How To Earn $4,000 a Month in Passive Income (2024)

How To Earn $4,000 a Month in Passive Income (1)

Whether you have looked into starting a side hustle or have started selling unused items around your home, earning extra money goes a long way to reaching your financial goals. Creating passive income streams can make the dream of easily earning extra cash a reality. Imagine making $4,000 every month without actively working for it.

Try This: Pocket an Extra $400 a Month With This Simple Hack

Quick Take: Passive Income

Passive income is money earned with little to no ongoing effort where you don’t necessarily have to be actively involved. In other words, instead of the money you get from an employer in a paycheck, you earn additional income through various ways that can range from joining the gig economy to earning compound interest on a traditional savings account or high-yield checking account.

How To Make $4,000 a Month in Passive Income

If your risk tolerance is lower, keep it simple by opening an account with an online bank or financial institution with higher APYs. If you can handle a bit more volatility you might want to dip your toe in bigger investments such as real estate or stocks.The good news is that there are a multitude of ways to build your bank account so you try more than one to find the right fit for your finances.

Here are 10 great ways to earn passive income every month.

1. Open a High-Yield Savings Account

Unlike a traditional savings account, a high-yield savings account earns you a higher-than-average interest rate on your deposits. For example, the current national average for savings accounts is a rate of 0.47%. A high-yield savings account would earn you much more and help you grow your wealth faster.

A great way to earn passive income is from the interest on these accounts. You can also take other income streams and put them in the account to earn passively. GOBankingRates has ranked the following as some of the best high-yield savings accounts for 2024:

2. Invest in Dividend-Paying Stocks

Investing in dividend-paying stocks means you buy shares of companies that distribute a portion of their profits to shareholders. Over time, these dividends can add up to a significant income stream.

Though there are no guarantees in this type of investment, it helps to look for stable companies with a history of paying dividends consistently. In order to earn $4,000 a month off of the interest you’ll need to invest a lot of money up front.

3. Rent Out Your Real Estate Investments

Real estate can be a lucrative source of passive income. You can invest in rental properties and earn monthly rental income. Additionally, real estate tends to appreciate in value over time, providing both rental income and capital gains.

If this seems like a viable option for you, maybe consider renting for short-term stays on platforms like Airbnb or Vrbo. By hosting guests, you can earn passive income without much effort. Just make sure to provide a comfortable and welcoming experience for your guests to maximize your earning potential.

4. Start a Blog or YouTube Channel

Online content can generate passive income through advertising, affiliate marketing and sponsorships. Choose a topic you’re passionate about, create engaging content and build an audience. With time and dedication, your blog or channel can attract advertisers and sponsors, earning you a steady income.

For platforms such as YouTube, to make upwards of $4,000 of passive income a month, it takes more than just posting videos. Here are some ways to amplify your money-making potential:

  • Focus on increasing your followers and growing your audience so you can monetize your content.

  • Turn on display ads to further your income streams from your page.

  • Incorporate product or affiliate marketing by working with sponsorships and branding opportunities.

5. Write an E-Book

If you have knowledge or expertise in a particular subject, consider writing an e-book and self-publishing it online. Once published, you can earn royalties every time someone purchases your book.

Though this form of passive income can be a slow-growing one, if you write about topics that interest you and have a potential audience, this idea has the potential to gain momentum and earn you thousands of dollars per month.

6. Participate in Peer-to-Peer Lending

Peer-to-peer lending platforms allow you to lend money to individuals or businesses in exchange for interest payments. By diversifying your loans across multiple borrowers, you can minimize the risk while earning passive income through interest on your loans. Essentially, you become the bank and can set your competitive interest rates to ensure you get a lot of loanees.

7. Create an Online Course

Share your skills and expertise by creating an online course. Platforms like Udemy and Teachable allow you to create and sell courses on various topics, or you can do so from your own website once you build a solid number of students. You can earn passive income as people enroll and purchase your course. This allows you to set your own schedule and course load to cater to your specific monthly financial goals.

