11 Ways to Earn $1000 per Month in Passive Income. (2024)

FAQs

How to generate $1000 a month in passive income? ›

Dividend stocks are shares in companies that regularly pay investors a portion of their earnings and can be a profitable way to generate an annual passive income. By investing $5,000 across five different companies that offer higher-yielding dividends, you can earn more than $300 a year, according to Motley Fool.

A stock portfolio focused on dividends can generate $1,000 per month or more in perpetual passive income, Mircea Iosif wrote on Medium. “For example, at a 4% dividend yield, you would need a portfolio worth $300,000.

Platforms like Upwork, Fiverr, and Freelancer allow you to offer services such as writing, graphic design, programming, or virtual assistance. Spend a few hours each day completing gigs, and you can easily make $50 or more.

There are two kinds of passive activities. Trade or business activities in which you don't materially participate during the year. Rental activities, even if you do materially participate in them, unless you're a real estate professional.

Think: selling courses online or renting out a room in your house. You can potentially make passive income through investing in funds or stocks that pay dividends, as well as bonds, bond funds, and real estate.

Look for $12,000 Per Year in Dividends

To make $1,000 per month in dividends, it's better to think in annual terms. Companies list their average yield on an annual basis, not based on monthly averages. So you can make much more sense of how much you might earn if you build your numbers around annual goals as well.

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.

Some experts recommend withdrawing 4% each year from your retirement accounts. To generate $500 a month, you might need to build your investments to $150,000. Taking out 4% each year would amount to $6,000, which comes to $500 a month.

How to make $100,000 per year in passive income? ›