Best Passive Income Ideas in 2020

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Passive income is a financial dream. Not only can you work from wherever you want and set your own schedule. You also put minimal effort in.

You get to sit back and relax while the money comes streaming in. Who doesn’t want that?

But what can you do to earn a passive income? Keep in mind, these are “jobs” where you’ll probably have to put in more effort towards the beginning. With that being said, here are some of the best passive income ideas in 2020.

What we will cover:

1.Rent out a house or portion of a house.

If you have a spare room, you can simply rent out the one room in your house. You can use a service like Airbrb to make things easier. If not, you can save up money to buy a house to rent out. Although this will initially be expensive, eventually it can become passive income. Especially if you hire a company to manage the property. This can be risky, but it can also be worth it.

2. Invest (real estate, stocks, etc.).

As stated above, investing in real estate is a great strategy to make passive income. You can buy a multi-family property or vacation home to rent out to make quite a few extra bucks. Another great way to invest is through the stock market. At least for me, the stock market can be pretty complex and you might not have any idea about how to get started.

My favorite app to use is Robinhood because it makes it super easy for beginners. You can sign up and get a free stock here.

There are several methods to investing in stocks. Dividend stocks are probably one of the best ways to invest for passive income. For every share of this type of stock that you own, you get paid some of the company’s earnings.

You can also invest in index stocks. Index stocks are less risky because you it bundles a multitude of stocks together, which helps balance it out. A great example of this is S&P 500.

3. Sell digital products.

This will take some work to get your foot in the door, but after you create your product, this is one of the best passive income ideas in 2020. E-books are a great idea. Create an e-book that solves a problem and is something you’re interested in or know a lot about. You can also consider selling other digital products, like online courses, art, printable journals, worksheets, and more.

How to sell digital products to make money

4. Amazon FBA.

With this service, you find a product to sell, and ship it to an Amazon warehouse where they will pack, ship, and provide customer service for your products. You can even use a service like Jungle Scout to automate the process of finding products to sell.

5. Affiliate marketing.

This income could be passive or active. Freelancers, bloggers, or social media users can promote a product or company once and continue to make money from sales without doing anymore.

6. Peer to Peer Lending.

This is pretty much what it sounds like. You can use companies like Lending Club and Prosper to lend money to others. Just like any other loan, you will make back what you loaned plus interest. However, this can be risky because there is a chance the person will default.

Looking for a side hustle to support you while you’re trying to save money for passive income? Read about how I make an extra $250 a month easy here.

Please share if you enjoyed reading about the best passive income ideas for 2020!