10 Passive Income Ideas From Tony Robbins
If you're not making enough money, or simply want a chance to earn money on the side to create more wiggle room in your budget, you don't need to find a higher-paying job. Instead, financial expert Tony Robbins says to "work smarter, not harder." One way to do so is to build passive income-generating streams through a variety of ways, including real estate investments, trusts, REITs and more.
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Passive income is money you earn in your spare time with minimal ongoing effort once you have completed the initial setup process. As Robbins wrote in a post on his website, the main reason to set up a passive income strategy is to have a second, reliable source of income that takes less work than a traditional job.
Here are 10 passive income strategies to consider -- all approved by Tony.
1. REITs
Real Estate Investment Trusts -- aka REITs -- are a way to invest in real estate without owning property directly. Robbins suggested these as a low-risk option for beginners because you don't need a fortune to get started. With as little as $500, you can invest in REITs by buying shares in publicly traded real estate portfolios.
2. Rental Properties
While owning property does involve some work, Robbins noted that it can be a great semi-passive source of rental income. Once tenants are in place, the income from rent can roll in with limited oversight -- especially if you can find it in your budget to hire a property management company.
If you want to try to make some rental income on a smaller scale, you could first start by trying to rent out your spare room on a long-term or short-term basis. This will help subsidize your own housing costs so you can save or invest in other areas.
3. Money Market Accounts
A high-yield savings account option like a money market account is a safe way to generate passive income, and they don't require much time or effort to set up. They offer higher interest rates than a traditional savings account, and offer some features of a checking account like check-writing abilities and a debit card.
Robbins called money market accounts "great money-making machines for beginners." This could be a good first step toward financial independence before you dive into investing in dividend stocks or other areas of the market.
4. Index Funds
Index funds provide a simple way to invest in the stock market, because they track the performance of a market index, offering diversification without the need for active management. This makes them a good choice for those seeking a stable passive income source. Robbins also recommended exchange-traded funds.
5. Dividend Stocks
Investing in dividend stocks allows you to earn a portion of a company's profits regularly. While these require a bit more research upfront, they're a great way to grow wealth over time, according to Robbins. Many people hold dividend stocks in their retirement accounts because they are considered a reliable long-term strategy.
6. Invest in a Business
If you have extra capital, consider becoming an equity partner in an existing business. Though it's a higher-risk-based passive income investment, it can come with higher returns.
This type of investment can provide regular income, often without the need for day-to-day involvement. Another suggestion from Robbins is to start your own semi-passive income business, like a laundromat or vending machine business.
7. Create and Sell Digital Products
Robbins encouraged using your knowledge or expertise to create products like online courses, guides or instructional videos to literally make money while you sleep. You make your digital product and list it for sale, and then people can purchase and download it 24/7 without you having to lift a finger.
Note that, unless you already have a following, you might have to put in some effort to market your product or course, especially when you first list it.
8. Leverage Your Creativity
What if you could turn your creativity into cash? If you have artistic skills, Robbins suggested monetizing them through passive income streams like selling stock photos, licensing music or writing an e-book.
9. Affiliate Marketing
Affiliate marketing involves promoting products online and earning a commission for each sale. The catch is you need to have an existing website or blog and traffic. However, if you find yourself successfully comfortable on a platform you've created or your social media accounts, this can be a lucrative way to earn passive income.
10. Rent Out Your Assets
Whether it's renting out part -- or all -- of your home, your car or your RV, sharing your assets can provide you with reliable passive income, according to Robbins. Platforms like Airbnb make it easier to rent your space, while other services, like Turo or RVShare, allow you to rent vehicles.
You already own the asset, so why not let it make money for you?
The Power of Building the Right Mindset
Robbins believes that success in passive income ventures is just as much about mindset as it is about strategy. "Business is 80% psychology and only 20% skill," he wrote.
To truly make passive income work for you, Robbins recommended first overcoming your limiting beliefs, eliminating your fears and improving your negotiating skills.
Cynthia Measom contributed to a previous version of this article.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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