When we think of income, most of us think of the salary we make at work. If there’s one benefit of a salary, it’s that it’s predictable. But that predictability can also be a downside. How can anyone ever get ahead if their salary doesn’t budge? The answer is to increase your income through passive income.
Passive income is steady income that you receive after making some kind of investment – which could be time, money, or both. There are a lot of different ways to make passive income. Here are a few passive income ideas that can help you make money while you sleep.
Become a landlord
Property investments are one of the most popular methods of passive income. It’s more common to be a landlord than you think! If you’re in the first-time homebuyer stage of your life, consider buying a duplex. You can live on one side and rent out the other. Do the math, and it’s not hard to see why this is a great passive income strategy.
If you already own a property, consider buying another that can be rented. Either sign a tenant to a yearly lease or use new technology tools like Airbnb. The only downside to this passive income method is the upkeep, and the potential risk of losing renters, which would result in a temporary loss of income.
The “start small” version of this passive income idea would be to rent out any type of extra space on Airbnb or Craigslist. Your spare bedroom or even your garage could be earning you hundreds of extra dollars each month!
If you choose to use Airbnb, make sure you do your research. There are many valuable Airbnb hosting tips to help you maximize your revenue and reduce your stress.
Rideshare your commute
Adding a side hustle like driving for Lyft or Uber doesn’t necessarily count as passive income since you’re still dedicating extra time to making money. But I know a few people who only “work” for rideshare services on their daily commute. They’ll take one passenger to a destination close to their work in the morning. Then they’ll drive another passenger to a destination close to their home in the evenings. This is a brilliant way to turn your daily commute into a source of passive income.
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Write a book
With self-publishing tools, it’s never been easier to write and publish your own book. If you have a passion, interest, or special skill set, you can definitely channel that energy into a book. Self-publish it for a small up-front investment, and then sit back and relax as the sales start to roll in. The ebook market is growing, and even if you sell your book for $5, each sale adds up! This passive income idea has a large upfront cost in terms of your time, but it’s a great strategy because the growth potential is unlimited.
Make YouTube videos
You know those ads that play before you watch a YouTube video? Those ads are how YouTube video creators get paid. And you can too! If you have a hobby, interest, or skill, take a few hours to make a high-quality YouTube video and post it.
The ad revenue might only amount to a few cents per click, but like all other kinds of income, it all adds up. Videos are a great source of passive income because once they’re made, you don’t have to do any further maintenance.
Invest in a business
In this economy, many people are eager to start their own businesses, but starting a business takes capital. However, investing in a business in its early stage as a silent business partner can give you some huge long-term profits if the business takes off. It’s like being on Shark Tank, but for lower stakes and a lot less stage makeup. This is a great passive income idea for someone with an entrepreneurial interest. The only downside is that if the business goes under, you won’t be getting your initial investment back.
Sell products online
I once paid $20 to download a font to use on invitations. Yes, $20. That means somebody, somewhere, took the time to create a font and is now making $20 every time somebody new downloads it from their website.
This is just one example, but the possibilities of making passive income by creating and selling online products are endless. Recipes, documents, even coloring books can all be sold online. If you think I’m crazy, just look at the Digital Downloads section on Etsy. And that’s only one type of online marketplace! The Internet is the best place to make passive income because you have an unlimited number of potential customers!
Start investing
When your money is sitting in your bank account, it’s not growing. Make your money work for you by investing it. Apps like Stash or Acorns are easy ways to start investing for a minimal up-front cost. But there are other great robo-advisors out there that can help you put larger amounts of your money to work for you.
If you’re wondering which type of passive income idea to start with, this is the one for you. It’s super easy and the sooner you start investing, the more your money will grow.
