If you’re like most employees, the only way you think you can earn more money is by spending more time at the office. But with schedules that are already hectic, finding more hours in the day can be difficult, if not impossible. Luckily, you can increase your income without spending more of your precious time once you start earning mailbox money!
Before passive income became mainstream, it was often referred to as mailbox money. All you needed to do was walk to the mailbox to collect it!
Today, collecting mailbox money is even easier. Rather than hoping the check doesn’t get lost in the mail, you can receive it electronically!
To start receiving mailbox money, you first have to find a source of passive income that meets your investment criteria. Once you have, then you can buy it and watch as the money flows straight into your account!
Compared to earned income, making mailbox money isn’t as time-consuming. While it may require an upfront time investment, it will continue to pay you with limited ongoing effort. Because of it, you can make more money without spending more time. Besides that, there’s no limit to the amount of it you can make, either!
Warren Buffet once said, “If you don’t learn how to make money in your sleep, you’ll work until you die.” With that in mind, these 10 passive income ideas can help you earn mailbox money. With enough, you’ll be able to break free from your golden handcuffs and live the life of your dreams!
The most common way to passive income is by earning interest off your checking and savings accounts. While it’s an easy source of mailbox money, it’s far from the best. When you consider today’s low-interest rates and high inflation, it’s virtually impossible to earn a real rate of return on them!
Still, it’s a good idea to keep at least some money in the bank earning interest, like your rainy day savings and emergency fund. Other than that, it doesn’t make sense. Instead, you should find a better source of mailbox money if you’re going to achieve financial freedom anytime soon!
Other than people who live off-grid, you have to spend money to survive. Since you’re going to buy products, you might as well get paid and make some passive income along the way!
Today, many credit cards give cashback and other perks for simply swiping their card when you buy. Besides that, they may also offer you frequent flier miles, rewards points, and free money just for signing up!
The problem with credit cards is that many people don’t have the financial discipline to use them responsibly. Instead of collecting points on everyday purchases, they’re tempted to buy more and then pay for it later. As their lifestyle creeps, they start living beyond their means and racking up debt!
While this is a common situation for many Americans, it’s not the case for everyone. If you’re financially responsible, then paying with credit cards and earning mailbox money is a no-brainer!
Another easy way to start earning mailbox money is with dividend-paying stocks. By owning them, you’ll receive cash each time profits get distributed to shareholders!
Typically, these types of equity investments payout quarterly. The amount you receive depends on the number of shares you own and the company’s profitability. As the company earns more money, you’ll likely receive a larger payout!
However, not all companies pay dividends. Some prefer to reinvest their profits back into the business. They may spend on research or develop new products to increase earnings. In turn, this can lead to a higher share price and larger financial gains when it’s time for you to sell.
Regardless of your financial strategy, receiving dividends is an easy way to start earning passive income!
When money sits in the bank, it loses value due to inflation. Over time, your cash purchases fewer goods and becomes worth less and less. However, one way to combat inflation is by lending out your extra funds!
The most common way to lend money and earn passive income is through peer-to-peer lending sites. These platforms match people who have money to lend with those looking to borrow it. Once you’ve found the right opportunity and funded the loan, you’ll collect interest as it gets repaid!
Another way to earn passive income is by becoming a private or hard money lender. These types of loans get made to real estate investors who use the capital to fix and renovate a property. While they use your funds; you get to sit back, relax, and collect a check without doing any of the work!
However, it’s important to realize that there are risks when you lend money to people. For one reason or another, they may not be able to get a traditional bank loan. But, that doesn’t always mean that they’re not creditworthy, won’t pay, or don’t have sufficient collateral to keep your money safe.
Still, before you lend any money you need to do your research, perform due diligence, and understand the terms of the loan. In some cases, you may want to get help from a financial professional, too.
Today, one of the most popular ways to earn passive income is with real estate. Besides providing mailbox money, it also has tax advantages, high leverage, and principal paydown. Not to mention, the ability to scale!
Many busy professionals choose to invest in real estate because it can be a passive investment. With property management, you don’t have to be involved in the day to day operations. Instead, you can make more money without spending more time!
Some types of real estate investments allow you to be even more hands-off, too. Investing in real estate syndications or through crowdfunding platforms will require less of your time. Other than reading the occasional email update about your investment, there isn’t much else that you need to do!
Since the 1970s, the average home size in the US has more than doubled. Despite having more room than ever before, some people still don’t have enough space!
While not everyone is a tightwad with minimalistic tendencies, the majority of Americans are obsessed with stuff. So much so that some are at the point where their enormous houses are now jam-packed full of it. Rather than selling and earning extra cash, they continue to let their material possessions sit and collect dust!
If you have room, whether it’s a garage, shed, or closet; you can likely turn your extra space into extra cold hard cash!
REITs (Real Estate Investment Trusts) are another easy way that you can make mailbox money. Like dividend-paying stocks, they also distribute part of their profits. By law, they’re required to pay out 90% of their net earnings to shareholders as dividends.
Most REITs own and operate a large portfolio of commercial property. Some even specialize in a specific type of property as well, like office buildings, apartments, or hotels.
When you buy a REIT, you own multiple properties, not just one which reduces your risk. In addition to that, most of them are traded on public markets. So, if you get into a pinch and need to sell, your shares can easily be converted back into cash!
While REITs do have some advantages, they’re not as extensive as some of the other ways to invest in real estate. Usually, they don’t have as many tax benefits and your distributions get taxed at ordinary income rates.
However, for a hands-off investor, REITS can be profitable and an easy source of passive income!
Traditionally, the only way to earn royalty income was by creating some sort of a product. No matter if it was a book, song, or movie; it was time-consuming to make. On top of that, there were no guarantees that it would ever be successful, let alone profitable!
Today, you can buy royalties. Rather than working hard and taking a giant chance, you can purchase them with a good idea of the amount of money you’ll make. Not only that, but royalties also tend to be uncorrelated with stocks. So, if the market dives, it will likely have little to no bearing on the amount of royalty income that you receive!
If you’re like most people, you have extra stuff lying around your home or you have things you use just on occasion. Either way, you would benefit financially from renting them out!
Besides renting out your things to earn passive income, you may want to try out other people’s stuff, too. For instance, if there’s a new hobby or experience you’re interested in, then you could try it before you buy.
In addition, this would be helpful when you’re looking to purchase a big-ticket item, like a boat, RV, or car. Not only would you be able to take your time testing it out, but you’d be able to determine how much you enjoy it well before you’ve committed to owning it!
Believe it or not, some companies will pay to advertise on your car. Despite not being a Nascar driver, you can still earn passive income from wrapping your car and driving it around town!
While wrapping your car isn’t always fashionable, it can be an easy way to earn mailbox money. In fact, it may pay even better than actively driving for Uber or Lyft. Or if you’re already a rideshare driver, you may want to wrap your car to make even more money!
No matter your financial situation, you can increase your income by earning mailbox money. Besides requiring little time, it also diversifies your pay. Instead of being reliant on one source of income, it allows you to have several. And research shows that the more streams of income you have, the more likely you are to become successful with money!
How are you going to start earning mailbox money? Comment below.
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