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1. Invest in dividend stocks

Dividends, which are payments made by publicly traded companies to their shareholders, can sometimes offer you a bit of stability even while the market is rocky.

Although this option is not without risk, dividend-paying companies typically don’t want to stop paying dividends — but it can depend on the company. It might help to pick a solid performer by looking at a company’s payment track record.

Shareholders regularly receive a dollar amount or percentage for each share they own. So for example, if the company pays a $1.50 cash dividend per share, and you own 40 shares, you’ll receive $60 over the year.

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Millions of Americans are struggling to crawl out of debt in the face of record-high interest rates. A personal loan offers lower interest rates and fixed payments, making it a smart choice to consolidate high-interest credit card debt. It helps save money, simplifies payments, and accelerates debt payoff. Credible is a free online service that shows you the best lending options to pay off your credit card debt fast — and save a ton in interest.

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2. Get cash back from credit cards

One of the easiest ways to generate passive income is to simply apply for a credit card that gets you cash back for your everyday purchases.

Some cards will get you a flat rate on anything you buy, while others may reward you with more cash depending on what you buy (e.g. higher rates on groceries and gas) or when you shop at certain retailers.

Ultimately, you need to pick the card that best suits your spending habits. And remember, don’t be cajoled into racking up credit card debt with the promise of rewards.

3. Get interest back in a savings account or CD

If you’ve been burned by the stock market before and are looking for a safe, low-risk place to stash your cash, consider a certificate of deposit (CD) or a high-yield savings account.

A high-yield savings account could come with an interest rate as high as 4%, while your average traditional savings account has an interest rate of 0.30%.

Just keep in mind that a high-yield savings account may come with caveats, like a minimum deposit or balance that must be maintained or extra fees you need to pay.

Meanwhile, locking your money in a CD can get you an annual percentage yield of over 4%. That said, the return may not keep up with inflation, and if you withdraw money earlier than the set term you agreed to you’ll have to pay a penalty.

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4. Rent out your space

If you’ve got a spare room you never use or a garage that’s totally empty, consider turning one of them into a rental space.

You can clean up the extra space and become an Airbnb host for short-term rentals, or let someone pay you to use your garage as storage space.

For those who own a second property outside of their primary residence, like a summer vacation home, they can rent it out during the times they’re not using it.

It’s up to you when and how often you host, and it’s a great way to make passive income out of something you already own.

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Serah Louis is a reporter with Moneywise.com. She enjoys tackling topical personal finance issues for young people and women and covering the latest in financial news.

Disclaimer

The content provided on Moneywise is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter.