If you are looking to earn more income, but don't have the time or energy for the rigors of part-time work, then passive income streams are a great alternative to look into. Most require little in the way of time commitment, making them great options if you have a busy lifestyle.
There are tradeoffs, however; in that, you will have to part with some money up front. In addition, there are risks associated with some of these ideas so it's important to be mindful of this going in. Therefore, if you have some money available and are willing to roll the dice, here are some passive income ideas that will grow your income in time.
Smart Passive Income Opportunities
1. Invest in Peer-to-Peer Lending
Peer-to-peer lending offers investors an opportunity to earn more than 10 percent in interest, though on average the rate of return is closer to 6.2 percent. How it works is you use a service like Lending Club to invest in individual loans. To mitigate the risk of financial losses from bad loans, borrowers neglecting to pay, diversify your investments.
You can do this by starting with an initial investment of say $500, then invest $25 in each loan, giving you 20 different loans to work with. This illustration serves to show you the more money you invest initially, the more you can diversify it by investing in many loans, helping you to receive closer to that 10 percent mark.
2. Use Cashback Credit Cards
Credit card companies reward you if you use your card more. One of the best incentives they entice you with rewards from a cashback credit card. To demonstrate, with the Discover It card, you receive one percent cash back on all purchases. In addition, Discover offers five percent cash back in rotating categories such as gas stations, wholesale stores, and more. Then, for all your purchases made in the first year of having the card, Discover will match dollar for dollar your cash back rewards at the end of the year.
Therefore, you are receiving free money for the things you were going to do anyways. With that said, be sure to use this perk wisely. If you don't pay off your credit card monthly the interest charges assessed will negate what you receive in cash back rewards.
3. Invest in Real Estate
With Fundrise, you make an investment of $1,000 or more. Along with a healthy rate of return - Fundrise touts the average dividend for 2016 was 6.95 percent, you receive fewer fees than with traditional investing options. The reason for this concerns the design of Fundrise's distribution model, where it eliminates the middlemen then passes the savings onto you. The result is an easy to use platform that requires low investments in time and money with healthy yields.
4. Rent Out Your Living Space
If you have a spare bedroom(s) in your house, you can rent it out to make some additional income. One of the best ways to do this is with AirBnB. With AirBnB, you rent out your room to travelers for a specified time. This is a less expensive alternative for travelers and it allows you to maximize your earnings by renting out a space you don't use regularly.
5. Use High Yield Savings Accounts
Your traditional bank offers nothing in the way of returns for savings accounts, making the old stocking money in a safe or your wall an option on par with them. With that said, there are some vehicles that offer better yields such as online savings accounts and money market accounts.
Now you won't make much of a return, many banks base rates of return on how much you keep in your account. In addition, be mindful of any fees the bank charges for the account, as a monthly fee will often offset any earnings you make.
6. Use Reward Sites Regularly
Some websites reward you for stuff you do regularly. A great example of this is Swagbucks. Swagbucks pays you, in the way of free gift cards, for taking surveys, shopping online, and watching videos. Essentially, it's rewarding you for wasting time on the web, something most of us do anyways.
7. Write an eBook
If you dominate sales, design jaw-dropping websites, or possess expertise in another field, share your secrets. You can do this by writing an eBook. While this method is time-consuming initially, there are multiple avenues it can open up. Not only can you receive up to 70 percent of what you sell the book for through publishers like Amazon, it can open up other revenue opportunities by way of speaking engagements, consulting opportunities, and more.
8. Create a Mobile App
Perhaps you have an excellent idea for a mobile game or app. If so, consider hiring a programmer to make it for you then place it on the app store. If it takes off in popularity--see Angry Birds--you can make a steady stream of income for the foreseeable future. This could also create other income opportunities in the way of new apps, merchandise resulting from the popularity of your current app, and more.
9. Make Your Money Work Smarter for You
Another way to approach passive income is to alter your finances. Paying off debt quickly eliminates monthly payments, freeing up that cash for you to save. Along with paying off debt, glance at your spending habits. You can do this by examining your bank statements monthly or partner up with a personal finance service like Mint, who will categorize your expenses for you. By cutting down on expenditures such as eating out, cable bills, and more, you create more income you can use to save money, fund a business venture, or invest.
Passive Income Ideas Recap
Overall, these tips can assist you in generating passive income ideas that might work for you. If you found these tips helpful, let us know in the comments! To stay up-to-date on money-making tips, check out our blog and like us on Facebook and Pinterest.