Financial institutions
Bank deposits are probably the easiest option of passive income. It is enough to accumulate a certain amount and place it on a bank deposit to make a profit. Endowment or investment life insurance policies can also generate passive income. Life insurance companies often provide their clients with a dollar return that is many times higher than the bank interest.
Become an investor
You can receive dividends from securities every year, but for that you need to choose them correctly. Firstly, it is worth dwelling on preferred shares and not ordinary ones: dividends are always paid on the first, on the second - by decision of the board of directors. Secondly, you need to choose promising companies, which profits (and hence the size of dividends) are constantly growing. The meaning of mutual fund is that investor trusts the company's experts with their money, and they do everything possible to increase investments. However, the return on mutual funds, as well as most financial instruments, is not guaranteed. Therefore, it is important to choose a good fund, i. e. study the ratings, read the rules for entering and exiting the mutual fund and clarify all the details.
Cashback
Many banks offer a refund of some of the costs for goods and services. It is actually a discount provided after the purchasing in the form of crediting money or points. Different financial institutions provide different cashback programs.
Remote products
In addition to conventional ways of obtaining passive income, new types of it have recently appeared; which may require initial and active efforts but become an additional source of regular income in the future. You can create business where you will not be actively involved in time and live on dividends from it, for example, open an online school with recorded courses and occasionally hold webinars on it. You can live on royalties, patent payments, etc.
Rubbish disposal
If you sell something unnecessary, you can also get a passive income. By selling a second pair of red shoes that are gathering dust in closets you will free up space in the room and replenish the family budget.
Photos are from open sources.
