For most people, we dream of making money while we sleep, and it's completely possible.
No matter what your financial goals are, making money while you sleep should be a priority so that you can gain financial freedom and live life on your own terms.
In this post, I'll explore some of the best ways to make money while you sleep, how much money you can make, and much more. Let's get started!
- Aspiration Bank: Get $150 completely free when you open a new bank account with Aspiration Bank. With no fees and an easy to use app – it's perfect for everyone!
- InboxDollars: Get paid to take surveys, watch videos, shop online, and much more. Claim your free $5 here!
- Nielsen Panel: Get $50 when you download the software on your device. Earn free gift cards and more. Sign up here!
- Acorns: Get $10 completely free to invest when you open a new account. Start investing today!
Ways to Make Money While You Sleep
Below are some of my top ways to generate passive income and make money while you sleep. While not every idea is suited for each person, there's sure to be something on the list for you.
Earn Passive Income With Stocks
Making money while you sleep is easy when you invest in stocks and it's super simple to get started.
You might be thinking that you need to be rich to invest in the stock market, but that's completely false.
In fact, with the Acorns app you can start investing in the stock market with as little as $5. And when you use the link below you'll get a free $10 to invest!
With the rise of micro investing apps, purchasing stocks, index funds, and other investments is a breeze.
To generate passive income with the stock market you'll need to deposit money into your brokerage account like Acorns. Once your deposit clears, you can purchase your favorite investments and start generating income directly from them over time.
Many wealthy investors prefer to invest in the stock market because of how reliable and simple it is. You don't need to be an expert to make passive income investing in stocks.
It's common to earn around 7% to 8% interest annually from your investments. By doing some simple math you can better understand the power of compounding interest.
If you start with $10,000 to invest, your return for the first year would be anywhere from $700 to $800 on average (some years it can be significantly more, other years it could be significantly less).
The following year, you would earn another 7% to 8%, but this time on $10,700. This means in the second year you could generate another $750 in passive income.
There are many micro investing apps you can choose from but my favorite is Acorns. The platform is easy to use and simple to operate. Sign up below to claim your free $10!
Grow Your Money with Real Estate Investing
Real estate is one of my favorite ways to build your passive income streams while you sleep for a few reasons.
Firstly, there are many options when it comes to real estate investing. You won't be pigeonholed into one type.
Secondly, it can be a great hedge against inflation. In short, whenever inflation is hot – your assets will appreciate in a similar fashion.
Lastly, it's extremely easy to get started. While some methods might require more capital than others, it's possible to get started real estate investing with $500 or less.
So what are the main types of real estate to invest in? I'll explore them below!
Build Passive Income with Rental Properties
This is probably the most well known form of real estate investing.
Purchasing a property and renting it out to tenants to collect a rent payment each month.
With this type of investing, you're going to need to have some good finances to get started. It will require either enough money to purchase the home outright, or the income to have a mortgage.
Unfortunately you won't be able to use your rental income as a form of income when applying for the mortgage. This can make getting approved for a rental property more difficult.
If you are approved, most lenders will also require a 20% down payment. When compared to a traditional residential home where you can put a down payment as low as 3%, this is much higher.
But don't let these difficulties spoil your dreams.
Owning rental properties can be a great method to make money while you sleep and reach financial independence.
Within rental properties, there are several classes you can purchase. For example, you might opt to purchase a duplex with the goal of diversifying your income. Or you might choose to invest in commercial real estate if you're looking for something slightly more lucrative.
Related: 53 Best Things to Rent
Earn Money with Crowdfunded Real Estate
Crowdfunded real estate is a great passive income stream you can start to make money without working.
Just like a rental property, you can invest in both commercial real estate or residential by investing in crowdfunding platforms like Fundrise.
My favorite platform, Fundrise, allows you to invest in a variety of real estate properties to grow your money with a low initial investment. It's possible to earn over 10% on your money when investing in Fundrise. The platform is easy to use and a great way to diversify your investments.
Invest in a REIT to Make Passive Income
A real estate investment trust is one of the most passive methods to grow your money.
You can think of this form of real estate investing similar to investing in the stock market. It is a great investment that often pays monthly returns that can be easily purchased and sold.
Depending on how much money you have to invest, it can be an excellent method to earn money while you sleep.
Invest in Art for Passive Income
Did you know it's possible to make money investing in famous pieces of artwork? It is!
With platforms like Masterworks you can invest in art to generate income and build wealth.
How much money can you make?
Rent Out a Room in Your Home for Passive Income
While some people might consider this part of real estate investing, I think it's slightly different.
By renting out a room of your home you can earn money each month while you sleep when you simply collect proceeds from your roommate(s).
