If you’re considering earning passive income, but are uncertain which ideas are best and which ones you should avoid. Keep reading to learn the best 8 passive income ideas of 2022.
#1: Online businesses
Perhaps your ideal job is running a small business you’ve built from scratch. While still allowing you plenty of time and freedom. But if you don’t have a million dollars or more in startup capital, that dream can seem unattainable.
There are many popular ways people make money online, including affiliate marketing and dropshipping. However, both of these methods require significant investments in either time or money.
Passive income ideas like selling prints on Etsy could be much easier and potentially lucrative with enough effort. Many people who create an Etsy store find they enjoy it so much they continue to sell even after their original items sell out.
For example, did you know I own an Etsy store? It’s one of my favorite side hustles because it requires no additional investment besides my time—it just makes me extra cash when I need it!
#2: Real estate
Buying a home or condo has long been touted as one of the best passive income ideas. And real estate experts will tell you that purchasing a property is even better than building a rental portfolio.
That’s because of the hard work and dedication required on your part. No matter how many rentals you have, you always have to worry about finding tenants, collecting rent checks, doing maintenance on said properties, and all manner of other tasks that can easily be handled by professional property managers.
#3: Dividend Stocks
If you’re looking for long-term investing ideas, dividend stocks are a great way to generate consistent passive income.
Since companies tend not to cut their dividends, there’s usually a high correlation between dividend yields and share prices. As such, a rising share price should lead to higher dividends.
Better yet, you can get exposure by buying ETFs like DVY, VYM or NOBL, or index funds.
#4: Crowdfunding
Making money by selling shares of a potential future income is arguably one of the best ways to make passive income.
Not only does it require little maintenance but keeps your idea protected. But it is also a way to ensure you are backed by fans who are excited about your business idea and want you to succeed.
However, there’s an important caveat here: Before turning to a crowdfunding site like Kickstarter or Indiegogo, make sure that you are ready. Running a crowdfunding campaign takes A LOT of work.
#5: Online Freelancing
The best type of passive income is not usually something you make money from, but rather, it’s a way of making money while you sleep. And one of the best ways to do that is by freelancing as an online contractor.
Companies all over will contract with you on a freelance basis and pay you through bank deposits, PayPal transfers, or even gift cards. Sign up for some of these sites and take advantage of your free time.
#6: Affiliate Marketing
Good Passive Income Source, Bad Choice if You’re Just Starting Out: Affiliate marketing isn’t just a good way to make money—it’s one of our favorites.
Why? It requires little upfront capital and is one of those passive income ideas that can be implemented on a part-time basis.
#7: Amazon FBA
Amazon FBA stands for Fulfilled by Amazon. It’s one of my favorite ways to generate passive income with Amazon.
While it’s not technically passive income, it does help you earn more money in your sleep when your product is listed on Amazon and sold. You might make a sale before you wake up!
#8: Bitcoin/Cryptocurrency Trading
Make money with your computer—even when it’s turned off! It may sound too good to be true, but trading Bitcoins and other cryptocurrencies is a legitimate way to generate passive income.
As soon as you buy Bitcoin or another cryptocurrency, you should move it into an online wallet.
