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The best way to supplement your income is to build passive income streams that pay you, even when you sleep.
Not all methods are created equal, but having more than just active income to pay your bills, support your lifestyle, and fund your dreams can be very rewarding.
I have personally tried a few methods and would love to share them with you.
So, whether you are funding yourself in retirement, bringing in some extra income to pay for your kid’s karate lessons, or just trying to pay off your debt early. Here are some of the best passive income opportunities you can start today.
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Passive Income Ideas to Make a 6-Figure Income
If you’re looking to boost your earnings without suddenly quitting your day job, exploring passive income sources could be the key to reaching your financial goals.
Whether you want to invest in real estate, start a blog, or sell digital products, these income streams allow you to earn money while focusing on other priorities. Plus, if you are tired of working your day job, building passive income gives you that extra boost that you may need while changing jobs, or even while you work to start you own business.
By diversifying your passive income sources, you can build multiple streams of revenue that help you reach a six-figure income. It’s all about finding the right opportunities that align with your interests and financial strategy, so you can work smarter, not harder.
Since not every method will work for everyone, it’s important to keep in mind your goals as you consider each money making idea.
Why You Should Start Building Passive Streams of Income
Building passive streams of income is one of the smartest ways to achieve financial independence. By creating multiple income sources that don’t require constant effort, you can free yourself from relying solely on a paycheck.
Whether you’re saving for the future or looking to quit your day job, passive income gives you more control over your finances, helping you build long-term wealth while working less over time. The sooner you start building up your passive income, the better your chances are of reaching 6-figures well before you are ready to quit your job and retire.
Additionally, while no one ever plans to have medical emergencies, or other significant life changes that inhibit your ability to trade time for money, having additional income can help to avoid running out of money should these life events transpire unexpectedly.
I have previously been quoted in another article related to building passive income that went something like this.
“By the time you wish you had the easy passive income to support you in life, it’s often too late or much more difficult to start building it. Instead, invest the time to build it up now, so you never have to say no to that vacation, or say no to taking time off work to care for a loved one. And, even better, build that passive income stream now, so you can retire early and say yes to months of vacations, and yes to enjoying life while your own health is at its peak.”
– Nicole Ray
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Best Passive Income Ideas with Your Own Business
Turning a business idea into passive income can be incredibly rewarding. By leveraging online platforms like social media and course creators, you can automate many business activities and create a steady revenue stream.
Whether it’s starting a blog, selling digital products, or launching a subscription service, the right side hustle can grow into something pretty substantial. With time and the right strategies, your business can generate income in the long run without requiring constant hands-on work.
Now, since you are building a business, keep in mind that there is often a decent upfront investment of both time, energy, and some money. But, once your passive income business is established, you can often let it run in the background with little to no maintenance.
Essentially, you can get paid while you sleep!
Online Courses
Creating and selling online courses is a great way to generate passive income with a small initial effort. Once you’ve developed your written or video course, you can sell it on platforms like Udemy or through your own online store.
After the course is created, it requires minimal effort to maintain, while still providing ongoing income. This effort usually just involves updating the course content so it has the most recent information, and ensures that your students are satisfied with their purchases.
However, you can automate or outsource some of this effort by hiring a virtual assistant to answer emails and ensure everything runs smoothly.
By leveraging your expertise in a particular field, you can build a course that continues to generate revenue long after it’s launched.
There are many types of course creators available for you to choose from. But, among them, my absolute favorite is ThriveCart.
- ThriveCart offers a single one-time, lifetime fee (that costs the same or less than 1 year of SamCart)
- You can sell both courses and digital products
- ThriveCart has one of the best conversion based shopping cart platforms for increasing sales of products
- It is easy to set up coupons and discounts for your students
- You can create bundles for your products and courses
- There are many easy-to-customize sales pages and more so you can stick to your branding
You can check out ThriveCart today to see just how valuable this platform is. I can’t recommend it enough, because even though it does have its ups and downs, the overall value is well worth it.
