Best ways to build passive income in 2024
With the rising cost of living and economic uncertainties, having multiple income streams can provide a safety net and peace of mind. The good news is that building passive income streams doesn’t have to be difficult. Here is everything you need to know about earning passive income in 2024, in a simple and straightforward manner.
What is passive income?
Passive income comes from sources where you don’t have to be involved in the day-to-day work. It’s money you make from investments or side projects that need little upkeep. This flexibility is perfect for anyone looking to earn more without sticking to a nine-to-five job, giving you more control over your time and resources.
Here are the best ways to build passive income in 2024.
Rental properties
Buying property to rent out is a solid way to make some passive cash. The rent you collect each month can help cover the mortgage and might even leave you some extra money. Plus, the property could increase in value over time, which means you could sell it for more than you bought it for down the road, offering a potential for growth and increased income.
Real estate investment trusts (REITs)
If being a landlord isn’t your thing, think about REITs. These are companies that own lots of properties and make money from them. When you invest in a REIT, you get a slice of the profits without having to buy or manage any properties yourself. It’s like owning real estate but without all the hassle.
Crowdfunding real estate platforms
Crowdfunding platforms let you get into real estate investing without needing a lot of money upfront. You and a bunch of other people chip in to fund big real estate projects. Depending on the project, you could make money by owning a piece of the property or getting paid back with interest over time.
Dividend stocks
Putting your money into dividend stocks means you invest in companies that pay out a part of their earnings to shareholders regularly. You just buy some shares and get regular payments called dividends. It’s a pretty straightforward way to earn without much hassle. You can start by picking companies known for consistent dividends and buying their stocks through an online broker.
Bond ladders
This strategy involves buying several bonds that mature at different times. It helps you get a steady income because you’ll have bonds maturing and paying you back at regular intervals. Just choose bonds with different maturity dates to set up your ladder. A bond ladder is a strategy where you invest in a series of bonds with staggered maturity dates, which helps to spread out the risk and provide a steady stream of income.
Exchange-traded funds (EFTs)
EFTs are like baskets of stocks or bonds that you can buy and sell on the stock market. They’re great because you get to own a little bit of a lot of different investments. This spreads out your risk and can make managing your investments easier.
Blogging and monetization
If you love sharing ideas, start a blog about something you’re passionate about, like cooking or traveling. Once you get some readers, you can make money through ads or by recommending products you love. The more people visit your blog, the more you can earn. Just keep your posts interesting and relatable!
Youtube channels
Love being on camera? Start a YouTube channel about something you enjoy, like video games or makeup tutorials. You can earn money from ads on your videos. If your channel grows big enough, companies might even pay you to promote their products. It’s all about sticking with what you love and posting consistently.
Selling ebooks, courses, and digital art
Are you good at something? Share your skills by creating ebooks, online courses, or digital art. You can sell these online and make some money each time someone buys them. Use platforms like Amazon for ebooks, Teachable for courses, and Etsy for art to reach more people.
Dropshipping
Dropshipping lets you sell products without keeping them in stock. Set up an online shop, pick products from a supplier, and they’ll send the orders directly to your customers. Your main job? Make sure your website looks great and attracts buyers.
Automated e-commerce stores
You can create an online store where most things run automatically. Choose what you want to sell, use software to manage orders and shipping, and focus on getting customers to your store. It’s a hands-off way to run a business once you set everything up.
Vending machines
Getting a vending machine could be a fun way to earn. Buy a machine, fill it with snacks or drinks, and place it somewhere with lots of people, like a busy office building. You make money every time someone buys a snack.
Specialty product rentals
Think about renting out things people need for a short time, like cameras for a wedding or cool gear for a weekend hike. Keep your items in good shape, and you can rent them out again and again, making money each time. For instance, you could rent out high-quality cameras for special events, or outdoor gear for adventure trips.
Music and patent royalties
If you create music, photos or invent something new, you can earn royalties. This means you get paid every time someone uses your creation. For example, if you compose a piece of music, you can earn royalties every time it’s played on the radio or used in a commercial. If you invent a new product, you can earn royalties every time it’s sold.
Online courses and webinars
If you’re an expert in a particular field, consider creating online courses or hosting webinars. You can use platforms like Teachable, Udemy, or Zoom to set up and sell your knowledge. Start by planning a curriculum or a series of topics you want to cover, record your lessons, and then promote your course through social media, blogs, or online ads. People can sign up and pay for access to learn at their own pace, and you can earn money passively after the initial setup work is done.
Selling plans, patterns, or recipes
If you’re skilled in areas like crafting, woodworking, or cooking, you can monetize your hobby by creating detailed plans, patterns, or recipes. Platforms like Etsy, Ravelry, or your own website are great places to sell these. Start by documenting your process as you create something new, take high-quality photos, and write clear, step-by-step instructions. You can sell these guides over and over again, providing you with a passive income stream.
Apps that pay you for data or activities
There are apps that’ll pay you for things you already do, like walking, shopping, or just using your phone. It’s pretty simple: download the app, sign up, and start doing activities to earn points that you can exchange for cash or gift cards. It’s an easy way to make a bit of extra money with minimal effort.
Renting out tech gadgets or equipment
If you’ve got gadgets like cameras, drones, or even high-end computers, you can rent them out to people who need them for a short time. List your tech on rental platforms, set your prices, and start earning whenever someone rents your equipment. It’s perfect for making money off things you don’t use every day.
Angel investing via platforms
Angel investing platforms let you invest in startups in exchange for equity. You’ll need some money upfront, but investing in the right startup can yield significant returns. It’s a higher-risk option, but it can be really rewarding if the companies you invest in do well.
Tips to start generating passive income
Planning and research
Before diving into passive income, planning and doing your homework is crucial. Figure out how much you can invest, what kind of risks you’re comfortable with, and what passive income strategies fit your lifestyle. Reading books, watching tutorials, and following experts can also give you a solid foundation.
Steps for setting up
Choose a passive income idea that suits you, learn all you can about it, and start small to test the waters. Whether it’s setting up a blog, buying a rental property, or investing in stocks, make sure you understand the ins and outs of your chosen method. Setting up may involve registering a business, opening a brokerage account, or buying equipment.
Tips for scaling your income sources
Once you’ve started earning passive income, think about how you can scale up. This might mean investing in more properties, growing your blog audience, or diversifying your stock portfolio. Always reinvest some of your earnings to grow your income streams, and stay informed about new opportunities.
Conclusion
We’ve covered a lot of ground on how to earn passive income. From rental properties and stocks to blogging and renting out your gadgets, there’s a method that can work for you. Remember, the key to successful passive income is starting small, learning continuously, and gradually scaling up. Take the first step today, and start building a future where your money works for you.
FAQs
What is passive income? Give an example.
Passive income is money you earn with little ongoing effort. An example is renting out a property where tenants pay you monthly rent.
How to make $1000 a month in passive income?
Invest in dividend stocks, rental properties, or create a successful blog or YouTube channel. Consistency and choosing the right investments are key.
How do beginners start passive income?
Start small by investing in dividend stocks, creating a blog, or renting out a spare room. Research and gradually expand your efforts.
How to make 10k a month?
Combine multiple passive income streams like real estate, dividend investments, and online businesses. It requires significant initial effort and investment.
How to calculate passive income?
Add up all the income you receive from passive sources like rentals, investments, and online ventures. Subtract any related expenses to get your net passive income.
