1. Increase your credit card rewards
If you make purchases with a credit card, it makes sense to maximize your cash back.
Cash-back incentives are essentially free money. If you spend $50,000 per year on credit cards, increasing your cash-back rate from 1% to 2% will result in a $500 increase in rewards each year.
This is achievable, especially because some of the best cash-back cards provide up to 5% back in some areas.
For earning cash back, my preferred two-card combo is:
Earn 1.5 percent cash back on every transaction with Chase Freedom Unlimited.
Earn 5% cash back in rotating quarterly categories (and 1% on everything else) with Chase Freedom.
When I spend within a bonus category, I use the Chase Freedom, and when I spend outside of a bonus category, I use the Chase Freedom Unlimited.
With this simple method, you may easily earn well over 2% cash-back on average.
If you have a premium Chase credit card, such as the Chase Sapphire Reserve, you can transfer points earned on the Freedom and Freedom Unlimited to your premium card. The advantage is that after you transfer your points, they are worth more.
When you book travel through Chase with a Chase Sapphire Reserve card, for example, you get 50% greater value. As a result, when you use your Chase Freedom card to make a purchase in a bonus category, you'll get 7.5 percent cash back when you redeem your points for travel. The Chase Trifecta is the name of this technique.
You can get paid to license an idea that could improve a product or service if you have one.
On Shark Tank, Kevin O'Leary frequently buys a big stake in a company and then enters into a license agreement with the entrepreneur. O'Leary promotes it aggressively since it allows him to sit back and collect royalties on every unit sold.
Groovebook, a photo-printing app/subscription service founded by Brian and Julie Whiteman, is a huge Shark Tank victory in O'Leary's portfolio. O'Leary and Mark Cuban invested a total of $150,000 in the Tank for 80 percent of the licensing rights. Shutterfly bought the company for $14.5 million later.
According to O'Leary, the deal was just 18 months old when it was sold. "The co-founders made millions." That's a fantastic result."
2. E-books, files, and other digital content
There are numerous options for developing and selling digital products (e-books, films, photographs, graphics, and so on). What's great about this approach is that if you're on the correct selling platform, the network effect will take care of the marketing for you.
For example, if you self-publish an E-book on Amazon Kindle that receives positive reviews, the sales will increase.
Other potential sources of passive income include:
Users can sell digital downloads on Etsy, the largest creator marketplace online (with over $3 billion in annual sales). Some of the more popular niches include invitations, patterns, scrapbooking designs, printable artwork, and coloring pages.
Stock photography: You can sell your photos on sites like Shutterstock, which are used by content creators to find images for commercial usage.
T-shirts: Without any marketing, a fantastic shirt design can sell hundreds of thousands of pieces.
Passively invest in the markets (Effort Level 1)
People develop long-term wealth and income by investing in public stocks and bonds through their retirement plans or brokerage accounts. The data is good, but the average individual like you and me should be investing passively through low-cost ETFs and index funds.
This can be accomplished in two ways:
With a robo-advisor, you can set it and forget it.
Giving your investments to an algorithm is about as hands-off as it gets. Betterment and other robo-advisors allow you to define your risk tolerance and then sit back and watch the money roll in. Furthermore, the fees are significantly lower than those charged by a human account manager. A couple of the most popular robo-advisor platforms are listed below.
Betterment has long been a fan of mine, and in my Betterment investing review, I even interviewed its CEO. Betterment is amazing at lowering any taxes you have to pay on your assets, and their algorithms work with you to provide the finest financial advice.
Unlike other robo-advisors, Betterment allows you to speak with a live person if you so desire. Betterment has the same fees as Wealthfront, however it does not waive the fee on your first $10,000 investment.
3. Publish a Kindle book
Writing an eBook and selling it on Amazon through the KDP program is another popular approach to make passive income with no money down.
KDP stands for Kindle Direct Publishing, and it is Amazon's self-publishing service. While you will have to create your book, learn Kindle formatting, and design a cover, self-publishing a book through Amazon is completely free.
If your Kindle eBook is priced between $2.99 and $9.99, you'll receive a 70% royalty on each sale. You'll only get a 35 percent royalty if your book is priced below $2.99 or above $9.99.
If you'd want to see a real-life example, Steve Gillman of the Penny Hoarder recounts how he earned $2,000 from a Kindle eBook. He talks about his writing method, marketing strategies, and other important points.
4. Online Courses
We all have skills in areas that others are prepared to pay for. A digital course can help you turn your skills into dollars.
After the initial construction, a digital course is a source of passive income that continues to sell itself without you having to do much work.
You can be sharing your knowledge without even recognizing it. Maybe it was a Facebook post, YouTube channel, or blog providing advice on a particular problem. Rather than giving out all of your expertise for free, you can turn it into a source of passive income by compiling your ideas, skills, and knowledge into a digital course. Teachable, Podia, and Kajabi, for example, make it simple to package, market, and sell your digital course.
5. Electronic books
Writing an E-book (electronic book), similar to a digital course, is another way to monetize a certain skill set or experience. The main distinction is in how the data is presented.
An e-book is a digital book that can be read on a computer, mobile device, or e-book reader (such as the Kindle) that contains text, images, or both.
They don't have to be full-length novels (though they can be).
Keep in mind that your price will influence the expectations of your customers.
An typical e-book might be between 2,500 and 10,000 words, depending on your niche. You can use Canva, Beacon, or simply Microsoft Word to create your E-book.
Passive income streams can help you save money, achieve your financial goals, and recover from a job loss. Who wouldn't want to make money without having to put in eight hours a day?
The good news is that, in addition to what I've just mentioned, there are many other ways to start generating a passive income stream. Before you start seeing results, you'll need to invest time and attention in building them out.
Investigate these possibilities, and you might be making money while you sleep in no time.
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