Learning how to make a passive income has become a necessity these days. With inflation on the rise, it’s rare to find someone living off of only one job income. Finding ways to make extra cash can give you the financial cushion that you need to survive this economy.
But first of all, what is passive income?
Passive income is income that requires minimal effort to maintain. It is earned with little or no ongoing work, and it is often derived from investments or other sources that generate income automatically.
Some examples of this type of income include rental income from real estate properties, dividends from stocks, and royalties from books, music, or other creative works.
Passive income can be a good way to generate additional income without having to work a traditional job. However, it is important to note that passive income streams often require some upfront work or investment to set up, and they may not always provide a steady or reliable source of income.
Passive income can come from anything- you just have to know where to look. To help you out, here are some easy ways to make this extra money in your spare time.
1. Affiliate marketing
If you’re someone who has active social media accounts, this is perfect for you! You can make a profit by becoming a blogger or social media influencer.
By promoting different items, you are marketing another company’s products. Teaming with different companies can earn you easy cash while getting to try new things for free!
Not only does the company benefit, but your account/blog is noticed in the process, growing in popularity. As you gain more followers, the more commission you will bring in. This will bring in not only an additional steady income but a growing income as well.
2. Dividend stocks
Many companies include dividend stocks. Becoming a shareholder is another great way to make passive income!
As a shareholder, you have the opportunity to earn consistent monthly payments from the company profits. Dividends are split per share of stock. Basically, the more shares you invest in, the more money you’ll make.
Just be mindful of what stock you choose to invest in. Spend time looking into several companies before deciding on one to better your chances of receiving a decent profit.
3. Create an app
This may sound time-consuming, but the passive income you can make from it is well worth it!
You can make an app for anything these days. Apps can be geared toward sports, beauty, photography, etc.
If your app catches the attention of the public, you can generate a strong income from it. After some time, you can include in-app advertising and create a paid ad-free user account.
From there, the additional ways to increase your profit are endless!
4. Rent out part of or all of your home
Choosing to rent out a space in your home is one of the best ways to bring in extra money.
If you have an unused room attached to your house, make it an available space to rent. You can post your space onto a website such as Airbnb and choose how much to charge for it.
This also gives you the freedom to decide how often you want to rent it out. If you need that space for when a friend or family member comes into town, you can plan accordingly.
5. High-yield savings accounts
If you’re looking to put some extra cash into an emergency fund, this is the way to do it.
The interest that is paid by the savings account is added to your balance. With interest rates being higher than ever, why not benefit and make a profit off of it?
These savings accounts are federally-insured, and the APY of these accounts varies from typical savings accounts. This over time will turn into extra cash in your account.
6. Write and sell an e-book.
If you have a knack for writing, you can write and self-publish an e-book and sell it on platforms like Amazon. Just be sure to choose a topic that you are knowledgeable and passionate about, and to put in the time and effort to create a high-quality product.
Most e-book platforms have specific formatting requirements that your e-book needs to meet. Use a tool like Calibre or a service like Draft2Digital to convert your e-book into the required format.
Once your e-book is formatted, you can upload it to the platform you have chosen. This may involve filling out a form with information about your e-book, such as the title, author, and description. Keep in mind that some platforms will take a percentage of your profits as commission.
Take the opportunity!
The options are endless, and these ways make earning passive income both easy to do and take little to no time.
There are a variety of different ways to bring in passive income. Play to your strengths, and use what you’re good at to make the extra money you need.