Saving money remains a significant personal finance challenge for many people. Often, the difficult arises because the budget is already tight. Sometimes, the best option for boosting one’s savings actually lies in increasing one’s income. While individuals can sometimes negotiate a raise at work, sometimes it is necessary to identify a different strategy. In these cases, people may want to think about passive income.
The term often leads people to equate passive income with free money, which is not entirely true. Instead, passive income involves upfront time and effort, and perhaps some occasional focus to keep the money flowing. Still, “passive” income can prove an extremely time-efficient way of increasing income substantially and reaching financial goals. Some great strategies for securing a passive income include:
Cash-back shopping apps.
Several apps exist that let shoppers earn cash back on the items that would purchase anyway. One of the most popular options is Ibotta, although others are available. Before heading to the store, people can simply check out the deals and use the app when they buy their essentials – and earn some passive income in the process.
While the rebates on most purchases are only a few dollars, these savings can add up quite substantially over time. The best part about this plan is that it only takes a couple of minutes of work to find the deals, and it is money that individuals were going to spend anyway.
Whatever skill or expertise individuals have developed over the course of their careers, they may be able to make money by teaching it to other people. Even individuals who have studied or worked in very niche fields can usually find an audience for a relevant e-course. Some people have had incredible success with this approach.
For example, one math teacher made an online programming class that made him $1 million in the first year. Most people should not set their expectations that high, but with some planning, many people can earn a regular return with a quality course. The trick to this approach is to use respected platforms for the course, such as Udemy.
Rent out anything not being used.
Most people have items that they do not use regularly, from specialized tools to space such as a guest room or a driveway. A number of different sites exist to facilitate renting these assets out to people who need them.
Since these rooms or tools would not be used anyway, this strategy is a great way to get a return on big purchases. Of course, renting assets out to other people does involve some degree of upkeep, especially in the case of space. However, individuals can hire a management company to run an Airbnb account, for example, which would cut into earnings but make them truly passive.
Share thoughts and ideas on a blog.
One of the most well-known ways of generating a passive income is to start a blog. Obviously, not all blogs earn an income. However, by creating a loyal following, individuals can negotiate deals with advertisers to earn a substantial amount of money.
Usually, securing this type of following involves a massive investment of time and energy, plus a great deal of creativity. However, many people find blogs to be a great outlet and come to really enjoy writing. When identifying a theme, individuals can look for gaps in the content currently offered and pay attention to some of their favorite blogs to determine what they do to get a following.
Sell stock photos online.
People do not need to be professional photographers to begin selling their photos online. Of course, some understanding of photography basics and Photoshop can help, but individuals can learn these as they go. Websites like Shutter Stock and iStockPhoto let individuals put their photos online for others to purchase.
For the best chances of success in their field, individuals should focus on finding a specific niche, such as business photography or landscape photography. Competition can be fierce, but selling photographs can be a lucrative side business for people who already enjoy taking photos in their spare time.
Embrace vehicle-based advertising.
Another passive form of earning extra income is to use a personal vehicle for advertising. Companies will pay individuals to attach an advertisement to their car for a given period of time.
The exact amount depends on several factors, such as the amount of time spent driving each day and location. However, drivers in big cities tend to get more money. Drivers can earn an extra $100 a month through companies like Carvertise – some drivers can earn even more if they work for a rideshare service and spend a lot of time in the car.
Make custom greeting cards.
People with a creative drive can generate passive income by designing greeting cards. Some major companies will pay hundreds of dollars for a design that they like. Budding entrepreneurs can also use Card Gnome, which is similar to Etsy, but especially for greeting cards.
Etsy is another common place to sell homemade products. Individuals who are especially witty or thoughtful can make a significant amount of money for an activity they enjoy.