23 Passive Income Ideas You Can Start Today

The knowledge on how to create wealth through passive income is now understandable, particularly if you are worried about how to save sufficient money in order to meet your desired goals. However, even though so many people have this understanding, there are still some who do not have enough ideas for making passive income.

 

Has a nice ring to it, doesn’t it?

After reading books like Rich Dad Poor Dad and 4 Hour Work Week, I became interested obsessed with making passive income.passive income ideas

Whenever someone needs additional income, the stereotypical suggestion offered is to “get a part-time job.”

But what if you don’t have the time or energy to put in all those extra hours?

I know I didn’t.  Plus that wasn’t as appealing as making money while I was trading time for money.

For that, you may need some passive income ideas – ways to make money with little investment of time and effort on your part. And a great benefit to this is if you are trying to pay off debt quickly, this is a huge help to that!

Here’s a list of quite a few passive income ideas, so it’s likely that you’ll be able to find at least two or three that will work in your situation.

1. Invest in Lending Club.

There is probably no passive income that is more perfect than earning interest on safe investments, such as U.S. Treasury securities and bank certificates of deposit. The problem of course is that those instruments pay paltry returns – generally less than 1%. It may be passive income at its finest, but you’ll never be able to relax or retire on returns that are that low.

That makes now the perfect time to talk about Lending Club. It is a web-based peer-to-peer lending platform where people come to get loans, and investors – looking for high interest opportunities – provide the funds for those loans.

Lending Club provides an opportunity to earn interest rates in excess of 10% per year – which is about 10 times what you will earn on more conventional interest-bearing investments.

Now let’s be clear on one point: those high rates do come at a cost. Unlike bank investments, Lending Club loans can go bad, in which case you will lose principal. However, there are ways to minimize those potential losses. I talked to a LendingClub adviser and they recommend starting out with an initial deposit of $2500.  Since you can invest as little as $25 in a single loan, you can actually buy into 100 different loans with a deposit of that level.  So you don’t have to worry about a single loan going bad and ruining your investment.

Despite the risk of default, it’s very likely that you will earn far more on your investments at Lending Club than you will at a bank and I have averages just under 9% during the eight years I have been investing with them. Investing larger sums of money in different ways can be beneficial, whether it be where to invest 10Kor where to invest 100K, we can help you get a better understanding of how to invest your money.

2. Get cash-back rewards on credit cards.

If you’re already using credit for some of your purchases, pursuing credit card rewards is an absolute no-brainer. Most top rewards cards let you earn anywhere from 1-5% back on your money, and that’s with almost no effort on your part!

If you’re already using credit for convenience, you can also earn a huge sum of cash in the form of a signup bonus. The Chase Sapphire Preferred® card offers one of the best opportunities out there. After spending just $4,000 on the card in 90 days, you’ll earn 50,000 points worth $500.  On top of that, if you add your spouse as an approved user, you score an extra 5,000 points.  That works out to 59,000 points for just $4,000 of spending you were going to do anyway.

 

Read more: http://www.goodfinancialcents.com/passive-income-ideas/

How changing one tiny habit allowed me to build my wealth

Many people want to manifest more money and have a certain lifestyle. We want to  achieve the wealth and lifestyle that we really want but it takes a step at a time to reach it.

Making savings automatic can help you override the part of your brain that makes poor decisions.

In my teens and early 20s, social anxiety was wrecking my life.

I couldn’t go out and feel comfortable around people without drinking, so I drank.

Now, alcohol can lead to a lot of cool stuff, but for me it was a crutch and I needed help.

So one day I drove to Barnes and Noble (this was before Amazon was a thing) with a plan to casually stumble into the self-help section.

“Oh, what’s this section all about? Interesting …”

I scanned the shelves super fast, worried I’d bump into someone I knew and have to explain why I was looking through a book with some embarrassing title. I picked one out, and went to check out.

When I slid the book across the counter all my nervousness came to a head and I had a panic attack.

It turns out changing yourself is really, really hard. Did I read that one book and was cured? No, I read more books, went to therapists,

and attended a 12-step group. The process was like peeling an onion where I had to keep taking off layers until I got to the core, and only from there could I rebuild myself.

And what I learned was implementing new tiny habits into my life ultimately lead to the change I wanted. Here, let me show you one of them.

Google Calendar Mr Everyday Dollar ScreenshotMr. Everyday Dollar

I’d send myself this automated email every day at 8:00 a.m., so when I checked my inbox first thing in the morning, I’d see it. It reminded me to say “Hi” to everyone (at work, on the street, in the gym).

This is completely insane, right? You’d think so, but what I discovered was that by “going first” I began to build my social confidence. When this tiny habit became automatic, meaning I just did it without thinking, then I created another tiny habit, and so on.

You might find implementing one tiny habit gets you pretty far. But what if you made it a practice to do it throughout your life? One day you’ll look back and realize you’ve actually changed, even when you thought it was impossible.

Because when I look back at that kid having a panic attack because he’s buying a self-help book, it’s almost laughable. It’s like I’m looking at someone I don’t even know. (And I love buying self-help books now, here’s the top five I read last year).

Now, I’m not the only one who knows power of tiny habits. I was reading this Quora thread, and was fascinated that by implementing just a few tiny habits a day — drinking water, smiling during his commute, and meditating for 10 minutes — one guy completely changed his life. (I stole his “Never been better,” response to “How are you?”)

The one tiny habit that leads to wealth

Before I get to the one tiny habit that leads to wealth, I want to tell you about an economic term called hyperbolic discounting. In simple terms it

 

Read more: http://time.com/money/4292023/biggest-mistake-made-fix-credit/