With inflation at a 40-year high, prices on just about everything are up for Americans. Even if you have enough to pay the bills, you may be concerned about how to earn enough for retirement, or just having a buffer.
Enter passive income. That’s a stream of funds that – once you set things up – typically needs little regular effort to maintain. You may have heard the phrase “earn money while you sleep.” That’s passive income, whereas active income involves trading time for money.
“In this modern world, where even if you have a salary, it’s still good to have multiple sources of income,” says Cynthia Meyer, a certified financial planner (CFP) with Real Life Planning in Gladstone, New Jersey who works with real estate investors.
Are you interested in earning some extra income? Here’s what you need to know about how to earn passive income – including how to get started.
8 passive income ideas
There are dozens of kinds of passive income streams. You should be able to keep your day job while generating passive income.
In need of a passive income idea? Here’s a quick list.
Regular interest from a certificate of deposit (CD), U.S. savings bond or high-yield savings account may be beneficial as interest rates rise
Dividends from stocks or other investments
Royalties from a creative endeavor like a book or website
Affiliate marketing, earning cash for running advertisements or posting monetized links on your website or social media account – or even wrapped around your car
Make money online activities like starting a blog, taking surveys or testing apps (you can get set up with a free blog easily – just follow these simple steps)
Money from a rental property
Renting out your home short-term
Selling items on marketplaces such as eBay or Amazon
“They’re all not necessarily passive. They might involve some activity, But once that kind of side-hustle is up and running, it may require not too much effort,” Meyer notes.
How to set up a source of passive income
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