What Is Passive Income?
You probably have your own idea of what passive income is. Almost everyone does. Unfortunately, it is also a method of earning that is often misunderstood. For instance, what most people don’t realize is the investment of effort and resources that it requires upfront. It will also take time for such income streams until they grow into a source of high recurring income.
Having said that, passive income methods are not get-rich-quick schemes. Significant effortless income simply doesn’t grow overnight. However, if you are ready to wait and don’t mind the investment, then here are some ideas on how you can make extra money passively.
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1. Purchase a Financial Product
There are various financial products such as stocks and mutual funds that you can invest in. These typically allow you to buy shares from various companies and earn profit from them.
Buying and selling stocks can be exhilarating, but we highly recommend consistently adding to your investments for a longer period of time instead. It’s also a good idea to diversify your portfolio. Doing so can increase your ROI and prevent significant losses.
2. Grow Your Social Media Platform
Who doesn’t use social media these days? If you spend a significant amount of your time daily on a platform (or multiple ones), then this might be the ideal passive income stream for you. The trick is to focus on a particular niche and build quality content. You can then monetize through your own content or by publishing sponsored ones.
This is also a great way to get free products, premium service trials, and other perks. The best part is, some platforms like YouTube and Spotify will continue paying you for your old content as long as they’re still published and gaining engagement.
3. Create an Online Course
This is one of the most trending passive income ideas this year. Do you have a special skill, talent, or knowledge that other people will find value in? How about a hobby that you’re really good at? Then you can structure an online course about it.
It can be about almost anything under the sun, from fitness coaching to graphic design, and from teaching about science to how to be a stay-at-home mom more efficiently.
You can either publish it on your own website or on a learning platform like Skillshare or Udemy. As long as new customers keep enrolling, it will ensure a steady stream of income even while you sleep.
4. Share Your Space
Do you have an extra room out home? You can rent it out to short-term tenants through various home sharing platforms. Airbnb is definitely the most popular, though, with services that span across numerous countries.
These platforms will also handle most of the tasks such as booking and payment processing. All you need to do is have your space free and clean, ready for your guests.
5. Advertising on Your Car
“Available space” can come in various forms, even in places that you probably haven’t even considered such as the body of your car. If you don’t mind literally having your car wrapped by a billboard ad at no cost to you, then you can definitely earn money by simply using your car as you would any regular day.
6. Rent Out Various Household Items
Finally, space isn’t the only thing you can rent. You can rent out almost anything online these days: an idle car, those power tools that are gathering dust in your basement, that tent that you only used in camping once.
You can always rent them out by posting an ad on your social media account, or through Craigslist. However, keep in mind that there are also other platforms that were specifically designed to rent out certain items online.
For instance, RentMyWardrobe is a great platform to rent out any article of clothing you have in your wardrobe.
Their services come with an Apparel Assurance feature that can provide coverage for stains, rips, and even missing pieces.
Sparetoolz is a similar platform, only that it seeks to help people rent out tools instead of clothes.
There are definitely other ways to earn passively. The ones that we have shared with you above are simply the most popular ones. In the end, what’s important is to find something that you’re genuinely interested in to make your passive method even more effortless. Who knows? Your passive income idea might even evolve into your main income stream. Good luck!
Jim Hughes has significant experience covering financial and business topics. He’s been a financial advisor and also provided consulting and advice. At the moment he is the Director of Content at OpenCashAdvance.com
What do you think?