starting their own businesses and not working for someone else all their life. This time, I would like to share my passive income ideas to build real wealth by automation.

I wrote about the topic “automation” because many people think of the idea of automation simply as a robotic process of a robotic system.

Instead I prefer to choose “automation” as an activity that we all do, and we called it “automation”. Automation, is act of performing repetitive tasks automatically, such as check email, social networks and and setting bill payment.

Automating repetitive tasks can help us to save our time to focus on more important things. This can be the first step to build real wealth and passive income.

Real Estate Empire From Your Couch (Effort Level: 1)

Think of all the historical real estate empires like Rockefeller, Vanderbilt, Hilton, Donald Trump, and so on. Typically, these real estate empires take decades before they build traction and enough capital to become the fortune 500 companies and billionaires we know today.

For those who want a piece of the pie but don’t have the patience for years of building an empire, there is a quick way to accomplish the task … without putting in your whole 100% effort from day 1.

Real estate syndication is a term used to describe a group of investors or experts coming together to acquire a real estate investment property and manage it.

To have one of your own, all you need is to find a well-documented investment property project that has enough details to make it profitable.

The first step is to put in 25% of the purchase price of the property. The second step is to find other investors to join your syndicate. Each of the syndicate investors contributes 25% of the total purchase price. That will cause the group to only put in 75% total of total purchase price. The last step is financing. Out of all the syndicate investors, a loan agreement is signed in favor of the syndicate. This way, when the property is sold you will share the profits.

Peer to Peer Lending (Effort Level 1)

Peer to peer lending is currently the most popular form of passive income. It’s no surprise as the financial world is going to turn to a high degree peer to peer lending. Peer to peer lending involves lending money to everyday people looking to borrow money for things such as a down payment on a home, paying off some debt, or a car.

When you lend money to these people, you can choose to charge interest or not. It’s up to you to set your rate. Generally, peer to peer lending rates vary between 5.99% and 36%. And if you ask me, taking a few percent in interest rate is well worth it for the money you can earn while lying on the couch!

Invest in High-Yield Savings (Effort Level 1)

Everyone’s got a little extra money sitting around. What if you put that money to work to build wealth rather than chase “big wins” with hope that one day you’ll become rich for no hard work? With low-cost index funds, you can put your cash to work and continually build wealth with very little effort.

How much does it cost? And can you get rich quick by investing using high-yield savings?The answer: definitely.

The idea behind passive income is to continuously generate money without having to do actual work. With the right plan, you can have a monthly income stream that’ll grow over time, allowing you to do whatever you want with your time. As a student or an employee, you probably don’t have a lot of money to invest. But it takes far less than you think.

In fact, you probably have a lot of extra, expendable money sloshing around your checking account. Even if you don’t have a large sum of money, you can always invest a little bit each paycheck or at the end of the month. Once your cash has grown into a nice sum, you can use it to buy stocks or ETFs.

Invest In the Markets, Passively (Effort Level 1)

You earn money when you buy stock in a company that profits. If you buy shares in a company and that company profits, then you earn money. It’s that simple. However, active traders can also be succesful because they buy low and sell high. For example, let’s say you buy a bunch of shares in a company, and they go down in price. You can then wait patiently for them to go back up again, and then sell them for a small profit. That is how active traders can be successful.

You can also be passive when it comes to investing in the markets. With passive investing, you buy stock in a bunch of different companies without doing your research. When you choose this option, you are relying on the fact that certain industries, like technology companies, will always grow and companies in those industries will do well. Some companies you invest in may not do as well, but all the companies in the technology sector will do well. Thus, you will be bound to make money with this route.

Invest in CDs (Effort Level 1)

Certificates of deposit are low-risk investments that can earn you a decent rate of interest for the term of the certificate. The longer the term, the more interest you will earn.

Since CDs are low-risk investments, you won’t earn a lot of profit from them — except if you have a lot of capital to invest. But if you don’t have a lot of money to invest, keep your accounts low. It’s good to start early, but it’s not a big deal if you don’t have the money to start early.

The best thing about CDs is that you won’t have to monitor the account at all during the term. If you need money during the term, you’ll receive a penalty, as with most other bank accounts, but as long as your money is secure, you don’t need to do anything.

That’s worth a lot, hopefully, to you.

