7 Ways to Earn Passive Income

Kues / Shutterstock.com

It may sound like a fantasy to be able to earn money with little or no effort, but there are various ways to create passive income streams that can significantly boost your net worth over time.

Passive income is steady revenue that requires little or no effort to maintain. To get started, you may need to make a financial investment or put in some time. However, once the revenue stream is established, the profits can mount with little additional activity on your part. In some cases, you may be able to just sit back and watch the money come in.

What follows are several ways to earn passive income.

1. Become a landlord

renters
Monkey Business Images / Shutterstock.com

Many people earn passive income by renting out apartments, condos and houses. Of course you’ll need to acquire rental properties first. Be sure to set your rents high enough to provide a profit while covering your maintenance costs. As a landlord, you may need to clean your dwellings and make minor repairs between tenants. For many people, profits far outweigh the demands, however. Strive to find reliable tenants who pay their rent on time and do no damage.

If you want to make money part-time from your existing home, check out Airbnb, VRBO (Vacation Rental By Owner) and Homestay and read: “15 Steps to Profit By Renting Your Home to Visitors.”

2. Sell things you don’t need online

szefei / Shutterstock.com

Shopping can be fun, but many people find that they accumulate too many things over time. A good way to get rid of the clutter is to start selling unneeded books, artwork, sports equipment, toys and clothing online. Whatever it is you no longer need, there likely is someone who wants it. There’s a buyer for almost anything, if the price is right. The Internet provides an easy want to connect with shoppers.

Marketing websites like eBay, Gazelle and Craigslist make the process fairly simple. If you’re not sure what to sell, just look through the items stored in your garage, basement or attic. Instead of donating things to thrift stores, you could be making money by selling items over the Internet. To price your goods competitively, just look at what’s already for sale online.

3. Refinance your mortgage

Couple Getting Mortgage
bernatets photo / Shutterstock.com

If several years have gone by since you last obtained a home loan, consult a mortgage professional to find out if you can reduce your monthly loan payments by refinancing. For example, if your credit rating has improved since your last loan, you may qualify for a lower interest rate. If so, you may be able to lower your monthly payments or reduce the term of your loan. A shorter loan term could enable you to stop making mortgage payments sooner. That would free up your income for other uses or allow you to build up your savings. The home loan market is highly competitive, so be sure to shop around for the best lending terms.

Be sure to check out our mortgage search tool.

4. Take in a roommate

Nikodash / Shutterstock.com

If you have a spare room in your house or apartment, why not put it to use and rent out the space to a roommate? If you carefully screen applicants to find someone who is respectful of your home, this can be an easy way to bring in passive income. Be sure to set some ground rules for things like acceptable hours for watching TV, keeping the kitchen clean, and having guests over. And make sure you factor in added costs for utilities when you price your rent. Collecting the first and last month’s rent in advance will give you some added protection, in case your roommate is slow to pay. If you have valuable items in your home, request a damage deposit, just in case something goes wrong.

5. Switch to an online-only bank

online banking
Rawpixel.com / Shutterstock.com

If you can get used to idea of banking with an institution that’s only accessible online, you can earn greater returns on your savings with an online-only bank account. Unlike traditional brick-and-mortar banks, online-only banks have very low overheads. They don’t have to lease office space, and they can pass the savings on to their customers. Annual percentage yields on savings accounts and certificates of deposit typically are higher for online-only banks. That’s why they’re gaining popularity among people who want to get the most return on their savings. To get the best rates, check out several institutions before making a choice.

Check out: “How to Earn More on Your Savings for the Rest of 2018.”

6. Sell your unwanted stuff at flea markets

Joe Tabacca / Shutterstock.com

You can make extra money if you sell the things you no longer use at flea markets. Aside from displaying your items for potential buyers, this takes very little effort. Appliances in good working order, electronics, and antiques often sell well. All you’ll need, besides merchandise, is a display table and a portable chair to sit on. Before you make your debut as a seller, visit a flea market to learn the ropes. By carefully observing the sellers, you can learn how to price items so they are competitive. Some people actually make a living with this activity. Others find it to be an easy way to make extra cash.

If you are burdened with a lot of stuff, check out: “How to Get Rid of 6 Hard-to-Get-Rid-of Things.”

7. Invest in stocks that pay high dividends

online research
NicoElNino / Shutterstock.com

Savvy investors often buy stocks that pay high dividend yields. A dividend is a payment to shareholders. In theory, dividends reflect profitability. Dividend-paying stocks enable shareholders to make a profit when the company makes money. However, some troubled companies pay high dividends as a means of attracting new investors.

Companies that have unusually high dividends may be in financial trouble, so do your homework. There’s a possibility of experiencing losses if the dividend drops and the stock declines. Consider investing in companies that are part of stable, established industries.

