A passive income is money you earn without putting any active effort into it. Typically, passive income requires some upfront payment or some initial effort, but once it is up and running, it should have the potential to keep bringing in the checks every month. There is a surprising range of ways you can make money, from renting out your spare room to renting out the whole house while you’re on holiday. Or, you could make cash by lending money to others or by adding advertising wraps to your car.
1. Buy Art Or Other Alternative Investments
You might not be able to afford a Van Gogh or a Banksy, but that doesn’t mean you can’t invest in art. Some schemes allow you to invest a smaller amount in exchange for a small portion of a piece of art.
As with any form of investment, there is a chance the amount you invest will decrease over time, but it is unlikely it will ever drop to zero. As well as art, there are similar investment schemes for vintage wines, rare whiskies, and more.
2. Invest In Cryptocurrency
Cryptocurrencies have come a long way since Bitcoin was launched in 2009. Now, digital currencies can be used for everyday shopping and peer-to-peer transfers, however, their most popular use is for investment. Many smart investors buy and store crypto anticipating that its value will grow over time.
There are now over 20,000 crypto coins to choose from, with many promising new projects for investors to choose from. Crypto and blockchain writer Sam Cooling shares that because there are so many coins in the market, it can be challenging for investors to find the best options. A list of the best new coins by Techopedia explains that investors should review projects for community backing, market potential, security measures, and liquidity before buying in. A good crypto investment can yield high passive income returns if thorough research is completed beforehand.
3. Invest In Real Estate
You don’t have to buy full properties to invest in real estate, either. Some websites bring smaller investors together to buy houses, offices, and other real estate to rent out or flip for profit.
Real Estate Investment Trusts invest in several real estate companies, that do the work for you, and they represent another good option. Because the fund invests in several companies, it minimizes the risk compared to buying shares in a single real estate company.
4. Rent Out A Room
Another way to make money from property is to rent out your home. But if you still need somewhere to live and have a spare room or two, you don’t have to miss out on the rental income.
Renting out a room means you will have to share your property, but it could raise hundreds of dollars a month. If you have a driveway or a garage, but no car, you can even rent out the parking space.
Alternatively, if you’re planning on going away for a few weeks, rent out your property while you’re gone. It can be a good way to recoup some of the money you spend on your own vacation.
5. Make YouTube Content
It’s possible to make money from your favorite interests in many ways. You can update a blog or turn it into a business. Alternatively, you can create videos and post them on YouTube. It takes to build a following, but once you do, it is possible to monetize that following with ads in videos and even sponsored ads.
You can make videos on virtually any topic. More popular topics like video gaming have more potential, but also a lot more competition for views. More niche topics might not attract as many viewers, but you’ll also come up against fewer competing videos. You could make money showing how to use crypto gambling websites or giving guided tours of popular holiday destinations.
6. Rent Out Your Items
If you have stuff lying around that you don’t use, you can sell it. You might be able to raise a few hundred dollars or more, but once you’ve sold everything, that puts an end to your income stream.
Alternatively, it might be possible to rent out mowers, power tools, and other items that you don’t use every day. You’ll earn less than you would selling them, but you’ll keep bringing the money in month after month.
7. Buy Bonds
Bonds, whether government or company-issued, represent a safer investment than most stocks and shares. They have relatively low interest but they are a good way to bring in some extra cash if you have an investment pot to start with.
Bonds are usually fixed term and can range from one to ten years or more, with a guaranteed return on your investment. You’ll know exactly how much money you’re owed, and when.
8. Peer-To-Peer Lending
Peer-to-peer lending systems enable users to lend money to other users. The borrower is charged interest, which is returned to the lender. There is some risk of the borrower defaulting on the loan, but it is possible to spread capital between many borrowers and deals, which helps mitigate some of this risk.
You can invest in these platforms with a relatively small amount of money, and the capital can be lent to individuals and businesses that are in real need of cash. However, a lot of the capital you lend will be tied up, potentially for years, so it isn’t a short-term money maker.
9. Sell Advertising Space On Your Car
If you don’t mind driving around with advertising for a local company on the side of your car, you could make some extra money every month by agreeing to put branded livery on your vehicle. The amount you get paid depends on where you park your car, where you live, and the interested companies.
Not everybody wants to drive around in a car adorned with ads, but if you’re happy to do it, you stand to bring in a couple of hundred dollars a month if you do a lot of driving. Do your research and ensure you’re using a legitimate car advertising service.
10. Post Amazon Videos
Another way to make money from videos is by posting reviews on Amazon. You can start with pretty much any products you’ve recently acquired from the website, but first, you need to apply and be accepted for the Amazon Influencer program, which means you do need a social media following.
Once you’ve done that, though, you can upload product reviews to your Amazon Storefront and you’ll receive a commission whenever somebody who watches your video goes on to buy a product. You don’t even need to sell the product yourself.
11. Sell Photos
If videos aren’t your thing, but you’re good with a camera, you can either build a following to monetize later or sell your images on stock photography sites. This side hustle is especially beneficial for those who like to travel and you could sell the rights to photos multiple times over.
There are, however, a lot of budding photographers out there attempting to do the same thing, which means there is a lot of competition to make those important sales. Check stock photo sites and see what is currently in demand to have the best chance of making sales.
Conclusion
There are a lot of ways to make passive income, depending on your skills, the capital or resources you have to invest, and what you’re willing to do to make that money. The more creative you get, and the more effort you put in initially, the greater the chance of bringing in recurring checks.
