{"id":238924,"date":"2020-02-21T09:05:03","date_gmt":"2020-02-21T17:05:03","guid":{"rendered":"http:\/\/getrichslowly.org\/?p=238924"},"modified":"2024-01-09T10:12:19","modified_gmt":"2024-01-09T17:12:19","slug":"passive-income-ideas","status":"publish","type":"post","link":"https:\/\/www.getrichslowly.org\/passive-income-ideas\/","title":{"rendered":"The best passive income ideas for 2024"},"content":{"rendered":"

Earlier this week, J.D. wrote about what he calls the biggest truth in personal finance<\/a>: You can’t get rich through frugality alone.<\/strong> As Liz at Frugalwoods<\/a> says, “You can’t frugalize income you don’t earn.” Income is one-half the fundamental personal finance equation, and it’s probably the most important half.<\/p>\n

J.D. advocates a three-pronged attack for boosting income: becoming better educated, becoming a more valuable worker, and learning to negotiate salary. But I think he’s missing a fourth important income source: the proverbial “passive income”.<\/p>\n

I know, I know. Passive income has a bad reputation. Actually, passive income has a terrible<\/em> reputation. And deservedly so. The Land of Passive Income is populated by scammers, hucksters, and charlatans. “Hey, little boy, wanna buy my course?” (Sorry, no links. They’re easy enough to find without us helping them.) That’s too bad because legit sources of passive income can be a great way to make more money.<\/p>\n

<\/span>What is Passive Income?<\/span><\/h2>\n

First up, let’s be clear: Actual passive<\/em> “passive income” (as pitched by the scammers) is a lie<\/a>. It doesn’t exist. When we talk about passive income, we’re talking about ways to make minimal money with minimal effort. Does that make sense? And it’s a supplement to your main income, not the primary source.<\/p>\n

To me, passive income is money that\u2019s earned, usually on a recurring basis, without a significant time investment.<\/p>\n

For example, if you own a rental property that brings in $1500 each month, but only requires two or three hours of time to manage, that’s (mostly) passive income. Most nine-to-five jobs are the opposite of this. The income you earn is tied closely to the amount of time you spend at the office.<\/p>\n

That\u2019s not to say that passive income doesn\u2019t require effort, though.<\/p>\n

Often, there\u2019s a lot of upfront work required before income can become passive. Using the same rental property example, before you can make any money, you have to purchase and renovate the property, and spend time advertising and interviewing potential tenants. All of that takes time and money<\/a>.<\/p>\n

Or, take J.D.’s book as an example. When I asked, he told me that he spent four months working full-time in 2009 and 2010 to write Your Money: The Missing Manual<\/a><\/em>. That’s not passive! But he hasn’t touched the thing since then, and he continues to receive $50 checks every month. That is<\/em> passive.<\/p>\n

<\/span>Passive Income Ideas You Can Try Today<\/span><\/h2>\n

Some degree of passive income is possible — and without shyster shenanigans. In this article, I\u2019ve compiled 40 passive income ideas for you to consider. Not all of these passive income ideas will be right for you. In fact, maybe none of them will fit you. That’s okay. But I’m willing to bet that many GRS readers will find at least one source of inspiration here that they can use to help increase their income…even if it’s only a few dollars per month.<\/p>\n

\"Passive<\/p>\n

Pay Down Your Debt<\/h3>\n

Debt reduction isn\u2019t the first thing that comes to mind for most people when they\u2019re looking for ways to increase their income. But it should be.<\/p>\n

Monthly payments on anything from high-interest credit cards to expensive car loans can be a real drain on your bottom line. Sometimes the easiest way to improve cash flow is not to make more money, but to lower your expenses.<\/p>\n

I recommend that you start by totalling up your debt, and then look for ways to pay it down more quickly. Depending on your situation, you might consider combining everything into one manageable payment, by taking out a consolidation loan. If you do have a large car loan payment and are feeling stuck, you might be better off, in the long run, cutting your losses, and downgrading to a more modest vehicle.<\/p>\n

(Need more help? Here’s our guide on how to get out of debt<\/a>.)<\/p>\n

Invest in a High-Interest Savings Account<\/h3>\n

There\u2019s no longer an excuse to have your cash sitting in a checking or savings account not accruing interest. These days, you can find a ton of online savings accounts<\/a> offering a solid yield. Everything about this income is passive. In most cases, you can open an account within minutes from the comfort of your living room, have your funds transferred in, and start earning interest on your cash savings almost immediately. You won\u2019t get rich with a savings account, but it\u2019s a great way to get your emergency fund working for you. Here\u2019s a list of some of the top savings accounts available today. Remember that rates are subject to change:<\/p>\n