Buy a Blog or Website (Effort Level 2)

One of the easiest ways to make a passive income is to buy a pre-existing website or blog. There are hundreds of thousands of websites and blogs for sale. Many website buyers are simply looking for a hobby to enjoy while others hope to turn their passion into their new source of income.

Once you have identified a website to buy, the only work involved is creating content. The amount of time you will spend building the site will depend on the size of the site, but once the content is created, you build the site once.

To buy a website or blog, you’ll need to have some experience in the web design industry and know a little bit about SEO.

If you’re just looking for the quick way to make money, buying a website and creating content might not be for you, as it requires a bit of research. However, it is a money maker that can provide passive income flow that will last for many years.

Invest in a Business (Effort Level 2)

One of the most straightforward ways to make money is to buy a business. Most businesses tend to have good cash flow, which is where you get your return on investment. You can usually find out how much the business brings in by looking at the 10-K or the financials of a company.

To find an existing business to invest in, you can try a few ways:

  • List out companies that you’re interested in and research their financial statements
  • Find a business broker in your area.
  • Find businesses for sale on other websites (Recommended)
  • Find businesses for sale on eBay (Recommended)

Worthy bonds

It is common to hear about the bonds all the time. We are used to hearing about bonds as a form of investment.Bonds play a major role in the addition of wealth. You can choose from various types of bonds based on your requirement.

Bonds can help you build your wealth and investors buy them.

Examples of these bonds are treasury bills and corporate bonds.

streetshares

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If you’re interested in earning passive income online, you may already have a lot of questions. Exactly how do businesses make passive income on the internet? How can I earn passive incomes without having to rely on a blog? How do I build a business online? These are all valid questions and they’re all covered in the following list of options.

You have to consider passive income streams when you’re working online because you’re going to need a lot of passive income to stick around. The best way to do that is to learn everything you can about passive income and then get started.

Start a Blog – My Favorite! (Effort Level 5)

I’m a big fan of passive income. I believe it’s one of the best ways to build wealth. I started my first blog in 2009 and I’ve been building traffic to it ever since. I haven’t generated any income from my blog, as it’s not monetized yet. But I’m hopeful within this year my new website will pull enough traffic that it will be profitable.

The key to building enough traffic for a monetized blog is to create a lot of content that your audience loves. Then, once your blog is mature, you can start monetizing it.

The great thing about a blog is you can start it today and make money from it in 3 – 12 months. I know this because I’ve done it with my own blog.

Create An Online Course or Guide (Effort Level 5)

Creating an online course is one way to add real value to the people who visit your site. Your course can include a variety of topics including:

  • How to build a website
  • How to create a blog
  • How to use social media
  • How to draw or paint
  • How to do yoga

When you create your online course, you can then either charge for access or make it available for free and earn a commission every time someone clicks through and buys something.

If you make your class available for free, advertising is one way to earn a bit of money. You can display advertising on the site you create for the course or allow advertising on your course videos if you host them on YouTube.

If you have a popular course, you can actually sell the course on its own. To do this, you can create a website and market your courses there, or you can sell the course on a site like Udemy.

Sell An E-book (Effort Level 5)

If you’re a good writer, what better way to earn some passive income than by writing an e-book? Just bear in mind that with this option you’ll need to do the actual writing yourself. This is the most passive option, but it also requires a lot of work.

Sell Stock Photos (Effort Level 3)

If there is one stock photo site that I recommend, it would be iStockPhoto. Selling stock photos with this site is a bit different from other stock photo sites. You can sell an unlimited number of stock photos, and each photo can be sold once per user, per day. However, the real benefit is in the way they calculate your royalty.

Their payment structure is based on the actual use of your photos. It’s based on the amount of views your photo gets and the amount of licenses sold, not on some arbitrary sale price. They do this to promote good photo quality, and it’s worked! I’ve sold many photos on this site for just pennies, but after factoring in all of the cumulative views, I was able to make some decent income from it.

The only drawback to this site is that the sales process is a bit tedious. You have to manually check every day to see if your photos are licensed.

License Your Music (Effort Level 3)

If you are into music and songwriting, this is a real passive income opportunity. The most common way this works is that you will help a company, group, or individual create a song and then sell the rights to that music.

A great example is Trent Reznor from the Nine Inch Nails. Nine Inch Nails signed with a record company long ago and then he grew rich and famous. In 1996, after his band parted ways with the major record label, Reznor began to market his music directly to his fans via Nine Inch Nails. He maintained ownership of his new music and continued to sell it online. Nine Inch Nails fans could continue to purchase customized versions of the songs that Reznor’s band recorded years earlier.