What have you done to generate passive income? Share with us in comments below or on our Facebook page.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

Read Next
9 Affordable Ways to Make Your Home Look Expensive
9 Affordable Ways to Make Your Home Look Expensive

These products from Amazon add elegance to your home without the expense.

Prepare to Pay More for These 31 Drugs in 2021
Prepare to Pay More for These 31 Drugs in 2021

More than 700 prescription medications have seen price hikes so far this year. Here’s a look at the worst.

Could You Give Up These 7 Expenses to Save Thousands of Dollars a Year?
Could You Give Up These 7 Expenses to Save Thousands of Dollars a Year?

You could save more than $30,000 by setting aside these costly expenses for just one year.

9 Free Things That Used to Cost Us Money
9 Free Things That Used to Cost Us Money

Not everything is getting more expensive.

5 Common Medical Expenses That Medicare Won’t Pay For
5 Common Medical Expenses That Medicare Won’t Pay For

Don’t let these health care costs catch you off guard in retirement.

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Most Popular
7 Kirkland Signature Items to Avoid at Costco
7 Kirkland Signature Items to Avoid at Costco

Even if it seems you save a bundle buying Costco’s Kirkland Signature brand products, they may not be the bargain they appear to be.

Am I Eligible for My Mother’s Social Security Benefit?
Am I Eligible for My Mother’s Social Security Benefit?

Can an adult daughter tap into her late mother’s benefit?

9 Things You’ll Never See at Costco Again
9 Things You’ll Never See at Costco Again

The warehouse store offers an enormous selection, but these products aren’t coming back.

3 Ways to Get Microsoft Office for Free
3 Ways to Get Microsoft Office for Free

With a little ingenuity, you can cut Office costs to zero.

This Surprise Factor Can Raise Your Risk of Dementia
This Surprise Factor Can Raise Your Risk of Dementia

Nearly half of U.S. residents may face this threat.

Organize Your Home With These 10 Thrift Store Finds
Organize Your Home With These 10 Thrift Store Finds

Resolve to be clutter-free in 2021 with these secondhand purchases.

11 Laws You Could Be Breaking Without Knowing It
11 Laws You Could Be Breaking Without Knowing It

Seriously? Fibbing about the weather is a crime? This and other little-known legal traps await the unwary.

Is This Treatable Condition Causing Your High Blood Pressure?
Is This Treatable Condition Causing Your High Blood Pressure?

Researchers say too many doctors are overlooking this potential source of hypertension.

13 Things Seniors Can Get for Free — or Almost Free
13 Things Seniors Can Get for Free — or Almost Free

There are many ways to get cheap or free services and goods after reaching a certain age.

These Are the 3 Best Used Cars You Can Buy
These Are the 3 Best Used Cars You Can Buy

These vehicles boast reliability, safety and long-lasting value.

21 Items to Cut From Your Budget That You Won’t Even Miss
21 Items to Cut From Your Budget That You Won’t Even Miss

Start off the new year by implementing these small-but-smart savings strategies. They’ll soon add up.

Internet Providers Can’t Charge You for This Anymore
Internet Providers Can’t Charge You for This Anymore

Starting this month, your ISP no longer can bill you for this fee.

Taking a Multivitamin? Here’s Why You Should Reconsider
Taking a Multivitamin? Here’s Why You Should Reconsider

A new study has bad news for the millions of Americans who spend money on multivitamins.

15 Painless Ways You Can Cut Costs in 2021
15 Painless Ways You Can Cut Costs in 2021

Follow these tips to save, so you’ll have money for things that really matter.

9 Small Expenses That Are Bleeding Your Budget Dry
9 Small Expenses That Are Bleeding Your Budget Dry

Keep more of future paychecks by eliminating these budget-busting unnecessary expenses.

Longer Trips to These Stores May Raise COVID-19 Risk
Longer Trips to These Stores May Raise COVID-19 Risk

An airborne-disease expert recommends leaving this type of store within a half-hour.

11 Huge Retirement Costs That Are Often Overlooked
11 Huge Retirement Costs That Are Often Overlooked

Does your retirement budget account for all of these costs?

7 Tricks to Cleaning Your Bathroom Faster
7 Tricks to Cleaning Your Bathroom Faster

These tips can get your bathroom sparkling with little time and no elbow grease.

20 Amazon Purchases We Loved in 2020
20 Amazon Purchases We Loved in 2020

These practical products made everyday life a little easier last year — and will do so in the new year, too.

View More Articles

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Add a Comment

Our Policy: We welcome relevant and respectful comments in order to foster healthy and informative discussions. All other comments may be removed. Comments with links are automatically held for moderation.