The 30 Best Passive Income Ideas!! 2019

I will do you a favor and save you large amounts of time from all the ideas for passive income which all of these passive income books mention at some point. There are many other ideas that I have not included here. In no particular order:

The 30 Best Passive Income Ideas!! 2019
The 30 Best Passive Income Ideas!! 2019

  • Dividends from shares – This is very easy and involves minimal capital to begin with. With as little as $500 (minimum marketable parcel of shares), you can invest in any shares on the ASX. There are however stocks which are not dividend paying, so if you are after passive income these may not be for you (capital gains are still nice though on the growth stocks). Generally listed companies pay semi annual dividends from around 2-5%. Once you invest, all you need to do is sit back and watch the dividends roll in. If you you want more information I made a whole guide on Passive Income Through Shares.
  • Dividends from Exchange Traded Funds (ETF’s) – Similar to the shares listed above, you can buy ETF’s on the ASX for as little as $500 (minimum marketable parcel of shares). ETF’s are a marketable security that generally tracks a stock index. They are similar to mutual funds however instead of having to sign up to the mutual fund and fill in all the paperwork, you can easily buy and sell units on the ASX. Investors like ETF’s as they are highly liquid, very transparent and can have minimal management fee’s. An example of a popular ETF is VAS.ASX, which seeks to track the S&P/ASX 300 Index. Click through here to read Passive Income Through ETF's.
  • Dividends from Listed Investment Companies (LIC’s) - LIC’s are an Australian initiative similar to an investment trust or closed end funds where the shares are tradable on the ASX. A common LIC on the ASX is WAM.ASX. Once you invest into the WAM with the minimum parcel of shares of $500 you can sit back and watch the semi annual dividends roll in.
  • Interest from high yield saving accounts – Generally most investors would already have this one covered off. If you are saving for a house deposit this is common option where investors would hold their cash. High yield saving accounts started to become more and more popular since the term deposit became less popular. Check out my in depth analysis of high yield saving accounts.
  • Interest from term deposits ($1,000 minimum) – a Term deposit is where an investor put an amount into a bank for a specified period of time. Upon maturity the bank gives the investor back the cash (or rolls it automatically into another term deposit). Maturity lengths of terms deposits. Check out my in depth analysis of Complete Guide - Term Deposits.
  • Distributions from REIT's - Please take a look at my REIT Complete guide here.
  • Coupons from government bonds – government bonds are virtually risk free, at least in Australia they are. To acquire a government bond all you need to do is jump on the ASX and look up Exchange-traded AGB’s. There is a multitude of coupon rates, maturity dates etc. which can be obtained. For example GSBE19 is a ABG which can be acquired, this has a coupon rate of 5.25% and a maturity date of 15 March 2019. The coupon is paid semi-annually in arrears on the face value.  Minimum denominations are $1,000.
  • Sales from Red Bubble online print demand – For those creative artists out there, you can upload a piece of artwork on to this website and it will be publicly available. Customers can jump on the website and see your design on a t-shirt and then they can buy it. There is a standard margin, which is the default around 20% on a t-shirt. The design remains yours and you just get a monthly payment. If you want to read more about generating passive income through RedBubble please read my Passive Income - RedBubble. I have also written another article on a similar print on demand website called Society6 - please check it out here.
  • Interest from True Pillars P2P facilities – P2P stands for peer to peer. This is a modern take on giving loans to customers who want the money for various reasons. You can jump on the website, sign up, transfer funds via BPay and then set up the instructions on the investments. An example of a customer is a real estate service business acquiring furniture to furnish properties for sale. You can participate a portion of the total loan required i.e. $40K over 3 years. After the 3-year period is over, you can either roll the money into another loan or withdraw the money.
  • Creating an eBook – Self-publishing on Amazon is a very popular creative outlet. EBooks are generally suited to those bloggers and youtubers out there who have short book of content available. For instance say you wanted to right a book on how to generate passive income – you would do you research, write some content around 50 pages, get it reviewed and checked, a cover page and formatted sand then it is ready to be uploaded online for sale. You can charge what you want for a book, whether it is $5 or $500 per book sale. The key here is you need to know your shit; no one is going to be buying copies of eBooks if you are ill informed.
  • Vending machine business – The concept here you acquire a vending machine, load it with stock, organize for it to be placed onsite at a business and refill it once the items run out. There is a little non-passive work here involved being the replacement of the stock, however if this process only takes an hour or so once a week or once a fortnight then it is not very labor intensive. You can even outsource the stock replenishment to someone and pay him or her for his or her work.  A used vending machine costs around $1,000-$4,000 and from my understanding there is usually $25-$35 a week turnover. From here you need to factor in the costs of the products. Some sites require a fee or commission, so again this needs to be factored into your calculations. You can scale the operations to multiple vending machines.

