This may seem wild, but with a little creativity and the right approach, you can create passive income with $100 or less. You can either build a small side hustle or start an investment strategy. Whatever your goals are, they’re attainable. Here are eight ways to generate passive income with just $100.
What is Passive Income?
Passive income is earnings that require little to no effort to maintain, often generated through investments, businesses, or assets that produce revenue without direct involvement. It’s a way to supplement your primary income, build wealth over time, and achieve financial freedom. Passive income can come from various sources, including rental properties, dividend-paying stocks, peer-to-peer lending, and online businesses. By diversifying your income streams, you can create a more stable financial future and reduce reliance on a single source of income.
1. Micro Investing
You don’t have to be a millionaire to generate income through micro-investing in stocks. Use Acorns or Robinhood apps to invest with your $100. Buy fractional shares of stocks or ETFs (exchange-traded funds). Buying fractional shares makes the most of your $100 because you’ll diversify your investments.
2. Flip Domain Names
You can buy and sell domain names. Do a little research using Google Trends or other sites to see what’s trending up than buy domains that go with that trend. Some sites where you can buy or sell include Namecheap, NamePros, Sedo etc.
3. Affiliate Marketing
You can earn money with no money by doing affiliate marketing. This is when a retailer gives you a link for a product. When consumers click this link they are directed to the retailer's website and the product. If the consumer buys the product, you receive a portion of the sale. Companies that have an affiliate program include Amazon, Clickbank, eBay and more. Post your link on Facebook with a product review or recommendation. You could also use it on YouTube. You set it up at no cost, and it keeps earning money.
4. Rent an Extra Room
If you have a spare room in your house, why not turn it into rental income? Considering that rent prices have shot up, if the price is right, you’ll probably have a few takers.
5. Create an Online Course
If you have a skill or hobby, turn it into a course. There are several online platforms where you can promote your course to an audience. Two platforms for hosting your course are Udemy and Skillshare. The only thing it costs is your time. Once you've created the course, you can sit back and let the money roll in.
6. Print on Demand
If you're an artist, a good photographer, or just can come up with funny sayings, you can use print on demand. Print on demand (POD) is like dropshiping. You design an image to print on an object like a shirt, mug, tote bag etc. You then post the item on Facebook, your website, YouTube etc. When someone buys it, the order goes straight to the POD; they print it and mail it to the customer. You don't have to do a thing. Some PODs worth looking at are Printify, Printful and Gelato. But there is more to choose from.
7. Use a High-Yield Savings Account or CD
Deposit your $100 in a high-yield savings account or CD. Many of the online banks pay up to five percent interest, making high-yield savings accounts a low-risk way to grow your wealth. These accounts often offer interest rates exceeding 4% APY, providing a higher return compared to traditional savings accounts. Two online banks paying high interest are Ally and Sofi. It won’t make you money overnight, but it will earn a steady income.
8. Rent Your Car
Thirteen percent of workers work remotely, and 28 percent are hybrids. If you're one of these and don't use your vehicle often, consider renting it out to others. Use a car-sharing website like Turo to find customers.
9. Peer-to-Peer Lending
Peer-to-peer lending is a passive income idea that involves lending money to individuals or businesses through online platforms. These platforms connect borrowers with investors, who earn interest on their loans. Peer-to-peer lending offers a relatively low-risk investment opportunity with returns ranging from 5% to 7%. You can invest in peer-to-peer lending platforms like LendingClub or Prosper, which offer a range of loan options and risk levels. With just $100, you can start lending and gradually build a passive income stream as your investments grow.
10. Rent Out a Parking Space
Renting out a parking space is a unique passive income idea that involves renting out your unused parking space to drivers. You can list your parking space on platforms like Spacer or JustPark, which connect drivers with parking space owners. With the right location and pricing, renting out a parking space can generate a steady passive income stream. You can also consider renting out your parking space to local businesses or events, which can increase your earnings. This is an excellent way to make use of an asset you already own and turn it into a reliable source of income.
Conclusion
There’s much you can do with your $100. From investing in the stock market to creating a print on demand product, you can earn passive income. While these methods require an upfront investment, they can lead to long-term financial rewards.
