Commonly people will get money for an exchange of services he performs. It could be in the form of salary, wage, commissions, or tip. This is called active income. And this is what normal people do. They simply work and get paid. But, actually, there’s more effective way to generate money without working. The money that you earn without working is called passive income. One of the old fashioned passive income ideas is through investment, either on stocks, bonds, real estate, or even royalty generation.
There’s nothing wrong with living the first way of getting money, but if you search for an effective way to get the wealth, you might considering the second way of getting the passive income.
Here is the list of passive income ideas that might change your mind from living the normal live, work and get paid, to the more effective way of getting wealth, by having a passive income.
Passive Income Ideas: The way to Make Money While Sleeping
1. Get Cash Back
When you do shopping regularly at the same place, the store commonly will give you bonuses. The bonus can be in the form of cash back or card gifts that you can redeem it with certain product.
2. Let Your Car Work for You
Rent your car to others who need it when you don’t use it. Try to find virtual application that provides car rental business. Create a business agreement, and the car works for you
3. Rent Rooms in Your House
If you have unoccupied rooms in your house, that could be a business opportunity for you. You can rent one or two rooms and you will get regular income from the rental business you’ve just established.
4. Become Passive Partner
Every business needs more capital to expand. If you know there’s a developing business needing more fund to develop itself, it’s just the right time for you to get the chance of being a passive partner.
Instead of giving loans, you can take the equal positions with the owner of the business by being a passive partner which put his money into business to be used as extra capital. While the owner of the business handle the operation of the company, you can function as a passive partner who needs to stay home but have the same right of the profits with the owner.
5. Storage Facility
Another passive income ideas is storage facility. Many houses have a storage space, but as the years go by, and the member of the family is doubled, they would need more space to store their stuff.
6. Dividend Income
Dividend is a certain amount of money paid into your bank account for your possession on stocks of a certain company. If you considering this way as your passive income, you’d better check if you choose the solid stocks that you can rely on for years ahead.
7. Peer to Peer Lending
It basically you give loan to your friend who cannot meet the qualification for getting loan from bank. So, how can you get the money works and generates more money for you? You should apply a certain percent of interest to the borrower. By charging interest for the return, the money is automatically works for you to double itself.
8. Leave your Debt
Once you involve in debt, it’s getting difficult to get out of it. The longer you’re stuck in debt, the more interest you should pay.
Therefore, it’s better for you to leave your debt immediately, so that you can add the money into your own pocket because you don’t have to pay for the interest anymore.
9. Write A Book
If you’re good at writing, you can bring this activity into a lucrative level as selling books is one of the passive income ideas that makes you not only rich but also well-know, as your work are read by so many people.
10. Having a Business
One of the best passive income ideas is to start own business, and then ask someone else to run the company for you. You’ll just need to sit back at your rocking chairs and wait for good profit drives its way to your bank account. Another way where you don’t need to bother establishing your own company, you can buy a business which has existed .however, when you decide to buy an existing business, you need to make sure that the company still have a prospect for the future operations and profits.
11. Sell your Licensed Photos
Wondering how do your pictures produce money for you? Take a lot of pictures, and then choose your best ones. Send your photos to Shutterstock. Every time your photo is downloaded, you’ll get the royalty from that picture.
12. Create an App
Who doesn’t know Mark Zuckerberg? If technology is just in your blood, you can follow Mark’s path by creating an application that can be accessed by anyone through their mobile phone. This is just the coolest passive income idea since not only generating money, but you also making the lives of others easier.
Many people today are looking for variety of tools or equipment to rent. When you’re in the business, you’ll recognize that the startup cost may high since you need to provide the tools and equipment you would like use in the business such as party tents, chairs and tables, or even heavy vehicle like modern tractor, or backhoe.
The agreement between the borrower and the lender is crucial. There should be a signed agreement to ensure the rental process is running well.
14. Establishing a Car Wash
As the number of car keeps increasing, it opens a new opportunity in business such as car wash. This business will have a good prospect for the future. This is such a good way to earn money.
15. Create Online Course and Sell it
Creating an online course of a certain field of study is one of passive income ideas which need low budget at the beginning. Copy rights your course, and every time your course is downloaded, you’ll get the money from that user.