Five Great Passive Income Ideas for You to Try in 2022

Do you want to learn about five passive income ideas to try? How would your life change if the systems you put into place now could help grow your money exponentially without taking on extra work? It might sound impossible to be able to make as much or more money as you do at your regular job without the mundane rut of your 9-5, but it is achievable! Millionaires have already cracked the code; they are making money in their sleep thanks to passive income.

Passive income is the ability to make money consistently from a product or service that can run independently of you. In other words, passive income is defined as income derived from a business or investments where a person is not active. You essentially are collecting money without trading much time or effort after the initial work of creating the system. The goal of achieving passive income is to provide a sustainable source of income to support your basic needs and lifestyle. Is passive income a hoax? 

Is passive income a hoax?

There are so many inspiring success stories out there that revolve around passive income. For many, seeing how other people were able to create a financially secure future with passive income has encouraged them to want to pursue finding a niche to create ongoing income for themselves. Incredibly, some people who have had success with passive income, have been able to resign from their full-time jobs to make their passive income venture a full-time endeavor.

Before you get to decide on a niche or a dedicated idea that can get you started on the road to financial freedom you must ask yourself if passive income, in reality, is a sustainable way of earning more money or is it just a hoax? What myths surround passive income that encourages people to ask this question?

Myths about passive income

There are countless myths out there concerning passive income and some of the most recurring ones are as follows:

• Passive income requires no work.
• Passive income is just a buzzword
• Passive income is a get rich way to success

Fortunately, we can easily debunk these myths with data. The first and most aggressive myth around passive income is that it will not require any work whatsoever. That is not accurate at all. All financial endeavors require some work on some level, and for passive income to be successful, you have to pour a more eccentric upfront effort to earn money. It could be about devising a course that you want to sell online or finding the highest-paying savings account, whatever it is it will require some degree of work.

The second pervasive myth is that passive income is simply a buzzword created by financial gurus to woo the public. But in reality, it could become a handsome earning venture for you. You just have to be a creative and problem-solving person and you would see tons of opportunities and doors opening up for you.

Last but not least, another myth that is so intimately tethered with the idea of passive income is that it will allow you to make instant money almost overnight. That is not simply true. There are, of course, some passive income ideas that can generate a bit more as compared with others, but more often than not, it is not going to make you rich overnight. You would first be required to pour your heart and soul into it and only then can you see the miracles transpiring before your eyes. 

Best ideas to practice regarding passive income

Now that you have the foundational understanding of passive income, you are ready to think about ways you can attract money to you with the resources and talent you already have. 

1. Make your car work for your benefit
   1. Although it might sound a bit cliché, in reality, using your car for profit is a highly recommended passive income idea. Unlike becoming a driver yourself, you can hire someone else to do it for you. If you decide to outsource a driver, you need to make sure that they have an active driver’s license and a clean record before handing over your vehicle to them. Car driving agencies such as Uber and others require drivers to have a clean record. You can split the profit with them, or if you like, you can become the driver yourself. 
   2. Another way to make money with your vehicle is by renting your automobile out through companies such as Turo, Zipcar, and Just Share It. These ridesharing companies allow you to list your vehicle for other people to rent. 
2. Rent out a room in your house
   1. Have you considered renting out a spare guest room in your house or on your property? With services such as Airbnb and VRBO, tourists and people who are looking for accommodation can rent a space on your property daily, adding up a significant amount of money over the month. While you might feel a little uneasy leaving your space in the hands of people you barely know, don’t worry! Reliable companies such as Airbnb have insurance for that and would accommodate or reimburse you if something goes wrong. Additionally, you can check the rating of the renter online before letting them a room, just to be on the safe side. 
3. Invest in stocks that pay dividends
   1. Did you know some stocks pay their shareholders money, also known as dividends? Dividend yields might be the oldest and most high-functioning passive income idea there is! Depending on the company, dividend yields may be delivered at various frequencies, such as monthly, quarterly, or annual distributions. When you are ready to find companies that pay dividends, check out this article on Investopedia, which gives five ways to find companies that pay dividends. To summarize the article you can find companies that pay dividends by browsing financial news sites, brokerage accounts, and stock exchange websites. 
   2. One cool thing about dividends is you are getting paid two ways: long-term investments which will continue to grow in the market at about an 8-12% rate each year, and dividend yield which is often 2-5%. This way investors would not only get their hands on the shares of that company but would continue to make decent money too with each dividend-oriented payment landing your way. And the cherry on top is that if you want to go for a long-term investing strategy then think of reinvesting those dividends back into the stocks, this way you would have developed a circle that keeps on expanding and make available handsome returns your way. 
4. Affiliate marketing
   1. One of the most subtle ways of earning some side income and making it a consistent stream of revenue is via affiliate marketing. The best thing about this is that you don’t even require an initial deposit or investment at all. You simply sign up with these affiliate marketing projects and enterprises out there and start advertising their product and services on your social media channels. However, In order to be able to be successful in affiliate marketing, you must have a social media account with a strong following otherwise this won’t turn out to be a fruitful endeavor for you. 
5. Cash Back on credit cards
   1. Do you love swiping your credit card but hate seeing the month bill? By strategically choosing credit cards that offer cash back users can earn 1-8% back on their purchases. Imagine being paid to spend without taking on any extra responsibilities! Nerdwallet has a monthly report on credit cards offering cash back. Check out the February article here.