In short, with the single lifetime fee, you can make your money back in a short time, and then everything else is 100% profit.
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Digital Products
Selling digital products is an excellent way to build passive income with low ongoing maintenance. Whether it’s eBooks, printables, templates, or software, once you create the product, you can sell it repeatedly with minimal effort. Platforms like Etsy, Shopify, and ThriveCart are great places to sell digital products.
By setting up your own online store on platforms like Etsy or Shopify, you can reach a wide audience and generate consistent revenue. Digital products allow you to scale your income quickly, and you can easily create them in your free time. You can also charge whatever price you want, so long as your potential customers are willing to buy.
Sell Printables
Selling printables is a simple and scalable way to earn passive income. With low or even no upfront costs, you can create and sell items like planners, calendars, worksheets, or artwork on platforms like Etsy. Since Etsy already has a large customer base, popular platforms are often the easiest way to sell your first products.
One of the best courses where you can learn how to create professional-level products and list them like an expert is the Gold City Ventures E-Printables Course.
Once your designs are listed, your products can generate income with minimal ongoing effort. Printables are popular because they’re easy to customize and get delivered instantly to the customer.
By tapping into popular niches, you can quickly grow your online store and work toward making a six-figure income.
Some of the most successful printables sellers are easily making thousands each month to replace their full-time income. It’s 100% possible, but does require some work.
For the best results, you will want to regularly publish new printables so your customers have plenty of products to choose from.
You can check out some of the other success stories of students who have previously taken the E-Printable Course from Gold City Ventures.
You can also open a Shopify Store today, or open your Etsy Store to get started and begin building a passive income stream.
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Start a Dropshipping Business
Starting a dropshipping business is a low-risk way to generate passive income without holding inventory. By partnering with suppliers, you can sell products through your own online store, and the supplier handles the shipping and fulfillment.
This model allows you to focus on marketing and customer service while earning a profit on each sale. With the right products and effective marketing strategies, a dropshipping business can scale quickly, helping you reach your goal of a six-figure income this year.
A popular way to make money from Amazon is to do Fulfillment By Amazon (FBA), in which Amazon handles the processing and shipping for you. You will, however, have to invest in the products themselves by finding suppliers.
I recommend taking a look at How to Start an Amazon FBA Business, and make as much as $25,000 a month.
Related: How to Start an Amazon FBA Business (2024 Guide)
Start a Blog
Starting a blog is one of the most popular ways to generate passive income. By creating valuable content in a niche you’re passionate about, you can attract an audience and monetize through ads, affiliate marketing, sponsored posts, digital courses and more.
This is actually the first method I started of creating passive income in my 20’s. One of my favorite blogging success stories is of Michelle Schroeder-Gardner, who has made over $5,000,000 from her blog. Blogging has allowed her to travel full-time and get paid while doing so.
So, yes. It is 100% possible to make a full-time income, and even to retire by hosting a popular blog.
Although it takes time and effort upfront to build traffic, once your blog gains momentum, it can become a steady income stream.
With consistent content and smart monetization strategies, your blog could help you achieve a six-figure income in 2024 while allowing you to work on your own terms. The best thing about starting a blog, is that you can build it while working your day job and slowly start building the income you need to quit your job.
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Join my free 7-Day course so you can learn more in-depth about the process of starting a blog, so you can create your own stream of passive income.
Free Course: How to Start a Blog in 7 days
Blogging can be one of the best ways to start building passive income on your own time. Whether you like to side hustle a few hours each week, or a few hours every day, blogging is perfect for anyone wanting to become their own boss and quit their day job.
Learn step-by-step, how to launch a blog and make it a success in just 7 days. You will discover the best tools and tips from an experienced blogger to avoid the mistakes that every beginner makes.
Don’t wait to take back your time and start earning passive income by writing about the things you love and enjoy.
YouTube Channel
Creating a YouTube channel can be a lucrative passive income source with the right strategy. While it requires initial effort to produce high-quality YouTube videos and grow your channel, the potential rewards are substantial.
