Set it and forget it! That’s what passive income is all about! And, if you don’t know what I’m talking about yet, I’m talking about ways that you can make money while you’re sleeping, while you’re playing video games, or while you’re setting up other ways to make passive income.
Essentially, the idea is that you put in some effort upfront to set up your passive income stream and then it continues to make money for you without any significant amount of regular effort on your part. Everyone should find a way to build themselves a passive income stream. It’ll give you more time to do the things that you love while still earning the amount of money that you need. Plus, if times get tough, you’ll have passive income to fall back on.
In the words of Warren Buffet, “If you don’t find a way to make money while you sleep, you will work until you die.” And, obviously, he’s right. It really comes down to two things: freedom and security.
So, in this article, I’m going to run you through our list of 9 passive income ideas that you can get started on this year in 2022. And these aren’t going to make you with a couple of bucks here and there, the ideas on our list all have the potential to earn you at least $100 per day. And, with 365 days in a year, that gives you an extra $36,500 yearly. Not bad.
These are 9 passive income ideas that can make you $100 per day.
#1: Rent Out Your Tools
It doesn’t occur to most people, but you can rent out those dusty tools in your shed to people who need them and start making money with little to no effort whatsoever. Seriously, this passive income stream is unbelievably easy. All you have to do is list any equipment that you’re willing to rent out online and wait for people who need it to rent it. And they come to you! You don’t have to deliver it or anything! It’s actually that easy.
Don’t believe me? Well, check out RentMyEquipment.com. The very first ad I saw on this site was a guy renting his dump trailer out for $100 per day! And, it doesn’t have to be just tools. I saw someone on that site renting out his party speakers for $300 per day! And a tent for $25 per day! A power saw for $50 per day! All of these represent easy ways to make a sizable amount of passive income.
It might even be worth buying some power tools just to rent it out online! But, if you already have some lying around, there’s no reason you shouldn’t be renting them out and letting them earn you passive income.
#2: Rent Out Your Car
I love my cars and it’s hard to think about someone else driving them. But, if you have an extra vehicle sitting in your driveway or you just have days when you don’t drive, you’re missing out on some serious cash by not renting out your car.
Ever heard of Turo? Well, it’s basically the Airbnb of cars. And you can list your car on their website and have people pay you to rent it today. If you’ve seen our Ideal Cars channel, you know that I’m a huge fan of Porsche. And I found someone on Turo making $350 per day by renting out her super-sick 2022 Porsche Taycan! She’s getting $350 dollars per day just to hand over the keys!
But, not all of us have a brand-new Porsche in our driveway. Well, I found a guy who’s making $108 dollars per day renting out his 2019 Toyota Highlander! So, even if you don’t have the greatest car in the world, if you’re willing to let someone hop in your ride once in a while, renting out your car could provide you with some serious passive income.
#3: Buy a Rental Property
Buying a piece of real estate and then renting it out is just about the oldest tried-and-true way to earn passive income. And it’s just as effective now as it ever has been. The idea is simple: buy a property, whether that be a house or an apartment or a condo or whatever, and then you just charge people rent to stay in it. Simple.
Well, actually, it’s a bit more complicated than that. You’ve got to consider that you’ll be paying things like taxes, homeowners association fees, and insurance. You’ll also be on the hook to pay for things like interest on the mortgage and repairs to the property. These are all things that you need to factor in when considering whether to buy a rental property and which property to buy.
And, you may be thinking that you don’t have nearly enough money to cover the cost of a $200,000 house, but the good news is that you don’t need to have that whole $200,000. In fact, you only need enough to cover the down payment!
Let’s say you can make the $15,000 down payment on that $200,000 house. Then, if you sign up for a 30-year fixed mortgage with an interest rate of 4%, which is pretty standard, you’ll end up paying around $950 per month. That means that you just need to earn $950 in rental income per month to cover your mortgage payment!
Then, after that 25-year mortgage has all been paid off, you have a $200,000 house in your name that’s been completely paid off, which you can then sell off for a huge sum of money or keep and use as your vacation home or something.
#4: Buy a Blog
You’re probably aware of the phenomenon of the self-employed blog writer who has a travel blog or a makeup blog or a sports blog or whatever. And, if you go on their website, you’ll probably see that there are hundreds of articles, some of them dating back years. Yes, it takes years of work and hundreds on hundreds of articles to build a successful and profitable blog. In fact, it’s not until the blog is about 3 or 4 years old that your blog might actually start making significant income.
Want to skip all of that and still get the passive income that a blog generates? Well, you can let someone else do all the work and then purchase their fully-mature and income-generating blog! Check out the website Flippa.com, where you can buy already established blogs and other types of online businesses.
Just make sure that you do a lot of research on the website that you’re planning to buy before you actually buy it. How many people are reading the site per month? What is the website’s business model? Are the cash flows that the website produces going to give you a positive return on investment eventually? How long is that going to take? These are the things you need to consider.
#5: Investing in Dividend-Paying Stocks or Index Funds
So, one of the most common ways that people earn passive income is by investing their money in the stock market, and this is what most people mean when they talk about passive income, particularly if you’re speaking to someone from the older generations. And, essentially, investing in the stock market is like handing your money over to the big boys of the business world and letting them do the work for you, which is a pretty safe and easy way to make some passive income.
