The 18 Most Profitable Passive Income Streams To Consider

Passive income is all about money making money 24/7. You know the famous make money while you sleep idea. It’s about buying money-producing assets and investing time to build products that generate income without future effort.

Passive income that is always passive is usually found in the form of investments. With this type of income, you make a purchase and forget it. Therefore, you don’t have to devote time or energy to generate money from these passive income streams.

Income From Stocks

There are two main ways to make money from stocks. First, you can start investing. Purchase and forget it. Then make money when you sell the stock down the road through capital gains. That isn’t a continuous form of income, but it can come in handy when you’re ready to retire.

A bond ladder is a portfolio of multiple bonds that mature at different times. When the bonds mature, you can reinvest the returned principal in new bonds and start a new ladder or continue adding on to your current one. 

A Bond Ladder

Income From Interest

You can earn passive income with interest when you loan money to someone else. For example, you can loan banks money in the form of a high yield savings account, and you can lend businesses money in the form of bonds. But you also earn interest when you loan money to peers.

If you love real estate but don’t feel like putting in the work or money to flip or manage properties, check out real estate investment trusts (REITs). Real estate investing with REITs is like buying and selling stocks on major stock exchanges. These funds include commercial real estate, movie theatres, apartments, office buildings, and more. 

REITs

Invest In Crowdfunded Real Estate

Invest in real estate without buying property through crowdfunding real estate platforms. These platforms connect investors to real estate investment properties. Money is pooled together to buy multifamily properties, commercial or retail properties, office buildings, single-family homes, and more.

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