By Jamaica Winship
They say that the average millionaire has seven different streams of income. Note: That doesn’t mean they have seven jobs. Most millionaires have figured out the passive income game.
By the time you’re finished reading this, you’ll be flush with ideas on how to start earning residual income for yourself.
According to Reader’s Digest, over 50% of Americans are immediately plagued by thoughts of work and money as soon as they open their eyes in the morning.
Even though earning passive income in addition to your day job won’t solve all of your life’s problems, it’s a good place to start. Especially if you’re serious about building wealth.
What is Passive Income?
At its most basic definition, passive income, also known as residual income, is money you earn while you’re not working. You could be sleeping, on the beach drinking margaritas, or just relaxing. Yet, money keeps getting added to your account.
Traditional passive income ideas include investing in stocks, bonds, real estate, and even royalty generation. These all involve making some sort of investment or cash outlay in order to generate a return.
What’s the difference between passive and active income?
Active income, on the other hand, involves earning money in exchange for a service. It could be a salary, an hourly wage, commissions, or tips. It’s essentially a trade of your time for a fixed dollar amount. Most people choose to live this way, and there’s nothing inherently wrong with that, as long as you understand that there will be a limit to how much money you can realistically earn.
I’m not saying to quit your job (at least not yet), but if you’re looking for creative ways to start generating wealth, here are my top 15 passive income ideas.
15 Passive Income Ideas Worth Researching
This list includes everything from easy, everyday tasks to building out entire businesses. I’ve even covered some of the more traditional passive income opportunities, but added a modern take.
Most passive income ideas require a certain amount of work up front before you can start benefiting. However, there are a couple of ways you can start earning right away – virtually no effort required!
1. Get Cash Back for Shopping You Already Do
If you already do a portion of your shopping online, you could be missing out on some easy passive income by not taking advantage of cash back rewards.
Cash Back Credit Cards
Cash back credit cards offer a percentage — typically 1-5% — on purchases you already make. Some cash back offers vary depending on the category. For example, a card may offer 2% cash back on gas and groceries and 1% on all other purchases.
Many cash back credit cards also offer sign-up bonuses. For these programs, you’ll usually need to spend a set amount within the first 60 to 90 days of opening your account in order to qualify for the bonus.
But keep in mind, these offers are only beneficial if you pay off your credit card balance every month. Interest fees can add up quickly and easily negate any potential rewards.
If you already have a cash back card you love or prefer not to open a new credit account, there are other options to earn rewards for your everyday purchases.
Read More: https://www.dollarsprout.com/passive-income-ideas/