Below are the best ways to make extra money now:
So, how much do you want to earn? How much cash can you stack this month? $100 is easy — you only have to make $1 from each one of the items below — and $1,000 is definitely doable. Who knows? Maybe you’ll hit $5,000 or $10,000.
What is Passive Income?
Passive income is generally defined as a stream of income earned with little or no ongoing effort needed from the individual receiving the passive income in order to grow the stream of income. Passive income is income that is not proportional to the time you physically put into acquiring it. Active income (typically one’s regular job or additional part time jobs) is a direct exchange of your time and skills for money.
Examples of passive income include real estate rental income, stock dividends, fixed income/bonds, book royalties, peer-to-peer lending, and stock photography royalties.
The intriguing thing about passive income is that it can generated literally while you are sleeping, freeing up additional time for hobbies or allowing you to increase your earnings by performing some other form of work while still generating previously established streams of passive income.
An example of this would be a person working a 9–5 office job where they are paid a fixed salary. This same person also receives regular passive income from an eBook that he wrote on gardening over two years ago. The office job requires direct effort to produce the agreed upon amount of income. The eBook is different. Regardless of what is going on in the office employee’s life, the book is listed for sale in its digital form on Amazon and the author does not have to perform any work (beyond the initial creation of the content) to maintain this stream of income.
Why is Passive Income Important
There are many articles dedicated to exploring the various ways to make passive income. But many fail to consider the underlying question — why is passive income (as opposed to active income) important?
The answer is actually a fairly simple relationship between time and money. Time is the most valuable commodity. There are only 24 hours in a day. Time is the greatest equalizer because not a single person can have more of it. It can never be recreated or re-spent. It exists once, then it’s gone. And that’s precisely why passive income is so important — because time is more valuable than money.
Unlike money, which can be earned, saved, spent, invested, squandered and lost, we can’t tuck away minutes on a clock. We can’t expect dividends on seconds or hours in the bank, or invest the time that we didn’t use on something else. Considering that most of the free world needs to work for a living, consuming much of the time they do have, this precious commodity needs to be prioritized.
Passive income is one of the most important that the rich get richer. It’s how you detach your ability to earn from the limited time that you have in a day. With passive income, you make money while you sleep. You also make money while you’re awake. It’s automatic and simply keeps coming in.
“If you don’t find a way to make money while you sleep, you will work until you die.” — Warren Buffett
However, creating a passive income stream is far from easy. It takes an enormous amount of effort and investment of your time with very little return in the beginning. It involves an overall sense of frustration and an enormous learning curve. Still, it’s one of the most worthwhile investments of your time that you could possibly engage in.
As the chart below illustrates, any amount of passive income earned is exponentially more valuable than the equivalent amount of money earned through traditional work (trading time for money). $100 in passive income per month may not sound like a lot. However, to generate the equivalent of $100 in monthly passive income, you would need to have $30,000 invested earning 4%. This 4% return is fairly conservative when compared to the historical average annual return of the S&P 500, which is around 7% (after inflation).
While passive income might not be the answer to all of your immediate problems, it is the pathway to success and most certainly the foundation for wealth and happiness. When you’re not stressed out focusing on just making enough money to pay the bills and you’re no longer living from paycheck-to-paycheck, there’s a mental clarity and an emotional catharsis that sets in. You become free to spend your time doing things you actually care about. You can spend more time with your family, focus on improving your health, have the freedom to escape a job you hate, or pursue a creative passion that you otherwise would relegate to the few hours of your free time on the weekend.
Start a blog.
Some passive income ideas require an investment of money, and others require an investment of time.
Blogging is definitely the latter. Rather than putting a lot of money in upfront, you put a lot of time in upfront and reap the passive income streams later.
In the span of little over a year, we have been able to grow this blog into generating for us over $30,000 of passive income every month.
Sign up for our FREE blogging e-course below to learn how to start your own money-making blog!
Invest in dividend-paying stocks.
We love dividends here at Money Done Right.
When you invest in a dividend-paying stock, you are acquiring a portion of a company that somebody else built and that thousands of other people work for, and they are giving you a portion of their profits. Blows my mind!
There are plenty of great places to open up a stock-investing account, but the one that’s getting us hot and bothered at the moment is Acorns.
Hands-Free Investing with Acorns
Acorns is great because it does all the work for you. You tell it your age and financial goals, and it develops a custom portfolio for you based on empirical data, not the latest hot stock tip.
Lend money in $25 increments earning 4-6%.
Lending out money is one of the oldest ways to earn passive income.
It’s essentially renting out your money for either people to use, and the rent you charge is known as the interest rate.
Now, in the old days, if you wanted to lend money to somebody in particular, you were taking on a pretty risky business, unless he or she put up some form of collateral.
But now, thanks to technology, you can spread out the risk by only lending your money in $25 increments.
How does this work?
Well, let’s say Borrower A needs a $25,000 loan.
