Top 3 Best Passive Income Streams for Anyone in 2023

What is passive income? What are the best passive income streams? How to get passive income? How to make money with passive income streams?

If you’re pondering any of these questions, let your curiosity bring you closer to achieving financial freedom and continue reading to find out what the top 3 best passive income streams are and how to start earning from these passive income streams to boost your monthly income!

Passive income is one of the internet's favorite buzzwords lately. Well, I say good choice! Passive income is a buzzword that will benefit everyone who hears about it and turns their curiosity into action by researching it and learning what they can do to earn some extra income each month without having to put in extra hours of work outside of their day job.

There are countless ways to earn passive income, but these are the top three best ones out there. These passive income streams will be categorized by Easy, Moderate, and Hard difficulty.

Difficulty refers to how difficult it'll be to set up and maintain the passive income flowing monthly.

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(Easy) Savings Accounts

While this passive income stream is the easiest for anyone to get, it is absolutely necessary for individuals to at least get some extra money passively per month from their bank accounts.

Banks pay dividends to their members who have money stored in savings accounts because they loan out a large percentage of their members' money to make a profit.

This is what is known as fractional banking. Currently, In the United States, banks are allowed by the FED to loan out 90% of their members' money to borrowers and are required to store 10% in the account in case the member wants to withdraw some money.

That's why banks pay monthly dividends to their members who have savings accounts with them. Through savings account dividends, individuals with enough funds can make tens, hundreds, or even thousands of dollars monthly through dividends.

This passive income stream takes no time to manage and is fully automatic for the owner of the savings account. Anyone can open a savings account for free and start depositing money into it to grow their monthly passive income.

(Moderate) Index Funds

This passive income stream is between easy and hard because it requires starting capital in order to earn passive income. While it's not easy, it's not hard to start and maintain either.

However, index funds are more risky than savings accounts since they're an investment that can fluctuate from increasing in value to decreasing in value.

With as little as 1$, investors can start earning passive income by investing in index funds that will increase and decrease in value and earn dividends for investors each month depending on how many shares of a fund the individual investor owns.

With enough money invested in an index fund, investors can earn hundreds, thousands, and even tens of thousands of dollars and more in passive income through dividends.

While it's relatively easy to start investing in index funds, it's not as easy as having a savings account that accumulates passive income.

For example, if an emergency occurs and the investor doesn't have enough money in their bank account to cover costs, they'll have to sell their index fund shares, which will no longer earn them passive income since they sold their ownership and will no longer receive dividends.

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(Hard) Rental Properties

Though this is the hardest passive income option on this list, it definitely brings in the most cash flow.

This is the hardest passive income method because real estate properties are expensive to buy and maintain; therefore, only people with enough money to start this passive income method will enjoy the immense benefits.

Rental properties bring in the most passive income since rent typically costs thousands of dollars monthly. With only one rental property bringing in $2,000 per month, a landlord can earn $24,000 a year.

These rental properties don't take as much work or time as a traditional job does to manage them and continue earning passive income. This passive income stream is an investment, so it is possible to lose money through the volatility of the real estate market.

However, real estate is one of the most trustworthy investments an investor can make to earn passive income because rental properties will always be in demand by renters, so it can be a very reliable passive income stream while bringing in gigantic figures monthly that can make an individual a multi-millionaire.

While there are countless other passive income streams that could be put into one massive list, these are the top 3 best passive income streams, and they'll likely be more than enough for most people.

If you have any specific topics you would like to read about in a future article, feel free to write a comment to me and I'll write an in-depth and high-quality article for you as soon as possible!