27 Oct 27 Passive Income Ideas To Increase Revenue Streams
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One of my favorite money quotes is from Warren Buffett, the Oracle of Omaha himself: “If you don’t find a way to make money while you sleep, you will work until you die.” Ain’t that the truth! Here are 27 passive income ideas to help make money while you sleep!
How do you make money while you sleep? The good news is that you don’t need to reinvent the wheel with passive income ideas, and you have plenty of free educational resources to help you learn how to create it.
The bad news is that passive income requires an initial investment. Investment of money, free tool.
Current Budget Audit
Take an uncomfortably close look at your current budget. Start with the revenue side: four weeks’ net pay as your monthly income. (Four weeks’ pay is all you can count on in any given month, so your budget should be based on that, not your annual income divided by 12.)
Next, list all fixed monthly expenses. This includes your rent or mortgage payment, your car payment, your home internet bill, and any other monthly expenses that are consistent month-to-month.
Then list out your variable monthly expenses, that you incur every month, but which vary. Food, entertainment, water, gas, and electric bills are all examples. Go back six months to form a long-term average.
Finally, come irregular expenses. These hit you every year, but not every month. Examples include holiday gifts, birthday gifts, wedding and baby shower gifts, insurance, travel, healthcare costs. Review every statement for the last year, and then form a monthly average.
Spoiler alert: you won’t like what you find. Most Americans spend far too much on variable and irregular expenses and don’t even know it.
Armed with this knowledge, uncomfortable as it was to compile, you can start hacking away at all of your fixed, variable, and irregular expenses. Set to work on a new budget, brainstorming creative ways you can cut your fixed expenses, not just your variable expenses.
The best way to do a free budget audit is with the help from the free tool: Personal Capital. Looking to get started? Radius Bank.
Increase Income Streams
To help make enough money to invest in passive income ideas, you need to increase your income streams. Do you have a side hustle?
A side hustle is anything you do to make extra money outside of your full-time job. Anyone can go out and make a few hundred extra bucks a week on the side.
You can do anything – mow lawns, walk dogs, shovel snow, babysit, code online, tutor, make deliveries, drive people, flip on eBay, sell a product on Amazon, participate in focus groups, blog, or an infinite number of things. But not all side hustles are created equal since some can make you a lot more money than others. Fundrise. You can invest in real estate for only $500.
For accredited investor real estate crowdfunding, check out RealtyShares.
But the possibilities don’t end with renting out spare bedrooms. If you’re going on a two-week trip yourself, why not rent your entire home on Airbnb?
Or, for that matter, buy rental properties specifically to rent on Airbnb, rather than screening and leasing to long-term tenants?
My friend Zack just converted his rental property (also in Fells Point, incidentally) to a short-term vacation rental. And it took some work: he had to furnish the property, turn on utilities in his name, create a system for guests to access the property without him being physically present.
But when the work was finished, he booked several months’ worth of mortgage payments within the first day of listing the property on Airbnb.
Acorns, Qapital, and Chime online banking move money to savings for you without you having to lift a finger. In some cases, they round up your debit card purchases to the nearest dollar and transfer the difference to your savings account. Some of the apps even invest the money into index funds on your behalf, if you approve them to do so.
Final Word on Passive Income Ideas
If you take nothing else from this list, take this: increase your savings rate, automate it, and then put that money to work for you.
Robert Kiyosaki uses the metaphor that every dollar you save can be dressed for work and sent out to earn money for you. Most of the passive income ideas above come with some degree of risk. Many require education on your part if you are to succeed.
Just because passive income doesn’t require work eventually doesn’t mean it doesn’t require work and money up front!
Build passive income streams while you’re young and fit and can harness the power of compounding over time. By doing so, you set the stage for retiring young and wealthy. We feature success stories all the time on our website, of everyday people who retired at 29 or 32 or 36 based on their rental income.
But if you don’t learn how to make passive income while you sleep, prepare to work until you die.Survey Junkie
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Airbnb? Sure you have. It’s the popular online global marketplace that leases/rents short-term lodgings for people who need them. Here’s a previous profile of my friend Jerry who at $10k in profit a month shows how making money with Airbnb is so easy.
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Yes, that’s right. There are ways to earn money by simply investing the spare change lying around your home from one of your frequent shopping trips or your visit to the nearest grocery store.
For example, an app called Acorns enables you to do just that – invest that loose change just lying around. Stockpile is another popular micro-investment site that offers a similar service. What’s more, there is an extra $5 bonus for you if you sign-up.
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About the contributor: G. Brian Davis is a long-time landlord, real estate investing educator, personal finance writer, and the co-founder of SparkRental.com. He spends most of the year living overseas (current home base: Abu Dhabi), and is lucky enough to visit at an average of ten countries every year.
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