How many times have you thought of working a part-time job but your day job drained you out? Now, you can invest your time and money in these ways to make money while you sleep and increase your income. Read on for details.
Let’s face it; nobody can achieve the lifestyle of their dreams while working a 9-5 job. No matter how high your monthly remuneration is, it probably gets used up by the end of the month.
So what’s the key to becoming rich, and how do people increase their wealth? The answer is generating passive income.
While your day job gives you the value for the working hours you put in, passive streams generate income in your free time. That’s why these income streams are known as ways to make money while you sleep.
If you want to put every hour of your day to optimal use and earn enough money to sustain a luxurious lifestyle, you’re in the right place. I’ve listed down the potential ways to earn money while you sleep, along with a comprehensive guide to help you out.
So let’s dive in.
Table of Contents
What is Passive Income?
Before I start with my detailed guide about how to make money while you sleep, here’s an introduction to the concept of newbies.
Mainly, passive income is the revenue you make even when you’re not working for it actively. This means that along with your day job, you find another way to generate income so that you can save up for retirement, luxuries, and vacations.
You must’ve heard the popular saying by Warren Buffet, ‘if you don’t find a way to make money while you sleep, you’ll work until you die.’
However, generating a passive income doesn’t mean you’re earning by doing nothing. Even if you’re not actively working for your purpose, you have put in some resources initially that back the income stream.
There are two main ways you can establish a passive income stream, either by working for it or by investing money.
Once you put in the initial effort, your passive income stream won’t require your time as your day job does. And that’s how to earn money while you sleep.
Make Money While You Sleep – 4 Steps to Follow
At first glance, the thought of earning money while sleeping might sound unbelievable. Everyone knows you can’t get money without putting your time and effort unless you use dishonest means.
Well, making money while sleeping does require some initial hustle as well. So if you’re thinking of getting started today, don’t go straight to bed. Instead, follow these steps to create a passive income stream and earn money doing nothing.
Choose Your Investment
As I mentioned before, you’ll either have to invest your effort or money to start a passive income stream. So, first of all, you’ll have to devise your strategy to identify your strengths.
For example, if you want to invest your money, consider whether you have enough cash to go for a profitable investment option. Besides that, look for ways where you can invest money with the cash you have at hand.
Similarly, if you want to use your talent and time to create a passive income stream, assess your skill set. Do you have a skill others would pay to learn? Or do you have the talent to create lucrative products for sale?
Once you have selected whether you want to part with your money or some nights of sleep, you’re ready to choose from the options available.
Whatever you do, don’t jump into a passive income option without conducting thorough due diligence in the industry.
If you’re looking to invest your money, look for the areas with maximum growth opportunities that fit your budget as well. You can even hire a financial advisor or invest through apps like M1Finance or Robinhood for reliable options.
On the other hand, while creating a product, an online resource, or setting up a business, make sure you conduct market research, Find out what your target audience wants from your niche and strive to stand out of the crowd.
Maintain Your Income Stream
Once you start working on your passive income option and make money while you sleep, your next goal should be maintaining your endeavor. I’ve come across many lucrative websites, blogs, and even physical rental properties that do not deliver their potential value because of negligence.
To make sure your income stream generates a good cash flow, keep your eye on the market and upgrade your strategy accordingly.
Go for Growth
Remember, your passive income stream is your own business. If you work on your strategy properly and target long-term growth, you can even turn it into your primary source of income.
Eventually, you’ll earn all your money while sleeping peacefully. If that’s your end goal, make sure to choose an income stream you’re passionate about and work on it consistently.
10 Ways to Make Money While You Sleep
Now that you’ve been through my comprehensive guide, you’re probably ready to start working out your personal strategy to earn while sleeping. I’ve listed down some of the most lucrative ways to make passive income to help you out.
Some of these options require you to invest your time and effort, while for others, you’ll need to invest your hard-earned cash. I’ve included some details about each option so you can choose one according to your preference.
1. Go for the Stock Market
Buying and selling stocks is perhaps one of the easiest ways to make a passive income if you can save enough money every month. To minimize your risk, you should go for long-term trading rather than day-trading and generate a steady cash flow every month.
First of all, you will need to acquire some valuable stock. You can buy the stock at any time, but the trick is to choose a company that is speculated to rise in value.
Once the value goes up, you can sell the stock you bought for a low price, at a lower price. For example, if you have around $100,000 to invest, you can use the entire amount for buying stock.
After that, you’ll need to hold on to the stock until the price rises and sell it for, say, $200,000. This means you made a profit of $100,000 while sleeping.
I know what you’re thinking. What if you don’t have that kind of money to invest? Or you don’t have any knowledge about stock market fluctuations? That doesn’t mean you should give up on the idea of investing in stocks.
These apps help you select profitable investment options. Besides that, they thoroughly vet these options and even help you diversify your portfolio in the long run. Although they charge a small premium for their services, it is worth it if you want to mitigate your risk in the stock exchange market.
2. Invest In Real Estate
Real estate is one of the safest wealth-building investment options out there. If you have enough resources to acquire a profitable property, you can literally become rich overnight.
Besides that, the real estate sector has many sub-options you can choose from. These include rental properties, commercial properties, residential estates, and property flipping options.
These options require different amounts of investment and allow room for diversification to minimize your investment risk. However, not everyone can afford to invest in conventional real estate investment options.