By focusing on a niche that resonates with a large audience, you can monetize through ads, sponsorships, affiliate marketing, and more. Once your content gains traction, you can continue earning income from views and interactions long after the videos are published, helping you work toward a six-figure income.
Whatever content you create, it’s important to try and focus on sticking to the same niche. That way you build a brand of your own unique content, and so that you are serving a specific audience.
Additionally, this also builds trust with your audience, which is crucial when it comes to selling products and making affiliate income.
Create Popular Reels on Social Media
Creating popular reels on social media platforms like Instagram and TikTok can be a powerful way to generate passive income.
By crafting engaging, entertaining, or informative content, you can capture the attention of a large audience. Similar to building a YouTube channel, you will want to make sure you have something of a niche, so you are better serving your audience.
As your following grows, you can monetize your content through brand partnerships, sponsorships, and affiliate marketing. The key is consistency and creativity.
Once you establish your niche and build a loyal audience, your reels can continue to earn income while you focus on creating other content. These reels don’t have to be fancy by any means. But the best way to succeed is to just get started, and keep posting consistently.
When you have enough content to analyze, you can find what resonates most with your audience, and create more of this type of content.
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Affiliate Marketing
Affiliate marketing is a fantastic way to earn passive income by promoting products or services to a large audience.
By sharing unique affiliate links on your blog, social media, or YouTube channel, you can earn commissions on sales generated through your recommendations. The key to success lies in selecting products that align with your niche and resonate with your audience.
Otherwise, you just end up throwing spaghetti at the wall.
As you build trust and provide valuable content, you can create a sustainable income stream, making affiliate marketing an effective strategy for creating a lucrative passive income business.
Since affiliate marketing takes a bit of strategy and Know-How, I highly recommend you take a course from a professional who has made millions from affiliate marketing. And, more specifically, over $50,000 from a single affiliate program.
You can join Making Sense of Affiliate Marketing to start your affiliate marketing journey, and join a community of thousands of fellow affiliate marketers. You can also sign up for a free ebook Affiliate Marketing Tips for Bloggers, to learn more before you get started.
Stock Photos
Selling stock photos is a great way to generate passive income, especially if you have a knack for photography. By uploading your images to stock photo websites like Shutterstock or Adobe Stock, you can earn money every time someone downloads your work.
Once you’ve uploaded your photos, they can continue to generate income with practically no effort. Focus on creating high-quality images that cater to popular themes and trends, and you could establish a steady revenue stream that contributes to your financial goals.
The most successful stock photos are often the ones with people in them. So, consider talking with some friends, or even some college students who might be interested in modeling for stock photography.
Just make sure that you have the proper written consent of any of your models prior to submitting your work.
Write an Ebook
Writing an eBook is an effective way to create a passive income stream. By sharing your expertise or passion on a specific topic, you can produce a valuable resource that continues to sell over time.
The key is to write about highly specific content. If it’s too generic, it doesn’t solve a problem, and no-one will want to buy. The more specific, the better.
Once your eBook is published on platforms like Amazon Kindle, or even on your own website, it requires minimal effort to maintain. You can promote your eBook through social media, email marketing, or your blog to reach a wider audience.
Even better is when you connect to other entrepreneurs who have a larger audience than you, and to consider offering them commissions with affiliate marketing. That way they are motivated to continue to promote your eBook.
With the right marketing strategy and compelling content, an eBook can help you achieve a six-figure income in your business.
Writing an eBook is also an excellent place to start with selling digital products.
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Flip Furniture
Flipping furniture is a creative and rewarding way to generate passive income. By purchasing used or undervalued pieces, you can restore or upcycle them for resale at a profit. This method is actually not as passive as some of the other strategies, but it can be tons of fun for those who are more hands on.
This side hustle allows you to tap into your artistic skills while leveraging platforms like Facebook Marketplace, EBay, or Etsy to reach potential buyers. While it requires some initial effort and investment, once you build a reputation and streamline your process, flipping furniture can become a sustainable income source.