8. Invest in Index Funds or ETFs

Lower-risk index funds and exchange-traded funds offer a diversified portfolio of stocks or bonds. By investing in these funds, you can benefit from the market’s overall performance without the need for active management. Over time, your investment can grow, providing a steady stream of passive income through dividends and capital gains.

9. Try Affiliate Marketing

Affiliate marketing involves promoting products or services and earning a commission for each sale made through your referral link. Join affiliate programs related to your niche and promote products you genuinely believe in. As your audience grows, so will your affiliate income.

It’s one of the easiest ways to earn extra cash on a blog, website or social media platform you already participate in and have a following on.

10. Build a Mobile App or Website

If you have programming skills or can hire a developer, consider creating a mobile app or designing a website. Monetize your app through advertisements, in-app purchases or subscriptions. With millions of smartphone users worldwide, a successful app can generate significant passive income.

If you want to expand this idea more, you could also build a website to cover a specific topic or niche you feel equipped to attract visitor traffic on. This is another passive income idea you can grow over time.

Final Take To GO

The bottom line is that earning $4,000 monthly in passive income is achievable with the right strategies and mindset. Whether it’s through investments, online ventures, rental income or diversifying your investment strategy, your sources of passive income can provide financial stability and freedom.

Combining or trying more than one of these potential income streams requires you to stay consistent to help it grow over time. With dedication and perseverance and maybe even a little risk-taking, you can earn thousands of extra dollars a month.

FAQ

Here are the answers to some of the most frequently asked questions about ways to make money.

  • How much money do I need to invest to make $4,000 a month?

    • Making $4,000 a month based on your investments alone is not a small feat. For example, if you have an investment or combination of investments with a 9.5% yield, you would have to invest $500,000 or more potentially. This is a high amount, but could almost guarantee you a $4,000 monthly dividend income.

  • How can you make an additional $4,000 a month?

    • There are many ways you can make an additional $4,000 a month including, but not limited to, the following:

      • Open a high-yield savings account

      • Invest in dividend-paying stocks

      • Rent out your real estate investments

      • Start a blog or YouTube channel

      • Write an e-book

      • Participate in peer-to-peer lending

      • Create an online course

      • Invest in index funds or ETFs

      • Try affiliate marketing

      • Build a mobile app or website

This article originally appeared on GOBankingRates.com: How To Earn $4,000 a Month in Passive Income

How To Earn $4,000 a Month in Passive Income (2024)

FAQs

How To Earn $4,000 a Month in Passive Income? ›

If you like the idea of earning passive income, one idea to make $5,000 per month is to rent out things for money. This is probably the best option if you're very busy with your job and don't have time to start a new side hustle.

How can I make $5000 a month in passive income? ›

If you like the idea of earning passive income, one idea to make $5,000 per month is to rent out things for money. This is probably the best option if you're very busy with your job and don't have time to start a new side hustle.

How to make $4000 quickly? ›

How To Make $4,000 Dollars Fast
  1. Freelance Online.
  2. Deliver Food For Money.
  3. Sell Your Unused Stuff.
  4. Complete Odd Jobs For Money.
  5. Ask Your Boss For A Raise.
  6. Deliver Groceries For Money.
  7. Borrow The Money.
  8. Affiliate Marketing.
May 7, 2024

How can I make $1000 a month in passive income? ›

Passive Income: 7 Ways To Make an Extra $1,000 a Month
  1. Buy US Treasuries. U.S. Treasuries are still paying attractive yields on short-term investments. ...
  2. Rent Out Your Yard. ...
  3. Rent Out Your Car. ...
  4. Rental Real Estate. ...
  5. Publish an E-Book. ...
  6. Become an Affiliate. ...
  7. Sell an Online Course. ...
  8. Bottom Line.
Apr 18, 2024

How much per hour is $4000 a month? ›

If you make $4,000 a month, your hourly salary would be $23.08.

