31 Mar 9 Strategies to Earn Passive Income in 2021
If you want to stop living paycheck to paycheck and start building a strong financial future, you need to find a way to earn passive income.
Unlike active income, which requires action, you can earn passive income in your sleep.
Once you set up your passive income streams, you can sit back and watch the money roll in.
You’re probably familiar with the saying, “The rich get richer, and the poor get poorer.”
The reason the rich get richer is because they understand the importance of multiple income streams.
And because it isn’t possible to actively work multiple jobs, they find ways to earn passive income.
Tom Corley, the creator of Rich Habits, completed a 5-year study that revealed most self-made millionaires generated their income from multiple sources. The study showed:
- 65% had 3 streams of income.
- 45% had 4 streams of income.
- 29% had 5 or more streams of income.
Did you catch that this study focused on self-made millionaires?
In other words, it is possible for everyday people without trust funds to earn millions – if we play our cards right. Think of passive income as the cards in your hand.
Make 2021 the year you make your dreams a reality with these 9 strategies to earn passive income.
#1 Start Investing
One of the best ways to earn passive income is to invest in dividend-yielding stocks.
When investing in dividend-yielding stocks, you become a shareholder. As a shareholder, you receive regular quarterly payments from the company.
All you have to do is own the stock.
According to experts, “Dividend stocks with long histories of dividend increases year in year out are the best alternative for passive income investors.”
Hence the reason so many self-made millionaires invest.
Many people hesitate to invest in stocks because they have no idea how to do so, but there are tools available that make it easy for beginners, such as Webull.
Webull is a user-friendly investment platform, which includes stocks, options, ETFs, and cryptos.
Once you master the learning curve, you can sit back and watch the money roll in.
#2 Sell or Rent Stuff Online
If you have clothes you no longer wear, don’t just give them away.
Instead, rent or sell them online.
There are multiple places where you can make a pretty penny selling clothing:
- Poshmark: You can sell clothing, home décor, and more, right from this app.
- TheRealReal: Considered the place to sell luxury designer goods, it is an upscale online selling platform.
- ThreadUp: Not only is ThreadUp the world’s largest fashion resale platform, but it is also the most well known.
In addition to selling your clothing on resale sites, you can also resale practically anything on eBay.
Just think – if you bought it at one time, someone else may want to buy it now.
If you don’t want to say goodbye to items forever, consider renting them out on Fat Llama.
According to Fat Llama, you can earn up to $3,000 a month renting out your stuff.
On this rental site, you can rent almost anything – cameras, music equipment, projectors and screens, electronics, and more.
#3 Rent Property
It’s no secret real estate is a great way to earn passive income.
People used to assume this meant purchasing rental properties, but with the arrival of Airbnb, all of that changed.
Now, you can rent out your home for weekends when you travel or rent out part of your home (such as a bedroom or office).
A report by Earnest found that Airbnb hosts make $924 a month on average. Specifically, “Airbnb hosts, on average, make nearly triple all other [side-gig] workers.”
Not only can you rent out space in your home, but you can also rent out your land.
If you have a large backyard or extra property, you can rent it out to campers through Happy Camper.
Similarly, if you have an RV sitting in the driveway, rent it out to travelers when you aren’t traveling yourself on RV Share.
#4 Start a Blog
Blogging is one of the most possible ways to earn passive income.
Business Insider reports, “JP Livingston, who retired early at age 28 with a nest egg of more than $2 million, earned more than $60,000 in one year from her blog. With the use of affiliate commissions and online advertisements, a good portion of these earnings were passive income — she spent less than five hours a week blogging.”
However, it’s important to understand that it takes some work initially before a blog earns passive income.
Let’s break down how this works.
You use Bluehost as your web hosting account, which includes instant WordPress installation and a free domain name for the first year, all for $2.95 a month.
Then, you create content and promote your blog to build an audience.
Next, you start to monetize your blog with banner ads.
Continue creating valuable content.
From there on out, each time someone visits your blog and clicks one of the ads, you earn a commission (or passive income).
[Related Read: How to Start a Blog for Under $100]
#5 Start a YouTube Channel
Similar to blogs, as long as your video is live on YouTube, it has the potential to earn passive income.
This doesn’t mean you can just post a random video and hope it generates money.
To earn money on your YouTube videos, you must meet the requirements.
It starts with becoming a member of the YouTube Partner Program (YPP).
Here are the eligibility requirements for YPP:
- Follow all the YouTube monetization policies (i.e., the content must meet YouTube’s community guidelines and Google AdSense program policies, such as making sure all videos are advertiser-friendly).
- Live in a country where the YPP is available.
- Have more than 1,000 subscribers on your YouTube channel.
- Your videos must have generated 4,000 Watch Time hours over the last 12 months.
- You have an AdSense account set up.
Don’t let 1,000 subscribers frighten you. I’ve made it work firsthand.
Retirement Hustle’s YouTube Channel currently has 7.47k subscribers.
I got there by posting quality content that people want to watch.
Then, as long as the videos are live on YouTube with ads, I earn passive income. You can, too!
Forbes estimates YouTube influencers make $5 per 1,000 views, which means a YouTube video with 1,000,000 views earns a cool $5,000.
[Related Read: How to Quickly Scale Your YouTube Channel]
#6 Create a Course and Sell It
Another passive income source that is surging in popularity is course creation. People are thirsty for knowledge, and you can give it to them.
If you are knowledgeable on any subject, you can create a course and sell it.
If you know how to write a five-paragraph essay, you can create a course.
If you know how to sell clothes on resale sites, you can create a course.
If you know how to invest in cryptocurrency, you can create a course.
Create a course using a site like Udemy.
Then, get paid each time a new student takes the course without having to create new content.
#7 Lend Money to Others for Interest
Lending to friends and family can often cause more headaches than it’s worth. So, why not lend online?
If you hold cryptocurrency, consider lending or staking it through Celsius.
If you’d rather lend old-fashioned cash, check out Lending Club.
Lending Club is a peer-to-peer lending platform.
Borrowers apply for a loan on the Lending Club platform. Personal investors can then choose to invest a minimum of $25 per loan.
You earn passive income in returns from interest rates.
#8 Rent Out Your Car
If you have a vehicle that just sits in your parking space or garage, you are missing out on an easy way to earn passive income.
HyreCar is an online carshare marketplace for rideshare drivers for Uber and Lyft.
According to their website, you can make over $1,000 a month renting your car to rideshare drivers.
That’s $12,000 a year in passive income.
Another car rental option is Turo.
Turo rents vehicles to travelers who would rather rent from locals than rental car companies.
Turo reports their car renters earn an average of $706 per month.
#9 Rent Out Your Boat
As much as you’d like to be out on the water every day, there are probably many days your boat sits in the dock.
Why not allow others to enjoy it while you earn passive income?
The peer-to-peer boat rental site Boatsetter makes this possible.
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