Passive income is all the rage: Here's how to take advantage of it in 2022.

Inflation hits 40-year highIncreases prices of everything US For people. Even if you have enough to pay your bills, you may still be worried about how you will earn enough for retirement or simply have a buffer.

Enter your unearned income. It's a cash flow that, once set up, typically requires little regular effort to maintain. You may have heard the phrase "make money while you sleep". Active income involves the exchange of time and money whereas it is passive income.

"In this modern world, it's good to have multiple sources of income, even if it's a paycheck," says New, a certified financial planner (CFP) at Gladstone's Real Life Planning. says one Cynthia Meyer. Jersey working with real estate investors. 

Is she interested in earning an extra income? Here's what you need to know about how to earn passive income - including how to get started.

8 Passive Income Ideas

There are dozens of passive income sources. You should be able to continue your day job while generating passive income. You can start looking for ways to make extra money right away

Need passive income ideas. Here's a quick list.

• Recurring interest from a Certificate of Deposit (CD), US savings bond, or high-yield savings account can be profitable as interest rates rise

• dividend stocks or other investments

• royalties from creative endeavours, such as books and websites

• affiliate marketing, advertising or earn cash by posting monetized links on your website or social media account - or even wrap it around your car

• Make Money Online Earn start a blog,take a survey or test an app. Start researching today and earn extra money 

• Money from rental properties

• Rent your home short-term

• Sell items on marketplaces like eBay and Amazon

Things like side hustle are up and running. , it may not require much effort,” Meyer points out. 

How to Set Up a Passive Income Source

In some cases, such as buying stock or real estate, you need cash up front. Others, such as affiliate marketing, take longer to set up and work up a lot of sweat. You also need to weigh the potential of regular income versus the risks. Lending money can be riskier than buying dividend-paying stocks or savings bonds, experts say.

Dividends, for example, "provide a decent return on investment and are very reliable and hassle-free," says Moneta of Denver-based Moneta His Group Investment Advisors. says Erin Hudary, CFP at "But it takes a lot of money to make money. $100 a month is about $40,000 if you invest in a 3% dividend stock basket." 

Getting Started Are there any types of passive income that cost very little to earn?

Yes, but be prepared to 'sweat' - your time. Activities such as affiliate marketing and home rentals require initial setup and may require maintenance to generate a steady stream of cash. 

Royalties from intellectual property such as books, patents, and music can also provide passive income. You should always thoroughly research your ideas before diving in. Other categories might be "some upfront payment required". 

How much up-front investment is required to obtain passive income?

Setup depends on the type of income source. take real estate. Unless you're in the real estate business professionally, like a real estate agent, the Internal Revenue Service (IRS) typically views this type of investment as passive income, he said.Find out more about passive income, such as renting property, on the IRS website. "There are actually both passive and active incomes," says Meyer. "It's passive in the sense that you get rent every month, but you still have to run the property like a business. That's a caveat." Upfront work to set up, and regular maintenance may be required.

"Whether or not the tenant pays the rent, you still have to. You pay your mortgage, your property taxes, your insurance, etc.," Meyer adds. Some investors hire management companies to handle these details, making their investments more passive.

According to experts like Meyer, yes in some cases. But construction takes time.

"To live in real estate, you're looking for positive cash flow," says Mayer. It takes a while before you're like, 'Oh, that's a lot of money.'" Instagram accounts and blogs, for example, can lose popularity. Also remember that most passive income streams require some serious research and configuration work. In addition, some experts point out that there are risks involved. "Unfortunately, it's almost impossible to find a true passive his option," he says Hadary.