The concept of passive income has gained significant popularity in recent years, and for good reason. Imagine earning money while you sleep, travel, or enjoy your free time. Passive income allows you to create revenue streams that require minimal effort after the initial setup. The best part is that you can get started with as little as $200. In this blog post, we’ll explore 20 passive income ideas you can pursue with a small investment.

1. High-Yield Savings Accounts

A high-yield savings account typically offers higher interest rates than regular savings accounts. By depositing your money into one, you can earn interest while keeping your funds easily accessible.

Steps to Start:

• Research banks offering high-yield savings accounts.
• Open an account online with a minimum deposit (often as low as $100).
• Deposit your money and watch your interest grow.

2. Peer-to-Peer Lending

Platforms like Prosper or LendingClub allow you to lend money to individuals or small businesses in exchange for interest payments.

Steps to Start:

• Sign up for a peer-to-peer lending platform.
• Choose how much you want to lend (some platforms allow loans starting at $25).
• Diversify your loans across multiple borrowers to minimize risk.

3. Dividend Stocks

Investing in dividend-paying stocks allows you to earn a portion of the company’s profits.

Steps to Start:

• Use a brokerage that allows you to buy fractional shares, such as Robinhood or M1 Finance.
• Research and choose dividend stocks that have a good history of payouts.
• Purchase shares and reinvest dividends to compound your returns.

4. Create an Online Course

If you have expertise in a specific area, consider creating an online course. Platforms like Udemy and Teachable make it easy to create and sell courses.

Steps to Start:

• Choose a topic you’re knowledgeable about.
• Create course content (videos, PDFs, quizzes).
• Upload your course to a platform and set a price.

5. Affiliate Marketing

Promote products or services on your blog or social media and earn a commission for every sale made through your referral links.

Steps to Start:

• Sign up for affiliate programs like Amazon Associates or ShareASale.
• Create quality content that incorporates your affiliate links.
• Drive traffic to your content through SEO and social media.

6. Invest in Real Estate Crowdfunding

Real estate crowdfunding platforms like Fundrise allow you to invest in real estate with a small amount of capital.

Steps to Start:

• Research and choose a crowdfunding platform.
• Create an account and fund your investment (some require a minimum of $500).
• Choose a project to invest in and receive returns from rental income or property sales.

7. Write an eBook

If you enjoy writing, consider publishing an eBook. Platforms like Amazon Kindle Direct Publishing allow you to self-publish.

Steps to Start:

• Write your eBook on a topic you’re passionate about.
• Format it according to platform guidelines.
• Publish and promote your eBook to reach potential readers.

8. Stock Photography

If you have a talent for photography, you can sell your images on stock photography websites like Shutterstock or Adobe Stock.

Steps to Start:

• Create a portfolio of high-quality photos.
• Sign up as a contributor on stock photography platforms.
• Upload your images and earn royalties each time someone downloads them.

9. Rent Out a Room

If you have extra space in your home, consider renting it out on platforms like Airbnb.

Steps to Start:

• Create an Airbnb account and list your space.
• Set competitive pricing and ensure your space is clean and inviting.
• Manage bookings and provide a great experience for guests.

10. Create a YouTube Channel

If you enjoy creating videos, consider starting a YouTube channel. Once you meet certain criteria, you can monetize your content through ads.

Steps to Start:

• Choose a niche that interests you (e.g., travel, cooking, tech).
• Create and upload engaging videos.
• Apply for the YouTube Partner Program to start earning money from ads.

11. Print on Demand

Design and sell custom merchandise without holding inventory using print-on-demand services like Printful or Teespring.

Steps to Start:

• Create unique designs for apparel or accessories.
• Upload your designs to a print-on-demand platform.
• Market your products and earn a profit on each sale.

12. Invest in REITs

Real Estate Investment Trusts (REITs) allow you to invest in real estate without buying property. Many REITs have low minimum investments.

Steps to Start:

• Open a brokerage account.
• Research and choose REITs with solid performance.
• Invest in shares of the REIT and earn dividends.

13. Create a Mobile App

If you have programming skills, consider developing a mobile app. Once it’s launched, you can earn money through ads or in-app purchases.

Steps to Start:

• Identify a problem your app will solve or a niche market.
• Develop your app and publish it on platforms like Google Play or the Apple App Store.
• Monetize through ads or premium features.

14. Buy and Sell Domain Names

Invest in domain names and sell them for a profit. Some domains can be purchased for as little as $10 and resold for hundreds or thousands.

Steps to Start:

• Research trending keywords and niche markets.
• Purchase relevant domain names from registrars like GoDaddy.
• List your domains for sale on platforms like Sedo.

15. Invest in a Robo-Advisor

Robo-advisors like Betterment or Wealthfront automate your investment portfolio for you, requiring little effort on your part.

Steps to Start:

• Sign up for a robo-advisor and complete your risk assessment.
• Deposit your initial investment (some require as little as $500).
• Sit back as the robo-advisor manages your portfolio.

16. Create a Subscription Box Service

If you have a passion for curating products, consider starting a subscription box service.

Steps to Start:

• Choose a niche for your subscription box (e.g., snacks, beauty products).
• Source products and create an online store.
• Market your subscription box to potential customers.

17. License Your Music

If you’re a musician, consider licensing your music for use in commercials, films, or online content.

Steps to Start:

• Create high-quality recordings of your music.
• Register your work with a music licensing platform.
• Promote your music to filmmakers and content creators.

18. Invest in ETFs

Exchange-Traded Funds (ETFs) are a type of investment fund that trades on stock exchanges. Many have low minimum investment requirements.

Steps to Start:

• Open a brokerage account that allows ETF trading.
• Research and choose ETFs that align with your investment goals.
• Invest in shares and earn returns through capital appreciation and dividends.

19. Crowdfunded Small Businesses

Invest in small businesses through crowdfunding platforms like Kickstarter or Indiegogo.

Steps to Start:

• Explore crowdfunding platforms for business opportunities.
• Invest in a project that aligns with your interests.
• Monitor the business's success for potential returns.

20. Create a Blog

Start a blog on a topic you’re passionate about. Once you build an audience, you can monetize through ads, sponsored posts, or affiliate marketing.

Steps to Start:

• Choose a blogging platform (like WordPress).
• Write engaging content regularly.
• Promote your blog to attract readers and monetize it.

Conclusion

Passive income is an excellent way to build wealth over time without putting in a significant amount of effort daily. With as little as $200, you can explore these 20 investment opportunities and find what works best for you. Start small, diversify your investments, and watch your passive income streams grow!