In this case, you can go for real estate crowdfunding to benefit from the industry’s profitability with minimal investment. Mainly, crowdfunding works by collecting investments from multiple people to acquire a property they can’t afford alone.
After that, the organization works to divide the revenue from the properties among the investors. This way, you will earn monthly or annual dividends based on the amount you invest initially.
You can participate in crowdfunding options through REITs, or online crowdfunding websites.
While the government usually manages commercial REITs, online crowdfunding sites let you invest in private REITs and make money while you sleep.
3. Rent Your Stuff
Believe it or not, there aren’t many things that can make money while you sleep, which you already own. You can rent this stuff out for money and earn an income without any extra effort.
For example, you can rent that extra room in your home to tourists and earn a passive income through Airbnb. Especially if you live in major US cities which are always teeming with tourists, you can easily make $100-$500 every month.
If you travel to work, your car is probably parked in your office parking lot throughout the day. Why not earn money by renting it to
4. Earn Affiliate Income Through Your Blog
Affiliate income is probably the most lucrative way to make money while you sleep. All you need to do is advertise products for your partners and generate revenue whenever someone reaches the site or makes a purchase through your portal.
However, to successfully earn affiliate income, you’ll need to create a blog or a website with regular online traffic. There are many ways to make a monetizable blog, but it takes to research and hard work.
First of all, you’ll have to choose a blog niche. It can either be something you’re passionate about or a popular topic that everyone likes to read. After that, you’ll have to create some engaging content so that people visit your blog regularly and provide exposure to your affiliates.
Although it is a tedious process at the beginning, once your blog starts getting regular traffic, you can earn affiliate income easily in your sleep.
5. Create Online Informational Products
If you have a skill that others would pay to learn or are talented in a particular niche, you can create and sell an online informational resource. For example, let’s say you are an expert in content marketing.
Now, even if you’re already pursuing this career actively during your day job, you can use your profession to earn money while you sleep as well.
When it comes to online informational resources, there are many options you can choose from. You can write an e-book with all the information regarding your field, which might interest other readers.
Later, you can publish this book on sites like Amazon and earn money whenever someone buys it through the site. Besides that, you can compile your expertise into a resourceful online course.
To make sure your work stands out amongst others, try to incorporate practical activities and engaging visuals to entice your viewers.
6. Start Dropshipping
Let’s say you want to make money while you sleep, but you don’t have any money or a particular talent to monetize. So, what do you do? You start dropshipping.
Dropshipping does not require any initial effort or money; all you need is a keen eye for business. In this case, you market a product created by another person or company and get a commission for each product you sell.
What makes this a hassle-free, relaxing earning opportunity is that you don’t have to worry about the logistics. The original business will take care of the shipping, packaging, and manufacturing.
All you have to do is bring in potential buyers and place the order with the company. Although there are many dropshipping options available today, you can start with Amazon FBA to learn the ropes.
7. Earn Royalties
The first things that come to our minds when we think of royalties are books. However, you don’t necessarily have to write a book to earn royalties.
You can create all sorts of stuff, including music, photographs, and illustrations. After that, you sell these products to distribution companies who market them and sell them to consumers.
Every time a customer buys your product, the company will pay you a percentage of the price as a royalty. Although the process is quite profitable, it is not as easy as it seems.
Whether you’ve produced a book or any other piece of art, you’ll need to find a distributor who recognizes its value. But once you do, you can earn around 30%-70% in royalties every time your product is sold.
8.Lend Money to Others Using Peer-to-Peer Lending
If you have some extra money in your account which you’re not using, you can lend it to someone else and earn interest. The best part is, through peer-to-peer lending, you don’t need a huge amount of money to get started.
Most of the peer-to-peer lending platforms operate like crowdfunding investment organizations. They let you enter the lending system with any amount you wish to lend.
Besides that, even if you don’t qualify for traditional lending schemes from banks, you can easily qualify for peer-to-peer lending. You can look for profitable investment options and use your money to make more money while you sleep.
9. Participate in Physical Advertising
Another way to make money while you sleep is by letting companies advertise their ventures on your property. You can sell the extra space in your backyard or the space at the back of your car for colorful advertisements.
Depending on the potential exposure an advertisement will get through your property, the company will pay you monthly revenue. So, if you’re okay with driving a car with ads or putting up a billboard in your yard for money, this is the ideal option for you.
10. Open a High-Yield Account
A conventional savings account might help you earn some money through your savings; a high-yield account can help you make more money while you sleep. It works in the same way as conventional bank accounts, but it offers high-yield facilities for people who want to increase their wealth.
However, most of these accounts have high minimum balance levels as well, which you’ll have to maintain to keep the account running. But, you’ll earn high interest on your money while you sleep without any initial effort.
Conduct your research regarding the banks that offer this facility and compare the minimum balance limits for each one before deciding.
That concludes my list of the ways you can make money while you sleep. Remember, no matter how easy some of these options might sound, you cannot make money without some initial hustle.
The trick is to keep your end goal in mind at all times. Besides that, try to play with your strengths and use them to the optimum level to create a profitable income stream.
Follow these steps, and you will easily increase your income by earning while you sleep.
- How to Make Passive Income As a Photographer?
- Passive Income for Life Coaches – 10 Ways to Earn Residual Cash Flow
- Software Developer Passive Income Streams
- How to Earn Passive Income With REITs?