5 ways to earn over $ 2,500 a month in passive income
- As a solopreneur, I can earn money for a limited number of hours. Passive income is therefore essential.
- I earn passive income from cash back rewards and invest in small businesses.
- I also do peer-to-peer lending and offer print-on-demand products on my website.
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One of my biggest financial obsessions is how to earn more passive income each month. As a solopreneur, I only have a certain number of hours in the day to work and generate income. With passive income streams, I can collect cash payments each month that can be used to pay off debt, fund my retirement account, and give my savings account a big boost.
I’ve been earning passive income for five years now in a variety of ways, from selling digital courses to investing my money in high yield savings accounts. Recently I’ve added a few new ways to position my money to actively work for me and generate returns on a monthly basis. Here are five ways to earn over $ 2,500 in passive income each month.
1. Cash back
An easy way to generate passive income lately is by using credit cards and cash back websites.
I decided to get a cash back credit card to use for my daily purchases. I get 3% unlimited cash back on meals, entertainment, streaming subscriptions, and groceries. I usually find myself getting around $ 30 to $ 50 per month in cash using this card.
I also use cash back websites like Rakuten and TopCashBack for online shopping. All you do is shop on their portals, and when you buy an item from a store, you can get 1% to 30% cash back.
2. Invest in small businesses
As a small business owner, I wanted to find a way to invest in other entrepreneurs and generate passive income as their businesses start to take off and turn a profit. I have decided to invest a small percentage of my income each month in companies that agree to share a percentage of their future income until this investment pays off.
While my monthly passive income from this route will increase over time, it has enabled me to become a business investor for the very first time. If you’re interested, you can start with a small amount (even $ 100) and do it through a platform like Main vest.
3. Peer-to-peer loan
Another way I decided to diversify my investment portfolio and generate passive income was through peer-to-peer lending. This is when you lend money to borrowers who might not qualify for traditional loans.
Since I have just started I use a website called Peer Street, which allows you to lend capital to mortgage borrowers. They then pay monthly interest on those loans and I get a share of those payments.
4. Goods printed on demand
I decided to create a product for my business that would generate passive income and not take a lot of my time. I did this by selling print on demand products.
After designing hats and t-shirts and listing those items on my website, every time someone went to buy an item, the print-on-demand store would print it out and send it to them. I don’t have to think about making the product, mailing it, or even handling refunds.
If you have a current business or brand, you can set it up by designing the item for free using Cloth, then host it on a website like Amazon Merch or Printful, where they take care of the details after the purchase is made.
5. Sell ads
After years of building my platform (social media subscribers and email subscribers), I have decided to generate passive income from the people who consume the content I create for my various businesses and brands. Every month I sell ad space for people to market their businesses on my newsletter and podcast. I choose the brands that I think my audience will enjoy hearing and I will get paid through a one-time payment. This is different from an affiliate model where you get paid based on the number of people who buy a product.
This generates almost $ 1,000 per month in passive income for my business. If you want to start doing that, create a media kit that describes your platforms and metrics. Then contact the brands with your media kit and feature them on advertising on your social media, blog, newsletter or podcast.