9 Best Passive Income Ideas to Build Wealth
We’re in a time of new passive income and investment opportunities. There are so many technological advances and fast ways to share information and ideas. There are many more new passive income opportunities coming to light.
Right now, the internet is littered with recommendations for passive income ideas. Usually, this is the skewed narrative:
Hard Ways to Build Passive Income:
- Start a YouTube Channel
- Start a Business
- Affiliate Marketing
- Start a Blog
- Sell Products Online
Don’t get me wrong. I’m not bashing on any of these methods. Running a business can give you insane returns on your time and capital.
And yeah. You can make passive income from these. But it takes A LOT of work. So much work that one could say it’s no longer passive.
Every one of the ways I listed above takes constant attention. Trust me, I know from experience.
But most businesses are not passive, especially a YouTube channel. Or helping manage a large corporation.
If you have ever run a business, you know that it’s not passive income. Yes, it has potential to become passive. But it is a long road to get to that point. That’s why I’ve come up with 10 passive income ideas that are set it and forget it investments. Some of these have the potential for regular income, and some are income you’ll realize in a lump sum…
Passive Income Ideas to Consider
- Well-known cryptos
- Dividends
- Crypto trading bot
- Unicorn Hunters
- Small cryptocurrencies
- Raw real estate
- REITs
- Lend money (unit trust)
- Money arbitrage bot
Why Invest in These Forms of Passive Income?
Well-Known Cryptos
One passive income opportunity is investing in well-known cryptocurrencies. This is less risky than investing in small altcoins. You’re investing in something that many companies have adopted and use.
It’s still a risky investment, but you might produce returns that outperform the stock market. It continues to be a bumpy ride, buy many crypto investors have walked away with some nice passive income. Here are some of the best altcoins to get you started.
Dividends
Dividends are a reliable avenue for income and one of the top passive income ideas.
There are lots of great things about dividends. The first is you can get a payout at least every quarter. Some even give returns every month. Check out these top monthly dividend stocks.
Dividend stocks are completely passive. It’s a true set it and forget it formula.
You may not have a large amount of capital to put into dividends. It’s ok. You can set the payouts to reinvest themselves. This builds your capital egg over time.
Here’s how it works: You invest some money into a dividend stock. Set the dividends to automatically go back into the stock you’ve bought. Then, when the stock pays you, it will buy more shares of the stock. Next time, the payout should be higher.
Each time you get a payout, your investment sum gets higher and higher. Plus, if the stock price is going up, it gets even bigger. You can see how this works with this free dividend reinvestment calculator.
Crypto Trading Bot
This one seems a bit risky if you don’t know what you’re doing. If you do, I imagine it can have insane payouts.
Crypto trading bots can use AI to buy and sells crypto assets on your behalf. But things can go wrong with the technology. A small glitch can cost you a lot of money very quickly. If you don’t know how to handle the technology, you could get in deep trouble.
There are companies that have created this technology, though. Some rent out access to it. They handle the nitty gritty of making sure it runs smoothly.
You’ll still want to do your research and make sure the bot is right for you. If you’re looking for more artificial intelligence investing opportunities, check out these AI penny stocks.
Unicorn Hunters
There’s a new show that’s like Shark Tank. It’s called Unicorn Hunters. I haven’t watched any episodes yet, but it looks awesome.
When I say it looks awesome, I don’t mean just the show. I also don’t mean it looks fun to watch (though it does). I mean the quality of information looks like it could be groundbreaking for many people.
There is a panel of experts that sit in a circle. One of them is Steve Wozniak. If the name sounds familiar, but you can’t place him—he’s the co-founder of Apple.
Anyways, these experts have one company per show. They ask them questions, grilling them for any weaknesses. They are looking for the next investment unicorn.
A “unicorn” in the business world is a company that’s valued at one billion dollars or more. It’s called a unicorn because they’re so rare. So when I say they’re looking for the next unicorn, here’s what I mean. They’re looking for the companies that have the “stuff” to get to unicorn status.
They have the show where they ask them a bunch of questions. On the Unicorn Hunter’s website, it also posts documents of due diligence, such as the financial statements. With information like this, you can better invest in small startup businesses that have huge potential. Although, it might take longer for this passive income idea to pay off.
Small Cryptocurrencies
Small Cryptocurrencies are risky. They are the penny stocks of the crypto world. And as if penny stocks weren’t volatile enough – check out these top lithium penny stocks – crypto can be even more volatile. These are great to win with, but you MUST know what you’re doing. If you don’t mind losing your money or possibly making a lot, try investing in some small cryptocurrencies.
Matthew Makowski covers a wide range of crypto opportunities. You can find his recent crypto research here.
Real Estate
There are many ways you can monetize this investment and make passive income from it.
One way is to buy and hold raw land. It would be smart to buy when the market is down, wait to let the value increase, then sell when the market is up.
On top of this, you can also rent your land out to farmers or cellular companies. You can do this while you let your land increase in value.
So buy low, rent and hold, sell high. You’d be able to make a profit when you buy (assuming you get a below-market price). You can make passive income while you’re holding. And can have capital gains when you sell.
Plus, you can always get active with this investment if you want to make even more.
Real estate can be a top-notch investment for income and capital gains. It has been making people wealthy for ages.
REITs
REITs are passive income opportunities that give regular payouts. They are much like dividend stocks with the consistent deposits. These differ in that they are companies made up of real estate investments. You are buying that company’s stock.
REIT stands for Real Estate Investment Trust. When you buy the stock of a REIT, they usually share the profits with you via the dividends.
Lend Money
If you don’t mind lending your money, you can charge interest. You can do this yourself to people you know and trust. Or you can go through a company who handles things for you. You invest then make returns. If you find the right lending platforms, this can be one of the best passive income ideas.
Money Arbitrage Bot
Arbitrage is the process of taking advantage of two markets. Each market has a different price. You buy from the lower market, then turn around and sell it to the higher market. You make a profit.
There is AI that does this. For example, it can run automatically, making money off the differences in currency values.
Like the crypto bot, they are risky if you don’t know how to handle and fix the software. There are companies who rent this technology out. Like the crypto bot, make sure you know what you’re getting into and find the bot that’s right for you.
More Passive Income Ideas and Research
Passive income is a phrase that’s thrown around a lot online today. But with some creativity and an open mind, you can find unique opportunities for passive income. Have fun with these and remember to do your research while exploring new passive income ideas.
About Vanessa Adelman
Vanessa Adelman graduated with an Interdisciplinary degree. She majored in Entrepreneurship, Painting, Music and Film. Shortly after, she received a copywriting mentorship with Mark Morgan Ford. Then, she earned her AWAI Verification. Now, Vanessa freelances in the financial direct response industry. She’s been investing since 2016. In her free time, she enjoys books about money and wealth. She loves being with her boyfriend, hunting, fishing and going on outdoor adventures.