I have a relative who does this, and she really enjoys the entire process.
Sell Products in Online Marketplaces
Selling products in online marketplaces is a smart way to generate passive income. Platforms like Amazon, eBay, and Etsy provide a vast audience for your products, whether they are handmade items, vintage finds, or retail arbitrage opportunities.
Once you set up your listings and optimize your product descriptions, you can automate sales processes and shipping, allowing you to earn money with minimal ongoing effort. Digital products is the most passive method of income, but creating handmade products in your spare time can become more passive once you’ve established some inventory.
By leveraging effective marketing strategies and selecting the right products, you can create a thriving online business. Using search engine optimization ensures that potential customers can find your products in their searches.
You can learn more about search engine optimization through blog articles and YouTube videos.
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Create a Mobile App
Creating a mobile app can be a lucrative passive income opportunity if you identify a unique need or niche. Once developed and launched, your app can generate revenue through in-app purchases, subscriptions, or advertising.
Although the initial investment of time and resources can be significant, a well-designed app that attracts a large audience can continue to earn income long after its release. Using ads to continue to bring in new users can help with this as well. You can also sell ad space on your own app, to help supplement the costs.
By regularly updating and improving your app based on user feedback, you can build a loyal customer base and work toward achieving a full-time passive income.
Host a Podcast
Hosting a podcast is an engaging way to share your expertise and connect with a large audience while generating passive income. Once you establish a consistent schedule and create valuable content, you can monetize your podcast through sponsorships, listener donations, and affiliate marketing.
While building an audience takes time and effort initially, successful podcasts can continue to attract listeners and generate income long after episodes are released. With the right niche and effective promotion, your podcast can become a money making machine.
But, it’s important to continue to produce new content on a regular basis to bring in new listeners, nurture old listeners, and sell more products and sponsorships.
The best thing that you can do is to just get started. If you enjoy speaking, and teaching people new things, then a podcast is likely an excellent option for you.
Related: 22 Best Podcasts All Entrepreneurs Need in 2024
Sell Products at a Farmers Market
Selling products at a farmers market can be a rewarding way to generate passive income while connecting with your local community. Whether you create handmade goods, baked items, or unique crafts, farmers markets offer a platform to showcase your products to a diverse audience.
Although the initial effort involves setting up and marketing your stall, once you establish a loyal customer base, you can enjoy repeat sales with minimal ongoing effort. By consistently providing quality products and building relationships with customers and other businesses, you’ll be able to start growing your own business.
While a farmers market is not the most passive option, it does allow you to spend free time creating your product, and gives you an outlet for creativity.
Related: How These Two Soap-Makers Run A Successful Business
Passive Income by Renting What You Have
One of the easiest ways to generate passive income is by renting out what you already own. Whether it’s a spare room, your car, or even equipment, platforms like Airbnb and Turo make it simple to turn unused assets into cash.
You can continue your day-to-day life while earning extra money, making it a hassle-free way to reach your financial goals with minimal effort.
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Rental Properties
Investing in rental properties is a proven way to generate rental income and build passive wealth. While it requires upfront work to find and finance the right property, this investment can pay off with consistent income over time.
The one major downside of rental properties is the maintenance and continued efforts involved.
But, you can minimize active involvement by hiring a property management company to handle tenant issues, maintenance, and mortgage payments.
By maintaining a well-managed rental property, you can enjoy long-term rental income, and even retire on this source of extra cash.
I have a relative who has over a dozen rental properties, and he takes very good care of his properties. He and his wife have invested significant time, energy, and money to ensure their tenants are happy and safe in their rented living space.
And, they have been rewarded with loyal and trustworthy tenants for years of continued service and passive income.
Unfortunately, not all landlords are this good, as many unfortunate renters have experienced. But, you want to make sure that you are a good landlord, so you can keep your current tenants and guarantee continued monthly income.
