12 Things You Must Do to Start Making $1K a Month in Passive Income

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With the rising cost of living, inflation, and other challenging economic conditions, getting extra income could help you build a reliable financial cushion and achieve your financial goals. Creating a passive income strategy is an excellent way to earn more money and meet your financial obligations.

These are some of the best ways to earn passive income. While some of these ideas look simple, they require hard work and an understanding of the potential risks and returns.  Be prudent, determine what opportunities resonate with you, and develop a long-term plan to ensure sustainability.

Here are 13 things you can do to make $1k monthly in passive income.

Diversify Your Income Streams

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Relying on one income can be risky. It can expose you to unexpected events like a sudden layoff, market fluctuations, or changes in preferences. Building other income streams reduces these risks and provides new financial stability and growth opportunities. If you are employed, consider other income-generating activities aligning with your passion and goals.

Build a High-Traffic Website

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Starting a high-traffic website can help you generate an extra $1k monthly. The more traffic you attract to your site, the higher your chances of monetizing things like ads on your site.  You can display ads on your site from ad networks or sell ad space to businesses that provide services your clients need outside your offer.

Venture Into Affiliate Marketing

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Have you ever come across a blog post on where to visit while in Paris and end up clicking on a link to the cheapest flights to Paris? That is affiliate marketing. You can earn passive income by selling affiliate links on your website, blog, or social media platforms.

Multiple companies offer affiliate programs in different niches. Find a niche you are familiar with and check out the available affiliate programs. Companies will list their affiliate program links on their sites, while you must request a link for others.

Invest in Real Estate Investment Trusts

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You can generate passive income without investing in rental properties. REITS or real estate investment trusts allow you to earn passive income through income-generating real estate assets. With REITs, you don’t have to own or manage property.

You only need to invest by buying shares in different properties. Extra income is earned through capital gains when shares are sold, in the form of dividends, or tax advantages of owning real estate without managing properties or dealing with the legalities of direct property ownership. REITs provide greater flexibility and minimal effort as a passive income option.

Create and Sell Digital Products

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You can also make passive income from creating and selling digital products like software, product templates, educational downloads, digital images, ebooks, and more. Think about some items that you know, and conduct market research to determine the demand before identifying your target audience and buyer personas.

Create a marketing plan and think of where to sell your digital products in stores like Etsy, Shopify, Teachable, Podia, etc.

Invest in Index Funds

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Investing in index funds is a great passive income idea if you’re looking for lower turnover rates and management costs. You can earn dividends annually at 10%, depending on where you invest, compared to actively managed mutual funds.

Start a YouTube Channel

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While YouTube might seem crowded, it’s never too late to start your channel. You’ll have to work hard at the beginning, but over time your efforts will have great returns. Once you attain a certain number of views and subscriptions, you can attract branded integrations, sponsorships, affiliate sales, ad income, and other passive income-generating opportunities.

Invest in Dividend-Paying Stocks

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Investing in the stock market requires patience and resilience. Mastering the complexities of the stock market might take time, but it’s an excellent way to generate passive income, especially in the long term. The trick is to diversify your portfolio and invest in different funds to reduce risk and earn capital gains.

Build an App

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Creating no-code apps is another way to generate passive income in your free time. You can use platforms like Bubble or Appy Pie to create basic to advanced mobile apps. Identify a niche for your app and the problem you intend to solve. With an app, you can earn passive income by having a marketplace model, and paying for downloads, ads, or subscriptions.

Create an Online Course

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Research shows that the global massive open online courses market will grow by $16 billion by 2025.  That shows the demand for online courses, with more people looking for convenient and flexible learning options.

Create an online course if you have a specific skill or niche that you can share with others.  You can start by being an online instructor on online course marketplaces, and as you grow, you can venture into other platforms. Alternatively, you can host your courses on your website.

Consider Peer-To-Peer Lending

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If you’re more risk-averse and don’t mind investing in a money lending business, you should consider venturing into peer-to-peer lending.  Companies like Lending Club and Prosper match you to potential borrowers vetted for their creditworthiness. You can earn as much as 5% or more through peer-to-peer lending.

Start a Subscription Service

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You can earn a passive income with a subscription service. With this type of business model, you generate passive income by selling a product/service regularly. Your business can provide access to exclusive courses, videos, or content that people cannot access easily online.

Simply find a niche, create useful content, and find a platform likeWooCommerce, Patreon, or Memberful to sell your subscription services.

7 Frugal Habits of Millionaires

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Most people think millionaires aren’t all frugal, but did they ever stop to wonder how millionaires got so rich in the first place?

Maybe, just maybe, they started out with modest, frugal lifestyles to get to their millionaire status. Here are some ways in which millionaires lead their lives to live up to their millionaire rankings.

7 Frugal Habits of Millionaires

I’m Frugal: Here Are My Top 30 Frugal Living Tips to Save Money

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I’m super frugal, and one of my passions is sharing my frugal living tips with everyone.

Here are some of my absolute favorite frugal tips to help you get started on your journey to frugal living.

I’m Frugal: Here Are My Top 30 Frugal Living Tips to Save Money

15 Things That Are No Longer Worth It Because of How Expensive They Have Become

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Everything comes with a hefty price tag these days. From indulgences to essentials, the cost of living keeps rising. We used to consider certain items affordable options, but now they’ve become so expensive that they’re no longer worth it. Here are 15 things that have lost their affordability and make us wonder if they are worth it!

15 Things That Are No Longer Worth It Because of How Expensive They Have Become

28 Practical Ways Frugal People Save Lots of Money

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Saving money doesn’t have to mean saying goodbye to life’s little indulgences. With a few smart tweaks, you can stash away cash for that dream vacation, rainy day fund, or splurge-worthy purchase without feeling like you’re on a constant budget patrol.

Think of it as a side hustle that pays off without the extra hours. Whether you’re looking to conquer debt or simply boost your bank account, these tips are guaranteed to put more money in your pocket, painlessly.

28 Practical Ways Frugal People Save Lots of Money

14 Ridiculously Random Tips That Could Save You Lots Money

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Want to save some money? There are so many ways to save money that are published in articles all day, every day.

It can be tiring to sort through them and find the ones that work for you, so we decided to scour the internet and find some of the best ones to share with you. But we couldn’t decide which ones to share with you, so we just decided to share the ones we liked, which means that these are pretty random!

14 Ridiculously Random Tips That Could Save You Lots Money

 

 

 

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