In this article, I’ll provide 7 realistic ideas that you can use to earn between $1,000-$2,500 per month in passive income.
3 min read · Jul 25, 2023
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Generating passive income is the dream for many people. Who wouldn’t want to earn money with little to no effort required on an ongoing basis?
With the right strategies, you can create multiple streams of passive income that can add up to a nice amount each month.
Idea 1: Invest in Dividend Stocks
Dividend stocks are one of the most common ways to earn passive income. The concept is simple — you invest in stocks that pay out dividends, usually on a quarterly basis.
For example, if you invest $100,000 into stocks with an average dividend yield of 3%, you’ll earn $3,000 per year or $250 per month in dividend payments. To earn $1,000 per month, you’ll need a portfolio of dividend stocks totaling around $350,000 invested.
Idea 2: Invest in Real Estate
Real estate investment trusts (REITs) provide exposure to real estate while also generating passive income. REITs own commercial properties like apartments, hotels, shopping malls, and more.
The income generated from tenants gets paid out to REIT investors in the form of dividends. On average, REITs pay dividends yielding 4–6% annually. So to earn $1,000 per month, you’ll need to invest between $200,000-$250,000 in REITs.
Idea 3: Rent Out a Property
If you have an extra property, such as a vacation home or investment property, you can generate passive income by renting it out when you’re not using it. Average rental yields range from 5–15% depending on the property location and amenities. For example, if you own a property worth $200,000 and rent it out at a 10% yield, you could earn $2,000 per month in rental income after expenses.
Idea 4: Invest in Peer to Peer Lending
Peer to peer lending platforms like LendingClub and Prosper allow you to lend money to other individuals…
