5 Passive Income Ideas For Income Generation

September 22, 20213 min read
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Sure, it’d be great to have a high-paying job and a comfortable salary, but passive income can help investors build wealth and truly live like the 1%. Setting up multiple streams, to enable earning while pursuing other hobbies can potentially lead to early retirement.

Passive income is designed to make money while you sleep, read, or travel like  you’ve been meaning to get around to. 

“Many members of the ultra-wealthy have multiple income streams, and earn money through methods beyond their traditional 9 to 5,” notes Yieldstreet CEO Milind Mehere. 

The effort and insight required for creating a new passive income stream can potentially pay serious dividends, especially if started early on in one’s career. If you’re a newer investor wondering how you can start building your wealth, here are our top 5 passive income ideas: 

Rental Income From Home or Car

Services like Airbnb and Touro can make it easy for you to take a spare bedroom or car and turn them into sources of passive income. This is a great option for smart, time-pressed investors because the maintenance required (think house cleanings and car valets) can be cheaply outsourced, enabling extra cash each month with minimal additional effort and oversight. 

Peer-To-Peer Lending 

Investments in fintech platforms set a record high in the first half of 2021, and the fintech boom continues to transpire through 2022 and looks poised to go strong into 2023. And there is a good reason behind it: smart investors who want to stay ahead of the curve are looking to fintech and outside of traditional equity markets to help construct their portfolio. This means huge amounts of capital are flowing into crowdfunding platforms that look for opportunities outside of traditional public markets.

Platforms like Prosper or Funding Circle allow individuals to apply for a loan, or allow investors to lend out money for a targeted return. Make sure that you’re comfortable lending and know what you’re getting into, but P2P lending is another passive income stream to consider. 

Dividend Stocks

You may be able to employ dividend stocks effectively as part of your overall passive income strategy. Investing in dividend stocks makes you a shareholder, and can bring with it the benefits of regular payouts in the form of cash or more shares. This can be a great cycle to take advantage of because the more you own, the more passive income you can build.

REITs 

Real Estate Investment Trusts function like a dividend stock, allowing you to potentially earn a fixed amount on your real estate investment with the benefit of certain underlying protections. If you are looking to add exposure to real estate into your passive income portfolio, but don’t have the funds associated with making a large scale purchase, this can be an easy way to start real estate investing without much effort on your part. 

Alternative Investments Like Art Finance

Yieldstreet offers crowdfunding investment opportunities in deals outside of the stock market. This can allow you to access traditional passive income opportunities at a fraction of the cost of opportunities traditionally offered through hedge funds. For instance, our Art Finance asset class offers investment opportunities in works by some of the most important and widely recognized artists. 

If you’re not sure where to start, you can take our quick and easy quiz which will give you some ideas about the best types of investment for you. 

All investments involve risk, including the possible loss of capital.   There can be no assurance that any product or strategy described herein will achieve any targets or that there will be any return of capital. Past performance is not a guarantee or reliable indicator of future results. Current performance may be lower or higher than the past performance data quoted. Any historical returns, expected or target returns are hypothetical in nature and may not reflect actual future performance.  All performance and/or targets contained herein are subject to revision by Yieldstreet and are provided solely as a guide to current expectations.