It can also be a way to feel more financially secure. If one source of income dries up, there is another that can fill in the gap. While a common source of income is the type earned from a regular job, there is also passive income.
By simply putting your money in the bank, you may be able to start to earn passive income on it.
Although this may take an up-front investment, buying into a business and becoming a silent partner can be another passive income source.
Using a peer-to-peer or crowd-lending website, you can be matched to an individual seeking a loan and lend your money as an installment-type loan, earning interest on it.
You might want to purchase a home to rent out to an ongoing tenant or list a property on a short-term rental site like Airbnb.
If you don’t have thousands of dollars to spend on a piece of property, you can always check out your options on crowdfunded real estate sites like Fundrise and CrowdStreet.
Dividend-paying stocks typically pay investors quarterly or annually and often allow investors to reinvest the dividends.
If you’re just getting started with investing, you may want to use automated investing tools to help you choose the appropriate allocation of assets for your goals.
One way to earn passive income on a retirement account is through mutual funds. You can choose the level of risk you want to take with your money by finding a mutual fund that is higher or lower risk.
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Another one of the best passive income opportunities is renting out your car on a site like Turo.