Intelligence = Wealth. And that’s not figurative — if you’re smart, you should also know how to make money. Whether it’s starting your own brand or pursuing lucrative passive income ideas.
Both of the aforementioned ideas may seem lofty on paper. But take the stock market for example, which has been proven to be so easy that a monkey could do it. Once again, that’s not speaking figuratively.
Every year since 1964, business website Research Affiliates have simulated 100 monkeys throwing darts at stock pages in a newspaper. The pages the monkeys hit in turn became their portfolio.
As you might’ve guessed, the monkeys didn’t do as well as the average investor — they did better.
The average monkey outperformed the index by an average of 1.7%, and have been doing so since 1964. If a monkey can beat the market, why can’t you?
But when I started out investing I was intimidated by the stock market — and because of current events, I still am. So, here are 3 simple passive income ideas if you’re a beginner.
1. Passive Income Ideas: Resell Clothes
According to Statista, eCommerce sales amounted to $504.6 billion in 2018. This number is projected to surpass $735 billion in 2023. And apparel and accessories alone should generate over $138.7 billion by 2022.
While many have turned to designing and selling their own t-shirts online, that market has taken a bit of a hit in 2020. Instead, consider selling your old clothes online.
Today the resale market is valued at $28 billion and is predicted to double to $64 billion by 2024, according to a CNBC report.
The resale market grew 25 times faster than the overall retail market last year, with an estimated 64 million people buying secondhand products in 2019. And instead of the resale industry taking a hit from the pandemic — it grew even faster.
“Americans could begin to change their spending habits in the fallout from this pandemic…More people are embracing frugality or thrift.”— Marketplace.org
Online resell is also predicted to overtake fast fashion within the next decade.
Actions to Take:
- Sort through your closet and find old but fashionable clothing that you think someone would be interested in buying.
- Set up an account on one or all of the following resell sites: thredUP, eBay, Etsy, and Depop
- Sell your clothes online and pad your pockets.
2. Passive Income Ideas: Pursue One “Great” Idea at a Time
How many great ideas have you had over the years? Likely hundreds, even millions if you’re the next Elon Musk.
However, the only way to test if your “great idea” is truly a winner is by putting it forth in the world.
To start off, throw the word “multitask” out of your lexicon. Instead, focus on your greatest idea and finally take a leap of faith with it.
Put everything into your best idea and market the $#!% out of it.
Actions to Take:
- Read Tim Ferriss’s The Four Hour Workweek, a classic amongst bloggers and investors alike
- Read Scott Fox’s Click Millionaires: Work Less, Live More with an Internet Business You Love
- Put together a team that stands behind you and your idea
3. Invest Within a Roth IRA Account
Passive income ideas don’t always have to result in immediate paychecks. Investing within a Roth IRA account is how most 20-year-olds will become millionaires when they retire.
Roth IRAs offer a unique tax advantage when compared to a 401(k): You can withdraw your money in retirement tax-free.
That means, your money will be growing 5-7% annually, and you can withdraw every penny tax-free when you’re older. Because of compounding interest, the more money you contribute the more you make from a Roth IRA account.
Important to note: You’re only allowed to invest $6000 per year if you’re under 50 years of age ($7000 if your over 50). This means you could invest $500 a month to max out your earnings.
Assuming you earned a 6% return, it would take you a little over 41 years to hit the million-dollar mark. And if you only earned 5%, it would take you about 46 years to get there.
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