Making passive income while sleeping, aka passive income, is something we all need to achieve financial freedom.
If you study all the financial reports and earning streams of millionaires, you will see almost all of them are getting richer because of the passive income streams.
That is why to make you financially independent, here are 13 ways to create passive income in 2021 while sleeping.
In this article, we have disclosed the best ways to create a passive income stream.
You will also find most of the idea does not require any upfront investment; instead, it requires effort, skill, and consistency.
Excited? Go ahead, and a lot more is waiting for you!
13 Ways to Create Passive Income While Sleeping
This section will discuss the 13 passive income ideas that will make you money while sleeping. In this section, we have divided passive income ideas into three sections. Which are-
- An offline passive income stream that requires investment
- An online passive income stream that requires less or no effort
- Renting assets that you already have
So, here is the list of 13 passive income ideas you are looking for, enjoy!
Best Ways to Create Passive Income Stream Offline
You can always make a passive income stream offline. In this section, we will discuss three passive income ideas that you can create offline.
Here are the following ideas,
Invest in Stocks
Investing in stocks can make you rich with passive income and poor if you don’t take decisions wisely before investing.
Investing and making money through stock is the secret of many millionaires and billionaires’ success.
So, if you want to invest in stocks and gain profit from them, then you must study the company’s financial report and analysis if it will be profitable or not.
For a passive income, investing in dividend stock is best as you’ll receive the profit quarterly.
To invest in the stock, you have to open an account with a broker.
Invest In REITs
REIT, known as Real Estate Investment Trust, is a great program that helps people who cannot afford an entire house or property by themselves; they can choose REITs.
In REITs, you will be one of the investors, and with all the investors’ money, they’ll buy a property.
Now they can flip it or rent it, and you will receive a profit.
Another benefit of REITs is, you don’t have to deal with the renters and manage the property; REIT will handle it.
For REITs, our favorite platform is Fundrise. In fundrise, you can start with a minimum investment of $500.
Invest In A High Yield Savings Account
As we all know, the other two investing plan has risk, but this one does not.
With a minimal profit margin, investing in a high yield savings account.
This is a perfect option for those who want to keep their money safe with very little growth. The profit margin is shallow, like you can get around 1% on your savings.
Well, this is not a lot of money and not even passive income, but it’s always better to have a penny than nothing.
That’s why, if you are not interested in taking any risk, then investing in a high yield savings account can be your passive income stream.
Best Ways to Make Money Through Renting
Most people think that they should have an apartment, house, or shop to give on rent.
Well, it’s a piece of misleading information.
Nowadays, you can rent out anything. Yes, it’s true! Here is the following list of what you can rent out-
Rent Your Spare Room & Space
If you have a spare room in your apartment that you don’t use, then you can turn it into a money-making opportunity.
You can do some quick fixes and enlist it on Airbnb or rent monthly.
Don’t have a spare room?
No worries! You can also earn through renting out your garage, backyard, basement, parking space, even with the empty closet too.
Many platforms like Airbnb, Roomster, Neighbor, and much more available where you can give your spare room and space for rent.
Rent Out Your Car
Car is something that stands most of the time in our parking space for hours.
Now, if you want, you can turn it into a money-making opportunity too.
With the help of platforms like GetAround and Turo, you can easily give your car on rent and enjoy the passive income without even working.
Also, it’s not just about cars; if you have a bike, boat, RV, then you can have the privilege to give them on rent and enjoy passive income too.
Don’t want to share your car?
Then why don’t you get your vehicle wrapped?
Yes, companies like Wrapify pay you for wrapping your vehicle with advertisement. In this case, your earning depends on how far you drive every day.
Rent Out Your Things
Don’t have spare rooms and cars to give on rent?
Do you have a camera, hiking gear, or anything to give on rent?
If yes, then in a platform like Fatllama, you can rent out almost anything.
On Fatllama, you can rent out almost anything, and even people call it Airbnb for your stuff.