What does this have to do with you? Well, you can do something similar by creating a song, music video, or album and then offering it to companies who may want to use the song as part of an advertising campaign. This could be a sound investment, but it’s not the easiest job to do as you will need to create a product worth owning.

Build An App Or Product You Can Sell (Effort Level 5)

Become A Social Media Influencer (Effort Level 3)

Starting as a social media influencer is one of the best ways to begin a career in online marketing. It allows you to test out marketing methods with a smaller audience and builds your credibility.

If you already have a following on a social network, this is a great way to monetize that following. The downside is that if you do not already have a large following then it will probably take years to build it up enough to actually make any money.

The most common way to profit is to sell an e-book or virtual course. You will want this product to be easy to pass on to people you meet as you’ll be using it to get people to follow you.

An example of a book you could create is a list of the top food to eat if you want to live a healthy and happy life. You could create a book listing lots of ways to prepare that food, what the health benefits are, recipes and more. This would be a simple item to give away to people and would interest people in you and your social media channels.

Starting a blog can be another way of earning money as a social media influencer. If you are very confident with your style of writing and love to write then this can be an excellent way to earn money. You can offer to write short articles or even full length books for businesses and you could also write for your own blog, and then sell advertising space on this.

Deliver for Instacart (Effort Level 2)

For those of you who haven’t heard of Instacart, this is a company that is capitalizing on the grocery shoppers who say they never have enough time to spend in the supermarket with their kids.

While you can do this as a full-time gig, you can also do this as a side hustle if you want. This easy side gig is ideal for anyone who doesn’t feel like schlepping their grocery essentials to the store or if you’re just not crafty enough to come up with 31 weekly meal plans. (If this is you, I have a post on meal planning you should check out).

All you need to do is hop on your phone and browse the Instacart selection. Add anything you’d like to purchase to your cart. Hit the delivery button and then select your zip code. Instacart delivers everything to your door! There are also several payment formats Instacart offers.

Deliver for Postmates (Effort Level 2)

You can make money with Postmates by simply delivering local items from restaurants, groceries, salons, or anything else that can be delivered. This works great, especially when you are near a restaurant or shop or live right up the street from work. To get started, you can create a profile and start applying right now.

I like to use the Postmates app when I’m in a hurry to get something delivered. I have found that if I go to the restaurant myself, it would take way too long to…well, it would take way too long. Therefore, it’s faster and more convenient to order right from the app, and then a real person brings it to you.

Rent Your Home

If you’re sitting on a vacant property, renting it out can be a smart way to build impressive levels of passive income. But this strategy is not for everyone.

While it’s true that you may make more money renting out your home than you would from a bank CD, doing so can create headaches associated with various residential and rental regulations in your area.

How do I know? Because I’ve been there.

A few years ago, I was living in a large home with a family that included a teenage boy, three small children, and a dog. We had only a one car driveway and no side or back yard. When we finally got the kids to bed, it was so quiet that the entire house echoed! Not to mention the dog barking at phantom squirrels from inside the house.

Needless to say, it was not a relaxing environment in which to relax.

Anticipating a major lifestyle change, we decided to sell our home and rent something smaller. We found a small Craftsman bungalow, and upon renting it, we discovered the neighborhood was great, the home was small, but comfortable and well-built, and the rear yard was perfect for the kids and the dog. It was also situated in a perfect location for both of us to access the freeway and get to work.

We were thrilled.

Rent Your Car

If you live in a city and have a car, chances are you spend a lot of time in a parking lot. Nowadays, with ride-sharing services like Uber and Lyft becoming increasingly popular, many car owners don’t even take their car on the roads! In fact, according to a 2013 study, the average American drives less than 11,000 miles a year … or about 4,600 miles a year less than in recent decades.

What are you doing with your car when you don’t need it? Maybe you can rent it out.

Renting out your car for an hourly rate or a weekly rate is one of the many ways you can earn passive income.

Sites like Turo, Getaround, and RelayRides allow owners of vehicles to rent them out to people who need them. You specify your car’s hourly and weekly rental rate, and they take care of determining a long-term rental price by taking into account the average long-term rental price in your area. If you have multiple cars, you can add them and scale the rates proportionally.

