If you are looking for the best passive money-making then you came to the right place.
It is not enough to have a side hustle, you need a passive income generating stream that makes you money around the clock, in and out of season. In this day and age of high billable, longer working hours and overstretched salaries you need to come up with, and implement passive income generating ideas.
The trick here is in learning to identify viable ideas with the highest potent of complementing your earnings in the short term but with the possibility of turning into wealth creation machinery in the long run.
- 1 5 best passive money making ideas
- 2 1. Invest in stocks and securities- 3%+ annual gain
- 3 2. Deposit with a hedge or mutual funds- 10%+ gains annually
- 4 3. Rental properties and crowd-funded real estate projects- 15%+ gain on rentals
- 5 4. High-yield savings account- annualized 2%+ gains
- 6 5. Rent out extra space in your house or backyard- gains depend on available space
5 best passive money making ideas
1. Invest in stocks and securities- 3%+ annual gain
Come to a serious windfall or have saved significant amounts over time? Don’t just let it sit in a fixed deposit account, earning minimum interest. Invest in the more lucrative government bills and bonds or buy stocks from some of the best performing listed companies on NewYork Stock exchange, London Stock Exchange or NASDAQ. You get to earn interest and dividends and still maintain the integrity of your initial deposit amounts when you buy into State Federal bonds.
And before you brush either of these off as too conventional, understand that there is a reason they have stood the test of time. It is largely due to the fact that they remain one of the safest and low-risk passive income generation ideas of all time.
- Stock and security certificate can be used as collateral for loans
- Guaranteed returns for bonds and bills
- Higher interests
- Requires an understanding of the money markets
- Stocks markets can be quite volatile
2. Deposit with a hedge or mutual funds- 10%+ gains annually
The global economy is rife with highly rewarding investment opportunities, but you need expert skills on how to identify these leads and analyze their viability and profitability. Hedge funds and mutual trusts have done the legwork for you and put in place analysts and economic experts to guarantee maximal utilization of the client’s funds.
You just have to find the most reputable and most profitable firm, the likes of Renaissance Technologies and JPMorgan Asset management. The return on investment from these alternative investment firms has time and again beat that of banks and government bonds as they concentrate on high-risk but highly-rewarding ventures like distressed debt management. Like bonds and any other passive income generating investment opportunity, how much you make from the fund depends on how much you invest.
- High returns when compared to stocks and bonds
- Professional management minimizes the risk
- Makes money regardless of the economic condition (buying long or short)
- High hedge fund fees
- Mutual funds have a long history of mismanagement
3. Rental properties and crowd-funded real estate projects- 15%+ gain on rentals
Rental properties have the highest return on investment over time, beating even the stocks. This is evidenced by the role the sector plays in influencing global economies. Building rentals, therefore, ranks highly on the list of passive income ideas. And with the automation of rent payments, the hardest part of it all is the initial building phase or deciding on the property to buy. Everything else is effortless and involves simple renovations every few years.
Investments here start from as low as $500 and you don’t even tend to be an accredited investor.
- Rental property gains value consistently over time
- Posts higher returns that can be adjusted upwards every now and then
- Both rentals and crowdfunded projects are insurable, thus minimizing risk
- Subject to taxes and homeowner association fees even when unoccupied
- Rentals require huge startup capital
4. High-yield savings account- annualized 2%+ gains
The interest rates offered by most banks on their savings accounts are laughable, to say the least. Some will even charge you a monthly fee for maintaining an account with them. This informed the need for the online-based high-yield savings accounts like HSBC Direct Savings and Ally Bank that offer compounded annual interest rates (APY). Most start at above the 2% rate.
Granted, a 2%+interest rate on savings will not make you rich and neither will it earn you immeasurable wealth. It, however, helps you avoid unnecessary charges of operating a savings account
- Higher APY’s than traditional banks
- No monthly or administration fees
- Highly liquid
- Most don’t have a physical location
- Most don’t offer ATM services
5. Rent out extra space in your house or backyard- gains depend on available space
Technological revolutions have led to the birth of such platforms like Airbnb, VRBO or FlipKey that connect travelers and tourists with cheap rental facilities across the world. They are championing an evolution from the age of depending on the expensive restaurants and motels by introducing the aspect of room sharing. You too can rent out extra space in your house or even the entire house when going out for vacations.
City camping is also steadily gaining steam and these space rental platforms give you a chance to rent out your backyard to campers. There are no overheads in either case as the renters will either carry with them food and necessities or ask that you provide them at a fee. The upside to this is that it is free and doesn’t call for an initial investment.
You have an added advantage if you own a second home. Alternatively, consider leasing apartments or family homes in busy coastal towns and other parts of the country or world with an influx of tourists and marketing these homes as possible hosts on these platforms.
- Ensures property from damages caused by clients
- More flexible compared to longer-term tenancy
- No association fees
- The tenancy is not guaranteed
- Incomes keeps fluctuating
This is the 5 best passive money making ideas from which you can make so much of income without doing lots of work.