Are you looking to earn a little extra income while you sleep? Then you’re in the right place. The beauty of passive income is that once it’s set up, it requires minimal effort on your part, and the dollars keep flowing in.
Some of the strategies I talk about here, I have definitely mentioned before on the blog – simply because I believe they are the best sources of passive income you can get.
So, here’s a look at the top 10 passive income side hustles that can add to your wallet while you focus on your main gig.
1. Peer-to-Peer Lending
Not a strategy that most people think of when it comes to passive income, but peer-to-peer lending is growing in popularity – and for good reason.
It’s one of the simplest passive income opportunities out there with platforms like Prosper or Lending Club allowing you to lend your money to others in return for interest. It’s like being a small-scale bank, but remember, like any investment, it’s not risk-free.
2. Investing in Stocks and Bonds
Investing in stocks and bonds is a time-tested method for generating passive income.
While there’s a learning curve to understanding the stock market, the rewards can be significant. You can start with user-friendly apps like Robinhood and eToro or seek professional advice if you’re brand new to investing.
Dividends and interest payments are ways these investments pay you back over time, and the passive income you can receive from them can be astounding!
3. Real Estate Investment
Owning rental properties is a long-proven method for generating a steady flow of income. If you’re not keen on dealing with the everyday hassle of being a landlord, you can use a property management company.
Alternatively, you can invest in real estate investment trusts (REITs), which let you invest in real estate without the need to physically own any properties. These REITs are companies that specialize in real estate investment and give you a generous chunk of their investment income in the form of dividends.
4. Selling Online Courses
If you’re an expert in a specific field, why not package that knowledge into an online course. Platforms like Udemy or Coursera make it easy to reach a global audience. Once your course is created and published, it becomes a never-ending source of passive income as students continue to enrol.
5. Write an eBook
Just like online courses, if you have expertise in a specific area, you should consider writing an eBook. Self-publishing platforms like Amazon Kindle Direct Publishing make it possible to write and publish your own book. And then once it’s published, every sale brings in royalties.
6. Affiliate Marketing
Do you have a blog or social media platform with a significant following? Harness the money-making power of affiliate marketing.
Companies will pay you a commission for every sale made through your referral link. It’s as easy as promoting products or services you believe in, and watching the commissions roll in.
7. Renting Out Your Space
If you have extra space in your home or an unused vacation property, consider renting it out. Platforms like Airbnb have made it incredibly easy to list your property and start earning rental income.
And if you live in the city, you can even rent out your unused parking space to commuters, giving you a decent passive income stream.
8. Creating a Blog or YouTube Channel
While this may require initial effort to create and establish, in the long run, a successful blog or YouTube channel can be a great source of passive income. Monetizing through ads, sponsored posts, or Patreon memberships can bring in a steady flow of cash once you’ve built a substantial audience.
9. Dropshipping
If you know about passive income, you’ll know about dropshipping. This strategy exploded over lockdown as people made the most of at home deliveries.
Dropshipping is a retail method where a store doesn’t keep the products it sells in stock. Instead, when a store sells a product, it purchases the item from a third party and has it shipped directly to the customer. Using platforms like Shopify, you can create an online store and earn a profit on each sale without the hassle of stocking or shipping products.
10. Mobile Apps and Games
Maybe you have a knack for coding, consider creating a mobile app or game. With a successful app, you can earn money through in-app purchases, advertisements, or paid downloads. It might require a significant upfront investment of time, but once it’s up and running, it can be a solid source of passive income.
Important Considerations
Before diving into any of these side hustles, it’s crucial to do your research. Look at the potential income, upfront costs, and the time you’ll need to invest initially. Also, consider the potential risks involved – like any investment, there’s no guarantee of success, and you could potentially lose money.
It’s also important to consider how any side hustle will fit into your broader financial strategy. Does it align with your long-term financial goals? How will the additional income affect your taxes? These are all questions worth asking before you jump in.
The Takeaway
Building passive income takes time, effort, and patience. But once established, these side hustles can provide an additional income stream with minimal upkeep. Whether it’s through investments, real estate or online platforms, there are numerous paths to create passive income.
The key is to find something that aligns with your skills, interests, and financial goals. Start small, learn as you go, and don’t be afraid to try different things. With time and persistence, you could build a solid portfolio of passive income streams that contribute to your financial security and freedom.
