Try These Best Passive Income Ideas to Bring in Passive Income Streams for This Year
Since most of us know how difficult and tiresome it is to work hour after hour for an income, many fantasize about making money while relaxing or participating in hobbies. Luckily for us, this concept exists in the form of smart, passive income.
If you want to take advantage of passive income sources and passive income investments that will make money with minimal continued effort on your part, this guide is for you. We are sharing the top six best passive income ideas for this year.
This best passive income guide will help you in the following ways:
- Understand what smart, passive income really is
- Read tips on how to get the most out of the best passive income sources
- Consider some different examples of passive income that might work well for you
- Learn what the six best sources of passive income are this year and what they entail
Choose one or two of these best passive income ideas to get you started this year. You just may find yourself earning real money from these passive income ideas while you are relaxing at home with the family or enjoying a vacation.
Top 6 Best Sources of Passive Income | Brief Comparison
Sources of Passive Income
Initial Financial Investment Necessary?
|Build an app|
Yes, if you need to hire a developer
|Make YouTube videos|
No, but it can improve the quality
Most often, no
|Monetize your blog with affiliates|
No, but it can improve the quality
Yes, unless you already own a second property
Most often, yes
|Sell an ebook or course|
No, unless you hire freelancers to help the process
|Try peer-to-peer lending|
Table: Top 6 Best Passive Income Ideas | Above list is sorted alphabetically
What Are Passive Income Ideas?
Before we get into examples of passive income, let’s define passive income ideas. One way to understand what smart passive income really is to describe what it isn’t.
If you are a nurse, for example, you are actively working all the determined hours in order to receive your income. If you are a plumber, you are actively working for all the hours you bill.
Those who take advantage of passive income opportunities or passive income investments, on the other hand, make money without being actively involved 100% of the time.
While there can be both financial and time investment to start out, there is often no to little effort needed to maintain sources of passive income.
For the best sources of passive income, your item, idea, product, etc. will make you money even when you are not actively working.
Things to Know Before Delving into Passive Income Opportunities
Just because we are talking about smart passive income does not mean passive income ideas are passive the entire time. You will need creativity and innovation to come up with an idea and the resources to make it a reality before you earn a dime.
Here are some resources to help you with the passive income ideas, as well as ways to continue thinking about other best passive income sources:
Detailed Review – Best Passive Income Ideas
Below, please find a detailed review of each best passive income source on our list of passive income opportunities. We have highlighted some of the factors that allowed these examples of passive income to score so highly in our selection.
Build An App
If you have ever thought, “Oh, I wish there was an app for that.” This best passive income idea is probably for you.
Starting off our list of the best sources of passive income is probably the most complex of our passive income ideas. Building an app is not for somebody looking to put very little work into their passive income streams.
Image Source: Pixabay
But once apps are built, they have the potential to become some of the most lucrative sources of passive income.
Unless you know how to create apps from scratch, you will need to hire a developer. This, of course, means you will have to spend money before you make money on this smart passive income option.
While it is possible to not make anything from you app, it is encouraging to remember that over 25% of those who have developed apps as their passive income investments earn over $5,000 a month on iOS platforms.
Make YouTube Videos
Arguably one of the easiest passive income ideas on this list is making YouTube videos. This is not to say that good videos do not take time or expense, but it is absolutely possible to have passive income opportunities without a large investment.
YouTube allows you enable your channel for monetization, meaning it can become one of your best sources of passive income at the click of a button. Each time your viewer clicks on the ad, you will make a small amount of money in smart passive income.
This is what you will have to do for YouTube to provide passive income streams:
- Connect your YouTube account with Google AdSense
- Allow AdSense to host their ads before or during your videos
- Think about what type of niche you are interested in (product reviews, humor, lessons, etc.)
- Create quality YouTube content that keeps people clicking
Related: What is a Budget Planner? Definition
Monetize Your Blog with Affiliates
Next on our list of best passive income ideas are blogs.
The blog world has been exploding for the past few years. No matter what you need to know, there’s a blog post for it! You can take advantage of this market for smart passive income when you monetize your blog with affiliates.
