There are three kinds of income: earned, passive, and portfolio. Passive income is money that is earned while not actively working. It’s the opposite of an active income, which requires you to directly work for your paycheck. Most people don’t like exchanging their time for money because they want to make more than an hour of work can bring them. Passive income alleviates this problem, and there are several ways you can earn it.
1. Sell Your Designs To Customers Around The World
Do you have a talent in one area? Well, why not use it to bring in some extra cash. For example, if you’re an amazing knitter then open an Etsy shop to sell your creations online. You can even give them your own personal twist or ‘flavor’. Once set up, all that’s left for you to do is create beautiful patterns for people to enjoy while also earning a nice revenue stream from each sale too. Plus, if done right then there’s potential for large profits as you become established and well-known in this area.
Do you have a knack for creating digital art? You can earn extra cash by showcasing your creations in Jungle or any emerging online marketplace for diverse items. If you are into cryptocurrencies, then you probably know about non-fungible tokens (NFTs) and their growing popularity in online communities. Putting your creativity and original works to good use is by getting paid for it, whether with fiat currency (USD, EUR, etc.) or with cryptocurrency (Bitcoin, Ethereum, etc), so improve your artistic and designing skills further and gain more customers.
2. Rent Out Your Spare Room To Pay Off That Mortgage
Struggling to pay the mortgage each month? Try renting out a spare room to increase your monthly income slipping your property into rentvesting territory. If you’re single, don’t have kids or pets, and won’t spend much time at home then this could well be for you. The aim is simple – pay off the mortgage faster by putting that extra cash towards it each month (or year). How do you set this up? It’s easy enough to turn one of your rooms into a rental. All you need is an extension lead, WiFi connection, and electricity supply (meter) to get you started. Then head to sites like Airbnb, Agoda Homes, Booking.com, and others.
From there, simply add a listing with a few details about your space and then sit back and wait for the inquiries to pour in. The key here is to be as thorough as possible while also being clear on what’s included in the deal (utilities, etc.). When it comes to pricing, think about how much others are charging before setting your own rate – but remember to factor in Airbnb fees too. That way you’ll have a good idea of how much to expect.
3. Try Rental Property Investing
On a larger scale, if you’re thinking about buying real estate property but aren’t sure yet, this option might be perfect for you. You buy a house, apartment, or other building, rent it out to people who are looking for housing, and sit back as your property generates you money. This type of passive income is great but comes with its caveats. For one thing, houses require maintenance so you’ll have to put in the work occasionally if something breaks down, which can sometimes be a pain. There’s also the chance that your rental market will stagnate and not generate much money for you because there aren’t many people living in your city/county/region or because renting prices go down.
4. Peer to Peer Lending
If you have the extra cash right now but you don’t have a specific for spending it for the time being, why not let your money work for you? How? By making your money available for peer-to-peer (P2P) lending. You lend money to individuals or businesses, and you earn interest as you get your money back when the loan is repaid. Some people are in debt and some are looking for some quick cash, making peer-to-peer loans a viable option for them and a lucrative income generator for you. You’ll find people who need money at a specific time and you can lend them that amount while keeping in mind how much interest it will generate. When this venture is done properly, you get back what you’ve put in plus interest, which is why more and more people are doing it. However, keep in mind that this venture can be risky, as there is no guarantee about getting paid (especially if the person asking for money defaults on his loan), but with the right precautions, one can earn great amounts of money without having to lift a finger.
5. Use A House Cleaning App To Get Clients And Make Extra Money
If you have some spare time during the week then why not put it to good use by signing up with a house cleaning app? The way these things work is simple – you get clients that need some extra help around their place, then you show up and do the job while charging them for your services. Now, this doesn’t mean doing everything under the sun but rather focusing on one or two specific tasks which are quick and easy to complete. Think about what everyone hates doing when it comes to household chores…then make sure you offer an efficient solution!
6. Work On Encashing Your Skills By Taking Part In Online Surveys
This is a great way to earn some nice income from the comfort of your own home. The idea here is that you basically offer opinions on products or services in return for cash. To find surveys all you need to do is Google the phrase ‘take online surveys’ and then go through each and every listing one-by-one until you come across something worth your time. Searching for this info yourself might seem tedious but it’s actually doubled my personal earnings so far so I’d definitely recommend it!
With the six methods of passive income listed above, earning money while doing virtually nothing might sound like a dream come true but there are also some downsides that everyone should be aware of before trying any of them. For one thing, not everyone can make a ton of money through these methods, and you might need to put in work beforehand to set things up. Not all ways are made equal either; some might take more time and effort than others (e.g. rental properties require a lot more maintenance than making money with peer-to-peer lending). Finally, it’s worth mentioning that these opportunities aren’t perfect and there’s always the chance your investment will go down or you’ll lose all your money. Even so, if you can spare some time for research, finding passive income options such as the ones listed above could give you access to great amounts of cash without having to work day and night. They’re riskier than other money-making methods, but they can also be more rewarding.
