5 Passive Income Ideas to Make Money & Build Wealth in 2023

2. Peer-to-Peer Lending

Peer-to-peer is a form of direct lending that occurs between individuals or “peers” without the involvement of traditional financial institutions like banks. In a P2P lending platform, individuals or investors with excess funds lend money directly to borrowers who need funds for various purposes, such as personal loans, business loans, or debt consolidation. To earn passive income through this strategy, income seekers should create an account with some reputable P2P lending platform. As borrowers make monthly repayments, they receive a portion of the principal and interest, providing a steady income stream. The key to success in P2P lending is diversifying the investments across multiple loans to spread risk and carefully selecting loans based on borrower creditworthiness and loan purpose.