Here is how passive income ideas come in through blog affiliates:
When you write a blog, you might mention products or businesses in your posts. Some companies take advantage of this marketing and offer some sort of income/offer when you direct your readers to their product or service.
These companies will put some sort of code into the link to track whenever somebody purchased a product/service after you suggested it and linked it to your blog.
As one of the best passive income sources, you do not have to do anything after you have published your blog post to start taking in this smart passive income.
Popular affiliate programs that work as passive income sources are:
One of the more traditional passive income ideas is to rent properties. This is definitely one of the best sources of passive income if you have money for a second home/apartment.
Image Source: Pixabay
In order to truly take advantage of this best passive income source and not simply lose money, you will need to think about the following things:
- What is rent going for in the area? Is it good enough to earn profit?
- Is your property in good enough shape for renters?
- Is your property in a desirable area? Are there good school and low crime?
Keep in mind that out of the other best passive income ideas on our list, this has some of the most hands-on activity. If your renters have an issue, you will need to address it. If your renters bail, you will need to find new ones.
However, it also has the ability to snowball into more and more smart passive income. You could potentially buy one property after another.
If you do not have another home or apartment, you can still take advantage of passive income ideas by renting out a spare bedroom on websites like Airbnb.
Popular Article: Three Types of Financial Plans (What is a Financial Plan?)
Sell An Ebook or Course
One of the best passive income ideas to bring in enjoyable passive income streams is to package up your knowledge or skill set in an ebook or a course. These are the best sources of passive income if you have some time for initial creation.
You do not have to have advanced degrees to take advantage of these best passive income ideas. Everybody has something they are good at. Tapping into that as passive income opportunities is easier today than ever before.
Ebooks allow you to write and publish your particular knowledge and sell them online – either through Amazon or your own website.
Courses are easier to create with website platforms such as Udemy. Udemy helps you create your course, market your course, and ultimately sell your course as smart passive income.
Creating a book or course will take a lot of work. But once they are done, you are done. They can easily become some of your top passive income sources.
Try Peer-to-Peer Lending
Last on our list of best sources of passive income is peer-to-peer lending. What is this best passive income source? Simply put, services will match you as a lender to a borrower. You will make money on interest.
Essentially, you become a borrower’s alternative to a bank loan. And these borrowers will be your sources of passive income.
By far, this is the most financial-minded option on our list of passive income ideas. You will need to have enough money to do the initial lending.
The benefit of using peer-to-peer lending as smart passive income is that you have the potential to earn far more interest than you would in other accounts.
The downside of using peer-to-peer lending as smart passive income is that you do not have a full guarantee that the borrower will keep their word, so you could lose capital.
But know this: you will often have to make a certain amount of verified income (normally around $70,000 a year) before you are allowed to use these peer-to-peer passive income investments.
Read More: What is Financial Planning?
Conclusion – Top 6 Best Sources of Passive Income
If you have been wondering which sources of passive income might work for you, you now have six passive income ideas to try this year.
There should be examples of passive income on this list for everyone hoping to take advantage of smart passive income:
- Have a large sum of extra money just sitting in a savings account? The best sources of passive income for you might be to buy a property to rent or try peer-to-peer lending.
- Have a special skill set people may be interested in learning? The best sources of passive income for could include making an ebook, course, or YouTube channel that lets you share that talent with the world.
Give yourself the freedom and flexibility of one of these best passive income ideas this year.
AdvisoryHQ (AHQ) Disclaimer: Reasonable efforts have been made by AdvisoryHQ to present accurate information, however all info is presented without warranty. Review AdvisoryHQ’s Terms for details. Also review each firm’s site for the most updated data, rates and info. Note: Firms and products, including the one(s) reviewed above, may be AdvisoryHQ's affiliates. Click to view AdvisoryHQ's advertiser disclosures.
AdvisoryHQ (AHQ) Disclaimer:
Reasonable efforts have been made by AdvisoryHQ to present accurate information, however all info is presented without warranty. Review AdvisoryHQ’s Terms for details. Also review each firm’s site for the most updated data, rates and info.
Note: Firms and products, including the one(s) reviewed above, may be AdvisoryHQ's affiliates. Click to view AdvisoryHQ's advertiser disclosures.