- July 31, 2020
15 Passive Income Ideas to Boost Your Bank Balance
Working around the clock isn’t much fun, yet most of us like the idea of upping our earnings. But before you agree to that overtime, take a look at these 15 passive income ideas. Passive income can allow you to earn more money without having to dedicate much of your time to the process.
#1: Try a High-Yield Account
To earn a little extra money on your savings, choose a high yield savings account. To compare rates on savings accounts, websites like Bankrate can be of help. In 2020 Bankrate suggests opting for the Citibank savings account with a 1.10% APY. They also suggest the Vio Bank with 1.11% APY and Marcus by Goldman Sachs with a 1.05% APY.
#2: Certificate of Deposit
A certificate of deposit is a product that credit unions and banks offer. The product provides an excellent interest rate, and in exchange, the individual agrees to put a lump-sum into the account. From here, the individual must leave the money untouched for a set time frame. CDs are offered by most financial institutions, with varying terms. Consumers may incur penalties for withdrawing money within the agreed time-frame. Certificates of deposit are FDIC insured, so you can be sure that your money is safe.
#3: Consider Refinancing Your Student Loan
Refinancing your student loan means that a new lender pays off your loan, providing you with a new loan (at a reduced interest rate). With a lower interest rate, you could save a significant amount of money on your loan every year. All you need to do is complete an application, have a credit check, and you could soon be making savings. There are plenty of companies that you can refinance with to get some great rates. A few examples include, Common Bond, Education Loan Finance or Lend Key.
#4: The Stock Market
Investing in the stock market is one of the most popular ways to earn passive income. Stocks are a type of equity investment, meaning that you acquire partial ownership in a particular corporation. The ownership gives you entitlement to a set amount of the corporation’s earnings and assets.
There are various types of stocks that you can invest in. One example is Preferred Stocks. Preferred stocks involve a guaranteed dividend payment, and do not permit the investor any voting rights. Some investors prefer Common Stocks; these allow the investor voting rights; however, do not guarantee dividend payments. Over the last several years online trading has soared in popularity.
#5: Robo Investing
A Robo Advisor is an online platform which provides investment opportunities and financial planning. A Robo Advisor uses an algorithm to collect your financial info and provide you with investment ideas. The RA uses the data it collects to make automatic investments. It’s easy to get started, and you don’t have to put lots of time into planning your investments. There are no strict requirements, so you can even start by investing small amounts.
#6: Sell Stock Photos
Got a knack for photography? Want to make money fast by selling your beautiful pictures? There’s such a huge market for selling stock photos, and plenty of places where you can sell yours:
Alamy is one of the most popular stock photo sites, here you’ll find 60 million + images! You’ll earn 50% on each sale when you sell your photos to Alamy.
With iStockPhoto, users can earn royalties of 45%. The royalty rate is based on selling to iStock Photo only; if you’d also like to sell elsewhere, the rate is set at 15%. The platform also includes a large community where you can chat to other photographers and exchange tips.
#7: Property Investment
Property investment is an excellent way to generate a passive income. There are generally two ways that you can make money from property investment. Firstly, you can make money by flipping properties. Property flipping means purchasing a property, renovating it, and then selling it for a profit. Of course, the process is not entirely passive unless you hire contractors and managers to take care of the renovations.
Another way that you can make money from property investment is by buying a property and renting it out to tenants. To ensure that this income is passive, you’ll need an excellent property management service. A property management service and handle everything from your admin to your marketing and maintenance. NYC Apartment Management is a unique property management service run by Adam Kapner. Whatever your property management needs, NYC Apartment Management will design a customized plan for your property.
#8: Rent Ad Space on Your Vehicle
With websites such as ‘Carvertise’, you can make money by having advertisements on your vehicle. The company helps to match brands and car owners, (with a preference for those who do a lot of driving)! If you don’t mind having a few ads on your car, this is pretty much the easiest way to earn cash. (All you have to do- is drive)!
#9: Sell a Course
Online courses are increasingly popular in our current climate. Perhaps you have expertise in a particular subject, whether graphic design or marketing? If so, sites like ‘Teachable’ allow individuals to write course material, and then sell it via their platform. You have to invest time in creating the course at first, whether video content or written content. But, once you’ve created the course, you’ll make money ongoing, without investing any more of your time.
Airbnb has 150 million users ; it’s the best place to earn money if you’ve got a spare room in your home. With Airbnb, you simply rent your spare room on a temporary basis, using whichever price scheme is appropriate for your area. When using Airbnb, it is important that you vet your guests and ensure that your house rules are made clear.
#11: Rent Out Your Car
Not all of us use our cars every day, there might be plenty of occasions where it’s just parked up on your drive. The ‘Turo’ app allows you to rent out your car to people in your local area. You’d be surprised how many people regularly need an affordable car rental. Many car rental services are overpriced, and it’s Turo’s affordability that makes it so popular. There is plenty of customer service support associated with the app making it easy for you to rent your car and earn some cash.
#12: Storage Space
Got a bit of spare space in your home? If so, you could rent out your space for storage. Individuals need storage space for many reasons whether they are downsizing and need to move quickly, or are going travelling. A disused garage, cellar or room could be just perfect for storage rental. There are plenty of websites which allows you to connect with people who are looking for storage rental. One example is ‘Neighbor’ website. The Neighbor company has one simple mission, ‘to match people’s empty space with other people’s extra stuff.’
#13: Buy a Company
Investing in a company is another fantastic way to earn yourself a passive income. It’s entirely possible to buy a company without involving yourself in the daily running of that business. Many professionals buy a company, and then pay managers, accountants, and other employees to run the company on their behalf. If you’ve got the money to invest in the first place, you can set yourself up as a passive business owner and earn yourself a nice profit.
#14: Affiliate Marketing
Affiliate marketing is a system which allows individuals to receive a commission when they promote a product. To get into affiliate marketing, you’ll need to create a blog and gain plenty of followers. When your blog is a success, you can sign up as an affiliate and start making money. There are plenty of platforms that you can use to buy affiliate links including ShareASale, Amazon Associates or Clickbank. When you write your blog posts, you’ll need to include the affiliate links as part of your writing. The idea is that your links boost sales for the client.
#15: P2P Lending
P2P lending refers to ‘Peer-to-peer lending’. Over the last few years, P2P lending has become an increasingly popular method of alternate financing. The system allows individuals to provide loans for the general public, without the involvement of a financial institution. You may have also heard P2P lending referred to as ‘social lending’ or ‘crowdlending’. It’s possible to earn approximately 10% when you lend to small businesses or individuals. P2P lending is a great way to build your investment portfolio. Platforms such as Prosper are a great place to start with P2P.
To save money, it’s important to set yourself a strict budget and cut your monthly expenses where you can. You might not be perfect with your budget at first, but over time it gets easier to build money-savvy habits. For further support with your budgeting needs try apps such as Mint, You Need A Budget or Good Budget.