In today’s economy, a $20 bill may not seem like much, but it can actually be the starting point for a passive income strategy. Passive income is a way to earn money without actively working for it, making it a great way to generate extra cash with minimal effort. The key is to choose the right idea and invest wisely.
One popular way to start generating passive income with just $20 is through fractional stock investing. Todd Stearn, founder and CEO of The Money Manual, suggests doing research to choose the right stocks and investing small sums of money in them via fractional investing. This method can generate passive income if the stocks perform well. Look for online or app-based brokerages that allow fractional investing without charging fees.
Another option is fractional real estate investing. Apps like Fundrise allow you to invest in fractional shares of real estate with as little as $10. These companies typically charge a small percentage of your investment to manage the funds. Alternatively, you can invest in real estate loans through platforms like Groundfloor with an investment as low as $10. Groundfloor charges no fees to investors, and most loans are repaid within six to nine months with an average payout of around 10%.
If stocks and real estate aren’t your thing, consider selling website domains. Jason Lamprey, owner of Lamprey Construction, suggests looking for industry-specific website domains with potential resale value. Platforms like GoDaddy or Namecheap offer domains at low prices, allowing you to secure appealing domain names for resale. Use platforms like Flippa or Sedo to list your domains for sale and attract potential buyers looking for unique and valuable domain names.
Earning interest and bank account bonuses is another way to generate passive income with $20. Online banks like Ally offer higher interest rates on savings without requiring a large deposit. Additionally, some banks offer bonuses for opening accounts and meeting certain requirements, such as receiving a direct deposit. Look for banks offering bonuses of $200-$400 for opening an account and fulfilling easy requirements.
Starting a membership website or selling print-on-demand T-shirts are also viable options for generating passive income with just $20. With a membership website, people pay monthly fees to access information or join an online community. Even attracting a few members paying $5-$10 monthly can generate passive income over time. Selling custom T-shirts online through sites like Printful allows you to design shirts and list them without holding inventory. As orders come in, the products are made, resulting in passive income even while you sleep.
In conclusion, with the right strategy and a little initial investment, it is possible to generate passive income with just $20. Whether through stock investing, real estate, website domains, bank account bonuses, membership websites, or print-on-demand T-shirts, there are various ways to make your money work for you and create a steady stream of passive income. Consider exploring these options to start building your passive income portfolio today.