You can rent out your room or entire home on sites like VRBO to make money.
Depending on the location of your home and the size of the room, you might be capable of making a few hundred dollars each month from your roommate.
The main disadvantage of this passive income stream is that you'll need to be comfortable living with someone else.
Related: How to Make Money Doing Nothing
Start a Blog to Make Money While You Sleep
Passive income is the name of the game when it comes to making money without having to work and starting a blog can be a great idea if you don't have a lot of cash to invest.
It's worth noting that just like many passive income ideas, you won't get rich overnight. It will take some time and effort to start earning money from your blog.
For example, my personal finance blog took over 6 months to start making real money.
Starting a blog is one of my top passive income ideas because anyone can get started. And no, you don't have to be a skilled writer or editor to become successful.
You can start a blog for less than $200 per year to start making money while you sleep.
Blogs make money in a few different ways. Display advertising, affiliate marketing, sponsored posts, and selling courses or digital products are some of the most common ways to earn an income. By selling your own products you can increase your income and make more money.
The process to start your blog can take less than 1 hour from start to finish.
- Determine what niche you want to blog about.
- Purchase a domain name with Namecheap
- Purchase hosting with SiteGround
- Install WordPress for free
- Purchase a theme with Envato Market
- Start creating awesome content to get readers!
It's really that simple!
The most difficult part of growing your blog to make money is increasing your readership.
Some people choose to focus on a few main traffic generators like search engine optimization (SEO), social media marketing (Pinterest), or referral and email traffic.
While there is no one right answer when it comes to growing your blog, pick a traffic source that interests you the most and you find the most entertaining.
Start a YouTube Channel to Make Money While You Sleep
If you want to reach financial freedom and earn passive income while you sleep, starting a YouTube channel can be an excellent choice.
But it won't be easy.
Just like with other forms of content creation like blogging or podcasting, growing a YouTube channel can take a serious investment of time, energy, and a little bit of money.
YouTube channels make money through a few of main methods: ad revenue, affiliate marketing, and selling your own products.
It's common for a YouTube channel to also have an accompanying website where viewers can go to read or learn more information.
The monthly cashflow from a YouTube channel can be extremely lucrative. Some of the most successful YouTubers can make millions of dollars each month from their channel. Yes, you read that correctly – each month!
To get started, you'll first want to determine your interests and outline your goals. This means you'll need to find a niche that you can create videos on.
Next, you'll want to invest in some basic equipment like a digital camera and the proper lighting setup.
Finally, you'll want to edit your videos and upload them to YouTube to start making money. It can take a large energy investment before you start making serious money with YouTube, but it can be well worth it.
You'll want to give your channel at least 6-9 months to grow before starting to think about how you will make money. You can learn how to grow your YouTube channel with the video below!
Related: How to Make $100 a Day
Earn Passive Income with a Podcast
Podcasting can be a fun way to make money and create a new revenue stream for your finances.
You'll need to put in a large initial effort to grow your audience, but once you develop a loyal audience it can be easy to generate income each month.
With podcasting there are a few ways to make money including show sponsors, affiliate marketing, and an accompanying website.
The entire process to get started can take less than a few hours making it a great method to grow your passive income.
To get started, you'll want to select a topic or niche to discuss. Similar to blogging and other content creation methods, you'll want to select something you are passionate about or have an interest in.
If you decide to have guests on your podcast, you'll need to dedicate some time each week to find new guests. You can also include an online application process on your website to expedite the process.
Because your podcast is available all times of day, you'll be capable of making money while you sleep through affiliate offers and more.
Author a Book to Make Money
If you want to make passive income and you love to write, authoring a book can be an excellent choice to make money while you sleep.
You'll need to dedicate a significant amount of time and energy to write your book, but once it's com pleted you can start earning money passively each night.
The monetary investment for this method can be relatively low if you opt to self publish your book through options like Amazon.
Once your book is published, you can earn passive income every time someone purchases your book.
You can do some simple math to determine how much money you can make.
If you sell 5 books a day and net $5 for each book, this would amount to a monthly total of $750. Not too bad considering you can make money while you sleep!
Check out the video below if you need help publishing a book.
Earn Money Drop Shipping
Drop shipping can be a very lucrative way to make money and it can be one of the lower cost business ventures on this list.
With drop shipping you will need to be capable of selling items that are shipped directly from the manufacturer to your customers doorstep.
Because you don't need to hold any inventory, it can make this business much easier to start.
However, because of its ease, you'll face more competition that will push your margins down.
To get started, you'll want to do a significant amount of research to get a solid understanding of what products are available for drop shipping, the margins for the products, and the competition you will be facing.