Get Paid For Your Opinion

The Internet is a very interesting place to live. I am sure you know by now that you can do just about anything on the Internet for money. And you can make really good money. Why? Because anything you do, thousands of others already do. So if you can offer a service the people are willing to pay big bucks for, you have a chance at making some really good money. Some of the things you can do on the Internet to make money are listed below.

Just a quick word of warning. Not all of these are as easy as they sound. Some of these calls for a lot of time, experience, skill, intelligence, and basic computer knowledge. So be sure to research and do your homework on the things you want to do.

Network Marketing

First and foremost, you have to understand how you are able to create a successful network marketing business. In network marketing, your success is primarily based on the amount of people that you are able to enroll into your business.

In any successful network marketing business, the active distributors will always outnumber the inactive distributors. The active distributors typically are your primary sources of income, whereas the inactive distributors are really more like non-direct distributors. The majority of your business will come from the active distributors.

Now that you understand the importance of active distributors, the following are some useful ways you can recruit new distributors.

{1}. Invite on your friends and family on your first presentation. It is always good to start with the friends and family that you already know to avoid spending money on advertising. You may be able to refer people from your inner circle too.
{2}. Start on your hobbies and find people that have the same hobbies as you. Nowadays, you can easily have a conversation with someone who is in an online community related to your interest, whether it is a video gaming interest or your hobby.
{3}. In your community, talk to people in community about who may be interested in joining. This does not have to be a business opportunity. However, you can also get into the community and expose them to your opportunity.

Become a Rideshare Driver

If you’re located in an area that has public transportation, you might want to try to become a ride-share driver. Uber’s network is huge, and you can make money driving for them in your spare time, along with Lyft and other such companies that are cropping up these days.

Since you are already clocking in regular shifts each and every week on your full-time job, you already have the responsibility of showing up at work and of actually driving the car. You’ll be meeting lots of new people, and you can make some serious cash on the side as long as you settle for hourly wages.

Advertise with Your Car

Depending on your car and what you’re willing to put on it will ultimately determine how much you can make by advertising with your car. A basic ad you can create to advertise on your car will cost you a few bucks, but you can earn money by driving for Uber or Lyft and have your car as a moving billboard while you pick up passengers.

With cars there are more options for creative advertising. You could have your car as a big moving banner, sell magnets or slap stickers on the car. Some motorists also paint the car artfully with logos and slogans and then drive around for the shock value as well as attention.

Get Paid to Snooze With Sleep Studies

Would you be interested in getting paid to take naps and go to bed early without canceling your social life? Do you want to make money with your sleep-deprived body and be at your slumber party at zero cost?

That’s right!

There are sleep studies being conducted every day that may benefit people with health issues, test sleep product performance, or just try things out. You can be part of these studies if you are good at napping and often go to bed early.

These are legitimate paid research studies for sleep and often take less than 15 minutes. It may be an opportunity for you to explore a part of science that would have been out of reach otherwise. And not just that, these studies also allow you to make some money while doing what you love ” snoozing.

Sure it’s not guaranteed that you’ll make money; but you have nothing to lose if you want to try.

Here is a comprehensive list of all the legitimate paid sleep study programs. It’s recommended that you sign up for multiple programs at once to increase your chances of getting selected.

Car Detailing Service

Flip Goods on eBay

If you’re a fan of the show Pawn Stars, then you’ve probably seen people who flip old, broken, and used items into some serious cash.

With eBay, you can flip goods that are still in great condition and sell them for a good price.

There are two ways to do this on eBay:

  • Buy items from thrift stores or garage sales, clean and restore them, and sell them on eBay for a profit
  • Buy used items that you want or need, and if you don’t need them, flip them for a profit

Best of all, on eBay, you don’t need to purchase huge quantities to make a decent profit. You can sell a single item at a time and still make a tidy profit.

Flipping items on eBay could be a little intimidating at first, but once you understand how it works, you can make a nice side income from your home. And soon, you’ll even find that flipping items is not as hard as you thought.

Dropship With Amazon

Over the past few years, Amazon has grown into a billion dollar empire. One of the reasons for their success is that they operate on such a huge scale, which takes a lot of leg work out of running a business. This is especially true for sellers – no need to provide storage facilities, staff, and marketing.

Dropshipping on Amazon gives you the ability to make money by selling items via Amazon.

Refinance or Pay Down Debt

If you have debt you can refinance it. Refinancing interest rates are almost always lower than credit card interest rates. I would refinance student loans and credit card debt with lower interest rates before I refinanced my mortgage.

