By learning these top ways to earn passive income without doing anything, you can put your money to work for you. Even if you do not have any money to invest, there are things you can do that require very little effort but will earn you passive income.
We live in especially challenging times, and anything that you can do to put a little more money in your pocket is a good thing. If you’re fortunate enough to have a steady job and don’t have time to do any side work, the following suggestions are some great ways to earn passive income ideas where you can earn some money without really having to do any work.
Take Advantage of Credit Card Rewards
Credit cards are often looked at as evil by many people who are afraid to end up in credit card debt. Well, the truth is, you should be afraid to end up in heavy debt due to using credit cards irresponsibly. It’s that fear that will help you to avoid the pitfalls that other people have fallen into resulting in them having a crippling amount of credit card debt.
Credit card companies want you to spend money impulsively. They want you to carry a balance and make the minimum payment each month. What they don’t want you to do is take advantage of their rewards so you earn money from them instead of them making money from you.
If you have decent credit, you can usually get a credit card with no annual fee. You’ll need this type of credit card to take full advantage of the rewards they offer. Next, find a credit card that offers cash back on purchases. The best cards will offer up to 5 percent cash back on purchases, so these should be what you are looking for. If you can’t find any that offer that much back, look for cards that offer the most back that you can qualify for.
Now, use your credit cards that offer cash back to make purchases and pay bills that you would normally make. Now, here’s the important part: Don’t carry a balance on your card. If you pay your bill in full before the end of the billing cycle, you won’t be charged any interest. That means that you’ll earn cash back on things you would normally buy, which is essentially free money for you.
Rent Out Property
There are two approaches that you can take when renting out a property. Which one you choose depends on your situation. If you have enough money to buy a second home that you can rent out, that’s great news. You can make a lot of money renting out a home, and if you hire a property management company to manage the property for you, you won’t have to do any work. Here’s how you can make a passive monthly income as well as build long-term wealth by renting out property.
First, you’ll have to buy a second home. Yes, this is going to be a significant investment, but you’re virtually guaranteed to end up earning a lot of money on this investment. After you close on the home and have your mortgage set up, you can find a property management company that will deal with all of the aspects related to renting the home out.
That is what makes this passive real estate income, since they do the work for you. They’ll charge you money to do this, but if you buy a reasonably-priced property, the rent that you charge should cover your mortgage, the fees of the property management company and also leave you a little bit of money each month in profit.
The money that you take in each month as profit for renting out a home is nice, but it’s not usually a game-changer for most people. Where you make your real money is by building equity in your rental property. Real estate almost always goes up in value. It might fluctuate, but in the long run, it’s going to go up almost every time. So, while you have tenants paying the mortgage for you, the property is going up in value, earning you equity. When the time is right, you can sell that property and pocket a nice profit on top of the monthly profit that you’ve been earning over the years.
Now, not everyone has the money necessary to put down a large payment on a second home, and that’s fine. The good news is that you can still make money with rental income by renting out a room in your home. This approach isn’t for everyone, and if you value your space and privacy, it’s probably not a good option for you. But, as far as passive income strategies go, you don’t get much easier than this. If you have a friend or family member that needs a place to stay, and you get along well with them, consider renting them a vacant room in your home. If it’s just an empty room that’s not being used, why shouldn’t you turn it into a source of income?
Advertise With Your Car
One of the simplest passive income ideas you can employ is also one that few people actually try. If you own a car that you drive frequently, then you have a valuable commodity that many companies will pay you for: That commodity is advertising space.
Two of the main companies that would love to take advantage of your car are Carvertise and Wrapify. These companies will pay you to put banners and stickers on your car that advertise to other drivers on the road. Don’t worry, these banners and stickers are designed to easily come off, so they won’t ruin your paint job. All you have to do is contact them, let them put ads on your car, then go about your normal routine to earn passive income.
Invest in Index Funds
Index funds are one of the passive income investments that are worth your time to learn about. Investing in the stock market has the potential to make you a lot of money. But, there are two downsides. First, you’re going to have to actively monitor your stocks and buy and sell at opportune times. That sounds like work, doesn’t it? The other problem is that if a stock that you own loses a lot of value, you’ll lose a lot of money.
Index funds are different. They pool together the cash funds from many people and use that pool of money to invest in securities. Index funds are professionally managed, and they offer far more stability than investing in stock yourself.