Making a little extra money while you sleep may sound too good to be true, and it probably is. There are ways you can generate passive income, however, with minimum effort after the initial investment stages. It’s about getting yourself into a better financial situation without working or dedicating much time. Passive income will never replace your full-time job or side-hustle, but the great thing about is that you can bring in maximum profits for minimal effort. Here is a quick guide to passive income and some examples of how you can make money.
What is passive income?
If you want to make extra cash quickly, the best way is often to look at your work situation. Aim for a better-paid job, or start your own side hustle. Passive income is perhaps better as a long-term solution. Passive income is a great way to supplement your job and prepare you for retirement. Some examples include investment, selling or renting assets, increasing your savings, or reducing your debt.
There are also more short-term passive income solutions, however. These include blogging and social media, or market research. Assess your talents and financial situation and see whether you’d be more suited to investing, renting out your property, or creative input flipping a website or blog, for example. Here are twelve passive income ideas to give you inspiration.
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Investing in the stock markets can be daunting for first-timers, but it can be a good way to bring in some passive income. The key is to use your head and not let your emotions take over. With investing, it’s always recommended to diversify your portfolio over various types of investments that will react differently to changes in the economic situation.
The most passive way you can invest is by using the best robo-advisors. These are essentially apps that act as financial advisors managing your investments. You can also set them to invest in high dividend stocks, for example. This way you will also earn money from any capital gains. Find out more about investing for beginners.
Start a blog
It’s proven that in this day and age it’s easy to make money from blogging if you know what you’re doing. Starting a blog will require some effort, to begin with, but once you create a name for yourself it’s a good way to bring in some long-term passive income. There are plenty of ways you can monetize your blog and these include guest posts, product endorsement, reviews, and advertising. Once your blog is established you can even outsource the content creation to ghostwriters.
Flip websites and blogs
If you’re website-savvy, on the other hand, you could even buy a blog or website and flip it. This means improving the content and web traffic and bringing the revenue up even more. Bloggers are abandoning their sites all the time so choose one which has previously demonstrated cash flow and promise. Once you’ve set up the new improved website, you can resell it for a higher profit. If you would like to learn more, here are some of the best marketplaces for website flipping.
Social media is a great tool for making a little passive income on the side. If you’d like to try your hand at writing and marketing, you could become a social media influencer. Collaborate with brands and by producing sponsored posts and content. This is a win-win situation as the companies will pay you for endorsing their product as their brand develops more credibility. You can also share affiliate links on your blog or advertise on your website. This one does require an initial effort though and you’ll need to showcase your talents on the web to build a name for yourself. Create a media kit to show examples of your work, social media accounts, and your niche.
Sell stock photos
How you decided to make more passive income really depends on your own individual talents. If you have a passion for photography, you could sell your pictures as stock photos online. This requires minimal effort for those who enjoy photography as a hobby and it’s easy to create invoices for individual businesses. You’re essentially giving other companies the right to use your photos to market their brand. If you have a portfolio of unused photographs this is an easy way to make passive income. Use a third-party site such as Adobe Stock or Shutterstock to make your pictures more widely available to buy. They will take care of the rest for you.
Now let’s move on to the property section of passive income. If you have the financial means there are simple ways to invest in real estate. You could consider buying your own property either to flip, rent, or live in while it increases in value or alternatively, you can try part-investing in joint ownership. Real estate investing apps have made this a little easier nowadays and you don’t necessarily have to be a property expert. REITs, for example, take care of managing the property and will automatically distribute leftover profits to investors. You can start small and invest as little as $500.
Rent out your home
If you have your own property you could rent it out online. You could become a host on Airbnb and rent out the entire property to vacationers or even just a room to those looking for temporary accommodation. It’s really up to you. You can even continue living in the property at the same time. This is a simple way to make some passive income for homeowners. You could also consider getting a lodger or roommate to rent out a room in your home on a more long-term basis.
Rent out your drive
If you don’t want to rent out your actual house then you could try renting out your drive or parking space. There are plenty of apps to rent your driveway. If you don’t have a car or for whatever reason aren’t using your allocated parking space then why not make some passive income from it? This is especially lucrative if you live in a busy city where it’s difficult to find a parking space. Many city workers will gladly pay you a long-term fee for your driveway or parking space.
Rent out your car
There are also apps to rent out your car. Turo is leading in car-sharing apps and you can rent your vehicle to another person, keeping the profits for yourself. You can choose the terms and how long you want to rent it for and Turo will take care of the details. It’s better to go through a secure platform so that you have peace of mind that both parties are registered. You don’t want to leave your car with a complete stranger just to make a little extra cash. This requires hardly any effort on your part, however, and you’ll saving someone else the expenses of buying their own car. Another win-win situation.
If you’d like to make a little money while you’re bored during your commute to work you could try taking part in some market research. There are plenty of websites where you can make money from surveys. Online surveys don’t normally take very long and you can do them on your smartphone from wherever you are. Some market research websites even send out products to be reviewed. It’s up to you how much time you want to dedicate, but in any case, it’s pretty easy money. You might even get to enjoy some fun free samples of products to review, sent right to your door. You’ll be helping out businesses by giving honest reviews.
If you want to invest in eCommerce or have your own products to see you could see if dropshipping on Amazon would work for you. You would be responsible for the buying and selling of the products while Amazon takes care of the fulfillment process. This means the storage, packing, distribution, and delivery of the products you’re selling. Many people opt for buying items in bulk from a wholesaler then selling them at a higher price. You’ll need to research the market before you start and find out which products are more in demand. Drop shipping is a fun business to get into and it’s easy to run from your own home with storefront apps and online payments.
Reduce your debt
Another way to boost your income for the future is to deal with debt now and invest in your savings. The government website has plenty of advice for reducing your debt. Many people get trapped in debt and it can feel like there’s no solution, but this isn’t true. You can consolidate your debts so that you pay them off automatically each month without realizing it. Take any extra money you make from your passive income and invest in a high-interest savings account. Build a little nest egg for yourself. If you start now, you’ll be much better off in the future.