Why? You want to prioritize your interest payments as strategically as possible. If you lower your interest rate it will lower your minimum payment which will save you a lot of money in interest over the life of the loan(s).

If that’s not an option, putting your money to work and building passive income is a great idea. Passive income will build on average 1% to 3% return on your investment each year, depending on the type of investment. This is way better than keeping your money in a savings account.

Here are some examples of real estate investments you could make:

  • Own a rental house and collect the rent
  • Own a portion of a rental house and collect the rent
  • Buy a multiple unit rental building and collect rents
  • Buy a vacation condo to rent out part of the time
  • Own a chunk of a shopping center
  • Own a chunk of an industrial building
  • Own a chunk of land
  • Own a piece of a business
  • Buy a note for a house
  • Buy a note for a car

Get Online Rebates

Websites like Ebates and Swagbucks offer a 2% to 10% rebate. When you shop online, just go through the Ebates or Swagbucks portal and shop. You get cash back! Pretty simple, huh?

I actually randomly discovered Swagbucks when I was searching for ways to earn extra cash. Like many, I had shifted to a bare bones budget to pay off debt in addition to my full-time job.

With my new, found, austerity lifestyle, I was quickly seeing drastic changes. Cuddling on the couch with my new husband on Saturdays was replaced with Chinese take-out and Netflix. I was working full-time, and freelancing, to maintain my new, expensive gym habit, in addition to paying my debts.

I was upset, but one form of entertainment continued to bring me solace – online shopping. I had a new vacuum cleaner that I loved, and I blamed Swagbucks for my downward credit card spiral.

Tools To Help Outsource Your Business

We all love our jobs, but we’re not so enthusiastic about the daily grind. If you’re constantly drawing up to-do lists and feeling like you’re not making enough progress, you may want to consider outsourcing the tasks that are holding you back.

One of the biggest challenges you’ll encounter when outsourcing is finding the help you need. At the onset of your business, you may not have much money to spare or time to waste on training and helping out new staff. Fortunately, there are tools available that can do most of the work for you. To find the best options, we scoured the web and read product reviews from sites like Trustpilot and tried out a few of our own.

Pay as You Go Virtual Assistants

Here are a few of our favorites to get you started:

FIGURE

FIGURE is a popular app that allows you to hire and pay freelancers to do all sorts of tasks, including driving, web development, graphic design, proofreading, and more. We’ve used it to hire researchers and writers, and we’ve been impressed with the high rates, the quality of the work, and the tracking options. Their cancellation policy is also relatively forgiving, and the pay-outs are typically quick.

How Can I Generate Passive Income?

Passive income is defined as the amount of ongoing income you receive from a business that doesn’t require your time, attention, or involvement to keep that business going. These passive streams of income are generated permanently and they aren’t ventures or projects that you have to actively manage to keep them going.

Just as you start a job and work hard to earn a salary, the passive income streams in your portfolio of investments or business ideas come along as a by-product of time, effort and expertise that you have already put in.

Passive income streams require little to no maintenance because they are dynamic and they invest themselves until they are strong enough to cover their own operational costs from the ongoing income they generate on their own.

About the Author

JR Knapp has a background in business, international relations, and personal finance. He is the founder of 2 startups, both of which have been successful. JR believes that you can only take your financial future seriously when you are being aware of what is happening in the current economy, and investing according to how it goes.

He shares his point of view on his site with the goal of helping everyone to improve their financial situation. His website is filled with strategies that help you earn passive income, as well as tips on how to invest, save money, earn in the stock market, and much more.

If you want to learn how and where to invest, check out our other site Invest Money Make Money.

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Whether you want to pay off debt, accelerate your savings, or retire early, passive income might be the holy grail for real wealth.

Whether you want to pay off debt, accelerate your savings, or retire early, passive income might be the holy grail for real wealth. In this article, I’ll show you how passive income can work for you in multiple ways to create financial freedom and real wealth.

What is passive income? It’s the definition of getting something for nothing, or at least for not much work.

Passive income differs from earned income. Earning income means you have to actively trade time for money. For example, working a set number of hours to receive a paycheck for them.

Passive income can be made in lots of ways. You can get it from dividend paying stocks. You can get it from a small business that you don’t actively manage. You can get this income from your home and on the side.

If you don’t have enough cash to get started, no worries. You can set your sights on building passive income and start from a lower level.