Today we have a guest post from Club Thrifty, an awesome site to help you Dream Big, Spend Less, and Travel More.
Imagine if you could take care of paying your rent while you were sleeping? This idea is much more appealing than missing out on a good night’s rest over the thought of your paycheck not covering your bills.
With only so many hours in a day, it can seem impossible to find time in your already busy schedule to build a side-income. But what if you could increase your cash flow and create passive income?
Whether you’re looking for ways to increase your income to pay off debt or take that trip you’ve been dreaming of, it’s time to look for new income streams that will make money while you sleep.
- Blogging
As one of the best ways to make money while you sleep, blogging has unlimited income potential. It’s an excellent platform to start your business because it requires minimal upfront investment and you can turn profits rather quickly.
Whether you’re marketing your own course, looking to make money from promoting affiliate products, or selling other items, you can create passive income from blogging.
How Much Can I Make?
The sky is the limit when it comes to how much you can make from starting a blog. The best part is you can do this in your spare time, making it an excellent option if you’re looking for legitimate work-from-home jobs.
- Peer to Peer Lending
It might not make sense to make money by giving it away, but that’s precisely how peer to peer lending (P2P lending) works. Instead of taking a chance on the stock market, you’re given the opportunity to help others by letting them borrow your money.
How Much Can I Make?
You have control over who you lend your money to, which makes it easy to screen out high-risk borrowers and maximize your earning potential. Though the amount you can make largely depends on how much you put in, never invest more than you’re willing to lose.
To get started, check out Lending Club. It’s one of the most popular platforms with competitive returns and has a low initial deposit requirement of $1,000.
- Rental Properties
Becoming a landlord isn’t as bad as the stereotype would lead you to believe. There is a certain level of uncertainty to get started but buying in a great location and screening your tenants up front will minimize your risk and set you on the path to long-term residual income.
How Much Can I Make?
Recent studies indicate the income potential of a rental property is quite lucrative. For example, a $200,000 home could put $20,000 in your pocket each year.
When you’re ready, Airbnb is a popular option to advertise your space for rent and start building a passive income stream.
- Real Estate Investing
If you’re not prepared to take out another mortgage, there are other ways to invest in real estate. With as little as $500, you can get started in crowd-funded real estate investing. One of the most well-known options is Fundrise, and this is a great first step toward making money in real estate.
This crowd-funding option pools your money with other investors and gives you all the financial benefits of being a landlord without the hassle of repairing a broken pipe or fixing the furnace on the weekend.
How Much Can I Make?
The residual income you could earn from investing through Fundrise is more than you might think. According to Fundrise, with an average return of 11.44% for 2017, an investment of $5,000 investment would make money while you sleep and could put an easy $572 in your pocket.
- Earn Credit Card Rewards
Though you might not consider credit card rewards as an income source, you get an enormous amount of value and free stuff for hardly any effort. It’s easy to rack up massive amounts of savings by earning rewards on everything you’d usually buy anyway.
How Much Can I Make?
To get the most bang for your buck, shop around for the best credit card reward signup bonus. These bonuses can get you hundreds of dollars in free stuff, like free travel and gift cards to your favorite stores when you meet minimum spending requirements.
- Sell Stuff Online
Setting up an online shop is a simple, straightforward process. The hardest part is choosing which products to offer in your business, but this hurdle is easy to overcome if you’re already passionate about something and know what you want to sell.
If you’re thinking of starting an online business, Shopify is a turnkey option that makes it easy to open your store and start making money.
How Much Can I Make?
The good news is e-commerce is on the rise. With an anticipated increase of 246% in worldwide e-commerce sales, Shopify profits can skyrocket. Making money through drop shipping your products directly from the warehouse means you can maximize your profits without having to carry any inventory. It’s a win-win.
- Start a Vending Machine Business
You might not think of a vending machine business when considering ways to make money while you sleep, but it’s surprisingly profitable.
The vending business gives you a tremendous amount of flexibility in your schedule and requires little effort to maintain. This makes it a great way to generate passive income and gives you the freedom to spend time doing the things you want.
How Much Can I Make?
Getting started in the vending machine business can be done for as little as $2,000, which isn’t much when you consider the costs of buying the vending machines and inventory to stock it.
With the right placement and product selection, you can make a fortune from selling snacks and consistently bring in around $800 a month in revenue.
The Bottom Line
Using these ideas, it is possible to create residual income based on a single action rather than getting stuck in a cycle of always trading your time for money.
Make no mistake: starting an income stream on the side takes some hustle in the beginning. But putting in a little time up front for the long-term benefit of creating passive income is worth it, and you’ll finally have the opportunity to build wealth and achieve your dreams.
Amy Beardsley is a staff writer at Club Thrifty, a popular personal finance and travel blog dedicated to helping people spend less and travel more.
A vending machine business is a great idea.