A Step-by-Step Guide to Generating $10K of Passive Income for Life (Without Breaking a Sweat)

Many people want passive income — money coming in no matter what they are doing day-to-day. And as impossible as it may sound, convincing within reach with the proven strategies. The key is to develop income streams that generate income after an initial effort while requiring very minimal amounts of additional work. So without wasting time quickly here is how you can create $10k of passive revenue every year with little initiative.

1. Invest in Dividend Stocks

Dividend stocks have been considered by many the most dependable way to make a passive income. Companies that pay dividends on a regular basis give you money quarterly as cash out of their earnings. The amount that you invest also plays a huge role with higher investments corresponding to a bigger payout.

How it works:

Starter Investment – Buy shares in established companies that pay dividends. Platforms such as Vanguard and Robinhood allow you to cheaply invest with a few clicks.
Reinvest your Dividends: Think about reinvesting the dividends you earn into your portfolio to grow it quicker.
If the average annual dividend yield on your investments was around 3-5% you would have to invest ~$200K in competitive companies to make $10K per year on dividends. Binaries offer returns of up to 91% per successful trade but you can start small and re-invest in gaining higher, growing your return over time

2. Peer-to-Peer Lending

Peer-to-peer lending is similar to traditional lending programs, except you are the individual issuing money toward other households or startups in hopes of earning interest. Sites such as LendingClub and Prosper will connect you with borrowers and your proceeds will be through the interest that the person is paying on the loan.

How it works:

Getting started: You can invest in as small increments as $25 per loan to spread your investment over many different borrowers.
Interest Rates: Interest is charged to the borrower as a rate ranges between 6-12% depending on the level of risk.
With the proper kind of risk and diversification, they can actually pay you a steady income, even for a small amount (a few thousand should remain well within that range) – nothing to sneeze at over time.