Building passive income streams can be hard work. They usually take a significant amount of work and/or money to set up before they can really become a full-fledged passive income stream. It’s part of the argument over whether they really are “passive” or not. Obviously, as with anything, the more work or money you put into your passive income ideas the better the resulting passive income streams will be. But, when you’re first getting started, there are several ways you can set up some small passive income streams that will provide with different forms of passive income.
Here’s a few passive income ideas.
- Blogging – As a blogger, myself, this one is one of the first ones I usually suggest. To be sure, it’s not for everyone, but it can set up a rather nice passive income stream. Blogging is work, but a well set up blog, with some content, could eventually be left alone to collect traffic, and Google adsense checks. The initial work is a bit heavier, but the maintenance while setting it up can be as little as a few hours a week.
- Cash Back Cards – Some might argue that this isn’t really a passive income stream, but I think that it can be. Using a tax free cash back card to pay for bills/things that you would normally buy anyways makes the cash back an added bonus. The only added work is to immediately pay the balance for the things that you’ve bought, and the cash back becomes an extra stream of income that you earned by buying things you would have anyways. I have a coworker that does this and makes $500-$600 a year.
- Peer-to-peer lending – I’ve written before about my portfolio on LendingClub, and how, with very minimal maintenance, I’m slowly building a passive income stream that earns me money. As my portfolio grows, and I reinvest the interest, the interest income from the portfolio grows with it. Eventually, if I keep with it, I could have a compound interest passive income machine, built with less than $20 and 20 minutes a month.
Those are just a few quick and easy passive income ideas to build passive income streams. They don’t require a lot of work to get started and maintain, but they will provide for extra income that you can use to build them further, or to help beat broke.
photo credit: alancleaver_2000
I started this blog to share what I know and what I was learning about personal finance. Along the way I’ve met and found many blogging friends. Please feel free to connect with me on the Beating Broke accounts: Twitter and Facebook.