How To Start Creating Passive Income on a Small Budget
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Heather Taylor
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Molly Sullivan
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Is it possible to generate passive income even if you’re working with a lean budget? The answer is absolutely yes.
Rent Out Recreational Equipment
Do you have recreational items in your home you are not currently using, like watersports equipment stored in the garage or even the pool in your backyard? There are rental marketplaces where you can list these items out for hourly rentals.
Download the appropriate gig app for the recreational equipment you’d like to rent out, like GetMyBoat for boats and kayaks or Swimply for pools. Once you list the item for rent, you can charge an average rate per hour, set available times and days when the item is available and determine if you’ll include any amenities. (The latter usually pertains to pool rentals, such as including access to any bathrooms, fire pits or pool floats when renting out a pool.)
Turn Underutilized Home Space Into Self-Storage
Are there any underutilized spaces in your home? Do you have an empty basement, attic, garage or even a driveway not in use?
Consider renting these spaces out on self-storage marketplaces like Neighbor.com. Hosts can use this marketplace to list the space they’d like to offer potential renters looking for storage. Once the renter finds the space that meets their needs, like a host’s available basement, they can reserve a space and schedule a move-in date. All the host needs to do is simply make sure this space is available for the renter to earn an easy, monthly passive income.
Resell Gently Used Apparel
Do you have apparel, shoes or accessories that have never been worn or are gently used? Join a social commerce marketplace and resell these items to earn passive income.
Need to get your items sold quickly? Follow some of these tips to ensure buyers find, and purchase, what you have to sell in an online marketplace.
- Take clear, authentic photos. Ideally, resellers should take several photos in good lighting with plain backgrounds of the items they are selling. Capture the item at different angles so buyers can clearly see what they are purchasing.
- Write an honest description. Try to think of common questions buyers may have and address them. Some details resellers may focus on include the current condition of the item for sale, its dimensions, weight, color, material and whether there are any damages.
- Use relevant keywords. These keywords should be in the description of the item(s) you have for sale to help buyers find and discover it. If you’re trying to sell a handbag, you might include keywords like “handbag” or “purse” or mention a designer name if it is from a particular brand.
- Be polite and responsive. If a potential buyer reaches out to you about your listing, whether they have questions or would like to make an offer, respond back in a prompt and timely manner. Be respectful, kind and on the same page with the potential buyer about the item’s price, payment options and shipping.
Brand Your Car
If you’re not able to rent out your car, those on lean budgets may earn extra passive income by branding their cars.
Explore platforms like Carvertise which allow Uber, Lyft and DoorDash drivers to place advertisements on their cars and earn an additional income each month with these campaigns. This can vary between $450 to $1,500 monthly, according to the Carvertise website.
Open a High-Yield Savings Account
One of the simplest ways to earn a passive income is opening a high-yield savings account.
How does a high-yield savings account differ from a standard savings account? Essentially, they perform the same functions but a high-yield savings account will pay a higher yield on your money. Through the process of compound interest, account holders may be able to earn a higher passive income on their deposits. Shop around to see which bank offers the best high-yield savings account to meet your financial needs.
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