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4 Passive Income Solutions

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Everybody is looking for a way to make extra money without extra work. These four solutions for creating a passive income have varying levels of risk and require some initial outlay of time and money. No method is 100% passive, but these solutions require little effort after they're up and running. You can even earn while you sleep.


Here, you can play to your strength. Choose a topic that you love and write passionately about it. If people like your blog and share it, you may get to the top of Google's search results. With a high search ranking, you can make money from advertising or selling things on your blog. You will need to regularly update your blog, but if you're writing about what you love, it should feel like a hobby rather than work.

Room Rental

If you are fortunate enough to have a big house with rooms to spare, consider renting one or more out to holidaymakers via an online service. You'll only need to provide bedding and breakfast. If you're happy to have new people in your home, this is an excellent, low-effort way to earn some money. Property rental websites will do the advertising for you and collect the money for your room.

Property Investment

Property prices have been rising, with increases of up to 31.9% in some Australian cities in 2011. This is a good time to invest in a second property. A property investment service can advise you on where and what to buy. They'll help you decide whether you should be looking for a long-term investment to support you in your retirement years, or a short term money boost. The initial investment of time and money is not to be taken lightly, and there is no guarantee that the market will keep climbing. If you rent, you also have the worry of problem tenants and potential damage to your house. However, the monetary benefits are well worth it. Some of these risks can be mitigated by using a property management service, having enough insurance, and getting good advice.   

Peer to Peer Lending

This is the most passive of all the solutions, as it requires very little effort from you. All you'll need is an investment of money. As a peer to peer lender, you will loan money to people you do not know. You'll have the opportunity to gain higher returns than many banks get. However, there is always a risk that the person you lend money to will default on the loan. You have a choice of companies you can partner with. These companies will credit check and cherry pick the borrowers, making the process safer for you. If somebody defaults, your chosen company will pursue payment from the debtors so you don't have to chase them.