Have you ever wanted to gain money without having to work full time? It sounds like a dream, but in reality, there are multiple ways to start obtaining extra cash aside from your normal job. These passive income methods are beneficial to create your entrepreneurship or invest in big things.
Your job’s salary does not count as passive income; rather, it is something that you need to set up first to start gaining results over time.
There are multiple strategies that you can follow to succeed in the market. You will have to put in some effort initially, but if you want to get more money apart from your paycheck, here are your best options.
Ten passive income projects you could start
Invest in Real Estate
This option can be scary initially, but only if you do not know how to start. Many people fail because they think they need to rent a large and luxurious property to begin receiving great cash. While it is true, it can also be their downfall if they do not find the clients who want to rent it.
It would help if you start small; invest in a single room or a duplex. When you start winning money, you can start growing your investments. Remember that if you want to receive profit, you have to consider the monthly mortgage and possible taxes from the property. If necessary, you should seek a real estate advisor to help you with how much you will charge in rent.
Note that you must also do some upfront work before converting it into passive income, like preparing the room. Also, you will have to look for the right clients and, from time to time, check-in for any trouble.
Give online courses
Creating an online course is a great opportunity because you can prepare the material, put it online, and then people will purchase it whenever they want. You will obtain multiple benefits from a single effort since more people can acquire the course at any other time.
Websites like Coursera and SkillShare let you publish your courses and earn passive income. However, having great knowledge of the topic is not the only thing you need to succeed; you must stand out from the rest.
Consequently, you must prepare adequate material (videos, presentations, tutorials, etc.) that does not look like similar courses. Also, we recommend that you advertise on other websites and social media; it will help to bring more clients.
Owning stocks can get you some profit within a period of time. You have to buy one and let the money come in. The more you buy, the more dividends you are going to receive.
You do not have to do anything after you own the stock, so this passive income method is great if you choose the right company.
You need to investigate whether the company you want to invest in can bring you profit since dividend stocks tend to increase in the future.
If you want a company whose dividend stocks have kept rising through time, we recommend you look for dividend aristocrats. These public companies keep their records straight and have maintained a good economy for you to buy a share of stock.
Open a dropshipping store
With a dropshipping store, you can receive profit like a regular store when people buy your products. However, you do not have to possess physical inventory; instead, you order the product from your dropshipping supplier, which is sent automatically to the customer.
Then, how do you earn money? Simple, let’s say that your supplier charges $50 for headphones; if you want to profit from that, then you have to set up a higher price, for example, $60. That way, you keep $10 of profit, while the supplier gets the other $50 for the order.
Basically you will be an intermediary, and you will have all the control over your prices. Even better, once your store is set up, all of the customer’s orders will be processed instantly, which also works as a passive income method.
Rent a room in your house
If you have a spare room in your house, what better way to take advantage of it than rent it? You can list it as an Airbnb and put in the details of the room. Your tenant will pay for the time living there.
This passive income idea is a great way to know more people and build better experiences.
Before listing it, you will need to clean and furnish it so that it becomes more attractive. Take some pictures of the room and wait for clients to arrive. Keep in mind that Airbnb charges some fees to use their platform, so decide how much you will charge before letting someone in.
Getting recognition on your social media can be beneficial in the long run. If you are an influencer or have a great engagement online, look for sponsors who want to pay you to promote their product or service.
Depending on your audience, growing with the trends can be an advantage or disadvantage. If you attract more people with the content you are currently posting, then do not stop where you are currently at and improve it.
Can lending money be a passive income method? Yes, it can, and it works as it sounds except with a detail: P2P loans are made through websites like Prosper, LendingClub, Worthy, Payoff, and others.
These platforms connect you with someone who needs the money, and you will receive the loan repayment with an interest rate depending on the borrower’s history. It is recommended that you do not lend a lot of money to borrowers, rather, choose the minimum value available on the platform (normally $25) and make multiple investments.
For example, if you lend this amount to 50 people, you will receive back $1,250 plus an extra interest. You still need to be careful about which people you lend money to, and if you are making lots of investments, it can be difficult to track all of them, so keep your eyes open.
Start a YouTube channel
A lot of people use this platform to entertain themselves; it is a great way to share the content you create with everyone. At first, it can be difficult since you will have to prepare videos for your audience. Most YouTubers make the mistake of just uploading one video, but if you want people to get interested at first, it is recommended that you start with at least three to five videos.
That way, people can get to know you better and know what to expect from your channel. However, you must create content at least once a week if you want your name to be remembered and get more views. But how does the passive income arrives?
You can gain money through different forms, like sponsorships or AD revenue. After some time, your videos will hopefully get a lot of views, which can also generate money.
Rent tools and appliances
Let’s say you have a bike you have not used in months; you could take your chances and sell it at a reasonable price. However, you could also rent it out to someone else; that way, you get some money without selling it.
This also applies to other household items like lawnmowers, toolboxes, kitchen appliances, washing machines, etc. Of course, these need to be in good condition and be somewhat useful; no one would want to rent an object that does not work or need.
Even better, you could start your business by renting new items. You will have to invest some money into buying them and lend them to borrowers. At the same time, you are taking the risk of the item getting damaged, so make sure to prepare a contract in case something like this happens.
Sell stock images
While it can be considered a side job, taking pictures with a camera or a phone and selling it online can be a great source of passive income. You can go to websites like Shutterstock, Getty images, Adobe Stock, iStockphoto, Fotolia, Dreamstime, etc., and post them for sale.
You will see that there are graphic designers, programmers, and other people who are willing to pay for quality images for their websites, blogs, social media accounts, and other products.
However, do not take pictures randomly; focus on a specific topic and create your folder. When you get approved by the website, you will receive money every time someone downloads and pays for the picture.
Take advantage of these passive income ideas
Do not miss any of these opportunities to gain extra cash. Yes, you need to prepare something at first that will attract an audience or clients, but it will bring the most money to your pocket without much effort.
Of course, do not stop with the product or content you decide to start with; try to improve frequently. Show your passion for the project, and you will be rewarded. If your current passive income idea is not working as you would like, you can always try another of the ones mentioned above.