Billionaire investor and CEO of Berkshire Hathaway, Warren Buffet once said, “If you don’t find a way to make money while you sleep, you’ll work until you die”
For the majority of the population, making money involves going to a job.
Trading time for money is what many children are taught growing up. They see their parent or parents, teachers, and the people around them working jobs, typically the Monday to Friday, 9 to 5 scenario or other slight variations of it because that’s what you do as responsible adults in order to pay the bills.
They are taught to go to school, get good grades, get a good education and then one day, possibly, find a really good job and live a wonderful mediocre life successfully.
After they graduate from their esteemed college, they will find their “dream job”, even though realistically for many, a job they end up settling with, then work their entire life until they retire in their 60s. By that time, they hopefully still have the energy to enjoy the remaining golden years of their life.
The other handful of children are fortunate to have parents that place high value on their time and know how to leverage it to make money, either through business ownership, investments that create residual income or content they can create or produce themselves that could be sold as intellectual property to earn royalties.
While life’s challenges will still present itself in many other ways, at the very least, they can live a life without financial constraints and the burden of day to day monotony because they have figured out how to leverage their time to make money while they sleep.
With that said, here is a non-exhaustive list of 10 Passive Income Ideas To Make You Money While You Sleep:
- Invest in Rental Properties
- Invest in Dividend Stocks
- Invest In Cryptocurrency
- Invest in a Business as a Private Investor
- Put Your Money Into a High Yield Savings Account
- Create An App
- Create an Online Course
- Write and Sell a Book/eBook
- Sell Stock Photos
- Affiliate Marketing
Invest in Rental Properties
One of the best ways to create passive income is through real estate. One way you can use real estate to generate passive income is by investing in rental properties.
While this investment is a bit difficult to obtain if you do not have the means to acquire a rental property, it should be one of the top assets to own and aspire to own.
For more information on rental properties check out our post 3 Ways Rental Properties Can Make You Income Passively.
there are companies that allow you to purchase fractional ownership or shares of real estate through crowdfunding that can pay you in proportion to your investment amount. Take a look at
Invest in Dividend Stocks
Stocks are a an easy way to get started in investing and the passive income game.
There are plenty of stocks available that pay out dividends quarterly or sometimes even more frequently. Just remember to do your due diligence and research the companies that interest you before you purchase the stock.
While the dividend payouts itself aren’t significantly large, if you continue to accumulate more over time, the payouts and passive income you generate from these will eventually become great paydays.
These days, so many online brokers allow you to quickly sign up, link your bank account, and start sending funds over to purchase the stocks you want with ease.
If you prefer going through a traditional broker of course then there are plenty of options available as well.
REITs
While not exactly the same thing, there is something called Real Estate Investment Trusts or REITs. REITs allow you to purchase these stock like assets that give you partial ownership to the real estate properties that are part of the trust.
So rather than owning shares of a business or company as you would with stocks, REITs allow you to own shares of a property or basket of properties.
Similarly, you earn dividends from REITs the same way you do with dividend stocks.
Invest in Cryptocurrency
If you haven’t heard of cryptocurrency then maybe you’ve been living under a rock. It has been the newest investment craze for the past several years and especially during the crypto boom of the late 2021 bull run.
Cryptocurrency is similar to stocks, but instead of purchasing shares of a company, you are purchasing an actual digital currency asset such as Bitcoin, Ethereum, Solana, and Avalanche.
What makes these digital assets different from traditional fiat currency is that all transactions are stored online on a distributed ledger across multiple computers, making the entire ecosystem a decentralized network.
Being decentralized means the currency is not backed by any public or private entities the same way something like the U.S. dollar bill is backed by the Federal Reserve. There is no one central authority for cryptocurrencies.
Therefore, be cautious of the volatility of the investment in crypto as it can make you tons of money quickly or cause you to lose all your investment in seconds. Be wary of the lack of enforcement on scams and other unethical practices of certain cryptocurrencies.