Passive income is a great way to earn extra money because, as the name suggests, it’s income that comes without you having to put in the same effort you would with a traditional 9-to-5. While every method will involve some effort, many are built around the idea that even if your direct involvement wanes, the income remains lucrative.
There are no shortage of ways to try and earn passive income, either. While there are traditional means, like rental income and investing in the stock market, there are ways that can really make use of a person’s unique talent and abilities. Of course, with so many different ways to earn passive income, it’s important to choose one that not only works for you, but will have the potential to be worth your time. With that in mind, here’s a look at five potential ways to get rich with passive income.
Obviously, rental income is one of the most lucrative and reliable ways to earn passive income. Homeowners without a rental have the option to use their home equity toward the purchase of an investment property. Of course, for those that don’t already own property, this isn’t an option. However, there are plenty of other ways to earn rental income.
If you’ve got extra space in your home you’re not using, you could rent that out to someone for a long-term roommate. While that’s not ideal for everyone, platforms like Airbnb offer ways to rent out spare rooms, extra space, or sometimes just a piece of furniture to travelers. Which means you can earn extra income without having to commit to a long-term roommate.
Beyond property, you can list your car on rental sites like Getaround or Turo while you’re not using it, so it’s earning cash instead of sitting in the driveway. In addition to cars, there are similar platforms out there for everything from boats to RVs to motorcycles and bicycles, so you can put your stuff to work for you rather than letting it sit around and gather dust.
Take Our Poll: How Do You Think the Economy Will Perform in 2023?
Investing can seem like a daunting prospect to the unfamiliar, but there are more ways to go about it than playing the market. After all, investing is really just making your money work for you by making even more money.
One of the easiest ways to do this is open a high-interest savings account. The returns might not be as big as a high-performing stock, but you don’t need to be worried about any of the potential risks, either. There are also more specialized options, like CDs, which offer much higher yields for longer periods of investment.
Aside from conventional routes, there options like cash-back credit cards, some of which can pay back up to five percent of your purchases each month. There are also cash-back sites like Rakuten and Swagbucks, which tally points based on purchases you already make, which can be used for gift cards or even cash with money you’d be spending anyway.
There are ways of making passive income through investing that might be a little less conventional. You can invest in things like vending machines via Gumball, in film, TV and music royalties through the Royalty Exchange, or in even actual websites and domains with sites like Flippa.
Granted, not every approach is going to be right for everyone, so if you’re serious about locking in a new passive income stream, make sure you take the time and research exactly how involved you’ll have to be. While the returns may be higher than a more conventional route, there can be a bigger chance of risk as well.
Start an Online Project
Making money online isn’t always a sure thing, but if done right it can prove to be extremely lucrative. There are plenty of ways to go about this, so you can pick a method that plays to your particular strengths.
Starting a blog, a YouTube channel, or a podcast on a topic you’re interested in is a common approach, particularly if a wider audience shares that interest, as well. Should these types of projects start getting some serious web traffic, these platforms can then be monetized. For the craftier types, you can make products and sell them on sites like Etsy, and for the tech-minded, there’s app creation or website maintenance and flipping. For those with a specific expertise, you can compose an online course about it, or even write and publish an e-book.
Like most forms of passive income, you’ll get out what you put into it. Though it may take a while before you start seeing noticeable returns, so it’s important to be patient.
You can also make money by taking part in advertising campaigns, which can be a convenient way to make passive income. For example, if you’re not in a situation where you can rent out your car, you can still have it make money by having it wrapped. Sites like Wrapify pair car owners with companies that will pay you to advertise from them by wrapping your car in their logo.
If wrapping your car isn’t your thing, there are other ways to cash in on advertising, including sponsored posts and affiliate marketing. Both options involve having a strong following on social media, or running a blog or website with enough traffic vendors will pay a commission for every click that leads to a purchase.
More From GOBankingRates