How to make $2,000 a week in passive income? ›

Rent Out Assets. If you like making passive income, another option to make $2,000 in a week is to rent stuff out for money. People do this all the time by renting out a spare room or entire house as an Airbnb host. But renting out real estate space is just one example of how you can make money with a rental business.

How can I make $100 a day passive income? ›

Some popular passive income strategies include investing in dividend-paying stocks, creating an online course, or writing an eBook. These methods require an initial investment of time and effort but can generate a daily return of $100 or more if executed correctly.

How to make 70k in passive income? ›

One simple strategy is to invest in two types of assets: closed-end funds (CEFs) and real estate investment trusts (REITs). A CEF is a type of mutual fund that can be bought and sold like a stock on an exchange. Some CEFs specialize in high-yield bonds. Others own preferred stocks and dividend stocks.

Can you live off of $4,000 a month? ›

The answer is yes, almost 1 in 3 retirees today are spending between $2,000 and $3,999 per month, implying that $4,000 is a good monthly income for a retiree.

How can I make $1,000 dollars a day? ›

How To Make $1,000 A Day
  1. Make Money Blogging.
  2. Create A Side Hustle Stack.
  3. Start An Ecommerce Business.
  4. Start A Service-Based Business.
  5. Retail Arbitrage.
  6. Passive Income Rentals.
  7. Use Geo-Arbitrage.
  8. Consulting.
May 5, 2024

How to make $2500 a month in passive income? ›

Invest in Dividend Stocks

One of the easiest passive income strategies is dividend investing. By purchasing stocks that pay regular dividends, you can earn $2,500 per month in dividend income. Here's a realistic example: Invest $300,000 into a diversified portfolio of dividend stocks.

Can you live off of rental income? ›

Real estate investors who develop their portfolios strategically and with determination can realize their dream of living off rental property income. Location, revenue potential, property management, and long-term financial planning are essential components for success.

How to make an extra $2,000 a month passive income? ›

Wrapping up ways to make $2,000/month in passive income
  1. Try out affiliate marketing.
  2. Sell an online course.
  3. Monetize a blog with Google Adsense.
  4. Become an influencer.
  5. Write and sell e-books.
  6. Freelance on websites like Upwork.
  7. Start an e-commerce store.
  8. Get paid to complete surveys.

How to earn $5,000 per month? ›

Let us scout for all the available options to earn 5000 per month and provide financial stability.
  1. Bank Deposits. ...
  2. Post Office Monthly Income Scheme. ...
  3. National Pension Scheme (NPS) ...
  4. Atal Pension Yojana (APY) ...
  5. Mutual Funds. ...
  6. Government and Corporate Bonds. ...
  7. Annuity. ...
  8. Life Insurance.

How to generate $100,000 in passive income? ›

Ways to Make $100,000 Per Year in Passive Income
  1. Invest in Real Estate. Rental properties generate income through tenants who pay rent each month to live in a property you own. ...
  2. CD Laddering. ...
  3. Dividend Stocks. ...
  4. Fixed-Income Securities. ...
  5. Start a Side Hustle.
Jul 28, 2023

Top Articles
Latest Posts
Recommended Articles
Article information

Author: Roderick King

Last Updated:

Views: 6364

Rating: 4 / 5 (71 voted)

Reviews: 94% of readers found this page helpful

Author information

Name: Roderick King

Birthday: 1997-10-09

Address: 3782 Madge Knoll, East Dudley, MA 63913

Phone: +2521695290067

Job: Customer Sales Coordinator

Hobby: Gunsmithing, Embroidery, Parkour, Kitesurfing, Rock climbing, Sand art, Beekeeping

Introduction: My name is Roderick King, I am a cute, splendid, excited, perfect, gentle, funny, vivacious person who loves writing and wants to share my knowledge and understanding with you.