We can always use some extra cash in the bank, and passive income is the perfect way to ensure this. Passive income is when you continually get paid for work you only did once, making it an attractive method of making extra money. If this sounds like something that could benefit your life, check out these different methods of generating some passive income for yourself.
Rent out a room in your house
If you have some extra space in your home, you might consider renting it out to someone looking for a short-term living situation. You can use services like Airbnb, which makes it easy to turn your free rooms into some easy income.
Open a high-yield savings account
Most typical savings account have embarrassingly low interest rates, but some accounts can offer rates all the way up to 2.45%. While this won’t make you rich, it is great low-risk way to make some passive income without much work needed.
Pay off debt
The less money you pay in interest to creditors, you’ll have more capital freed up to go towards other things that are much more valuable.
A P2P loan is a personal loan between you and a borrower, usually done through companies like Lending Club. As a lender, you will earn income via interest payments made on the loans. While this method of passive income comes with some risk, it can also be a great way to make passive income without too much effort.
Utilize rewards programs for credit cards
Some credit cards have some spectacular rewards programs that can really add up over time. With cash back programs, you can easily rack up an extra $1,000 per year if you’re smart with using your credit cards. Travel a lot? We recommend looking into your favorite airline’s credit card to rack up miles, or try a program like Chase Saphire which will let you earn rewards (and even discounts) on travel.
Invest in crowdfunded real estate
Investing in real estate can be hard to start, as it usually requires a high amount of initial capital. However, with the rise of crowdfunded real estate, you can participate in real estate investing with just a few hundred dollars. Check out Fundrise, which can help you get started with crowdfunded real estate. It can grow into a lucrative form of passive income.
Start a YouTube channel
If you have a flair for creativity, then starting a YouTube channel might be a good idea to start drumming up some passive income. While this won’t be an overnight thing, a YouTube channel can be a fantastic way to gain passive income thanks to ad revenue, and if you’re extra successful, sponsorships.
Sell your photos online
If you enjoy taking photos and have a knack for it, why not get paid for doing what you love? By using sites like Shutterstock, you can get paid a percentage everytime a customer downloads your photos.