You can make money through a sort of revenue called passive income. Build Passive Income in 2023 is money earned without actively working for it. It’s a great way to supplement your regular income and build wealth over time. Your 9-5 job isn’t the only way you make money. Cash flow from passive income sources takes some upfront work and, once established, takes little time to maintain. While it may take some time to see the results of your passive income building, it pays off with passive income systems that can work for you around the clock to make money. Some examples of earning passive income include investing and starting a mostly self-employed business. Here are 10 ways to build passive income in 2023 and see which ones are right for you.
10 Ways to Build Passive Income in 2023
1. Dividend stocks
If you buy dividend-yielding stocks, you will receive regular dividends from the company. In most cases, companies pay annual dividends, and the more shares you own, the more dividends you get. If you don’t want to pick individual stocks, consider dividend-yielding ETFs and funds.
It’s worth noting that even high-yielding stocks require significant investment to generate enough income to live on. Consulting a financial advisor may be helpful in developing a comprehensive investment strategy that meets your financial goals and risk tolerance. Financial Advisor Services can connect you with qualified financial advisors in your area for personalized investment advice and guidance.
2. Invest in high-yield savings accounts or certificates of deposit (CDs)
A certificate of deposit (CD) is basically a time savings account. You deposit your funds for as little as 6 months and as long as 5 years. When you save money, the bank offers an interest rate that is deposited into your savings account at regular intervals (usually monthly). CDs have become popular in recent months as interest rates have risen from essentially zero for many years to 5% today. For example, a 19-month (just over a year and a half) CD from a bank yields a whopping 4.70%. After this CD expires, if you wish, you can roll it over to another CD and get compounded interest on your earnings. Remember, the 4.70% yield on a $10,000 19-month CD is $470.
3. Affiliate Marketing
Affiliate marketing is when you share and recommend a product with others and earn a commission every time someone buys that product. Ways that affiliate links may be shared include social media, websites and email communications.
You may not need to invest a lot of money for this passive income stream, but it may take a lot of time and effort to get started. People with fewer than 1,000 followers have a harder time convincing affiliates to add them as partners, while you make the most money when you have 50,000 or more followers. Conducted a survey of influencers and found that micro-influencers (1,000 to 10,000 followers) earn an average of $1,420 per month and super-influencers with over 1,000,000 followers earn an average of $15,356 per month. Learn more: Affiliate Marketing Teaching: How Affiliate Marketing Makes Money Online
4. Real estate investment
Earning regular rental income means buying, preparing and managing properties. Whether you rent it out for short or long term purposes, once established, it can provide you with a predictable stream of income.
5. Peer-to-peer lending
This type of personal loan is where you (as a peer) lend money to the borrower. You will earn income in the form of interest repayments. To help reduce the risk of a borrower defaulting, you can diversify your investments or lend money to other people.
6. Real estate investment trusts (REITs)
You can earn less stressful but less profitable real estate investment returns with a real estate investment trust (REIT), which invests in real estate and pays you handsome dividends.
REITs don’t require you to buy and manage your own property. Instead, you buy shares in companies that own commercial real estate, such as apartment complexes, hotels, and office space. In return, you will receive regular dividends. But like the dividend stocks mentioned above, you’ll likely need to make a substantial down payment to earn enough returns to make ends meet.
7. Taxi space
If you have a parking spot or space on your property for a car you don’t use, you can make money by renting it out to other people. Some people may wish to park during their commute or for long periods of time (such as when traveling). If possible, you might even consider renting a space for someone else to park a large vehicle such as an RV or boat.
8. Rent out a room in your home
Rather than buying and renting out an entire home, you can start a small real estate investment by renting out a room in your home. It can be used for short-term rentals (like AirBnb), for a few months, or even as a space for someone to store their belongings.
9. Sell Designs or Artwork Online
Are you a photographer or do you like to draw? Consider starting a website or selling digital downloads of your artwork or photos on an online marketplace like Etsy. Platforms like Squarespace make it easy for anyone to create a professional-looking website without extensive technical skills. Once you’re set up, you’ll need to market your creations to help sell more.
10. Create an online product
You will most likely need an active and engaged audience to buy your product. You can create online courses, ebooks, and even workshops that teach others the skills they want to learn.