Wealth Building

Passive Income Sources to Build Wealth in 2023

Passive income is money that you earn without active involvement. It isn't attached to an hourly wage or salary and can come from rental properties, dividend‑yielding stocks, product sales, royalties and more.

Understanding Passive Income

Proven Passive Income Strategies

Explore various ways to generate passive income and build long-term wealth

Create a course

Develop audio or video course content and sell it on platforms like SkillShare, Udemy or Coursera. Once created, courses can generate income with minimal ongoing effort.

Invest in rental properties

Investing in rental properties can be an effective way to earn passive income. Determine how much return you want, the property's total costs and expenses, and the financial risks of owning the property (e.g., finding tenants, late payments, vacancies).

Create a blog or YouTube channel

If you are passionate about a topic, create content and build an audience on platforms like YouTube, TikTok or a blog. Use ads or sponsors to generate income once you have a following.

Sell designs online

Turn design skills into income by selling products with your designs on sites like CafePress or Zazzle. You can also set up your own online store using platforms like Shopify.

Affiliate marketing

Promote other companies' products on your website or social media and earn a commission on sales. Popular affiliate programs include Amazon, eBay and ShareASale.

Become a copywriter

Companies need copywriters to write marketing materials. Copywriters can work full‑time at an agency or corporation or freelance for flexibility.

Invest in high‑yield dividend stocks

Dividend‑paying stocks distribute part of a company's earnings to investors. These stocks can be less volatile than growth stocks and help diversify a portfolio while generating passive income.

Invest in dividend index funds and ETFs

Instead of buying individual stocks, invest in dividend index funds or exchange‑traded funds (ETFs). These funds hold dividend‑paying stocks, offer diversification and can be a more hands‑off approach to investing.

Rent out your car

Use platforms like Turo (the Airbnb of cars) to rent out your car when you're not using it. This can bring in extra income – some people earn between $10,000 and $12,000 per year per car.

Create greeting cards

Use your design skills to create greeting cards (e.g., birthday, wedding, anniversary cards) and sell them online or to local businesses for passive income.

How to Choose the Right Strategy

The best passive income source depends on factors like how much money you have to invest, the time you must commit, the opportunity size, and your interests and abilities. Weigh these factors to choose the strategy that fits you best.

Consider These Factors:

Initial investment required
Time commitment needed
Your skills and interests
Risk tolerance level

Success Tips:

Start with one strategy
Be patient and consistent
Reinvest early profits
Diversify over time

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Ready to Start Building Passive Income?

Our financial advisors can help you choose the right passive income strategies based on your goals and risk tolerance.