Passive income ideas that’ll make you rich
You can make money doing almost nothing. But all you have to do is make some investments that earn themselves and pay you back some handsome returns timely for the lifetime.
Here are 8 passive income ideas, I have listed ideas for large as well as small investments so that every budget individual can begin.
Ideas requiring large investments.
1. Renting out a property
Renting out an empty apartment is an obvious idea for anyone who has one. There are several ways in which this can be done.
- Renting out the apartment on a long-term lease. This is a source of stable and sufficiently high income. The main risk is to find an apartment in an unusable condition after the renters.
- Renting out the apartment by the day. Unstable, but more profitable than long-term rent. It is better to choose the variant when you provide the apartment for travelers. In this case, you will have to constantly maintain the marketable appearance of the apartment, but there are a few fewer risks. If you are planning to rent your apartment to your fellow countrymen, be prepared for the fact that they will rent it for noisy parties, after which only the walls will remain the same.
- Renting an apartment as a commercial property. The apartment on the first floor can be turned into a space suitable for a store or office. If you do it yourself, read the regulations. Also, the tenant can take on the costs of converting the space, but it will affect your income.
Not all methods will require additional monetary costs. But in this case, your investment is the apartment, because you can not be sure of its safety.
2. Put your money in the bank.
First, decide if you want to make a monthly return on your deposit, but only a little, or if you will be satisfied with a larger amount every quarter, half a year. In the first case, savings account with the ability to withdraw interest each month will do. In the second case, choose a deposit with capitalization, when the interest is added to the main deposit every month. So, in the end, you will get a larger amount.
3. Invest in dividend stocks.
It is possible to receive dividends every year, but to do this you need to choose them correctly, it does not hurt to acquire an earning statement.
First of all, you should choose preference shares over common shares. The former always pay dividends, the latter only at the discretion of the board of directors. Second, you should choose promising companies whose profits (and therefore the number of dividends) are constantly growing. Do you know? There are many dividend stocks that pay dividends 3 to 5 times every year, that’s almost every quarter.
4. Invest in mutual funds.
The essence of a Mutual Investment Fund is that the investor trusts the specialists of the company with his money, and the latter do their best to increase the investment. The return on mutual funds, as on most financial instruments, is not guaranteed. Therefore it is important to choose a good fund, and you should study the ratings, read the rules of entry and exit of mutual funds and clarify all the nuances.
5. Become an investor.
Investing in a startup or growing company is extremely risky: in essence, you are giving away money and nothing else depends on you. In this case, the organization may “shoot up” and become the second Apple or close in six months. However, with some analytical skills, intuition, and luck, you can find a talented startup and get a good return on your investment by watching its success.
Ideas that require minimal investment.
6. Monetize your hobbies.
If you have a hobby that brings tangible results, you can start selling the fruits of your labor. Let’s say you are a talented carpenter and have gifted all your friends with stools or you love embroidery, but you do not know what to do with the finished canvas. You are passionate about the process, and therefore the finished products are more and more and do not know what to do with them.
Make profile pages in social networks and accounts on popular marketplaces. There is bound to be someone who will appreciate your talent. But remember: as soon as you start making things specifically for sale, passive income will turn into active income.
7. Sell photos.
You don’t have to be a popular photographer to sell pictures.
It’s enough to register on one of the photo stocks. Each site has a different entry threshold, but among the variety of stock, you can choose the one that suits you. Next, everything is simple: just post photos and get rewards for each photo download.
8. Create an intellectual product.
With some talent and skill, you can create a product that will bring profit for the rest of your life. Write a book, a cell phone app, or a program that people will love. You as the author will receive royalties for the use of your intellectual work, the main thing is not to forget to write this clause in the contract.