5 Ways to Earn $50,000 a Year in Passive Income

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Passive income is better than any side business because the money is for you and you don’t have to work for it. You’ll read about all kinds of ways to generate passive income, but most people make some extra money at best – selling photos, developing apps, writing ebooks, creating online courses, ETC.

They all have one thing in common: most require little or no up-front investment.

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But if you want to make some real money without exchanging labor for your income — say, $50,000 a year — you’re going to have to pay to play the game.

Here are some ways to generate substantial passive income. Most of these require a large cash investment; however, if you’ve been saving hard and investing wisely, you can make your money work for you, not your money.

Buy rental property online

Owning a rental property may be the most ideal form of passive income – but it’s not for everyone to find a property, screen tenants, perform maintenance and become a landlord.

A site like Doorvest handles all of this for you for a flat 10% fee.

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You tell them your ideal investment home and submit a fully refundable deposit, which puts you on a three- to four-week waiting list. When you book the perfect home, Doorvest buys it, renovates it, finds long-term tenants, and once you close, you own the home and start building assets and generating passive rental income.

Everything is guaranteed, and their average rental home sells for $225,000 with a $45,000 down payment. How quickly you can get to $50,000 depends on the value of your property and the rent you charge, but you can factor in appreciation and generous tax breaks as part of your long-term profits.

Launch your own fleet of small rental cars

P2P car-sharing company Turo lets anyone make money by renting out unused vehicles to people who want to rent them. Anyone who signs up can get $750,000 in liability insurance from Travelers, 24/7 customer service, roadside assistance for renters, and access to a customer base of 14 million people.

The average annual income for a car is $10,516—not bad by any means compared to most low-budget passive income pursuits. But if you really want to make it a business, Turo says the five cars generate an average of $52,579 a year.

They don’t have to be Ferraris; real people are doing it with real cars. A fleet of nine cars will earn you close to six figures.

Equity cryptocurrency

Investing in cryptocurrencies is volatile and risky — but the stakes don’t have to be. Staking is the process of locking cryptoassets in the blockchain associated with a token. Blockchains that use a proof-of-stake consensus mechanism (as opposed to traditional mining or proof-of-work) require staked tokens to confirm transactions, create new blocks, and perform other maintenance required to keep the blockchain healthy.

By staking your crypto assets, you agree to lock them up for a period of time in exchange for rewards and fees — much like locking your money in a savings bond or CD in exchange for interest payments.

There are many staking platforms. One of the best is OKX, which offers 15, 30, 60, 90, and 120-day staking opportunities for many top cryptocurrencies. The gains are enough to earn $50,000 in crypto whales in a year. Shiba Inu pays 12% for 90 days. Skale pays 42% for 15 days. Lingose ​​pays 62% for 15 days.

buy blog

Starting a blog is one of the most cited ways to start a side business and earn passive income. The problem is that few bloggers make money, and starting a blog doesn’t qualify as passive income. This is a lot of work, most of which is highly specialized.

On the other hand, a good blog can be a virtual ATM if you can buy a blog that is up, running, well-managed, and profitable.

Blogging and business marketplaces like Flippa give successful bloggers a place to make money by selling their sites to people like you who want passive income.

One of the many examples is a blog called Perfect Tech Reviews, which is now listed for sale for $85,000. It has 50,119 monthly page views and a 92% profit margin. The 2-year-old site generates passive net income of $4,374.04 per month – about $52,500 per year.

Buy the Goldilocks Dividend Stock Fund

Dividend stocks may be the easiest and most accessible route to a steady stream of passive income. On the lower, safer side, index fund ETFs track major indices like the S&P 500. According to Forbes, they typically pay a meager yield of around 1.5%, which means you’d need about $4 million to earn $50,000 in annual dividend payments.

On the flip side are enticing but dangerous stocks that offer huge yields of 14% or 15%. Such shareholder payouts are rarely sustainable and often leave investors with less returns than they started with.

In the middle, however, are what Forbes calls “Goldilocks” dividend stocks that yield 7% or 8%. At this level, a retiree with a $650,000 reserve could have a solid passive income stream of $50,000 per year.

Forbes features the Liberty All-Star Growth Fund (ASG), which is a mix of mid-cap and large-cap stocks. It’s consistently outperformed and has often boosted its payout ratio. It yielded 7.7% in 2019. Today, it exceeds 8.5%.

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This article originally appeared on GOBankingRates.com: 5 Ways to Earn $50,000 a Year in Passive Income

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