6 Best Passive Income Streams For Beginners

It would be great if we could buy a large hotel and start collecting income every month from travelling visitors staying in our lodgings. How about owning a million dollars in a divided stock that funnels cash into your account regularly?

These are both great ideas, but they are financial strategies for those with the capital and the investment savvy to do so. As with everything, you need to learn to walk before you can run and make money is no different.

If you are looking for ways to get started and want to create a side hustle that brings in money, requiring only minimal labour to earn, read on. These are the best passive income streams for beginners.

1. Renting Out Your Parking Spot

This may seem like a weak investment, but parking is a premium in large cities, and your spot is a true commodity.

If you own a condo, house or commercial property with available parking that you don’t use, why not turn it into steady money? This can be done by renting it out to a tenant every month or offering it on demand using a parking app. Long-term renting is also an option for boats, RVs, motorcycles or commercial vehicles.

The more space you have, the better. Even a vacant or rural property can be a place to sell out storage space for larger vehicles.

2. Mortgage Investment

How about putting money out for someone else’s investments? You can become a mortgage lender, and those who wish to borrow to make a residential or business purchase can use your capital to fund it.

Mortgage investments are a good form of passive income. While it may seem lucrative to be a solo lender, you take on all the risk. It is much wiser, especially as a beginner, to invest in a mortgage investment fund where you pool money with other lenders to fund private mortgages. This is a wise way to diversify your investments and provide a steady income stream while being part of several tangible assets. It also provides security in the form of a real estate asset to which the loan is secured, so you can recover your investment should the borrower default.

These are some of the best passive income streams for beginners, and you can get involved immediately. You will continue to get a steady income without trading time for it, which is how to succeed.

3. Real Estate

Just because you are starting with investing doesn’t mean you don’t already have your own home. You can earn a steady income from renting a room or an entire home floor.

Rental properties can also give you a steady cash flow, and if you can use that money to buy additional units or homes, you can build a mass of landholdings to rent out. This can be residential or commercial for long-term or short-term rentals like Airbnb.

4. Renting out Equipment and Other Personal items

There is always a need for tools, small appliances and even vehicles; some people can’t afford to buy them. It is easier to rent them for short-term use, and you can make money quickly. You could rent out:

• Power tools
• Mountain bikes
• Kayaks
• Fishing gear
• Moving truck
• Electric bike
• Trailer
• Audio/video equipment

You must ensure your items are in good working order to have satisfied customers who return.

5. Invest In Dividend Stocks

This is an easy way to get into investments, and you can start with a small amount of money. Stocks are shares in a company that you can buy, but dividend stocks pay a portion of their profits to shareholders.

You get regular payouts on a monthly, quarterly or annual basis as the company is profitable, and these cash payments don’t require you to do anything to get them other than the original investment. These companies may also pay a stock dividend, which means you acquire more stock.

6. Youtube Channel

Every possible market you can think of seems saturated, and YouTube is no different. It can seem daunting to start a channel to make money. In truth, initially, it takes time and a big commitment, but you can produce steady content for very little money.

Once you reach the monetization threshold, you start earning money from the ads on your channel with every video you post, a one-and-done scenario, and they can take a viral life of their own. Study your analytics closely to see what is popular and focus on producing more content.