Passive income ideas

  • Invest in a Rental property – Purchasing a rental property is not something people can just go out there and do without much saving. You need to save up a deposit that could take you months or years to do. Once you have your deposit and acquire a property, the weekly rent paid by the tenants less any loan repayments will be passive income. There may be other costs involved such as maintenance etc. that will need to be factored into the budgets. Please check out my article on generating passive income through properties.
  • Stock photos – If you have a eye for photography, there is opportunity for you to take class photo’s and upload them online to a commission based stock photography website. Each time someone wants to use your photo in their work, they will have to pay you a commission. Note there are lots of photos already posted to most databases so don’t be surprised if your photos are not getting very many views.
  • Invest in a business – this can be a huge undertaking or as little as being a silent partner.
  • Rent out a room – Do you have a spare room in your house? Why not rent it out and get an extra $200 a week for nothing. I get this is harder to do when you are older and have a family, but definitely when you are young then there should be no problems doing this.
  • Air BNB – if you are going away for a weekend or a travelling for a few weeks, you can put your place up on air bnb. You will need to make sure your house is spiffy before you leave, but you can earn some serious coin that you otherwise wouldn’t have made by doing this. This is if you don’t mind strangers sleeping in your bed and potentially walking around your house naked
  • Create an online course – there is a rise of online course that you can develop once and then post online and sit back and get the rewards. Check out sites like udemy.
  • Affiliate marketing -  Affiliate marketing is giving a lead to business and earning a commission on that lead. If you can come up with a way to send leads to a business then you make money. This can be an active process or a passive process.

  • Market research – There are market research companies who pay you for either a questionnaire or feedback on a product or service. These can either be done online or in person on site.
  • App development – If you have a great idea or are handy with developing, put in the effort and develops an app that you can post on the iTunes store or play store.
  • Drop shipping – is a method of sales where you sell an item on behalf of someone else that owns the product and will organize for transportation. All you need to do is set up the initial interface and a bit of client interaction.
  • Robot Advisors – a simple method of investing, you put in a certain amount of money and insert the parameters into the robot formula. Then sit back and wait for some returns.
  • Crowd funded real estate – Investing in real estate can be difficult due to the excessive deposit amounts required. There are opportunities to invest in real estate with smaller amounts if you crowd fund.
  • Start a blog – Once you start a blog there are a few ways in which you can generate passive income as you sleep. If you want to read a more in depth analysis of how to generate passive income through a blog then follow this link in which I explain the concepts in more detail - Passive Income Through Blogging.
  • Start a podcast – Audio based work is very popular, from my experience in an office based environment, staff wont watch videos whilst they are working however they will listen to podcasts while they type away on their keyboards. Once you establish a small following you can advertise relevant or completely irrelevant products on your website. You can link in the URL into the show notes or read out a specific url which will take you through to a discount offer linked to your account. If the listeners like the product they will start making you profits.
  • Credit card cash back offers – Some credit cards offer you cash back on your purchases. For example 5% on all retail purchases. This is an easy way of accumulating some extra cash as long as you aren’t buying unnecessary items just to get the cash back.
  • Buy and sell domain names – There are some huge cases in the past where someone has bought a domain name. The most expense domain name sale that is publicly recorded is carinsurance.com for a whopping $49m. If you can buy a domain that is available and sell it for a higher amount you can earn some serious coin on the difference. Some examples of websites include Flippa, trademysite, afternic, freemarket and digital point forum.
  • Amazon FBA – Fullfillment by Amazon is a new concept offered by the retail monster that is Amazon. In short you determine what products to sell, and pay for them, Amazon will store the products in their warehouses and will pick, pack, ship and provide customer support for these products. There have been a lot of people getting rich here and it is all based on picking the right products. For instance you can buy new years ever glow in the dark glasses saying 2019 in advance and upload the details to amazon. After you set it up, sales starting ticking away and income will come through.
  • Youtube channel – There is a lot of hard work here in order to establish a following and receive views. If you are able to provide content which gets views and you can monetize your account (1,000 followers required) then you can get advertising on your videos and youtube will pay you based on the traffic to your channel.
  • Buy royalties - Through the website Royaltyexchange.com you can legally acquire the royalties of a song, after you acquire the rights to the song any time it is played in a video, film clip etc. you can earn royalties from the user. This
  • House or pet sit – Advertise this service on Gumtree and wait for a hit, it is fairly easy to sit around a house at night or on a weekend looking after a pet or just a plain house.  Apart from keeping the place clean or taking the dog for a walk there is little to no work involved and it allows you to spend time doing other things – such as binge watching your favourite series on Netflix.

top passive income ideas

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