Passive Income Strategies: Tested and Recommended Ideas for 2024
Written on
Chapter 1: Understanding Passive Income
Many individuals searching for "passive income ideas" have undoubtedly encountered Warren Buffet’s renowned saying:
"If you don't find a way to earn money while you sleep, you will work until you die."
Essentially, passive income refers to earnings generated through assets you manage; however, acquiring these assets often requires time or financial investment.
Diving straight into my findings, here are several methods I tested, ranked from least to most effective:
Section 1.1: Online Activities for Income
One platform I tried is Inbox Dollars, which allows users to earn money through various online activities such as taking surveys, watching videos, playing games, receiving cashback on purchases, and reading emails. Upon signing up, I received a $5 bonus. Although the concept appears straightforward, my actual experience was quite different. I found that most surveys were not relevant to me, and I could only watch a couple of videos every few hours, earning between 1-5 cents per view. Moreover, I never found anything appealing in the cashback shopping options provided.
- Initial Investment: $0
- Time spent/day: 1–2 hours
- My earnings/day: $0.10–$0.30
- Realistic potential earnings/day: $1–$3
Section 1.2: Gaming for Cash
For those who enjoy mobile gaming, there are apps that allow you to earn while playing. I tried Solitaire Cash and Bingo King, but like many games, my interest dwindled after a few months.
- Initial Investment: $0
- Time spent/day: 1–2 hours
- My earnings/day: $0.30–$1
- Realistic potential earnings/day: $5–$7
Chapter 2: Investment Strategies
How I Built 5 Passive Income Streams In My 20's - In this video, the creator shares their journey of establishing multiple income streams in their twenties, providing insights and strategies that can help others achieve similar success.
Section 2.1: Dividend-Paying Stocks
I ventured into investing with Robinhood a few years ago, focusing on long-term growth through dividend-paying stocks. My approach was to invest in well-established companies known for consistent dividend payments, such as Target, Chevron, and Apple. While these stocks don’t promise dramatic price increases, they do provide a steady stream of passive income. Thanks to platforms offering fractional shares, your initial investment can be modest as well.
- Initial Investment: $100 – no limit
- Time spent/week: <10 min
- My earnings/year: 7–10% of investment
- Realistic potential earnings/year: Variable, averaging 4–15%
Section 2.2: Blogging for Profit
If you’re familiar with Medium, you know it’s a platform that blends amateur and professional writing. It not only helps enhance your reading and writing abilities but can also provide some income.
- Initial Investment: $0–$5/month
- Time spent/day: 30–45 min
- My earnings/day: $0.30–$0.75
- Realistic potential earnings/day: $5–$10
Section 2.3: Market ETFs
Exchange-Traded Funds (ETFs) offer another avenue for long-term growth, acting as a collection of securities available through brokerage firms. A popular example is the SPDR S&P 500 ETF Trust, which seeks to mirror the S&P 500 Index. This diversified fund distributes investments across various sectors, yielding a historical average annualized return of around 10.5% since 1957.
- Initial Investment: $100 — no limit
- Time spent/week: <10 min
- My earnings/year: 7–13% of investment
- Realistic potential earnings/year: Variable, guaranteed long-term growth.
Chapter 3: Investing in Yourself
Many of us have turned the pandemic into an opportunity for self-improvement, whether through art, cooking, or acquiring new skills. Personally, I began drawing anime characters and even opened an Etsy shop to sell my work. Investing in yourself is truly the most rewarding investment; you can never go wrong with it!
- Initial Investment: Time (learning a new skill often requires no monetary investment)
- Time spent/day: Variable
- My earnings/day: Variable
- Realistic potential earnings/day: Unlimited
Have you explored any of these passive income methods? What was your experience? Are there any other recommendations you would suggest? Please share your thoughts in the comments below.
Thank you for reading! This marks my first non-fiction article. If you're interested in my fictional works, please visit my 'List,' where I categorize my articles by genre. I appreciate your time!
Chapter 4: Additional Insights
9 Passive Income Ideas That Make Me $37,000/Month in 2024 - This video details various income strategies that have proven effective, showcasing practical tips to help viewers increase their earnings.