There are various methods of creating passive income. Some require more work upfront, like investing in real estate or writing a book that will earn royalties over time.
Other methods require less initial investment, yet can still create an effective source of passive income. Examples include renting out equipment you no longer use or using apps to earn extra cash on everyday purchases.
Investing in Real Estate
Real estate investment can provide an effective means of passive income generation. Paired with earned income, this asset class can help you meet financial goals more easily while meeting emergency expenses with greater ease.
Rental properties offer one of the easiest ways to make passive income through real estate; often creating a positive cash flow every month. Yet many individuals fear becoming landlords because of potential phone calls at 2am regarding runny toilets and broken tenants.
Renting Out Your Car
Renting out your car can be an excellent way to generate passive income. A variety of services exist that will pay you to put advertising on it so you can earn when your vehicle is parked up and earn money while earning some form of passive income.
Another option for making extra cash is providing grocery delivery through services such as Instacart or Postmates. While this requires active participation and active labor, the potential rewards could be substantial.
Licensing Your Work
Licensing intellectual property can be an excellent way to generate passive income. While initial work investment may be significant, once your product hits the market it can bring revenue for years.
Passive income can provide a welcome supplement to active income and help build a secure financial foundation for the future. But diversifying your income sources is vitally important if you wish to ensure long-term stability of finances.
Selling Art Online
Artists who have established an online presence can sell their works on platforms such as Etsy to generate passive income.
Tutorials and classes uploaded to Skillshare can also be an excellent way to make money online. From watercolor techniques to how-to make art prints, your videos could make money per minute watched!
Selling Books Online
If you have old books laying around, consider selling them online through Ziffit, Half-Price Books or Kaboom Books to generate extra cash from them. Selling books this way is an easy and effective way of earning extra income from old publications.
Starting up a job board can be another effective way to generate passive income, but requires significant upfront investments as well as ongoing work to attract jobseekers to your website.
Sell products online is one of the easiest and most passive ways to generate an income stream, providing an unfailing stream of passive revenue streams from home.
Some individuals possess natural skills with spreadsheets and can make a substantial income from creating templates for businesses. Although it takes work initially to gain exposure and an audience base, once your audience is established it should run itself.
Running a Blog
Blogging offers the promise of passive income that can be generated with minimal work up-front and can become one of the best online ways to make money. Once systems are set in place, blogging could become one of the easiest and most lucrative ways to make money online.
Bloggers can monetize their content by promoting affiliate products or creating digital products like eBooks and video courses. Another method is creating a job board to earn passive income each month through returning customers.
Creating a Video Course
Video courses can be an easy and rewarding way to generate passive income.
Video content is an overwhelmingly preferred medium of learning and instruction, not to mention highly engaging.
Before creating an online course, however, it’s essential that you invest in high-quality cameras and microphones in order to produce videos with superior video quality. Before creating your course, purchase these.
Selling Digital Products Online
Selling digital products is an accessible way to generate new revenues, while giving your audience a chance to support you and your business.
Photographers could sell their images through stock photo sites; photographers who also enjoy photography could create and sell Instagram feed templates which influencers can use to keep their social media look consistent.
Running a Job Board
Launch an online job board business at minimal upfront costs with just your time investment and earn passive income through paid advertising, employer listing fees and more.
Your expertise may lie in areas such as marketing or software coding that other people are willing to pay for; use this expertise to create and sell digital guides.