You can also save money by doing some things on your own, but it is important to know your limits and understand when it’s time to call in for professional help. This keeps things running smoothly, and efficiently and limits your liability in case of accidents.
Related: How to Start a Successful Lawn Mowing Business in 2024
Rent Storage Space
Renting out storage space is an easy way to generate passive income with minimal ongoing effort. If you have extra space in your garage, basement, or even a separate property, you can offer it for rent to individuals or businesses needing storage.
This simple venture requires little maintenance compared to other passive income streams and can provide consistent cash flow. By setting up an organized system and charging a competitive rate, renting storage space can contribute to your 6-figure passive income stream.
Additionally, if you have plenty of parking space, and live near a stadium, you may even have the option of offering parking spaces for a fee.
My brother was able to do this in college, since his house was only a few blocks from the stadium, and parking there was limited. Unfortunately, this method can be pretty limited on how much you can make each month, but if you include this method with other strategies then you will be closer to making a 6-figure passive income.
Rent Your Spare Room
Renting out your spare room is a straightforward way to earn passive income, especially if you live in a desirable or popular location. Platforms like Airbnb or long-term rentals can help you find tenants easily, allowing you to generate consistent income.
With minimal upfront costs, you can turn your unused space into a reliable revenue stream. Whether you rent short-term to travelers or long-term to tenants, this strategy requires little ongoing effort and can contribute towards your income goals.
Open an Airbnb
Opening an Airbnb is a lucrative way to generate passive income, especially if you have a spare property or vacation home. By listing your space on Airbnb, you can attract short-term renters and earn money with minimal ongoing effort.
While there’s some upfront work involved in setting up the listing and preparing the space, once it’s established, it can bring in steady income. You can even hire a property manager to handle bookings and maintenance, allowing you to generate the income without the worry and hassle. Especially if you live far from your rental space.
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Rent Your Tools
This now may seem a little different, but if you have specialized tools or equipment sitting unused, you can easily turn them into a passive income stream by renting them out.
Platforms like ToolShare or local rental services (even Facebook Marketplace, or local Facebook Groups) allow you to connect with people who need short-term access to tools for home improvement or DIY projects.
With only the upfront work of listing or marketing the tools you have, renting your tools can provide consistent income with minimal effort. By making the most of your unused items, you can steadily grow your earnings to reach your financial goals.
Rent Wedding Decor
Renting wedding decor is a profitable way to generate passive income, especially in the growing event industry. This is actually something that my venue offered during our wedding, that I didn’t seem any other venues offer when we were looking.
So, if you have an eye for decor, and the space to store it, you can easily make a significant income simply by allowing a bride and groom to rent your decor for their big day. If you have a good selection of stock, you can charge a fair amount to give them access to all decor.
Anywhere from $500-1500 would not be too unreasonable depending on the type of decor you have available. Bigger items like arbors, signs, or chairs and tables can be a big reason why a couple may want to rent from you.
Items like centerpieces, arches, or lighting, can be rented out to couples and end up saving them money in the long run. Once you invest in quality pieces, you can rent them repeatedly with minimal ongoing effort. By promoting your decor through social media or event platforms, you can build a client base and steadily increase your income.
A really great opportunity would be to connect and network with local venues to have them recommend your decor rental. This gives you some free advertising, and it also helps the venue as well. Having access to rental items was one of the many reasons why we chose the venue we did.
If you rent out your whole stock Friday-Sunday every weekend at an average of $750 each day, you will be earning $117,000 within a year.
Related: How to Get Almost Anything for Free on Amazon (this article goes into how I got almost all my wedding decor for free)
Rent Your Car
Renting your car through platforms like Turo or Getaround is an easy way to generate passive income. If your vehicle is often sitting unused, renting it out can provide consistent cash flow.
You can also sell advertising space on your car, allowing companies to place ads on your vehicle while you earn extra income. Though, you will get paid more if you often commute for work or leisure.
