I’m writing a huge blog post about Passive Income ideas. I already have blogging and affiliate marketing, I would love to include some of your passive income ideas and I’ll link back to your website if chosen. My site is triedandtruemomjobs.com
We have a 32k commercial solar system installed on our property. It produces between 3.5k and 5k a year in income. The income is a combination of selling the electricity and selling renewable energy credits.
When we built the system we signed a guaranteed 5 contract to sell renewable energy credits for 300 dollars per credit to ensure we recouped the cost of the system. We recouped our costs in 4.5 years.
Michael Dinich, Michaeldinich.net
Let me know if you need more info.
I like cash back credit cards as passive income. It’s so easy anyone can do it.
Right now I’m using multiple cards that provide me the following:
6% cash back on Groceries
3% cash back on Fuel
4% cash back on Dining Out and Bars
These net me $40 a month on $1,050 in purchases after accounting for fees.
For all of the spending that doesn’t fit these categories I use a 1.5% return card.
I just made $800 by spending $5k in three months with the Chase business ink card. I’ll have to cancel it before I get charged the $95 annual fee, but can’t beat that kind of money just for putting all of my regular expenses on a card!
If you treat eBay like a store and list your items as buy it now and good till cancelled, it is kinda like passive income. I’m listing new items each week so I’m continuously working, but I regularly sell things that I listed months ago and have forgotten about. Sure, you still have to pack the items, but the whole process of selling on eBay is so simple that it’s very close to passive.
I also sell items at an antique booth which is even more passive than eBay. I just take the items up to the antique mall, put a price on it, put it in the booth and go home. The items sit on the shelf and people come by and buy them. The buying process is handled by the antique mall employees so all I have to do is take my items up there and come back to get my check each month.
I’d say these two methods have been a lot more passive than blogging has because I have spent hundreds of hours on my blog and still haven’t made anything to speak of. I make $500 a month on eBay easily and a couple hundred a month from the booth.
Nathan from Millionaire Dojo, https://millionairedojo.com/
I wanted to get more investment into real estate (and did until it didn’t work out) so I turned instead to real estate crowdfunding sites like Realtyshares (it’s the only one I have money in right now). It’s completely passive, unlike owning property, and provides cashflow which is nice. You run the risk of defaults (crossing my fingers) but also sometimes the return beats their expectations. The investment sizes are relatively small, you don’t get the benefit of leverage as you would with property, but it’s waaaaay easier.
Similar to Jim’s idea, Peer to Peer Lending can provide passive income with a different source from the stock market. As an investor, you’re essentially playing the role of “bank” by providing money to borrowers on the platform. Money is pooled together, so even with a small investment you can diversify your risk across several loans. Lending Club and Propser are probably the two most popular platforms. In either case, you’ll still want to cross your fingers for no defaults.
-Sean aka The Money Wizard from mymoneywizard.com
Here are some I do:
- Dividend stock investing
- Crowdfunded real estate (e.g. RealtyShares, CrowdStreet, Fundrise, Groundfloor, etc.)
- Rental properties (this is semi-passive, we manage ourselves)
- Credit card and bank sign-up bonuses (just got $1000 from Ally Bank from moving my savings over there, plus earned about $1200 in credit card bonuses this year so far)
- Money saving apps (Ibotta, Ebates, etc.)
Royalties can be an excellent passive income stream. Right now I’m experimenting with Merch by Amazon, which is a way to design and sell T-shirts on Amazon. Once you upload the design Amazon handles everything and sends you royalties for each shirt you sell. It requires some work up front but once you have a portfolio of T-shirts you can relax and enjoy a very passive income stream.
Mike from BudgetKitty.com
This is great! @BudgetKitty, @WealthyNickel, @MyMoneyWizard, @Jim would you be willing to share how much you’ve invested and how much you’ve made or make and how long it took to start earning? I understand completely if you don’t, but numbers are always helpful.
@Wbonds101 Real estate is by far our biggest passive income contributor. We started buying rental houses about 5 years ago. Our portfolio has bounced around a bit as we sell some for gains and buy others, but right now we have 8 rental units bringing in about $3000 per month in cash flow (after all expenses - mortgage, taxes, insurance, maintenance, capital gains). If you count property appreciation, it probably adds another $30-50k per year to our bottom line. It’s a paper gain only, but does add to net worth.
We have recently been selling some of our rentals and moving the equity into crowdfunded real estate. We have about $250k there now. MUCH more passive, but of course you lose the control.
Feel free to reach out with any other questions - andrew at wealthynickel dot com. I recently did an interview over on Millionaire Dojo that goes into a bit more detail: https://millionairedojo.com/millionaire-interview-1/
Great, thank you so much!
-Small amount of peer-to-peer lending
-Book revenue from my release of Dividend Investing Your Way to Financial Freedom
-Dividend income (of course)
-Cashback apps (Drop, Ibotta)
-Hopefully soon to be real estate (looking at income properties now)
-Credit card churning (which I use to travel but allows me to do my next on…)
-Photography images (landscape photos of cities I travel to)
Hope this helps!
Mine is in real estate as well. I purchased a one bedroom condominium in 2007. Was able to pay it off in four years. I have been renting the property ever since with a total about eight months without a tenant. Spent 4k in renovation a couple of years ago using money from the rental income. Currently, the property has almost doubled in price, and the tenant just renewed her contract for another year.
With varying levels of passivity:
- Dividend Stocks
- Peer-to-Peer lending
- Rental property
- Selling the eggs that my chicken lay before I drown in them
Here are a list of mine (totally no real estate!)
*Credit card churning
*Cashbacks apps and websites (especially for the new Groupon+)
*3d art designs on Zazzle.com + RedBubble.com + Society6.com (partnership with artist friend)
*Dividend stocks (just a little bit)
We have a short-term rental located on the backside of our house in a lockoff unit. We generate roughly $400/mo on average from the unit listed on AirBnB. When this is combined with the long-term tenants we have on the other side of our double, the two cash flows cover the mortgage and a financed payment on an A/C and heater replacement made last summer. We plan to continue doing this until we move out and purchase our own home. When we do this, we would rent out our side to long-term tenants and make the property cash flow positive and not just a free place for us to live.
I also use peer-to-peer lending through Lending Club to produce cash flow on alternative debt instruments (consumer loans). I earn about 7.5% in my after-tax account and 8.5% in my Roth IRA account held with them.
I’m curious about real-estate crowdfunding and thinking about getting into it. Can you tell me a little more?
My email is [email protected]
This is now closed. Thank you to everyone who contributed I will post when finished.