Lend Money with Peer to Peer Lending
With this passive income idea you can make money while you sleep and build wealth that will last a lifetime.
This form of investing has higher interest rates than other methods, like a savings account – but it also comes with more risk.
The compound interest you make from peer to peer lending can be an excellent method to reach financial freedom.
You'll need some money to get started, but the passive income you can make you good money.
Related: How to Invest and Make Money Daily
Sell Stock Photos to Make Extra Cash
If you want to make money while you sleep, selling stock photos can be a great choice.
You might be thinking “But I don't have the skills to become a stock photographer!”
The good news is that it can be simple to learn.
Skillshare offers a variety of photography and photo editing classes to help you learn how to become an expert photographer.
Plus, when you register with the link below you'll score 14 days of free classes!
Earning passive income with stock photos is simple to understand. You'll need to take pictures, edit them, and list them for sale on stock photo sites like Shutterstock to make money in your sleep.
How much can you earn?
Selling stock photos can be extremely lucrative and a great way to earn passive income.
Sell Stock Video for Cash
Just like selling stock photos, selling stock video can be a fun way to earn money while you sleep.
With this passive income idea, you'll get paid every time your video is downloaded and used.
Depending on the quality of your videos and the number of downloads you can generate, it's possible to make a few thousand dollars each month.
Related: Make Money on Autopilot
Open a High Yield Savings Account
A savings account can be a great way to generate monthly cash flow while you sleep.
While you're not going to get rich overnight with this method, it's a great way to make some extra money without having to work for it.
A high yield savings account is likely the most passive way to earn money with hardly and risk.
When compare to other types of investing like the stock market, your returns will be somewhat less but the risk is significantly less. Online banks are also extremely convenient.
The amount of money you can make with a high interest savings account can be as much as .50% currently – but this is determined by market rates. As interest rates rise, it's possible to make even more with savings accounts.
One of my favorite savings accounts, CIT Bank, is a great free option to start earning passive income while you sleep.
Register for your account below to get started!
Sell an App
Selling an app can be a great way to boost your income and make money while you sleep.
Compared to other passive income ideas, this one can require the most work and money to get started but it can also yield some of the largest profits.
You'll need to dedicate some time or money to build your app, but once it's completed it can be sold perpetually to make passive income.
Before you invest the time or money building an app, you'll want to do some research to determine if there is a market for your app and how you can price it.
If you have a good idea for an app but don't want the hassle of building out the business, you might consider selling your idea to another company.
Sell Computer Software
Just like building out an app and selling it for passive income, selling computer software is in the same genre.
Computer software is extremely similar and a great way to make money while you sleep.
Just like building an app, you'll want to do research before committing the time or funds to creating your software.
Sell Online Courses
If you want to make passive income online, selling online courses can be a lucrative.
Creating an online course will take some time, but it can be well worth it.
Generating income from an online course is easy as long as you have a dedicated and trusting audience to sell your course to.
With this passive income method, you'll need to have an audience to get started. This means you'll need to either grow a social media audience, website traffic, or team up with affiliates to sell your courses.
Building out your online course can also be somewhat tedious. You'll need to ensure that it is easy to understand and helps students learn effectively.
Before fully launching your online course, I recommend completing a test round for select “students” that you pick to give feedback on the course.
Not only will this help you determine if you are missing any gaps in your course, but it can also help you when it comes to pricing your services. If the majority of feedback is positive, you might be capable of selling your course for much more than you think.
Sell Digital Products to Make Passive Income
Digital products can be very similar to creating online courses.
With this online business you can earn income by created things like checklists, calendars, and much more.
The initial work you need to do can be a large upfront investment, but it can be well worth it.
Depending on the product you create, it's possible to sell it for $9 to over $50.
Related: How to Make $50 a Day
Try Domain Flipping to Earn Money
Domain flipping is going to require a mix of time and energy to get started. While it's not completely passive, once you've purchased all of your domains, there isn't much work left.
To get started you'll need to find domain names to purchase. There are many metrics you can use to find a strong domain name but there are a few components I like to use. These include a strong backlink profile, a brandable domain name, or a short domain.
Some domain flippers will also try to find exact match domains for SEO use. In this example, purchasing a domain name like “bestlaptopbags.com” could be used to rank in Google for the term “best laptop bags”. This isn't my primary method when searching for domains because it can be harder to sell these.
Once you've purchased your domains, you can display a landing page that they are available for sale. You can choose to list the price directly or make potential buyers make an offer. If you have multiple domains, it's a good idea to include a list of other domains for sale on the page.
A domain name can be purchased for as little as $10 per year with sites like Namecheap. Once purchased, you'll need to continue to pay the annual fee otherwise it will expire.
