Would you like to learn make some extra cash to supplement your current income? What about learning how to make money doing nothing? Of course you would. We all would. And one of the best, and easiest, ways to make some extra money is through what’s known as passive income.
So what is passive income? Wikipedia defines passive income as income resulting from cash flow received on a regular basis, requiring minimal to no effort by the recipient to maintain it.
The U.S. Internal Revenue Service defines passive income as only coming from two sources: rental activity or “trade or business activities in which you do not materially participate.”
“Do not materially participate” sounds pretty good, right? Well, hold on. It still requires some work on your part. At least in the beginning.
Some examples of passive income include rental income from property or real estate, writing a book or song and collecting royalties, owning a vending machine, or becoming a silent partner in a business.
There are an almost unlimited number of passive income businesses for Millennials, and passive income ideas in general, but you want the best bang for your buck when starting a side hustle. Thankfully, the smart folks over at The Street recently put together a list of the 20 best money-making opportunities when it comes to passive income, along with some detail and advice regarding each.
• Investing in stocks – Standard & Poor’s 500 stocks have typically performed very well.
• Investing in bonds – The Street says investing in bonds is by far the surest way to generate money through passive income.
• Investing in funds and ETFs – Mutual funds and exchange-traded funds bundle different stocks together.
• Stock dividends – Some stocks, especially stocks from big corporate standouts, pay dividends to shareholders.
• Investing in coins and collectibles – Buffalo nickels and Spider-Man comic books are good examples of coins and collectibles that can rise in value.
• Investing in real estate – Investing in real estate offers more passive income cash potential – but more risk – than investing in stocks or bonds.
• Investing in rental properties – After the mortgage is paid off, those monthly checks go right into your bank account.
• Investing in a business – Just like Shark Tank!
• Sell items on eBay or Amazon – Buy items at a lower price, sell at a higher price. Simple.
• Create an online course – There’s a market for specialized expertise. Online platforms like Udemy will help you sell it.
• Sell stock photos – Individuals, organizations, and businesses use them when they create content online.
• Create a mobile app – Have a great idea for a mobile app? Hire an app programmer to put it together.
• Start an affiliate marketing website – Studies show that more people spend time online than watching TV or reading the newspaper.
• Design your own T-shirts – People love T-shirts and you can earn royalties on sites like Amazon Merch.
• Buy a small business – A small business like a car wash or a laundromat is, for the most part, automated.
• Rent out ad space on your vehicle – Find a company that wants unique exposire or use a web site like Wrapify.
• Earn cash-back rewards – Do you own a credit card? Does it offer cash-back? There you go.
• Pay down your debts – The interest you are not paying to lenders is as good as income.
• Peer-to-Peer Lending – Lend individuals, organizations and small companies who don’t qualify for traditional financing. There are online platforms that can help set you up.
• Creating a Blog or Web Site – You’re here aren’t you? Go make your own.
For more details on each passive income opportunity, visit TheStreet.com.