How To Make Money While You Sleep: Passive Income Ideas That Work
Written by
Laura Bogart
Edited by
Kristen Mae
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Once your head hits the pillow at night and you drift off to dreamland, images of money might fill your mind. Perhaps you dream of jumping into a swimming pool of money à la Scrooge McDuck. Or maybe you imagine getting ready for the big Forbes photoshoot announcing you as one of the world’s wealthiest people.
While at least one of these dreams may have to remain in the realm of fantasy — filling a pool with coins seems like a fast way to oxidize them — there’s no reason you can’t earn money while you sleep. That’s right, if you set up the right income streams, you could wake up to a thicker bank account.
GOBankingRates investigated some of the simplest ways to earn that extra cash while you catch your Z’s.
Invest in Dividend Stocks
One of the easiest ways to rake in the cash while sleeping is through dividend stocks. These stocks distribute part of the organization’s earnings to you and your fellow investors on a regular basis, usually every quarter.
When searching for a good dividend stock, look for companies with a history of increasing payouts over time. Savvy investors often look to mutual funds or exchange-traded funds (ETFs) that hold dividend-paying companies across a variety of industries to help build a diversified portfolio.
Rent Out Your Car
If you’re more of a daytime sleeper or you know you’ll be in for the night, consider renting out your car through apps like Turo or Getaround. These platforms let you lend your vehicle to everyday people who need a ride for a few hours or a day.
Open to renting out your car for a longer period? HyreCar connects vehicle owners with rideshare drivers looking for a modern-day chariot to ferry around passengers.
Open a High-Yield Savings Account
Starting a high-yield savings account is one of the safest ways to earn a passive income. While it won’t exactly make you wealthy overnight, it does provide steady interest earnings, allowing you to grow the money you may already have set aside for emergencies or savings.
Some leading high-yield savings accounts offer annual percentage yields (APYs) upwards of 4.50%, though rates can vary depending on market conditions.
Rent Out Properties
Do you have a passion for real estate or a curiosity about fixing up properties to rent to tenants? With the proper experience and knowledge, you can buy a home and rent it out as a long-term residence or list it as a short-term rental on Airbnb or similar platforms.
Of course, you’ll want to be aware of the challenges, including property maintenance, tenant screening, mortgage payments and taxes. Selecting properties in high-demand rental markets can increase your chances of earning a steady income.
Operate a Vending Machine
Every time you grab a candy bar or a soda from a vending machine, you might be helping someone just like you get a little bit richer.
Purchasing and operating vending machines can be a profitable venture if you place them in high-traffic areas like schools, offices, or shopping centers. Yes, you’ll have to pony up some cash at first to purchase the machine; however, successful operators can potentially earn hundreds of dollars per month.
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