Earn Money Without Even Trying: Passive Income Ideas You Should Try!

Earn Money Without Even Trying: Passive Income Ideas You Should Try!

Making money while you sleep.

Has a nice ring to it, doesn’t it?

Earn money without even trying.

Okay, enough, we’re overstretching it.

But come on, who doesn’t like extra money for lesser effort?

Have you come across the book Rich Dad, Poor Dad? If you did, you are probably obsessed with passive income, as well. I did, and now I am literally obsessed with passive income ideas.

So, here’s what I did, I listed a number of passive income ideas we can all try.

What is Passive Income?

The common definition of passive income is income that you earn without being actively involved. It means that you make money, and you continue to make money, with no or very little effort on your part to maintain the flow of income.

You can see why the idea of passive income would be appealing. Typically when someone needs additional income, they get the stereotypical suggestion to “get a part-time job.”

But what if you don’t have the time or energy to put in all those extra hours?

For that, you may need some passive income ideas – ways to make money with little investment of time and effort on your part. And a great benefit of this is if you are trying to pay off debt quickly, this can be a huge help!

Here’s a list of quite a few passive income ideas, so it’s likely that you’ll be able to find at least two or three that cater to your situation and skills.

1. Invest in lending clubs.

There is probably no passive income that is more perfect than earning interest on safe investments, such as government treasury securities and bank certificates of deposit.

The problem of course is that those instruments pay paltry returns – generally less than 1%. It may be passive income at its finest, but you’ll never be able to relax or retire on returns that are that low.

You can try what we call lending clubs (locally called “paluwagan” if I am not mistaken). A lending club place where people come to get loans, and investors – looking for high interest opportunities – provide the funds for those loans.

You can earn interest rates in excess of 10% per year – which is about 10 times what you will earn on more conventional interest-bearing investments.

2. Try out index funds.

Index funds are a type of mutual fund that provide you with a way to invest in the stock market that is completely passive.

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Index funds in the Philippines for example, intends to achieve for its participants investment returns that track the performance of the Philippine Stock Exchange Index (PSEi) by investing in a diversified portfolio of stocks comprising the PSEi in the same weights as the index.

In other words, you will be invested in the general market, without having to concern yourself with choosing investments, rebalancing your portfolio, or knowing when to sell or buy individual companies. All that will be handled by the fund which will base the fund portfolio on the makeup of the underlying index (in our case, the Philippine Stock Exchange Index.

With any broker you are free to choose a fund that is based on any index that you want.

For example, there are index funds set up for just about every market sector there is – energy, precious metals, banking, emerging markets – you name it. All you have to do is decide that you want to participate, then contribute money and sit back and relax. Your stock portfolio will then be on automatic pilot.

You can try and check Bank of the Philippine Islands (BPI) Philippine Equity Index Fund, for example. Minimum investment at BPI-PEIF is 10,000 pesos.

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