Passive Income Ideas: How to Earn Money While You Sleep
For many people, being able to earn money while they sleep is the ultimate dream. Though it might sound too good to be true, earning passive income is a lot more doable than you think. But what is passive income, exactly?
In short, it’s a way to make your money work instead of you doing the leg work.
One good example is investing on high-yield savings account or mutual funds. While you may have to put down a hefty amount of money at the start, the interest rate it racks up over time should make up for it and earn you more eventually.
If you’re interested in starting some passive income streams of your own, here’s what we suggest:
Write a blog, then monetize it
Remember that behind every click is a person, so it’s important to ask yourself if your blog posts are something that you would click. For example, if you’re particularly skilled in woodwork, you could start posting guides about it. Just remember that the more updated and specific your information is, the better it is at attracting readers. From there, you can link your blog with affiliate marketing sources like Amazon Associates or set up ads via Google Adsense. This Scrubbed guide notes how powerful online branding can be as a business tool once you've built up a following, you can even offer exclusive content, similar to having a paywall before readers can access it.
Create an Online Course
If you've got some time on your hands and you enjoy helping others learn, then perhaps you can try to create your own online course. According to Forbes contributor Dorie Clarke, online education is a lucrative field, with some instructors earning up to six figures annually from their courses alone. The upside is that platforms like Udemy and Coursera already have their audience, as well as promotional materials such as newsletters and social media accounts. Online courses are also, by nature, self-contained. You can do a quick course and turn a profit, or create offshoots of some of the courses you’ve tackled before.
Invest in Real Estate
While buying property is certainly not as simple as shopping for groceries, real estate can be one of the best ways to gain passive income. Just be sure to do plenty of research, especially in terms of market trends. Look into factors such as the season, and location. One of the biggest draws with real estate is its stability, and there are lots of ways to get involved. A general rule is to be mindful of your location, as the market conditions differ per state. For example, Yoreevo suggests that investing in condominiums in NYC is probably the best option, as co-ops in the city often come with various subletting limitations. Foreigners who move to NYC are also more likely to move to condos, meaning that these properties will always be in demand. Those who want to invest in Riverside-San Bernardino, however, would do well to look at the real estate trends in nearby Los Angeles, as the demand for housing in this city will undoubtedly affect neighboring areas.
Get Into P2P Lending
Peer-to-peer lending has been known to be less volatile than the stock market. It’s the ultimate form of passive income, as you’re lending money to individuals or businesses through an online intermediary and then generating returns on what you loan out. Most intermediaries will allow users two options: they can either manually pick a loan to invest in, or else opt for an automatic investment scheme. For people who are new to investing, they may want to try the first option, as this lets you have more control over your investment.
Open Up A Room For Rent
Airbnb’s popularity has made it an instant magnet for real estate brokers to rent out various properties, but that just means that a homey atmosphere is even more sought after. That’s what Airbnb was made for, after all; so that people can connect with local guides. Offering up your room to travelers means that you get to meet new people while also earning a bit of cash, all while managing this in the comfort of your home.
While passive income may not involve the same kind of labor as a normal job, remember that it still comes with its own taxes and financial leg work. A discussion with our Scrubbed accountants can help you take stock of your current finances to decide which passive income strategy works best for you.
About the Author
Leamsi has an extensive work experience which includes both internal and external auditor roles with Deloitte Philippines. She later ventured into corporate accounting and finance, working at a multinational advertising and media company in the UAE as a Financial Accountant for three years. For the past 6 years, she has been involved with Scrubbed covering various start-ups in industries like real estate, cannabis, and biotech. She handles various aspects of the accounting and reporting functions including financial analysis, budgeting, cash flows management, consolidation, and systems migration.