However, the kind of stocks you choose to invest in matters. For the most part, if you’re looking to earn passive income, you want to focus on well-trusted, well-established stocks that have shown consistent income for years and pay out dividends. These are typically what people call dividend stocks.
Just to get you started, check out NextEra Energy’s stock, which is generally considered a solid dividend stock. It’s got that steady growth over the past 5 years and a solid dividend yield of 2.2%. Plus, they have a fairly large market cap of $150 billion. This is the kind of stuff that you want to look for: things indicate that a company is going to be able to survive economic downturns and continue to pay out dividends.
Alternatively, there are a bunch of index funds and ETFs that also pay out dividends as well. For instance, the Vanguard High Dividend Yield ETF might be a good place to start. Once again, solid growth in the long term and a good dividend yield of 2.72%. That’s what you want.
Once you choose the right place to invest, all you have to do is put your money in there and forget about it. That’s why it’s a passive investment. You’re going to be better off just leaving your money there and letting it earn you passive dividend income than you are if you move it around a bunch and try to beat the market.
#6: Sell T-Shirts Online
Ever wonder why you can walk around and see trending memes on people’s t-shirts like a day or two after the memes become popular? Well, that’s because there are people who watch the trends and take advantage of that to create t-shirt sales.
Here’s how it works: you have to set up an online storefront with a company like Printful or Printify. These are print-on-demand sites, meaning that can set up a shop through them and they will take care of all of the shipping, printing, and every else, except for the design and the marketing. Of course, they will take a cut of the profits, but they eliminate the need for you to make any sort of upfront investment or to store a whole bunch of t-shirts around your house.
So, watch the trends online to see what’s on people’s minds, then come up with a funny or trendy t-shirt design, and then use social media or other parts of the internet to start spreading the word.
Here’s a quick example: you hop on Google Trends, which is an amazing resource, and you see that Brittany Spears’s marriage is trending. So, you get a photo of Brittany and her husband, write a funny little phrase beneath them, put it on a t-shirt, and add it to your Printify shop.
Then, you just post the link to the shirt all over your social media or you can go on this Brittany Spears subreddit and start promoting your product. If you have a good sense of humor and a decent knack for programs like Photoshop, you can make some real money doing this with very little effort.
#7: Sell a Mobile App
At this point, many of you’re probably thinking that creating an app is anything but an easy way to set up a passive income stream. People take years to develop apps. And they take years to learn their programming languages before that!
Well, all of this is true if you plan on creating an app that utilizes Bluetooth to synchronize the ten speakers that you have around your house, like the Sonos app. But, what about something simple like a flashlight app? Or a notepad app?
Yes, people do still download things like this and you can make some money on them if you do things right. And you barely even have to know how to code. Ever heard of GitHub? Well, it’s an open-source resource for developers to share their code with others.
So, you can go on that site, find the code for a flashlight app and then just tweak it a little bit to your liking. And, boom, you’ve got your very own flashlight app. Then, it’s just a matter of marketing it, finding ways to make sure that when someone downloads a flashlight app, they download your flashlight app. And, then, once you get enough downloads, you can start putting ads in your app or doing some affiliate marketing.
A flashlight app may not be the very best example, but there are definitely still some super simple types of apps out there that you can make some good money on with little effort.
#8: Invest in Royalties
Most people know that artists are given royalties for their songs, which is essentially the money that gets passed on to the artist from businesses that use their intellectual property. However, a lot of people aren’t aware that you can actually trade these royalties on the open market. That’s right! And it often represents a solid opportunity to make some passive income.
The place to go for the exchange of royalties is called Royalty Exchange. This website has a whole bunch of listings for royalties contracts that are up for auction. And, essentially, you’ll be paying a lump sum upfront for a series of future cash flows in the hopes that the future cash flows will add up to more than the lump sum and you’ll make money in the long run.
Let’s look at the songwriter royalties for the song “Up” by the one and only Cardi B. They’re selling for around $295,000; however, over the last 12 months, they’ve made over $109,000. So, really, if that song continues to earn as much as it has been, it should take under three years for you to have a positive return on investment with these royalties. However, that’s not the way the music industry works.
Songs go out of popularity and, thus, their royalties usually become less and less each year. So, it’s a little bit more complicated than just a quick multiplication problem, but there’s still some serious potential to make money in royalties, especially because far less people trade them than, say, stocks. And that means the market is less efficient and there’s more opportunity for savvy investors.
#9: Buy and Sell Web Domains
Have you ever tried to start your own website and thought of an awesome domain name, only to find out that it’s already taken and that it’s selling for a whole bunch of money? Well, that’s because somebody already beat you to the punch and predicted that that domain name would be in high demand in the future.
But, the good news is that you can make some good money by doing this yourself. You can start by heading over to a site that sells domain names, like GoDaddy.com or NameCheap.com. Then, you just have to start searching for domain names that are inexpensive and that you think will go up in price.
Let’s say you think the domain name “idealmoneytips.com” will become much more popular in the future. So, you buy it up for about $9 per year and then you can immediately put it back on the market for a higher price. Let’s say you decide to charge $800 for it. And, then, a year later, you get a notification that some sucker named Brad Danger bought up your domain name. You just made a whole $791 for just being ahead of the game.
There are people that make a lot of money doing this and it’s mostly a matter of following trends and thinking of what catchy domain names people might want in the future. If you think you’d have a knack for that, you might want to try your hand at domain name trading as a source of passive income.