Five Truly Passive Income Sources You Can Practically Set and Forget

Daniel Penzing
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Invest in Dividend-Paying Stocks of Top Brand Companies

Not all the stocks listed by the stock exchange are real big names. While you have the Wall Street Journal reporting on the latest developments on famous, iconic firms, there are numerous other companies out there that never get mentioned. They have been around for years and are steadily growing, with no major ups or downs to report. They are the giants of the stock market that you have never heard of but that generate consistent, safe returns over time.

For a conservative investor, these stocks are rocket fuel. They don’t make you feel the need to check the value of your portfolio every day. You don’t get stressed out by the ups and downs of the stock market. You don’t have to worry about getting up at night to check your portfolio for an update.

Over time, these companies pay incredible dividends. When you invest in them, you’re essentially lending them your money to buy more things, and they’re paying you back the interest. What could be more profitable than that?

Direct Stock Plan

You can pick a stock of your choice and earn up to an 10% dividend, and have an option to purchase more stock with the dividends. The best part is that you have the option of purchasing more stock and determining at what price. If you do this before the dividend is paid, you get a discount percentage based on the dividend.

For this to work, you need to choose good stocks. It is not a matter of picking a random number of stock and getting dividend, because there are 2 ways you can go wrong- either your stock price will go down and you will get less than your investment, or it will go up 30% and you can’t afford to purchase more shares. So you need to choose the right stock to invest in, so that you can get the dividend when it is paid, and then buy more stock at discounted price.

Invest in Your Employer's 401(k) and Get Matching Funds

Sift through all your accounts and tally of your passive income sources. Take stock of what you'd do if you didn't have to work in the ordinary sense: generate more of the same.

My wife and I recently realized a mistake had been made and rewrote an early chapter of our investing life. It was heartbreaking to learn that a chunk of money not subject to taxes had been taxed. Spending it felt the same as a recession. How could we ever be sure it wouldn't happen again?

My choice to write about this (sample it for free?) is like an art museum showing people where it would have put the paid-for paintings, if it had extra space. Example- 6.5 years ago, we'd established what we thought might be best practice in our case, and did it again. Our years of good intention were not weeded out by Wall Streeters, nor were they imaginary. They worked. Our money had been growing. On purpose. To do what it was going to do in its next phase. On purpose.

Back to the new. We didn't miss out on our own new because we were biding time with our own rehearsal- new members of the workforce.

In the postwar years I'd recommend enrolling in your own recreation. At a young adulthood rate of growth, the greatest near-term investment of your time will be the participation in a plan to learn to raise money for your own future.

Invest in Crowdfunded Real Estate

By now, you’ve heard quite a bit about crowdfunding. From the success of Kickstarter to the main stream financing that social lending websites like Prosper provide, this is a legitimate method of raising money online. It is also one that most Americans aren’t using to its full potential. You can’t be one of those people. You’ve got to be one of the early adopters who takes advantage of this new industry before it becomes a redundant one.

But what exactly is crowdfunding? Well, imagine that you have an idea for a start-up. Rather than scrambling around and begging businesses for help, you use that idea to launch a campaign online to help get you the financing you need. After setting up your page and explaining your idea in detail, you then set a goal for how much money you want to raise.

The best part is that you don’t need to give away a piece of your company or even gain any equity. Instead, you can get the money you need without having to sacrifice any of your work. This means you can have complete control of your idea and your vision. You get to do it all.

Buy Turnkey Rental Properties

Many people enjoy the passive income from owning rental properties, especially real estate investment, but the hardest part is getting started. It’s all fun and good getting monetary gains from rentals, and you want to avoid wasting your time with property management.

These turnkey rental properties will have everything in order for you to make money.

There are also plenty of turnkey rental properties out there, and you can learn how to make passive income from real estate.

Save, Save, Save When You Shop

It’s very easy to be lulled into clicking through an online store your favourite items bought and shipped right to your door. A lot of people still soak up this kind of temptation when shopping. It’s tempting in many ways. Online shopping is quicker and easier than ever. There’s no need to go from place to place looking for the best price, no need to run from store to store looking for sizes or finding out if something is in stock.

The downside, of course, is that you don’t actually know if you’re getting a good deal until it’s done and over. You can look at prices, of course, but then again, it’s easy to look at prices and be very happy to find a big sale and just fall for it.

You won’t get that blindsided feeling that’s so common when you go shopping. You can take your time, you can shop from wherever you are, and you can let yourself be tempted to shop more during the holiday season.

Cash-back Credit Cards

Consumers are always looking for ways to earn more cash back on their credit card spending. If you want to contribute to your passive income streams, apply for a cash-back credit card. You can find great cash-back credit cards that offer a generous number of cash-back payments, which can add up to real money in the long run. __Credit Card Rewards __

Credit card rewards programs are another great way to earn cash back on your spending. All you have to do is apply for a rewards credit card that provides cash back and makes purchases with the card for the next few months. Then, you can enjoy the rewards checks you'll receive from the credit card company. __Cash-back Rewards Apps __

If you want to earn cash back on your spending without having to sign up for a credit card rewards program, you can do so with a cash-back rewards app. These apps allow you to make purchases with your mobile device and receive cash-back rewards automatically. __MyPoints __

If you love shopping, you can combine your love of shopping with your love of earning cash back. By earning cash back from MyPoints on your everyday purchases, you can easily achieve a passive income. The best part is that there are no limits on the amount of cash back that you can earn. __Watch Out for These __

More Discounts

When I was a kid in both high school and college, I was quite active in sports.

I played football back in high school and did quite well. I made it to the state quarterfinals championships in Texas. It cost me a lot initially to learn that I didn’t have a passion for direct competition with members of the opposite sex.

I played basketball, baseball and golf in college and enjoyed them all.

As I grew older, however, I found myself less and less interested in the competition. I realized I had a passion for doing things but didn’t like that I was required to compete with others to get there.

I wanted to do things on my terms rather than someone else’s and that realization brought me to the doorstep of passive income.

Let’s take a look at various passive income sources that are available.