The holiday season is officially in full swing, and the “hustle and bustle” won’t stop until after the dawn of the new year. Even so, it’s the perfect time to set up some ways to earn passive income — also known as money you can make while you’re sleeping.
While you do have to put in some work upfront to get the ball rolling, once you do, you can sit back and (hopefully) watch the money roll in. Here are seven best ways to make passive income in December.
Sell Your Unwanted Clothing and Accessories
According to Poshmark’s 2022 Holiday Trend Report, 92% of American adults are open to receiving secondhand or resale presents this year. Check your closet for items that are in good condition and sell them on Poshmark.
According to the report, hot items that shoppers are searching for include sweater dresses, holiday dresses, Christmas pajamas, ski coats, puffer jackets, advent calendars, UGG platforms and the Lululemon Everywhere Fleece Belt Bag.
Create a Course
Christopher Reilly, the founder of Financial Modeling Education, believes that online course creation is the best way to earn passive income, but people tend to make it more complicated than necessary.
“Just take a topic you can talk about, unrehearsed, for 30-60 minutes,” he said. “As a test, consider posting about it on social media for 30 days and see if you get any traction (views, likes, comments, etc.), but you don’t have to. Then, grab a screen recorder, and record yourself teaching that topic. The easiest audience member is yourself from three to five years ago. Make a short course, something like 45 minutes to one hour. You can create an account on Thinkific or any other course-hosting website, upload your content and press publish. From there, continue to post about it in snippets on social media to help create awareness and attention (I believe LinkedIn is best for this).”
Take Our Poll: How Has Inflation Impacted Your Holiday Shopping Plans?
Rent Out Your Home
“If you live in a popular tourist destination, you can make a lot of money by renting out your home on Airbnb,” said Jenny Hunter of Happy Muncher. “People are always looking for places to stay during the holidays, so this is a great way to earn some extra money. Just make sure that you list your home early and promote it well.”
Invest in a High-Yield Savings Account
“If you have some money that you’re not using, you can invest it in a high-yield savings account,” said Hunter. “This will allow you to earn interest on your money, which is a great way to make some extra passive income. Just make sure that you choose an account with a good interest rate and no fees.”
Right now, you can find high-yield savings rates between 3%-4% APY. But you’ll need to deposit quite a large sum to earn any substantial amount. For example, if you deposit $25,000 in a high-yield savings account with a 3.25% APY, you’ll earn approximately $813 over one year.
Rent Out Your Car
“December is a great month to rent out your car via services like ZipCar or Turo to make great passive income without doing much work at all,” said Andy Kalmon, CEO of Benny. “You can offer contactless pickup by means of a dropbox or lockbox for your keys, and the service is very customizable as to how you want your car to be used.”
He added, “This holiday season will see a large number of people looking for ways to travel efficiently as airlines offer expensive tickets and overbooking headaches. Renting out your car is a great way to make upwards of $100 a day this December.”
Sell Online Printables
“An online printable shop is a great way to make a passive income,” said Kelan Kline, personal finance expert and co-owner of The Savvy Couple. “Take advantage of the holiday season to offer discounts on your products or services and drive more sales to your printable shop. It is an excellent way to attract new customers while earning extra passive income on items you’ve already created.”
Use Cashback Credit Cards
There are plenty of cashback credit cards on offer, so shop around and see what piques your interest.
The card offers 5% cash back on up to $1,500 worth of purchases in rotating categories that change each quarter, and 1% unlimited cash back on all other purchases. Right now, in December, the cashback earnings category is Amazon and digital wallets. Discover also offers an unlimited cashback match on all the cash you earn during your first year of card ownership. So if you earn $500, Discover will give you $500, making your cashback earnings $1,000. Plus, you might not have to wait for the card to arrive in the mail. Instead, you can apply and use the card in your digital wallet immediately if eligible.
And if you’re worried about having to pay taxes on cashback rewards, don’t. The IRS considers cashback rewards a discount, which is not taxable.
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