Instead of going to one entity, like a bank or rich person, to borrow the full $25,000 — which would be very risky to that one entity — he or she borrows $25 from 1,000 people.
This scenario presents much less risk because the most any single investor could lose is only $25.
Such an arrangement would have been administratively impossible just 15 years ago.
But thanks to the wonders of the Internet, it is now very possible, and the peer-to-peer lending industry, as it’s known, is thriving for borrowers and investors alike.
Rent out your spare room.
Renting out lodging can be an incredible way to earn extra money.
I know some people making thousands of dollars a month, all by renting out an extra room to short-term guests.
Now, if you wanted to do this 10 years ago, you would’ve had to post an ad in the classifieds or on shady old Craigslist.
Gladly, those days are over.
You can now list your spare room on Airbnb and screen out prospective guests. (Guests are rated by their hosts for things like cleanliness and communication.)
Get paid to play video games.
This is another one of those passive income ideas where you get paid to do something you enjoy, so it’s not really work at all.
With more and more video games being produced every year, more and more video game companies are looking for everyday gamers to review their products.
Sell your photos.
Are you good behind the camera?
Then you can make a somewhat passive side income licensing your photos online for others to download.
For example, I get all my pictures for this blog from various stock photo sites on the Internet.
And every time I download a photo, the photographer who uploaded it gets a royalty!
Licensing one picture that you take and upload now can give you cash flow forever as it’s downloaded again and again!
Get paid $10 – $50 to try new restaurants.
There’s a new app that will actually pay you for dining out.
Here’s how it works:
(1) Click here to download the app and get a $5 bonus.
(2) Book a reservation through the app.
(3) Get paid $10 – $50 in Amazon or Lyft gift cards.
How is this possible, you ask?
Easy. Restaurants know that the lifetime value of a repeat customer could be hundreds or even thousands of dollars.
So they are more than willing to give $10 – $50 to a new customer in the hopes that they become a lifelong patron.
Get your bank and credit card fees refunded.
This isn’t really passive “income” per se, but it is an opportunity for you to increase your net worth somewhat passively.
There’s a new website that can get you refunds on fees like:
- Overdraft fees
- Monthly service fees
- Minimum balance fees
- ATM fees
- Late fees
- Wire transfer fees
- Foreign transaction fees
- Credit card interest charges
Get paid to have an app on your phone.
There’s an app that will pay you just for having it on your phone.
It doesn’t get much more passive than that! You heard me right.
They will pay you $50 per year per device just for having your app on there!
Talk about the ultimate passive income opportunity!
Check your credit score.
While this isn’t directly a way to generate passive income, checking on your credit score and finding ways to improve it can passively grow your net worth.
How so? Well, by simply increasing your credit score a little bit, you can, for example, pay less in interest, which will grow your wealth in the long-term.
We’ve found that Credit Sesame is the best free website that can calculate and monitor your credit score.
Use a free money-saving bot.
Sometimes the best way to make money is to save money.
Subscriptions, especially those that go unused, can add up over time.
Thankfully, there’s a free money-saving bot called Trim that will go through all your subscriptions, let you know how much you are paying for each of them every month, and cancel them with a simple text message if you’d like.
And Trim not only keeps track of your subscriptions, but it also negotiates your monthly bills such as cable and Internet so you keep more money in your pocket.
Get paid to walk.
I just made $10 for walking, paid in cash via PayPal.
There’s a new app, Sweatcoin, that will pay you for every step you take.
It motivates me to go for more runs, take the stairs more often, and be an all-around more active person.
If you’re a regular Amazon shopper, you can earn money each month simply by letting a research company track your purchase history.
ake online surveys.
This one’s not exactly “passive,” but it is certainly mindless.
You can take surveys when you’re binging on Netflix or in line at the grocery store or waiting to pick your kids up.
The trick is that there are only a few legit survey sites. We recommend Survey Junkie.
It’s 100% legit, and they do not send you spammy junk emails.
Their payouts are excellent, and they pay you in cash via PayPal.
Now, I must tell you that not all surveys are this fun, and not all pay this well, but every once in a while you get a great one like this!
Also, it’s satisfying knowing that companies will use my opinions and inputs to make decisions about not only music, but also food, restaurants, consumer products, movies, and a lot more.
Get a Free 401(k) Analysis.
If you’ve ever worked in corporate America, you probably have a 401(k) retirement plan through your current or former employer.
And while your 401(k) is generating passive income for you, it’s possible that it’s not optimized for the best performance.
Just improving your returns by 1% a year can make a huge difference.
Let’s say you have $50,000 in your 401(k), and it will earn you 6% over time.
Increase your returns so that you earn 7% a year will mean over $65,000 more in your 401(k) over 30 years’ time.
A properly-optimized 401(k) can generate for you additional tens or even hundreds of thousands of dollars of passive income over time.
That’s where Blooom comes in.