Competitive workforce market or a sudden increase in the cost of living, housing, college tuition, and medical bills or any other expense could pressure your budget. You might also be unfulfilled in your corporate job. A passive income is a great way to increase your monthly earnings, and if done right, even a ticket from the 9-5 working schedule.
But the word passive doesn’t mean without investing work and effort. You will need to spend some serious work and time to make a cash-worthy venture. The passive part means building a product or service that will generate income over time, without you actively participate or with minimum maintenance.
The best time for passive income is now
Earning passive income is a gradual, and in most cases, the slow process of earning money while you are not working. You need to start rolling the snowball and try to make an avalanche out of it.
Digital transformation is a process that has fueled entrepreneurship and lots of online opportunities for passive income. These days you can become an Instagram influencer, YouTube vlog star or open Shopify store in a matter of minutes. Digital platforms offer great opportunities for creators, and there are more old-school income streams like investing and real estate.
However you look at it, this is the best time to start creating your passive income streams. Let’s dive into the best passive income ideas.
TOP 15 passive income ideas
1. Shopify or other E-commerce entrepreneurship
Shopify platform is a personification of an easy way for opening an online shop. Many specialized platforms offer out-of-the-box e-commerce solution, some plugins for WordPress and Wix, but the most popular platform is Shopify. The platform provides an all-in-one solution for webshop creation, and you don’t even have to have your merchandise, because there is an Oberloo partner platform that offers drop shipping services. All that means that with minimum investment, you can have a brand and a shop in a matter of hours. How you will promote, it will distinguish you from thousands of copycat online stores.
YouTube is new generations Google, and all the relevant searches will give you video answers. Creating a YouTube Vlog is hard work with making, editing, and posting videos. You should find a niche and offer more than competitors. Follow the guidelines about ideal video length, how to make descriptions, and when you start to gain an audience, you can start getting money. The revenue comes from traffic, displaying, and affiliate marketing with Amazon.
3. Create a blog
Content, content, content. Don’t start a blog if you can create captivating content. The blog posts should add value to the audience. Try to find a niche, study the competition, and add some flair and added value to the mix. Monetization is similar as with YouTube channel. If you have a gadget related blog site, maybe a smartphone company would be interested in the old-school banner campaign. Google Adsense is another way you could earn passive income. Traffic is a crucial factor in this equation. Another way is through affiliate marketing. You could create a tech blog with roundups of laptops, graphics cards, monitors, and if inserted links turn into sales, you will get the cut from big old Amazon.
Unlike blogs and YouTube channel, once created ebooks don’t require further maintenance. That makes Ebook truer passive income venture. Maybe you are the next Haruki Murakami or Dan Brown, and your fiction Ebook could reap a high return, or you could create nonfiction How to Ebook and with some Amazon advertising, you can create passive income over time.
5. Create guides and online courses
If you have a skill you could teach or maybe you are fluent native English (French, Spanish…) speaker with a good sense of grammar, you could create an online course, or become an online tutor.
You may know how to build a custom PC system, or you traveled through Norway. Creating a guide on how to make the best desktop system or 10 things to do while visiting Norway could be a viable passive income idea.
6. Patreon page
Creating a Patreon page is another layer you could add to already functioning blog or audience on some other platforms. You should already have an audience, but opening a Patreon page is an excellent way to increase your passive income. Just ask your audience to support you on Patreon, you are already creating the content.
7. Mobile app
With the whole world with a smartphone in their hands, creating a mobile app could be lucrative. There is a lot of work and development know-how needed. If your app can help people, or you have a great game up your sleeve, maybe you could find a way through millions of apps. Promote your app with content and digital marketing, and if you need to choose, start with making an iOS app first.
8. Buy a blog
The main problem with blogs is building an audience. What if someone already did that, and the blog is making money? Try to do your research before buying at sites like Flippa. Aim at the blogs that have over 10,000 unique visitors monthly with at least half of them coming from search engines.
9. Rent your property
Airbnb is the most popular service, and if you traveled around, you might have used this service. You can rent a room, shared room, or entire home, and the platform will charge you 3% on booking. You will get paid a day after your guest arrives.
You can decide when is your spare bedroom available. The platform offers a grading system for the renters and insurance for those who are reluctant to open their home for strangers. Airbnb makes renting easy, just type the name of your destination, and you can browse through listing or directly on the map.
10. Robo advisor investments
If you have capital, investments are one of the best options for passive income. And they are truly passive. There are a couple of benefits of using robo-advisors platforms like Wealthfront and Betterment.
For someone who wants to start small Wealthfront has a great feature where you can manage up to $10,000 with no fee. You will get the most out of the power and intelligent solutions, the same some of the most prominent brokerage businesses use. Wealthfront will automatically perform tasks like portfolio allocation and diversify risk, and also reducing tax es while minimizing trading fees.
Betterment has no minimum to invest, with low fees, and it will also make automatic rebalancing, so you really don’t need to know much about finance.
11. High dividend stocks
You do something about investment and money, and you opt not to use Robo-advisors. You can create a regular passive income with a higher yield than what you would get from bank investment just by building a portfolio of high dividend stocks. Additional revenue can come from capital gains in case of capital appreciation.
12. Savings investments
This one is in the blast from the past column. Most of our parents had savings accounts, and it is as passive as it can be. But the problem is with the interest rates. It is viable with amounts over $250,000, but some online banks do offer higher rates of around 2.5 %. Check the inflation levels, and decide is it worth it. It sure is the safest bet.
13. Certificate of deposit
One more investment strategy with low risk. Rates for CDs are on the rise, and they can go up to 3%. You should wait for the best interest rate, and they are on the rise at the moment, because once you agree on the price is locked in.
14. REIT and Fundrise real estate investment
REIT is a company that owns real estates, that make a profit of it. With investing, you are buying company stocks, and then share the gain produced by real estate investment. The benefit is in bypassing the problems that come with being an owner.
Fundrise requires only $500 to start, and the platform uses your investment to develop a real estate project. If they make money, so will you. This is basically a crowdfunding platform.
This can be a severely active income or a supplemental money stream. The upside is you can turn on your Uber clock when you feel like it and get some additional revenue for a household. Earnings vary from city to city, within the same town and depending on the time of the day. Try to find the most rewarding windows and increase your budget with this semi-passive income stream.
These are some of the most popular passive income ideas, and there are some notable others to mention like advertising on your car, renting your vehicle through HyreCar platform, buying a business or investing in a company as a silent partner. With cash back credit cards, online rebates and shopping through Swagbucks, InboxDollars and Earny could bring you passive income while shopping.
You should try and diversify your passive income ideas. There are probably many other passive income ideas. Most of them could gradually start earning you cash. With putting the required work early and having several ventures, you could increase the chances of leaving your 9-5 job.