5 Passive Income Streams You Need To Add in 2024, According to Experts
Passive income is money not derived from active involvement such as a salary — and, if you want to get steady income streams, these are the way to go. While these may require some initial investments, whether it’s time or money, once you get started with them, you generally can sit back and relax.
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You can get started by identifying your skills and interests, which can guide your choice of income stream. While experts say this endeavor requires patience and effort, they also say they are worth it in the long run.
Here are some passive income streams worth looking at and adding in 2024, according to experts.
Dividend Stocks
Dividend stocks are a foundation of any passive revenue portfolio, said Erika Kullberg, personal finance expert and founder of Erika.com.
“Many companies pay out solid dividends on a regular basis,” she said, “and investing in them allows you to set up a stream of income that should compound over time if you reinvest it. It’s passive income — and then some.”
Read More: Tony Robbins’ 10 Passive Income Ideas To Build Your Fortune
Real Estate Investment Trusts
REITS are another way to gain access to an asset class — in this case, real estate — that you might not want to manage on your own, Kullberg said.
“REITs are a type of company, and they pay out most of their taxable income in the form of a dividend to their shareholders,” she said, adding that many specialize in stable sectors such as commercial, residential or healthcare properties, making them an excellent addition to a diversified portfolio.
Digital Creation
This continues to blossom in offering avenues toward passive income.
For instance, writing an e-book, creating an online course or shooting stock photography are all great ways to convert your skill and your creativity into passive income, Kullberg said.
“Once you’ve done the work to get the product created and have distribution automated,” she said, “those items can sell over and over again, virtually without having to do anything for it once the work is done up front.”
According to her, it’s a great approach because you’re leveraging an existing skill with low overhead.
What’s more, with these passive side hustles, you don’t need much to get started — and this type of work can be leveraged across multiple platforms.
Work With Resale Platforms
If you are a Gen Zer, you can genuinely earn from different resale platforms, according to Md Faruk Khan, founder and CEO of digital marketing company mdfarukkhan.com.
“ThredUp Resale Report studied that one in three Gen Z is interested in purchasing secondhand clothes and tools,” he said. “So, you can declutter your closet and earn money from clothes you no longer wear. Many online marketplaces offer opportunities to find high-quality pre-owned items for resale at a profit.”
Another advantage: Resale platforms offer flexible working hours, so you can manage it alongside your studies and other commitments, Khan added.
Print-on-Demand (POD) store
This is also a great way to derive passive income. As Khan noted, you can design, upload, sell and earn through your artwork and designs on several platforms, such Redbubble or Printify.
These also let you work with a variety of products, including T-shirts and mugs.
“The best part: You can do it without managing inventory or fulfillment,” he said. “Platforms handle printing and shipping, while you earn a commission on each sale. It is a low-risk and low-investment way to tap into the growing demand for custom merchandise.”
Ryan Hogue, 34, recently told CNBC that this has become his favorite way to derive passive income, which he started with a $0 and which has enabled him to leave his day job. He uses Amazon Merch, Etsy and Printful to sell his designs.
“The only cost associated with Etsy is a $0.20 fee to create a product listing; and, if you use an invite link to begin selling on Etsy, you can get 40 free listings,” he said. “I use a company called Printful to fulfill the orders. Printful has a direct integration, which allows them to automatically fulfill orders and notify customers when they’re shipped out.”
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