Passive income is money that you earn without much active involvement or effort. It can help you achieve your financial goals, such as saving for retirement, paying off debt, or traveling the world. But how can you start earning passive income with a small amount of money? In this blog post, I will share with you five passive income streams that you can start with $100 or less.
Table of Contents
1. Dividend Stocks
Dividend stocks are shares of companies that pay out a portion of their profits to shareholders on a regular basis. Dividends are usually paid quarterly, but some companies pay monthly or annually. Dividend stocks can provide you with a steady stream of income, as well as the potential for capital appreciation if the stock price goes up.
To start investing in dividend stocks, you need a brokerage account and some research. You can use online platforms like The Motley Fool or Udemy to learn how to invest like a pro and find the best dividend stocks for your portfolio. You can also use tools like Dividend.com or Seeking Alpha to screen for dividend stocks based on criteria such as yield, payout ratio, growth rate, and dividend history.
With $100, you can buy one or more shares of dividend stocks that suit your risk tolerance and investment goals. For example, you could buy a share of AT&T, which pays a quarterly dividend of $0.52 per share and has a yield of 6.7%. Or you could buy two shares of Realty Income, which pays a monthly dividend of $0.235 per share and has a yield of 4.4%. Or you could buy four shares of Apple, which pays a quarterly dividend of $0.22 per share and has a yield of 0.6%, but also has a strong track record of growth and innovation.
2. Peer-to-Peer Lending
Peer-to-peer lending is a form of crowdfunding where you lend money to individuals or businesses who need it, and earn interest in return. You can use online platforms like Lending Club or Prosper to browse through different loan requests and choose the ones that match your risk and return preferences. You can also diversify your portfolio by lending small amounts to multiple borrowers.
To start investing in peer-to-peer lending, you need to open an account with a platform of your choice and deposit some money. The minimum investment amount varies by platform, but some allow you to start with as little as $25. You can then select the loans that you want to fund, either manually or automatically, and wait for the borrowers to make their monthly payments. You will receive a portion of the principal and interest each month, which you can reinvest or withdraw.
With $100, you can fund four loans of $25 each, or two loans of $50 each, or one loan of $100, depending on the platform and the loan terms. For example, you could fund a loan of $25 to a borrower with a credit score of 700, who needs the money for debt consolidation, and offers a 36-month term with a 10% interest rate.
Or you could fund a loan of $50 to a borrower with a credit score of 640, who needs the money for home improvement, and offers a 60-month term with a 15% interest rate. Or you could fund a loan of $100 to a borrower with a credit score of 600, who needs the money for medical expenses, and offers a 36-month term with a 20% interest rate.
3. Affiliate Marketing
Affiliate marketing is a form of online advertising where you promote other people’s products or services and earn a commission for each sale or action that you generate. You can use platforms like Amazon Associates or ClickBank to find products or services that are relevant to your niche and audience. You can also use tools like WordPress or Wix to create a website or blog where you can post your affiliate links and content.
To start earning passive income from affiliate marketing, you need to have a website or blog with some traffic and content. You can use free or low-cost methods to create and grow your online presence, such as social media, SEO, email marketing, or guest posting. You can then sign up for an affiliate program of your choice and get your unique affiliate links. You can then insert these links into your content, such as product reviews, tutorials, comparisons, or recommendations.
With $100, you can cover the basic costs of setting up and running your website or blog, such as domain name, hosting, theme, plugins, and email service. For example, you could buy a domain name for $10 per year, get a hosting plan for $5 per month, use a free theme and plugins for WordPress, and sign up for a free email service like Mailchimp.
You can then use the remaining money to invest in some paid tools or services that can help you improve your website or blog, such as Grammarly for writing, Canva for design, or Ahrefs for SEO.
4. Online Courses
Online courses are digital products that you can create and sell to teach others a skill or topic that you are knowledgeable or passionate about. You can use platforms like Udemy, Skillshare, or Teachable to host and market your courses. You can also use tools like Camtasia or ScreenFlow to record and edit your videos, and Canva or PowerPoint to create your slides and graphics.
To start earning passive income from online courses, you need to have a topic that you are confident and interested in teaching, and that has a demand from potential students. You can use tools like Google Trends or Ubersuggest to research and validate your course idea. You can then create an outline and a curriculum for your course, and start recording and uploading your videos. You can also create a landing page and a sales funnel for your course, and use email marketing or social media to promote it.
