We were all taught as kids that you grow up, get jobs, work hard, and make money. It wasn’t until I was an adult that I was introduced to the idea of ‘making money in your sleep.’ People are always searching for ways and ideas to make passive money and side income. However, now that the notion is so popular, people are coming across a lot of passive income scams, and so a lot of people think passive income isn’t a real possibility. Well, let me be the first to tell you that, it is. You can make money passively and make lots of it! Now, I will admit that to create passive income online there will be initial work that you have to put in at the very beginning. If you are looking for ideas and the best ways to build passive side income streams, keep reading.
Once you put in that work at the beginning, the passive income could come swarming in for you! So, let’s talk about the legit and proven ways to make passive income in 2019. Here are some best ideas on how to build passive side income streams:
Best Ways To Start A Passive Income In 2020!
1. Clear Your Debt And Save Money
Living from paycheck to paycheck is the worst thing you could do for yourself.
Before we give you side income ideas, clear your debt. As irrelevant as it may sound, the first and foremost thing to do while making some extra money is to clear your old debts. Mortgages and debts pull you back from getting rich. They minimize your freedom and keep you far from becoming a millionaire per se.
According to reports from the USAToday, the average American household carries $137,063 in debt, according to the Federal Reserve’s latest numbers. Yet the U.S. Census Bureau reports that the median household income was just $59,039 last year, suggesting that many Americans are living beyond their means.
Sadly this is the case in several countries including the developed nations like the UK and Sweden.
Here are some shocking facts about mortgages in Europe:
- There are 11.1 million mortgages in the UK.
- The UK is the largest in Europe in terms of the total value of outstanding loans and the amount lent.
- In 2016, over £245 billion was borrowed for mortgages alone in the UK.
- As of June 2018, residential mortgage lending in Sweden amounted to SEK 4,085 billion.
So to make passive income, begin off with a clean slate. Start saving some money every month by paying yourself before you pay your bills. This way you would end up spending less money than usual.
As when you save some extra money every month, at the end of every quarter use these savings to clear off your debts.
Once you’re debt-free and start saving money up to 6 months of your expenses. This way you can attain financial freedom or have money in the event of losing your job suddenly. Before that, don’t even think about it.
2. Peer-to-Peer Lending
Another great idea of side income is a peer to peer lending. This is similar to investing only you are loaning people who can’t qualify for those traditional bank loans.
P2P lending can also be a great way for entrepreneurs looking for small loans. Investing in P2P lending can be a little risky, but the pay-off can be pretty good.
Depending on which route you take your returns can be like 5-8%.
Similar to regular investing, you can choose where your money goes and how much money you want to invest in something. Not to mention you will be helping people achieve their dreams who may not get the opportunity otherwise, and that is always a nice thing.
With more than 2.5M customers, LendingClub could be a good place to begin with. Please keep in mind to read their terms and conditions before you put your money somewhere.
This way you can easily make passive income online.
3. Learn To Invest
Learn to invest to build passive income streams. This method will require you to come out of your pocket a bit in the beginning. The great thing about investing is that you can decide where your money goes and how much of your money you want to invest in something. I am not going to pretend to be an investment expert.
My knowledge of investing does not go very far, but I do know that investing is a great way to make passive income if you are smart about it.
Tips for beginner investors:
- Don’t have your eggs in the same nest. i.e diversify your investment
- Aim for long term returns
- Draw a line for your risks and make sure you don’t cross that line
- Don’t be emotional while investing
- Stocks are better than funds
Learn to invest tips from the expert Warren Buffet.
Do your research and make sure you have faith in what you’re investing your money into, and then you can just sit back and let that money multiply right before your eyes.
Here you can check some of the best online brokers for beginners.
4. Write an eBook
Okay, now I know you think this is not passive, but I did say to make the passive income you have to do some work in the beginning, right? Well, this is one of those instances.
You write an ebook and promote it, and after that, the money comes flooding in.
Step By Step Process to Write Your Own Book And Get Published
Now, you’ll have to strategize your marketing tactics, and that may take some time, but a lot of promoting can be automated, and then you can spend the majority of your time living your life, and that income can become passive.
If you hire a social media manager or virtual assistant, you may even be able to have less time invested in the process and it can be a great income source.
You can make passive income online by selling your books on:
5. Rent Out a Room/House
If you have extra rooms in your home (or even an extra house), a great way to make some passive income is to rent out the extra space! This is extremely passive. The only work involved in finding the person to rent out your room. Then you have a monthly income that you didn’t have to put any real effort into.
You can rent out safely using Airbnb for instance. This can prove to be one of the best income sources with little effort or worry.