By combining both strategies, you can maximize your car’s earning potential with minimal ongoing effort, making it a great way to earn regular passive income. Offering rental time during major holidays will increase your earnings as well.
Create Graphic Designs
If you’re skilled in design, creating graphic designs can be a profitable passive income stream. You can sell your designs as digital products, such as logos, templates, or custom illustrations, on platforms like Etsy or Creative Market.
You can get 40 free Etsy listings if you open your shop today.
Once uploaded, these products can generate continuous income with minimal ongoing effort. Although, you will want to have a fair amount of designs listed so potential customers have a better chance of finding you.
Additionally, you can offer your services through print-on-demand websites like Printify, allowing your designs to be printed on items like clothing or home decor. With the print-on-demand option, you can often get paid a bit more, depending on the product that you have listed.
Combining your print-on-demand products to your Etsy shop can really boost your income potential, and really make your income much more passive. Once you have it all set up of course.
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Passive Income Ideas with an Upfront Investment
Many passive income strategies require an initial investment to start generating returns. Investing in the stock market, real estate, or dividend-paying stocks are great examples of financial investments that can grow over time.
While these methods take some upfront capital, they have the potential to generate substantial passive income as your investments appreciate.
With careful planning and patience, these strategies can help you build a reliable income stream in the future. And, are often a reliable source of income in your retirement.
Aside from a standard 401K, you will want to consider additional investments in your stock portfolio, to diversify your income stream and avoid market volatility.
Invest in a Local Business
Investing in a local business is a smart way to generate passive income while supporting your community. By providing capital to a growing business, you can earn a return on your investment through profit sharing or dividends.
While there may be some upfront work in finding the right business and structuring the deal, once it’s in place, you can enjoy steady income without being actively involved.
This strategy not only helps you build wealth but also fosters local economic growth. However, with a small business, this investment is much more risky since many businesses fail within their first 5 years. So, ensuring that you are familiar with the business owner before you invest is important.
You can learn more about investing in small businesses with this Forbes article.
Related: How to Start a Successful Food Truck Business with No Money
Vending Machine Business
Starting a vending machine business can be a lucrative way to generate passive income with relatively low ongoing effort. While it requires some work upfront to research locations, purchase the machines, and stock inventory, once established you can enjoy steady cash flow.
Choosing high-traffic areas, such as offices or schools, can maximize your sales potential. With the right product selection and regular maintenance, your vending machines can become a reliable income source.
But, it’s important to make sure that you are stocking your machines regularly. Keeping track of your inventory each time your stock your products will give you a better idea of what sells and what doesn’t.
Plus, this also gives you a better idea of how often you need to be stocking your machines. That way you can more easily set a schedule that works for you.
Dividend Stocks
Investing in dividend-paying stocks is an effective strategy for generating passive income while also positioning yourself for potential capital gains. By selecting reliable companies that distribute dividends, you can enjoy regular cash flow in addition to the appreciation of your investment.
Unlike money market accounts or corporate bonds, which often yield lower returns, dividend stocks offer the potential for higher income and growth. With careful research and a diversified portfolio, you can leverage dividend stocks to help achieve a 6-gifure income.
Or, you can use dividend stocks to help fund you in your retirement. Like always though, ensuring your dividend stocks are diversified will help to avoid the inevitable volatility of the stock market.
Related: How Often Should I Invest in Stocks (5 high-yield dividends)
Money Market Fund
Investing in a money market fund is a safe and liquid way to generate passive income with minimal risk. These funds typically invest in short-term, high-quality debt securities, offering higher returns than traditional savings accounts.
While the returns may not be as high as other investment options, money market funds provide stability and quick access to your cash.
By strategically and carefully allocating a portion of your investment portfolio to money market funds, you will maintain a diverse portfolio that can help you reach financial freedom sooner.
Mutual Funds
Investing in mutual funds is a smart way to build passive income while diversifying your investment portfolio. These funds pool money from multiple investors to purchase a variety of assets, such as stocks and bonds, managed by professional fund managers.