Flipping domains is a great way to make money while you sleep if you have the digital marketing knowledge of evaluating domain names and getting a strong estimate of their worth. It's possible to sell some domains for over 6 figures. Not too bad considering you'll only pay $10 for them!
Get Paid to Test Beds
With this method, you'll literally make money while you sleep. While this job can be hard to come by, testing beds and mattresses can be an easy way to boost your income.
It's worth noting that this method isn't really passive income, but it's close!
Best Passive Income Business Ideas to Make Money While You Sleep
Almost any business can become passive if you have the right employees, but some businesses are inherently more passive than others. Below I explore some of the best businesses that generate money while you sleep.
Start a Vending Machine Business
Building passive income with a vending machine business is a great idea for anyone with some money upfront to get started.
The costs can be anywhere from a couple of thousand dollars to over $10,000 depending on the method your choose.
While some people may not consider this method truly passive, it's close enough in my opinion.
You'll need to make routine visits to your machines to restock them, collect funds, and ensure they are operating properly. But this can be done once every one or two weeks depending on the foot traffic near your machine.
Depending on the types of vending machines you operate, it's possible to make over $2,500 a month with some of the larger companies making well over 6 figures.
Related: Best Rental Business Ideas
Start a Storage Unit Rental Business
Storage units are an excellent passive income stream you can start to grow your earnings each month.
Depending on your location and the size of your units, you can turn your storage unit business into a 7 figure empire.
You'll need some capital to start your venture, however. Starting a storage unit business can cost a few hundred thousand dollars.
For those without the money, getting a loan for the business can be possible – although it will cut into your profits.
Start a Laundromat Business
Just like storage units, starting a laundromat can be a great method to make passive income each month – if you have the money.
While this business is not the sexiest, it can be extremely lucrative.
Some laundromats can make 6 figures each year. Not too bad!
You'll need to have some money to get started. The equipment and supplies to start your laundromat can cost upwards of $50,000. But that's not the only cost.
You'll also need to find a location for your business. This will likely be the most costly expense for your business. If you are able to lease a space, this can cost a couple of thousand dollars each month. If you plan to build a space, it can cost much more.
Don't worry – we hate spam too. Unsubscribe at any time.
How to Make Money While You Sleep
By investing your money in passive income streams, you can grow your earnings and make money while you sleep. There are many methods you can choose to invest your money and reach financial freedom.
Whether you opt to sell ebooks, or grow an existing stream of income, your bank account will thank you for the passive income you generate.
How Much Money Can You Make While You Sleep?
The best part of making money while you sleep is that the income potential is almost limitless.
Passive income allows you make as much money as you desire.
For some people, they might only want a few hundred dollars each month. For others, they might strive for a full time income from their passive income ideas. If you want to make more money, you'll have complete control.
By boosting sales to a certain point you'll start to grow your passive income portfolio.
Whether your goal is to make an extra $500 a month or make over 7 figures annually, anything is possible with the right strategy.
Tips to Make Money While You Sleep
Just because you make money while you're sleeping doesn't mean you should spend every penny of it. Saving money is essential to growing your long term wealth and reaching your personal finance goals.
Below are some tips to help you make money while you sleep.
Diversifying your income is a great way to limit risk and maximize your earnings.
So, what exactly does it mean to diversify your income?
In short, this means having multiple income streams so you aren't forced to rely on one. For many people, their day job is their only source of income. This means if they are laid off or lose their job, their income will instantly go to zero causing financial distress.
By having several income streams, if you were to lose your primary job, while your income wouldn't be what it once was, it would still be enough to get by.
Set Routine Goals
Setting goals can be a great way to stay motivated on your journey. You cannot expect your passive income streams to grow exponentially overnight.
It's going to take some time to reach your goals.
To start, try to set monthly or weekly goals in addition to an annual goal. Your goals don't need to be monetary, either. For some people, setting work goals can be a good idea. This will keep you encouraged even if you don't see the financial benefits you desire at first.
Track Your Progress
Setting goals is not inherently beneficial if you do not take the time to analyze your performance against them.
Try to dedicate time each month to see where your at compared to your goals.
If you're behind your goal, try to make adjustments.
Final Thoughts on Making Money While You Sleep
If you want to earn money while you sleep, you'll need to put some thought into a strategy around growing your wealth.
Earning passive income and making money while you sleep won't be easy. You'll need to dedicate the time, money, and energy to growing your income streams.
There are many passive income ideas you can use to start growing your earnings each month. Do you have a favorite? Comment yours below!
Don't worry – we hate spam too. Unsubscribe at any time.