With $100, you can cover the basic costs of creating and launching your online course, such as a microphone, a webcam, a screen recording software, and a course hosting platform. For example, you could buy a Blue Snowball microphone for $50, a Logitech C270 webcam for $20, a Camtasia license for $10 per month, and a Udemy account for free.
You can then use the remaining money to invest in some paid tools or services that can help you improve your course quality or marketing, such as Canva for design, Mailchimp for email, or Facebook Ads for advertising.
5. Print on Demand
Print on demand is a form of e-commerce where you sell customized products that are printed and shipped by a third-party service provider. You can use platforms like Printful, Printify, or TeeSpring to create and sell products such as t-shirts, mugs, posters, or stickers. You can also use tools like Canva or Photoshop to design your products, and Shopify or WooCommerce to create your online store.
To start earning passive income from print on demand, you need to have a niche and a target audience that you want to sell your products to. You can use tools like Google Trends or Pinterest to research and validate your niche idea. You can then create and upload your designs to your chosen print on demand platform, and set your prices and profit margins. You can also create a website or a landing page for your products, and use SEO or social media to drive traffic and sales.
With $100, you can cover the basic costs of setting up and running your print on demand business, such as a design software, a print on demand platform, and a website builder. For example, you could buy a Canva subscription for $10 per month, a Printful account for free, and a Shopify plan for $29 per month.
You can then use the remaining money to invest in some paid tools or services that can help you improve your product quality or marketing, such as Photoshop for design, Mailchimp for email, or Instagram Ads for advertising.
Table Summary
| Passive Income Stream | Initial Investment | Key Steps |
|---|---|---|
| Dividend Stocks | $100 | – Choose a brokerage account |
| – Research dividend stocks | ||
| – Consider platforms like The Motley Fool or Udemy | ||
| Peer-to-Peer Lending | $100 | – Open an account with a lending platform |
| – Diversify investments in loans | ||
| Affiliate Marketing | $100 | – Create a website or blog |
| – Use platforms like Amazon Associates or ClickBank | ||
| – Allocate funds for basic website setup and tools | ||
| Online Courses | $100 | – Choose a topic with demand |
| – Research and validate course idea using tools like | ||
| Google Trends or Ubersuggest | ||
| – Invest in a microphone, webcam, and course hosting | ||
| Print on Demand | $100 | – Identify target audience and niche |
| – Use platforms like Printful, Printify, or TeeSpring | ||
| – Allocate funds for design software and website builder |
FAQ
1. Is passive income a guaranteed way to get rich quickly?
Passive income is a long-term strategy that requires patience, persistence, and discipline. While it can provide financial freedom, it’s not a get-rich-quick scheme.
2. Can I start with less than $100 in any of these passive income streams?
The suggested $100 is a starting point, and some platforms may allow you to invest or participate with even smaller amounts.
3. How much time does it take to see returns from passive income?
The timeline for returns varies across different streams. Some may yield results quickly, while others require more time and effort before seeing significant returns.
4. Are there risks associated with these passive income streams?
Yes, each passive income stream comes with its own set of risks. It’s crucial to conduct thorough research and understand the potential risks before investing.
5. Can I pursue multiple passive income streams simultaneously?
Yes, diversifying your passive income sources can be a smart strategy. However, it’s essential to manage your time and resources effectively.
6. Do I need specific skills to start an online course or affiliate marketing?
While having skills in the chosen area can be beneficial, many resources are available to help you get started. Learning and refining your skills over time is part of the process.
7. How can I track and manage my passive income streams?
Several tools and platforms offer tracking and management features for your passive income streams. Consider using financial apps or dashboards to stay organized and monitor your earnings.
Conclusion
These are just five examples of passive income streams that you can start with $100 or less. Of course, there are many other options that you can explore, such as creating and selling digital products, renting out your space or belongings, or starting a YouTube channel or podcast. The key is to find something that you are interested in, passionate about, and skilled at, and then take action to make it happen. Remember, passive income is not a get-rich-quick scheme, but a long-term strategy that requires patience, persistence, and discipline. But if you do it right, you can enjoy the benefits of having multiple sources of income that can support your lifestyle and financial freedom.