So, if you have anything in good condition, enlist it in Fatllama and enjoy the money that will keep coming passively.
Best ways to create passive income online
In this modern era of the internet, making a passive income stream is possible, and you can create a millionaire-dollar business online too. How?
Here is the following list of passive income stream online:
Dropshipping is one of the most profitable and risk-free business models that require significantly less investment. The business model is-
You have to find a hot product that sells; now you have to look for a supplier who is dropshipping friendly.
Now, you have to create your online shop, enlist the product with a well-written description and beautiful media; after that, do some marketing.
Once you receive a sale, forward it to your supplier with your customer details, and your supplier will take care of the rest.
The most significant advantage of this business model is you can set your price without any inventory and manufacturing cost.
Blogging is one of the best ways to generate high passive income.
In the beginning, it takes time to establish a blog, but once it’s established, you can make money from a website in multiple ways.
Here’s how can you make money with a blog-
- Affiliation: You can promote a product/service with your referral code.
- Advertisement: You can make money by showing ads on your blog.
- Sponsored post: You can write and publish a sponsored post if a brand/company approaches you
- Courses & eBook: You can sell courses and eBooks on your website
- Products: You can build a shop and sell products online.
These are some of the ways to generate passive income; hence there are more ways available too.
That’s why all the successful blogger makes thousands of dollars every month.
- Affiliate marketing
- App building
We all have a bunch of apps on our phones. Apps have become the solution for all the problems.
From education to transportation, for everything, there is an application available. You can also develop an application and earn through it.
There are three ways to earn from an application-
- Freemium– Free download but shows advertisement while using the application
- Paid subscription– pay once and use it without any interruption.
- Recurring paid subscription– pay on a monthly/yearly basis to keep using the software.
So, these are the three ways to earn through an application.
Also, businesses like Uber, Lyft has a different business and earning module. If you have a problem-solving idea, turn it off into an application and make it through it.
Don’t know how to build an application? Consider hiring one or go for a partnership.
Also, there are so many drag and drop platforms available where you will be able to create an application without any coding experience.
eBook selling is another profitable business that assures income in passive without any inventory cost or pressure of enormous printing.
This ebook selling business is a million-dollar business model, and entering this competitive industry does not require any charge.
If you can design the cover, write, and edit the book, it will be completely costless.
However, there might be some marketing costs, and it depends on your marketing strategy.
Writing the book and marketizing it requires one-time effort and hard work.
After that, whenever someone purchases your book, you will receive a royalty passively.
If you love to write, then this is something you should try!
Selling Online Courses
Selling online courses is a very profitable business model.
In this business model, it requires a skillset and ability to reach and teach students.
When it comes to making and selling a course online, everyone thinks it should be a make money online course.
However, nowadays, there is all sort of courses available. From cooking to coding, you will get courses on almost everything.
Course selling is a billion-dollar business industry. People make millions of dollars from a popular course.
Once you make a course entirely after that, you will earn it whenever a student enrolls; that’s how you’ll generate passive income through selling courses.
POD, as known as Print on Demand, is an excellent business for designers who want to create a passive income stream. In this business model-
You have to create a design for a t-shirt, mugs, phone back cover, leggings and so on.
Now, what you must do is, you have to make a design that attracts everyone and sell it on platforms like Teespring, RedBubbles, etc.
When you receive an order, the company will print your design on the thing like t-shirt, mug, and others they have ordered and deliver it to the customers’ address.
What’s your benefit in this business model? Well, on each order, you will receive a royalty.
If you are a designer, you should at least try your luck once in this business, and if you are not, consider learning designing, or you can hire someone too.
We hope, now, you know about all the 13 ways to create passive income while sleeping, and you found a passive income stream for you as well. If you have, just build it.
Stop working for money and let your money work for you.
Keep learning and turn it into earning. We believe, very soon, you will be able to build your first passive income stream.