Passive income is something of a misnomer. The idea is not for the income to be passive, but for YOU to enjoy additional cash flow while investing minimal time and effort.
In most cases, passive income requires some upfront effort to set up but quickly begins generating revenue independently and with minimal oversight. Sounds good, doesn’t it? Here are 6 ideas to enjoy passive income and active living.
2. Certificates of Deposit (CDs)
A CD is a savings account that offers a locked, usually highly competitive, interest rate on a deposit for a set period of time. You’ll typically get a higher interest rate on a CD than you would for a savings or money market account, but it will come with a strict “term” of 6 months, 1 year, 18 months, or longer, during which time you may not access your funds without an early withdrawal penalty. If you’re able to wait, investing in a longer-term CD is a fantastic way to grow your money with minimal risk.
3. Renting Your Stuff
There is quite a market for equipment rentals, especially sports equipment and home and lawn care tools and machinery. If you’ve invested in expensive gear for yourself, why leave it in the garage or basement in between uses when you could be renting it out for some passive income? From tools and yard equipment to gaming systems and sports gear, people out there are looking to have it for a day or two and are willing to pay for the privilege. List your gear-for-rent on local neighborhood forums and you might be surprised how lucrative that gear can be when you’re not using it!
4. Creative Work
Photography, graphic design, crafting, home recording … the things you may think of as passion projects or even hobbies can, in fact, help you generate some extra income. From print-on-demand direct sales to licensing original music or photography, there’s an entire online ecosystem of platforms and services that help get creative content in front of those willing to pay for it!
As for crafts, Etsy has made it easier than ever before to garner attention for your handmade treasures and sell them on your behalf. It’s a golden age for knitters, sewers, woodworkers and restorers!
5. YouTube
Maybe you have valuable DIY know-how, or a knack for keeping your audiences enthralled by your thoughts on philosophy, politics or religion. Maybe you have a natural gift for making people laugh, or the most relaxing voice your friends have ever heard. In all these cases, creating a YouTube channel could be a terrific way to earn some extra money. While you will be responsible for generating video content on a regular basis, once you have an established viewership there’s plenty of income potential from sponsorships, ad revenue, paid views and even merchandising!
6. Offer an Online Course
You know that you are an expert at what you do, that those skills are in demand, and that there’s an audience out there wanting to be taught. You could consider offering an online course in your subject of expertise, charging participants for access to a set of videos and written content offering key information, tips and wisdom. Online platforms like Thinkific or Teachable offer great opportunities for reaching your audience and helping you generate interest.
The Best of Both Worlds: Passive Income and Active Living
The ultimate value of passive income depends on what you do with it! For many, passive income enables them the extra liquidity needed to pursue their hobbies and passions, or to better save for the future. No matter your wants or needs, if you’re considering options for earning passive income, we highly recommend consulting with a financial professional for advice to make sure your money is doing all the work it can on your behalf while keeping risk to a minimum.
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