Passive income is any source of income that does not require constant effort to maintain. This differs from active income, which you earn from working a full-time job. One of the best ways to create passive income is to start a side hustle that will generate cash besides your regular employment.
If you want extra money coming in each month, passive income is the way to go. Passive income can help you earn more when the economy is doing well. And it can tide you over if you’re suddenly unemployed or choose to take an extended break or vacation.
When you build up a passive income stream, you will still have money coming in, even if you work your primary job. Or, if your efforts really pay off, you might opt to kick back a little and enjoy some of the fruits of your labor. A passive income ensures you a certain level of financial security.
You don’t need to have an MBA or be well-versed in business to develop a passive income. Anyone can do it! This article will discuss seven easy ways to earn passive income with little to no initial investment.
You may also be interested in: Best Side Jobs to Help You Make Extra Money Now
1. Rent Out Property
You may think, “I’m not a real estate investor. I can’t just rent out properties on a whim”. But nearly any unused space can be turned into profitable passive income when you get creative.
If you own your home or have permission to rent space on your property, you have many options. For example, with sites like Airbnb, you can rent a spare room in your house to travelers or those looking for short-term rentals.
But what if your home is too small, or you don’t like the idea of strangers sharing your house with you? You can still profit from renting some unused space on your property. People are always looking for places to store their vehicles, RVs, tools, and other belongings. And currently, there is a country-wide lack of storage to meet these needs. Neighbor.com is an excellent platform for this type of exchange. It’s like Airbnb, but instead of renting a dwelling, you rent out things like:
- Office spaces
- Driveways or yard spaces for RVs or cars
- Storage sheds
- Empty lots
You could even rent out a large closet through this platform. Renting unused space is an excellent way to make passive income month after month. You don’t even need to worry about insurance or handle any paperwork. Neighbor.com does it all. You just sit back and collect a check.
2. Sell Your Best Photos Online
Photography is a terrific niche for building a passive business. With this side-gig, you can scale up your efforts, especially if you can sell the same pictures over and over. It is possible to accomplish that through platforms like Shutterstock, Alamy, Adobe Stock, and others. Of course, you will need to be approved by the platform, and you have to license your photos so others can buy and use them. Then, every time someone uses your image, you get paid.
You’ll need to take photos that appeal to a specific audience, so you should research where the demand is. Some photographers focus solely on one area, such as pictures of people, pets, landscapes, home interiors, and other scenes. You can even create vectors and infographics instead of photos. These also sell well.
The advantage of selling or licensing your photos through an established platform is that you have the potential to scale your effort. The platform already has traffic. People come to the site to look specifically for photos and graphics they need. It is possible to sell the same image hundreds of times or even thousands of times and make money in your sleep.
The risk is that not all of your photographs will be winners. You could add hundreds of pictures to a platform and not get any sales at all. So you’ll need to keep shooting photos and searching for that sweet spot.
3. Write Your Own eBook
Another good method for earning passive income with no money upfront is to write your own eBook. And the best way to make money with an ebook is to sell it on Amazon via the KDP program.
Self-publishers can use Amazon’s self-publishing program, which is called Kindle Direct Publishing. It doesn’t cost anything to self-publish an ebook through Amazon. You simply write the book, design a cover, and format it for Kindle. Even the formatting part is not difficult since the platform offers step-by-step instructions.
You will receive 70% royalty on Kindle eBooks priced between $2.99 and $9.99. And you will receive 35% royalty on books priced below $2.99.
4. Take Paid Online Surveys
While taking surveys is not really passive, it is a great way to generate extra money each month. Paid surveys let you earn small amounts of cash (or gift cards) for sharing your opinion online.
You can expect to earn between $0.50 and $3.00 per questionnaire, so this is not a gig that will make you wealthy. However, you can take surveys anytime and anywhere, as long as you have wifi and an internet-enabled device. You can even use your mobile phone. Because of this flexibility, surveys are ideal for making money on the fly.
For example, how much time do you spend waiting around every day? It all adds up if you consider the time spent waiting at a dentist’s appointment, between classes, and other short periods during the day.
You could take surveys for money during times that would simply be wasted otherwise. You can even double down on your efforts by investing the extra money into a second passive income opportunity, which brings us to the next tip: investing.
5. Invest in the Stock Market
Investing is a long-term strategy for passive wealth. But everyone needs to begin somewhere. There are plenty of mobile apps for every skill level. But if you are a beginner just starting out, the best ones will help you build a portfolio right from your smartphone.
One of the best investment apps for beginners is Acorns. Its geared toward those who are looking for a long-term passive income strategy. It’s like a brokerage and a savings account in one. Here’s how it works:
You link a checking account or debit card to Acorns. Then, it automatically sweeps the change from any purchase you make by rounding it to the next dollar up. The extra money goes into your investment portfolio. You can do this manually or automatically, so you can pause the transfer for a while if times are tight.
With Acorns, you choose from one of five portfolios—from conservative to aggressive—and the app automatically invests for you.
If you want more control over what you invest in, head over to Cash-App. This platform lets you own your own piece of any listed stock for as low as a dollar. They have hundreds of options, from Tesla to Google.
6. Create a Course
Another way many people are creating a passive income is through online courses. This is a great way to create something that generates income over and over again. You create a course one time, then sit back and watch the money roll in. Of course, you should keep it updated and relevant as time goes on, but even that is pretty simple.
There are plenty of places that will help you create and distribute your course:
If you think you have nothing to teach the world, think again. Everyone is an expert on something. You may have a particular skill that others would like to learn. Do a little research, see if your idea is feasible, and try it out.
7. Start Your Own YouTube Channel or Blog
You can turn any passion or favorite subject into a Youtube channel or blog. If you can create enough good content and drive enough traffic, you will have yourself an internet money machine.
You can create an income stream with a Youtube channel by becoming an influencer. It can take time to build enough content, but it gets easier once the followers start adding up and people find you. If you get popular, you will draw sponsors to your channel, and that’s when the money will really start rolling in.
Starting a blog is also pretty easy if you follow the proper steps. You may need to experiment with things to see what approach is best. And you probably won’t see a substantial passive income right away. But plenty of bloggers have quit their day jobs and are now earning six figures or more each year. Blogging is definitely something that can pay you for decades to come if you play your cards right.
A passive income is something that anyone can (and should) be building. If you have many different ways to make money, you will always be more financially secure than those who rely on just one method. Passively bringing in cash doesn’t need to take a lot of ongoing effort. You should look for set-it-and-forget-it ways to generate some money. The more hands-off it is, the better. And dont limit yourself to just one of these ideas either. There are multiple ways to build a passive income stream.