Okay, when it comes to earning money – even supplemental income, or “beer money” – it’s all about the hustle, right? You always have to beat the pavement to make that paper. And it’s true. To paraphrase a popular saying, fortune favors those who hustle.
But here’s a potentially unpopular opinion: I think we put too much emphasis on the daily grind. I actually don’t think anyone can hustle 24/7 for their entire lives. And because of that, I think we also have to look for ways to earn passive income.
This blog post will list down some things you can do to earn passive income. I think finding ways to earn passive income is pretty important to a person’s financial well-being. But before I jump into my list, let’s discuss what passive income is, exactly.
What is Passive Income Anyway?
There are two types of income: active and passive. You’re probably familiar with active income. It’s what we usually consider “jobs.” And that’s because you have to actively do something to earn income. You got to the office, you do your work, then you get paid. This also applies to online earning methods, many of which I’ve been writing about in the How to Make Beer Money blog. For example, I can earn by answering surveys on a rewards site like GrabPoints. For each survey I complete, I get rewards. That’s active, because I need to do something to earn something.
With passive, you don’t actually have to actively do something. For example, if you own rental properties, that is considered passive income (especially if you can hire a building foreman to handle the day to day operations of your properties). Owning stocks can also be considered a sort of passive income, since your investment increases without active involvement.
But I need to clarify that passive income doesn’t mean you can sit on your butt all day and wait for the money to come pouring in. That’s not what passive income is. You still need to set things up. But usually, when things are set-up, you can sit back a little and let your initial investment pay off.
Earning passive income, I think, is an ideal scenario for many of us. Think about it: there’s only so much time during the day. It wouldn’t be sustainable to always spend time trying to earn. I’m reminded of that famous Warren Buffett quote: “If you don’t find a way to make money while you sleep, you will work until you die.” With passive income, you literally earn in your sleep!
There are lots of ways to earn passive income, big and small. Big includes stuff like earning rental properties and a deep investment portfolio. But there are also smaller ways to earn passive income, and I’ll be including those on my list. They’re not as lucrative as earning a string of apartment buildings, but they’re still pretty legit ways to earn. And most importantly, they’re great ways to get started on earning passive income.
So let’s go!
Passive Income Ideas
These ways to make passive income won’t turn you into the next billionaire or property lord. But if you start now, who knows where your journey will take you? And these passive income ideas are as good a place to start as any.
Watch Videos on GrabPoints
GrabPoints is my favorite rewards site – mainly because they’re the highest-paying rewards site in the world! On GrabPoints, you earn by doing online tasks like answering surveys, watching videos, and signing up for offers. Answering surveys is perhaps the most popular way to earn here, which is why GrabPoints is commonly referred to as a survey site.
Answering surveys on GrabPoints is awesome, but for the purpose of this article, let’s focus on watching videos, because it’s a try passive income generating stream. On GrabPoints, you earn for each video you watch on their site. Basically, it’s perfect for when I’m doing chores (or even doing other money-earning methods!) because I can just leave the videos on and string one after the other without having to actively do anything.
Invest in Crowdfunded Real Estate
Chances are, most of us don’t have access to the money needed to buy rental properties outright. But don’t worry, there are still ways to ride the real estate boom – and that is by investing in real estate crowdfunding. It’s kind of like mutual funds, but for real estate. Most of us can’t afford to buy a building by ourselves, so we pool our money together. The formal term for this is “Real Estate Investment Trust” (REIT)”
The returns won’t be as big as if you actually owned the building yourself, but for those that can’t afford real estate, it’s a great way to earn.
If you want to give this a try, I recommend Fundrise. They only require an initial investment of about $500, and you can choose from almost 50 properties to invest in.
On the higher end of the scale, there is Realty Mogul. Here’s the initial investment is $1,000, but I think there’s more opportunity to earn more here.
If that’s too high for you, don’t worry, you can go with a company called Rich Uncles. The company has a funny name, but they’re totally legit. They try to emphasize their $500 initial investment package, but they have a $5 package for student housing. If you want to test the REIT waters first, this is the way to go.
Rent Out Your House
Okay, this might not be the top of mind when it comes to earning a passive income, but hear me out. If you take frequent out of town trips, whether for business or leisure, you should think about renting out your place. Think about it – even if you’re out of the house, it’s still costing you money in the form of real estate tax. By renting it out, you help offset that cost. And since you’ll be out of the house anyway, it’s minimal hassle for you.
My recommended company to help facilitate this is, of course, Airbnb. Your actual earnings will depend on your location and condition of your house, of course. And your house doesn’t have to be in a high-end neighborhood. Houses that are near airports or bus terminals or malls can fetch a decent price.
Rent Out Your Driveway
Not keen on having strangers stay in your home? Here’s another option, one that requires less intrusion on your private space: rent out your driveway! I know it sounds strange – why would anyone want to rent just your driveway? And I learned the real reason: parking.
Parking is super-expensive, especially in or around office or commercial areas. If you live in such an area, you’re in luck. There’s a big chance people will want to rent your driveway during office hours. What happens is, they park at your place, then take a cab or bus to their office. It’s still cheaper for them than if they had parked in their office car park.
Of course, this takes some careful scheduling if you own a car, but in the end, it’s worth it. To get started, you can look into CurbFlip, ParqEx, and Parking Cupid. All of these companies are legit, and leaders in the parking-sharing scene.
Open a Time Deposit Account
If you’ve got some money stashed away in a regular savings account, you could lose money in the long run. Most cash deposit accounts only give about 1.10% in interest per year. That’s probably not enough to stay ahead of inflation. Which means, in about 10 or so years, the money you stashed away will have considerably less buying power than when you initially saved it.
By all means, keep the money for emergencies, but beyond that, it’s better to invest it in a high-yield account. Investing in stocks can be quite intimidating, but a time deposit account is a more accessible place to start. The investment you earn in time deposit is considerably more than a regular savings account.
It’s called “time deposit” because the tradeoff here is that you have to lock-in your money for a set period of time, say, five years. But the good thing is that you would have earned a good deal of passive income – which you can then reinvest when your time deposit matures!
Rent Out Ad Space on Your Car
Here’s another offbeat idea – turn your car into advertising space! Companies such as Wrapify and Carvertise will apply a vinyl wrap around your car with the advertisement on it. The designs usually look pretty cool – your car might actually end up looking like a race car, which is not bad at all.
And to answer a probable question: the wraps are semi-permanent. At the end of your contract, it’s relatively easy to peel off. And some of the companies even include removal as part of the package.
You will have to drive a set number of miles per day, but it’s usually around your usual route, so it’s not big deal. And since you’re driving that route anyway, that’s what makes this a passive income-earning method!
These are simple ways to get the ball rolling on earning passive income. Hope you find these helpful. If you’ve given any of these methods a try, or have tried others, let us know!