How to make money while you sleep - a guide to passive income (2024)

Making money while you sleep sounds like a dream, right? Well, it's entirely possible with something called passive income.

Passive income is money you earn without actively working for it all the time. Instead of swapping your time for money (as we all do when we work normally, and are paid by the hour) you set up systems or investments that bring in cash on their own.

It's like planting seeds that grow into money trees! Wait…. Whaaaaat?

Here’s how…

1. Investing in stocks and earning dividends: Investing in stocks means you buy a small part of a company. When that company makes money, you do too! Some companies even pay you a little something extra called dividends, which is like a bonus just for owning their stock. Over time, your investments can grow, making you more money. If this is of interest to you head over to Hug Academy where you can learn how to invest sensibly and sustainably.
2. Rental property: A second property that you let out is also an investment. Over time the value of properties tends to increase meaning you can likely sell the property you own for more than you paid for it generating a profit. Additionally, if you manage to achieve a healthy rental income, not only do you gain a steady source of cash flow, you may also earn a small monthly profit.
3. AirBnB: If you have a spare room you can rent it out to people who need a place to stay. Websites like Airbnb make it easy to connect with renters. Once you set up your rental space, you can earn money every time someone stays there. All you have to do is wash the sheets and clean at the end of the stay!
4. Creating and selling digital products: Do you have a talent for creating things like e-books, online courses, or digital art? You can sell these online over and over again without having to make them from scratch each time. Platforms like Etsy, Udemy, or Amazon Kindle Direct Publishing can help you reach customers.
5. Affiliate marketing: This is like being a salesperson, but you don’t need to handle any products yourself. You promote other people's products or services, and when someone buys through your unique link, you earn a commission. You can do this through your website, blog, or social media.
6. Network marketing: It was Avon in the 80s and now it’s companies like Tropic and Utilities Warehouse to name a couple. They successfully use a person’s network to get their product or service out there in exchange for a commission when a customer buys. You can also earn a commission if you introduce other network marketers who begin to sell. Earnings have the ability to snowball because of the commission structure and it can be an easy way to make decent money, but does require some effort.
7. Peer-to-Peer lending: Instead of putting your money in a bank, you can lend it directly to others through peer-to-peer lending platforms. You earn interest on the money you lend out, just like a bank does.
8. Creating a YouTube channel or blog: If you enjoy making videos or writing, you might consider creating a YouTube channel or blog about the topic you love. Once you build a large following, you can earn money through ads, sponsorships, and affiliate marketing.
9. Building an online store: Thanks to platforms like Shopify or WooCommerce, setting up an online store has become easier than ever. You can sell physical products or dropship items (where you sell products, but a third party handles shipping - usually Amazon). Once your store is up and running, you can earn money while you sleep.
10. Investing in real estate investment trusts (REITs): If you want to invest in property but don’t have the funds to buy properties yourself, you can invest in REITs. These are companies that own and manage real estate properties. By investing in REITs, you can earn dividends without dealing with the hassles of property management.

Remember, while passive income can be a great way to make money, it always requires some initial effort and investment of time and money.

It's not a get-rich-quick scheme. But with patience and persistence, it's possible to build multiple streams of passive income that can provide financial security and freedom over the long term.

So, start planting those seeds today and watch your money grow while you sleep!

If this sounds interesting why not join Hug Academy where you will find out how to grow your personal wealth.

Important note - Hug Academy is apolitical, we do not advocate any political or economic model as we believe they are all flawed. History has brought wealth inequality upon us, it is up to you how you choose to use the information presented here.