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5 Passive Income Ideas For Income Generation

September 22, 2022 • 4 min read

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 2021, and the fintech boom continues to transpire through 2022-2023. 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.

Final Words

Passive investing is a great way to generate income without actively managing your investments. One of the biggest benefits of passive investing is that it requires less time and effort than active investing, which can be a huge advantage for busy professionals like yourself. Passive investing can also help you minimize risk by spreading your investments across a broad range of alternative assets. This can help you weather market fluctuations and reduce the impact of any one asset’s poor performance. Whether you’re looking to generate additional income or build long-term wealth, passive investing with these 5 income ideas can be a smart and effective strategy.

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