16 Proven Ways to Make $3,000-$4,000 Per Month in Passive Income (2024)

FAQs

16 Proven Ways to Make $3,000-$4,000 Per Month in Passive Income? ›

Dividends are paid per share of stock, so the more shares you own, the higher your payout. Opportunity: Since the income from the stocks isn't related to any activity other than the initial financial investment, owning dividend-yielding stocks can be one of the most passive forms of making money.

Dividends are paid per share of stock, so the more shares you own, the higher your payout. Opportunity: Since the income from the stocks isn't related to any activity other than the initial financial investment, owning dividend-yielding stocks can be one of the most passive forms of making money.

What is passive income? According to the king of passive income, Pat Flynn, it's “building online businesses that take advantage of systems of automations that allow transactions, cash flow and growth without requiring a real-time presence.”

If the average dividend yield of your portfolio is 4%, you'd need a substantial investment to generate $3,000 per month. To be precise, you'd need an investment of $900,000. This is calculated as follows: $3,000 X 12 months = $36,000 per year.

You can earn passive income by renting out property, through dividend stocks or a high-yield savings account. This is the opposite of active or earned income, which is generally defined as income received from working at a job or as a contractor.

Invest in Dividend Stocks

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.

How to earn $5000 per day? ›

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.