This approach not only spreads risk but also offers access to a broader range of investment opportunities. It is often considered one of the safer investments.
By choosing mutual funds that focus on income-generating assets, such as dividend-paying stocks or corporate bonds, you can create a steady cash flow to contribute to a 6-figure income.
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High-Yield Savings Account
A high-yield savings account (HYSA) is an excellent option for those seeking a low-risk passive income stream. These accounts typically offer higher interest rates than traditional savings accounts, allowing your money to grow more effectively over time.
A traditional savings account may get you pennies in a year. But, a high-yield savings account can earn you much more. I recommend transferring some funds into a SoFi high-yield savings account as they offer as much as 4.6% APY.
I did this a while back, and I have regularly earned back each month. Although I don’t keep much more than a few hundred in that particular savings account at a time, when I do, I am able to earn an extra few dollars each month. By the end of the year, I can end up earning a fair amount.
This method alone will not get you a 6-figure income, unless you transfer in hundreds of thousands of dollars. But, having an HYSA can contribute to your monthly income.
Many banks have an app that you can use to transfer funds and track your progress.
While this investment may not yield the same returns as stocks or mutual funds, it offers a secure way to build your savings, while earning back on your money.
Related: Why You Need an Emergency Fund
Related: Why You Should Use an HYSA for Your Emergency Fund
Real Estate Investments
Real estate investments can be a powerful way to generate passive income and build wealth over time. One effective method is through real estate investment trusts (REITs), which allow you to invest in a diversified portfolio of income-generating properties without the need to manage them directly.
You will typically need to invest a larger amount to start. This usually starts at $1,000 and can go as much as $50,000.
REITs often pay attractive dividends, providing a steady cash flow while also offering potential for long-term appreciation. By including REITs in your investment strategy, you can create a reliable income stream that helps you work toward your income goals.
Open a Roth IRA or other Retirement Account
Opening a Roth IRA or another retirement account is a strategic way to build passive income for your future. These accounts allow your investments to grow tax-free, and qualified withdrawals during retirement are also tax-free.
You can open an investment account with SoFi and get $25 free when you invest $25.
The reason a Roth IRA is tax-free is that the money you invest into it now, has already had taxes paid on it. A traditional IRA account has contributions before taxes, and therefore is usually taxed when you withdraw. Which can sometimes be beneficial, but will depend on what taxes are when you withdraw.
By contributing regularly and investing in a diversified portfolio of stocks, bonds, or mutual funds, you can take advantage of compounded growth over time.
Whether you have a Roth IRA, or a Traditional IRA, you will be limited to how much you can invest into them each year. So, you may need to open multiple accounts in order to reach your money goals.
Purchase an Annuity
Purchasing an annuity can be a reliable strategy for generating passive income, especially as you approach retirement. Annuities provide a guaranteed stream of income in exchange for a lump-sum investment.
I actually discussed this with a coworker who mentioned that she and her husband have an annuity. In retirement, if you are getting social security payments, you are getting regular monthly income. An annuity offers a similar principle in that it is regular income every month.
Annuities come in various forms, including fixed, variable, and indexed annuities, allowing you to choose one that aligns with your financial goals.
While there may be some much higher upfront costs and fees, the security of predictable payments can help you achieve financial stability. This initial investment can be around $100,000 and up, and can last 10-20 years.
So, the larger the annuity, the more monthly income. Based on your rates and time, an average of $500-1,000 a month may be expected for a $100,000 annuity.
Final Thoughts on Passive Income Ideas to Make a 6-Figure Income
While it will take a while to reach a 6-figure income passively, it is absolutely possible. In addition to the time it takes, there is also a lot of dedication and strategy involved.
The true key to a successful passive income strategy though, is determination. You may not see the results you want as quickly as you might think. But, if you stick to your strategy, and stay dedicated to the work you’ve put in, you will reach your goals sooner than you might think.
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These are fantastic passive income recommendations for experienced and new bloggers alike. Thanks for putting this awesome resource together.