Investing in dividend-paying stocks is one of the most crucial strategies you can use to earn $5 every day with a $1,000 investment. You will be able to make profit when you invest in this kind of firm, but in order to generate passive income on your investment, it is crucial to look into reputable companies that have a track record of dividend payments. Peer-to-peer lending services are an excellent alternative as well, as they allow you to lend money to a variety of people and companies while earning interest payments.