30 Dec How to Earn Passive Income without Creating Anything New
How to Earn Passive Income without Creating Anything New
Passive income was once called mailbox money because people received checks in the mailbox without doing much (or any) work.
For example, anytime a movie is played on a cable channel, the actors earn royalties and get a little mailbox money. This is money they earn without creating anything new.
The good news is you don’t have to be a Hollywood hotshot to earn a passive income and enjoy mailbox money without overworking.
Why Passive Income Streams Are the Key to Financial Freedom
Essentially, passive income refers to money you earn passively (or without doing much) in contrast to active income (your 9-5 job).
Once you get your passive income streams set up, the idea is to sit back and watch the money roll in.
Passive income streams are what set the wealthy apart from those struggling to make ends meet.
Tom Corley, the creator of Rich Habits, completed a 5-year study that revealed most self-made millionaires generated their incomes 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.
As the pandemic showed us, you can’t rely on one active income stream.
[Related Read: 13 Ways to Easily Create Passive Income]
Passive income helps provide safety and security should something happen to your main source of income.
Plus, you can use passive income streams to help you get out of debt or achieve financial independence sooner rather than later.
Some popular ways to earn passive income, such as starting a blog or renting homes, require a lot of time up front.
Passive income isn’t a get-rich quick scheme. It takes time to build, but over time, you can earn thousands of dollars without lifting a finger.
Unfortunately, things like starting a YouTube channel, building a blog, or investing in real estate take a good bit of time and energy.
There are other options that allow you to put in just a minimal amount of time to reap the rewards.
So, what can you do if you want to generate passive income, but you don’t have the time?
Check out these 6 ideas for earning passive income without creating anything new.
High Dividend Stocks
One of the most popular passive income streams is dividend-yielding stocks.
As a shareholder in a company with dividend-yielding stocks, you’ll receive a regular payment from the company.
All you have to do is own the stock and watch the money roll in. With high dividend stocks, cash payments are paid quarterly.
To ensure you earn solid passive income, you need to choose the right stocks.
One tip is to invest in ETFs or exchange-traded funds.
ETFs are investment funds holding assets like stocks, commodities, and bonds, but trading like stocks. They are easy to understand, very liquid, and inexpensive.
Plus, they have better potential returns because of their lower costs.
Experts also agree “dividend stocks with long histories of dividend increases year in year out are the best alternative for passive income investors.”
That’s also why stocks are one of the most popular means for developing multiple passive income streams.
If you are new to the stock market, it can feel a tad overwhelming.
These user-friendly investing platforms don’t have commission fees and are designed with the tools you need for success.
Watch this video that we have created on How To Setup Your Webull Account And Earn 4 FREE Stocks [For Beginners]
Rent Your Stuff
Another easy way to boost passive income streams is to rent your stuff.
We say streams for a good reason – there are endless options for what you can rent and where you can rent.
If you have an object in your home that someone possibly needs for a brief amount of time, it is possible to rent it.
For example, according to Fat Llama, you can earn up to $3,000 a month renting out your stuff.
On Fat Llama, you can rent almost anything – cameras, music equipment, projectors and screens, electronics, and more.
If you have a child that has outgrown his baby gear, you can rent it out to traveling families on Baby Quip. Travelers are also in need of strollers, pack and plays, highchairs, cribs, and toys.
FriendWithA.com is another rental site. The idea is to offer items that you’d ask your friends to borrow (for example, looking for a friend with a power drill).
You can rent everything from sports equipment to tools to bicycles on FriendWithA.
If you have clothes or purses hanging in your closet that you aren’t using, rent them out on Style Lend.
Style Lend allows you to rent out your designer goods to women across the United States. Style Lend renters keep 80% of the rental fee.
Not only do these sites make it easy to post items for rent, but they offer protection against damage and liability waivers.
If you’d rather rent out on your own, there is always Craigslist.
Rent Your Car
If you have a vehicle that isn’t getting much use, consider renting it to earn passive income.
The site Turo connects travelers looking for car rentals to local car owners rather than rental car agencies.
All you have to do is list your car, and add a description, details, and photos. When someone is ready to rent your vehicle, Turo sends a notification, and you make arrangements for the car drop-off and pick-up.
Turo reports their car renters earn an average of $706 per month.
Another option is Get Around. With Get Around, car renters have little to no interaction with you. Get Around equips your car with Connect™ that allows users to find your vehicle and locate and access the vehicle.
Advertise on Your Car
A perfect example of passive income streams that don’t require thought is car advertisements.
If you commute to work or drive the school and sports carpool, consider advertising a company’s flashy logo on your car.
If you have a new-ish car, a good driving record, and drive a favorable route, you can earn hundreds of dollars a month by advertising on your car.
In short, you earn passive income by doing what you are already doing every day – driving from here to there.
Become a Referral Source
Businesses are looking for ways to get customers to buy.
You can help them out and earn passive income by becoming a referral source.
A 2016 Nielsen Study shares that 82% of Americans say they seek recommendations from friends and family when considering a purchase.
67% say they’re at least a little more likely to purchase a product after a friend or family member shared it via social media or email.
Businesses know that recommendations matter. That’s why they offer referral programs.
Referral programs allow you to earn a passive income simply by referring your friends to the company.
For example, the company provides you with a personal referral link. If your friends, family, or social media followers use your referral link to make a purchase, you earn passive income.
In addition to online retailers offering referral codes, ask your favorite local businesses if they pay referral fees.
Rent Out Unused Space and Property
COVID-19 has made it a little trickier to rent out rooms in your home for out-of-town guests.
However, the pandemic doesn’t mean you shouldn’t consider renting out unused space or property.
Rather than renting a room inside your home, consider renting out spaces that others can access without having to get within 6 feet of you, such as a garage above your home.
Another option is to rent out unused spaces for storage, such as your attic, shed, or warehouse, on the site Neighbor.
Do you have extra property or a large backyard? Earn passive income by renting out your property to campers on the site Home Camper.
Is your RV just sitting in the driveway? Use it to add an additional passive income stream by renting it out via RV Share.
Do you have extra space for a car or even a boat to park? You can rent the space using CurbFlip.
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