However, there are some downsides to this. You will have to share your space with someone you may not know that well. Your utility bills will increase because there is another body in the house. However, you can control who you have in your home and when renting out a room you can always include the price of utilities.
Learn how to renovate your house on a budget!
6. Affiliate Marketing
Affiliate marketing is getting to be one of the most common ways to make passive income online, especially through blogging. Though this method also takes some grunt work in the beginning.
You have to find the best ways to market whatever company or product you’re affiliated with. Look for good income sources.
It can take time for that passive income to really pick up speed, but the potential income for affiliate income is really high.
It’s like the equivalent of having a commission-based job, only it is all online, and you don’t have to put in nearly as much time. It is free to sign up for affiliate programs, so you have nothing really to lose, right?
7. YouTube
Youtube can be a great income source and a fun way to make passive income online. With millions of subscribers, and videos going viral in just hours, YouTube is definitely the place to hunt money.
Some women YouTubers who are very successful and fun to subscribe. They make videos doing whatever they want to and make money doing it.
Some YouTubers record what they do during the day and make six figures to have people look into their lives. This isn’t entirely passive. You do have to create videos and edit them and post them yourself.
However, once the videos are uploaded, they can make you money from years to come because people will be continuing to find those videos and once you do get monetized, those videos will make you money as long as you’re watching.
8. Start a Blog
Yet another effective strategy to make passive income online is by starting your own blog. If you like to write (like me), then this would be a great way to start making passive income. You make money from blogging with ads, sponsored posts, and affiliate income. The money you can make from blogging can be a lot also.
It takes time to build your page views, but if you are a writer, you will end up enjoying the process of passive income. However, this is one of the best ideas to not only get side income but also share your creativity with the world.
When making money from ads, you can make money just from people reading your blog posts. Once again, promoting your content will be a priority here, but you will still be making a lot of income while you are watching T.V. and sleeping using this method.
To get passive income, there is some sacrifice you will have to make in the very beginning whether that is monetary or with your time. However, all of these things listed can build a passive income that could last you a long time. Do you want to make money in your sleep? You have to do a little bit of work first!
Other Legit Sources To Make a Passive Income This Year
Here are some legit website sources that will help you build passive income streams.
- Fiverr – Freelancing
- SkillShare – Create online courses
- UserTesting – Review websites and apps
- Teespring – Design shirts
- Foap – Sell your pictures
- Etsy – Sell handmade goods
- TranscribeMe – Transcription
- Skooli – Online tutoring
- GigWalk – Find gigs
- Honestbee – Deliver groceries
- Airbnb – Provide a place to stay
- EatWith – Host a meal
- Amazon MTurk – Micro jobs online
- Blue Mountain Arts – Earn up to $350 for a poem
- JustAnswer – Answer questions
- iTalki – Teach a language
- Shopify – Sell online
- Gengo – Translation Services
- Modsquad – Social media moderation
- Stuvia – Sell notes
- Slogan Slingers – Write taglines
- Izea – Influencer marketing
- Appen – Work from home
- Carvetise – Advertise on your car
- ShowAround – Become a tour guide
- Liveops – Virtual call center
- School Solver – Answer homework
Hope you enjoyed this article and learned about ways to build passive income streams.
What are some ways you’ve found to make passive income online? Are you ready to go on your passive income journey? Do you know any other ideas or sources for side income? Share your thoughts in the comments section below. Give it a thumbs-up if you liked the article. Stay tuned for more such posts by subscribing with your email address.
Key Takeaways – Ways of Making Passive Income
- So to make passive income, begin off with a clean slate. Start saving some money every month by paying yourself before you pay your bills.
- As when you save some extra money every month, at the end of every quarter use these savings to clear off your debts.
- Once you’re debt-free and start saving money up to 6 months of your expenses. This way you can attain financial freedom or have money in the event of losing your job suddenly.
- Sell eBooks to make passive income by selling on these online platforms like Amazon’s Kindle, Lulu, Payhip, Smashwords, Blurb, etc.
- Learn to invest to build passive income streams.
- Don’t have your eggs in the same nest. i.e diversify your investment.
- Aim for long term returns. And draw a line for your risks and make sure you don’t cross that line.
- Yet another effective strategy to make passive income online is by starting your own blog.
- Youtube can be a great income source and a fun way to make passive income online.
- Affiliate marketing is getting to be one of the most common ways to make passive income online, especially through blogging.
- It can take time for that passive income to really pick up speed, but the potential income for affiliate income is really high.
- Sell photographs on Foap, rent a room in Airbnb, or sell things at Etsy. Making money online on these platforms can be a good source of side income with less daily work.
