Ten Clever Ideas to Start Making Passive Income
Passive income can positively impact your life because you do not have to trade most of your time to earn money. There are many ways that passive income can benefit your financial situation. Those reasons include having more financial stability, relying less on a paycheck, reducing financial anxiety, and reaching your money goals.
If you want to create another stream of revenue for yourself, here are 10 ways that you can start earning passive income:
1. Rent out your car.
When you think of making passive income with your car, you probably think of driving for Uber or Lyft. But you can actually make money with your car without having to actually take the time to drive people around.
Personal car rental service Turo allows car owners to rent out their cars to others for days or weeks. Liability insurance of up to $750,000 is included, as well as contractual protections for damage, theft, and 24/7 roadside assistance. All you have to do to get started is list your car and wait for someone to book it.
2. Start a YouTube channel
If you have always wanted to start a YouTube channel, you should! You should know that it may require a lot of time and effort to set things up and market yourself, however, there is a return on your investment in your time and effort in creating great videos.
It is possible to earn passive income through uploaded videos. Once you reach a certain number of subscribers/viewers, Youtube will start to pay you between $0.01 and $0.03 for each ad view. The more views you get, the more passive income you will earn.
3. Invest in the stock market
By investing in the stock market, you can grow your money without actively working for it. Over time, you may see a return on your investment, especially if you invest in dividend stocks or Real Estate Investment Trusts (REITs).
If you are curious or new to the world of investing, you can learn more about the basic understanding of the stock market here.
4. Sell a course
If you have a business or you are passionate about educating others about a particular niche topic, you can sell a course to your family, friends, social media followers, or even strangers who are interested in the topic you are teaching. Making the course requires planning, but once you’ve completed everything and uploaded it online, you can earn passive income as people purchase your course.
You can also sell your course on online platforms, such as Udemy or Teachable, which allows anyone to create a course and sell it to those who may want to learn about that particular topic.
5. Create an app
From gaming to social media, many of us are using mobile apps on our phones every day, all day. If you have an idea for your own app, creating and launching an app could result in passive income. (You can get help with going from idea to development with a service like App it Out.) It is important to note that creating an app requires time and initial monetary investment.
Once finished and you’ve put your app in the app stores, you can choose to offer your app to users for free and monetize it through paid advertisements, or instead charge users per download, through a subscription, or through in-app purchases.
6. Rent out your home
There are several third-party services that exist today that allow you to rent out your home for the short term, such as a few days, or long-term, such as a few months. One of the most notable services is Airbnb. Airbnb makes it easy to list your entire home or rooms in your home for rent. If you live in a multi-unit property, you can rent the additional units in your home and earn passive income by listing the unused space in your home.
There are several benefits of renting out your space including earning extra income, 24/7 support offered by Airbnb, plus most Airbnb bookings include property damage protection and liability insurance of up to $1M (USD). To learn more about the benefits of hosting your home on Airbnb, click here.
7. Sell your photography and videography
Stock image websites like Shutterstock and Alamy make it accessible for anyone to list or license photographs or videos. If you have a professional camera or even a cellphone phone with a high-quality camera, you can list your photos and videos for licensing use.
As people license your photos or videos, you will earn passive income.
8. Start a blog
If you are passionate or knowledgeable about a topic and have always wanted to start a blog, you can do so while earning passive income. Including affiliate links in your blog posts can bring you passive income if readers click and shop through your affiliate links. If your blog gets a lot of viewers, you can include ads from a third-party service like Google or personally charge individuals or companies to run advertisements on your blog. Additionally, if you have a product or service that you sell, you can run sales on your blog.
9. Write an eBook
Self-publishing has continued to increase over time, and if you have ever wanted to write a book, the time is now. Writing an eBook, a digital book, requires a lot of time and effort upfront. However, once you’ve published your eBook, you will receive passive income for any book sales that you make.
Services like Amazon's Kindle Direct Publishing makes it easy, convenient, and free to self-publish your eBook.
10. Peer-to-Peer Lending
If you have additional income, you may consider lending to a peer and charging interest on the amount of money lent. You will receive passive income by collecting payments and interest on the initial loan.
You can easily do peer lending through various fintech apps, such as SoloFunds, in the App Stores.
Are you interested in exploring opportunities at making passive income?