Passive Income Methods Worth Checking Out
Passive Income, two of the buzziest words of the past few years. Working from home has sparked an additional interest into finding unique ways to build wealth. I’ve somehow ended up on the financial side of TikTok and now see daily clips from investors and influencers peddling novel ways to increase your income. While I still stand by the phrase it takes money to make money, (investing certainly requires initial cash) I’ve taken up these content creators on their challenge and taken a stab at growing my money passively.
1. Investing in the Stock Market
The tried and true method of taking any spare cash you have, buying stocks, and seeing your money profit over time. Historically the stock market increases over several years so investing and watching your money grow long term is usually a safe bet. In the past year I’ve bought stocks that I believe have long term upsides (General Motors and Microvision have been two of my purchases). My investments have increased by 4.40% YTD. That rate of return is already higher than my CD’s so this has been a positive experience. I would recommend with the caveat that not every stock is like GME so make sure you are investing in the long term in order to elevate that passive income.
2. Certificates of Deposit
Certificates of Deposit or CD’s are another way to passively grow wealth. I’ve had numerous CD’s in the past 5 years at varying rates of success. The interest rates that you profit on depend on the federal government as well as the time period that you agree to have your money held. I’m a member of a credit union who offers numerous contract lengths. For example, I held funds in a 30 month CD and I earned a larger amount in interest than I did with my 3 month CD. Having your money inaccessible for a longer time is inconvenient, but if you can afford it it is worth the wait. This is another slow but steady way to earn income passively.
3. Scanning Receipts with Fetch
Fetch is an app that gives you credit for scanning your shopping and online receipts. The points or credits earned in the app can then be transferred into gift cards. The most popular gift cards are to retailers like Amazon or Target. Usually each receipt is worth 25 points which is the equivalent of 25 cents. I’ve been scanning all my receipts for 11 months and I've earned $12. This method will not make you rich quick, but instead of throwing your receipts away might as well earn a little something off of them. Scanning receipts is an easy action to accompany any other wealth building activities.
I recently began looking into passive income so don’t let lack of past experience or knowledge stop you from earning additional funds. There are a plethora of content creators and free resources online that outline the methods above and more in great detail. So start today, and happy earning income, (passively that is).