In today’s world, you need to work smarter, not necessarily harder. To accomplish this, you should take a closer look at generating passive income. Rather than always struggling to earn a few dollars here and there, it pays to find ways that will have your money working for you, rather than the other way around. If you’re ready to be anything but passive about earning more income, here are nine ways to generate passive income.
1. Invest in Rental Properties
When you are having a discussion with your CPA about ways to earn passive income, don’t be shocked if your CPA encourages you to invest in real estate. One of the most reliable methods for earning passive income, becoming a real estate investor can have you making more money than you ever imagined. However, before diving into this opportunity, think about all the things that go with being a landlord, such as repairs and maintenance of your properties. If you decide to hire a property manager for your properties, this too could eat into your passive income profits.
2. Install Vending Machines
Whenever you’ve been in an office building, arena, or elsewhere, you know that people just can’t resist buying something from a vending machine. If you don’t mind spending a few thousand dollars to get started, you too can begin building your vending machine empire. From soda and candy to healthy snacks and everything in between, vending machine businesses require only a few hours each week to service and restock the machines. Best of all, you can outsource these tasks, meaning you’ll have even more free time to spend that extra money you’re making with very little effort.
3. Advertise On Your Car
Since you are probably already spending plenty of your time driving around in towns and cities, why not get paid for doing so? If you don’t mind turning your vehicle into a mobile advertisement for businesses, you can make a sizable passive income for the time you spend behind the wheel. While some businesses may want to do a full vehicle wrap, others may just want to place a small magnetic sign on your door. Whatever the case may be, once you make your vehicle available for business advertising, you’ll get more offers than you expected.
4. Buy Dividend Stocks
If you are looking to invest your money in an effort to create passive income, your CPA may suggest you take a close look at dividend stocks. Though you will need several thousand dollars at a minimum to get this off the ground, dividend stocks are proven moneymakers year in and year out. Though it does come with risks, such as companies hitting lean stretches and being unable to pay out a dividend or only pay out a small one, chances are that by working with your CPA and a stockbroker you can trust, regular profits will come your way month after month.
5. Become a Silent Partner
You can make plenty of passive income by becoming a silent partner in a business. Since businesses of all types are always looking for investors who can help them become even more successful, you may be surprised at just how many small businesses may want to talk to you about this in greater detail. If you decide to pursue this, meet with your CPA before you sign any documents or provide a business with any money, since you will want to make sure the opportunity is legitimate and that any contract you may sign will be valid and reasonable.
6. Take Advantage of Matching Contributions
If you have a 401(k) retirement account through your employer, take advantage of the matching contributions made by your employer to your account. When you do, this is arguably the easiest way you can earn passive income. Since you will already have your account set up so that money you earn automatically goes into your account, maximizing your contribution will mean your employer will put more and more money into your account. What could be easier than that?
7. Host on Airbnb
Should you be someone who travels quite a bit and is leaving behind an empty house, you can earn passive income on your home by renting it out on Airbnb. While you will need to spend some of your time getting the place ready for guests and cleaning it up after they leave, you can quickly earn thousands of dollars by letting others enjoy your beautiful home for a few days.
8. Become a Song Investor
Whether it’s in a TV show, movie on the big screen, or in those always-popular commercials, you’ve noticed songs are always being used in different ways. Believe it or not, you can actually become a song investor and earn money each time a song you’ve invested in is used on television or the silver screen. If this sounds intriguing, remember that this does not just pertain to current songs. In fact, the song “Daydream Believer” by The Monkees rakes in an average of $10,000 each year when it’s used in various ways.
9. Write an eBook
Should you have knowledge you want to share with others or perhaps have an inner novelist in you that is eager to write the next best-selling book, you can generate passive income by writing and selling an ebook. Once you get the book written and ready for publication, you can take advantage of Amazon’s Kindle Direct Publishing program and do it quickly, easily, and for free. Once your book gets listed on Amazon and other online bookselling sites, the profits could start to roll in 24/7.
Now that you have so many options in front of you as to how you can generate passive income, pick out some and then get some sound financial advice from your CPA. Whether you want to invest in real estate, become a silent partner in a new or existing business, or perhaps let The Monkees and other artists increase your bank account, it won’t be long until you are indeed working smarter rather than harder.