Passive income ideas are among the most popular topics discussed on blogs and in forums, because they’re often viewed as one of the best ways to build long-term wealth. By definition, passive income refers to any money you earn that comes in without any work on your part; this means you can build wealth by investing in real estate, starting an online business or holding multiple streams of income at once, depending on what you’re more comfortable with and what fits your goals the best. As you plan for the year ahead and want to start building wealth quicker, these 10 passive income ideas will help get you started!

1) Rental Properties

Buying a rental property can be a great way to build wealth. You don’t have to deal with the hassle of running your own business, and you’ll still make money from it. Plus, if you’re looking for a passive income idea, this is one of the best ways to make money without having to work. Not only will you be able to collect rent from your tenants, but you’ll also get tax breaks as well.

2) REITs

REITs, or real estate investment trusts, are stocks that represent a share in the ownership of a company that invests and operates in real estate. For investors, they offer the potential to generate an income stream through rental incomes and dividends.

3) Dividend Stocks

Dividend stocks are a great way to build wealth because you get paid for the shares of a company that you own. Some companies have been paying out dividends for decades and are still going strong, which is an incredible feat in today’s day and age. Dividends can be reinvested or taken as cash, so they’re perfect for anyone who wants to live off their income from investments.

4) Bonds

Bonds are a type of fixed-income investment. When you buy a bond, you are lending money to an organization or government that issues the bond. The issuer agrees to pay you interest (as well as the original amount) at regular intervals and repay your principal at maturity. You can purchase bonds with different maturities, so some will have higher risks and higher yields than others.

5) Savings Accounts

Savings accounts are a great way to start building wealth. They are low-risk investments that offer high rates of return. You can open a savings account at any bank and they are federally insured up to $250,000 per depositor by the FDIC.

6) CDs

CDs are a good investment if you don’t want to mess with the stock market. The downside is that they have a relatively low rate of return and can only be traded once or twice before they lose their value. However, CDs can be a great way to supplement your income with some passive income.

7) Peer-to-Peer Lending

Peer-to-peer lending is one of the most popular passive income ideas. It involves loaning money to individuals or businesses through an online platform. LendingClub and Prosper are two of the largest P2P lending platforms in the U.S., but there are many more to explore. A lot of peer-to-peer lenders rely on social media like Facebook, Twitter and LinkedIn to find potential borrowers who offer compelling personal stories that might resonate with investors on a deep emotional level.

8) Microsavings

Microsavings are small contributions of money (usually $5 or less) that are automatically deducted from your paycheck and deposited into a savings account. The money adds up, and the best part is that you don’t have to lift a finger.

9) Affiliate Marketing

Affiliate marketing is one of the most popular ways to earn a passive income. For example, you can create a blog and get paid to promote other people’s products on your site. As long as people are viewing your content, you’ll make money. Another option is to build a website or an app and then put ads on it. The longer people stay on your site, the more money you’ll make.

10) Digital Products

• Create a course for something you are knowledgable about and passionate about. Teaching others how to do what you do is a great way to share your knowledge with the world and make money from it. If you’re not sure where to start, check out Udemy for tips on creating and marketing your own online courses.
• Create an app or game that people will want to buy or use again and again in order to earn some passive income while they work on something else.