3 Ways To Make Money While You Sleep
And, no, this isn’t a dream.
At the ripe age of 41, we landed upon a life-changing report: The wealthiest Americans (that is, the top 0.1 percent, or those earning $3.4 million) earn more than half of their money from passive income. They’re earning it via interest, capital gains and dividends. Only 25 percent of their income comes from wages and benefits. As a comparison, nearly every other income group works actively for their wages, their salaries and their benefits — not passively.
So, shouldn’t we all be earning passive income? (The answer is yes.) There are many ways to earn money in your sleep. Here are some suggestions.
Choose any product or service you like, and create a continuous ad on social media channels like Facebook or Instagram, says Eva Keller, a blogger with Discovering Hidden Gems who has done this. Don’t want to spend any money to get started? Create Pinterest pins on Canva to promote your affiliate link. If you feel like putting in a little more effort, you can post on social media about the links. “Once you set this system into place, you’ll wake up in the morning to emails saying, ‘Congratulations, you’ve made a sale,’ ” Keller says.
How to do it: Once you’ve chosen your brand or company that you love, search their website for an affiliate program. Sometimes it’s listed at the bottom, and other times you’ll have to search for keywords — including “media,” “work with us” or “press.” If you don’t see it, Keller suggests emailing the media relations contact. Once you apply and are approved you will have an account you log in to that will have your affiliate link, and you will be tracked automatically. Copy and paste your link anywhere and everywhere to get sales. Boost your sales via Facebook and Instagram. They have an advertisement system where you get to choose your own budget, Keller says. The minimum is $1 per day, which she recommends. You can run as few or as many ads as you like.
Passive income earned: Every company or brand’s affiliate program has different rates that are set dollar amounts or percentages. For example, Keller is an affiliate for a brand that offers online blogging courses ranging from $100 to $1,000. She makes a 33 percent commission on every sale.
Fractional ownership in real estate
Want to own a rental property but don’t want to deal with the hassle of the renters, the rental management or the repairs? There are fractional ownership platforms such as Hurston and Rally that allow anyone to invest with them. “A key feature of fractional ownership is it gives investors the ability to own rental properties without the time-consuming burden of managing tenants and maintenance and repairs,” says Ly Nguyen, cofounder of the real estate investing platform Hurston. If you invest, you receive all the upsides of owning a rental property, including quarterly cash distributions of the property’s net rental income after expenses and appreciation. The investors also receive the same tax benefits that direct property owners receive, including depreciation and expense deductions.
How to do it: Look online for a fractional real estate company. Contact them to learn more about their minimum investments and their investment history. It’s similar to buying stocks.
Passive income earned: This varies from company to company and investment to investment. Hurston properties’ cap rate varies between 5 percent and12 percent, and annualized return varies from 10 percent to 18 percent. Properties with strong appreciation (higher annualized returns) usually have a lower cap rate (cash yield from rental income). For example, if an investor invests $1,000 in the Stone Mountain house (a specific Hurston property), they will receive a 5.5 percent return in the first year, and the annualized return is expected to be 14 percent when the company sells the property in about five years. Investors who want a higher immediate cash yield could choose the Fultondale house (another Hurston property) to receive a 7 percent return in year one and an 11.7 percent annualized return overall.
Rent out your car
Not using your car 24/7? There are apps such as Turo and Getaround that help you rent it almost like an Airbnb — but for cars. Eugene Romberg, from “We Buy Houses in Bay Area,” does this all the time through Turo. “The pros of renting your car out: Extra money in your pocket, and making use of something you don’t need every day,” Romberg says. “The cons of renting your car out: If you need it all of a sudden, it won’t be there for you on certain days; and people will make your car dirty somehow, no matter how much you charge for cleaning if an accident happens.”
How to do it: Pop your car up on one of the car-sharing apps. Choose the protection plan that fits your needs. For example, on Turo every plan comes with up to $750,000 in third-party liability insurance from Liberty Mutual — but you can opt for extra protection, including reimbursement for car repairs, etc.
Passive income earned: This depends on your car and the package you choose. Here’s an example: On Turo, if you have a 2018 Acura ILX, they suggest renting it for $52. If you rent this for 13.6 days per month you’ll earn $36 per day, or about $490 per month.