Passive income is a dream for many. After all, who doesn’t want to pick up some extra cash ? However, many passive income streams require a lot of upstart capital.
Fortunately, there are many ways to create passive income streams without using a large wad of cash.
Here are a few of our favorite methods to make passive income without a significant initial cash investment.
Make Money: 8 things to do if you're barely scraping by financially 1. Rent out your car
If you own a car or truck, you can rent it out when you’re not using it with Turo. You can choose which days and for what price you loan out your car to others.
To qualify as rentals, vehicles must be no more than 12 years old and have under 130,000 miles. You should also check with your auto insurer to ensure you have the best car insurance rates and coverage.
Own a car? Here's 7 warning signs you're paying too much for car insurance. 2. Self-publish a book
Gone are the days when you needed a literary agent to publish a book. If you can write and format it, you can self-publish with Amazon Kindle, Google Play, Kobo, and other platforms.
You won’t be burdened with printing or distributing the book, but you will probably need to promote it to get sales.
3. Run a print-on-demand store
With services like RedBubble and Zazzle, you can design and sell anything from coffee mugs to t-shirts to bumper stickers online. These platforms manage every step, from point-of-sale to creating the product to shipping it to the customer.
You’ll only get a percentage of the sale price of each item (usually around 20%, but you can alter this somewhat by raising your prices), but after the design phase, the income you generate is pretty much passive.
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4. Sell digital products (spreadsheets, templates)
Just because someone knows how to make a complicated spreadsheet or beautiful social media post templates doesn’t mean they have the desire or time to do so.
People have built six-figure businesses by creating boring templates for household budgeting, Instagram posts, and office HR manuals.
Sell them on your own Shopify website or other platforms like Etsy.
5. Rent out your home
Airbnb may be the first platform that comes to mind for renting out your home, but there are many other options, such as VRBO, Vacasa, Homestay, and more.
If you’re unwilling to give a stranger the run of your place, you can also take on a roommate to monetize space in a spare bedroom.
6. Rent out your storage space
Don’t fancy sharing your home with other humans? You can even rent out storage space in your garage, closet, or basement through apps like Neighbor.
You can choose what you will and won’t store on your property and how your renters will have access to their stuff.
Getting cash for using your otherwise empty closet or crawl space is passive income at its finest.
Get Out of Debt for Good: Try these 6 clever ways to crush your debt 7. Teach online courses
The world of online courses has exploded in popularity and will likely continue to grow in the coming years.
If you have any skills you can teach to others — even things you might think of as commonplace, like baking bread, drawing, or gardening — you can make and monetize an online course to teach others how to do it.
8. Sell stock photos
If you’ve got an eye for photography, you can sell your photos for passive income online. Website owners are hungry for a constant supply of stock photos for new content.
Remember that boring pictures that can be used commercially (such as people interacting in an office setting or someone paying for lunch) can be some of the best money-makers — even if they aren’t as gorgeous as Bali sunsets or fashion shoots.
9. Rent your stuff
If you have in-demand items like skis, camping equipment, e-bikes, or party supplies, why sell them to make cash when you can rent them?
Yoodilize is a new app that lets you make a peer-to-peer rental of just about anything.
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10. Become an influencer
If you have a decent social media following, you can leverage that to make passive income.
Reach out to companies and brands that pertain to your niche and followers. They may pay you for sponsored content or give you a kickback for promoting their products.
11. Become an affiliate
Even if you don’t have thousands of followers on Instagram, you can still make some cash by promoting products.
Companies that sell everything from apps to credit cards have referral programs that give you incentives for sending them new customers. This is often done with referral links you can post online or send to friends directly via email or text.
12. Sell your music
If you’ve got musical talent, you don’t need to land gigs or a major recording deal to profit from your tunes.
Selling licenses to your music on sites like AudioJungle or Bandcamp can earn you passive income every time someone listens to or uses your melodies to make a podcast intro or a YouTube video.
Avoid Nasty Surprises: 10 things you must do before the next recession 13. Create an app
If you have coding skills, you can create and sell an app. This may represent a significant time commitment on the front end, but you’ll earn money each time someone buys your app.
14. Rent out your parking space
If you live near a venue like a stadium or concert hall, you can rent out your driveway during busy times so people can get convenient, off-street parking.
You can even systemize this by using an app like Pavemint and JustPark to rent out parking regularly. Many folks need not only parking for commuter vehicles but also RVs, boats, and other large toys.
15. Cashback apps and credit cards
This isn’t a typical side hustle per se, but since you already have to buy things like food and groceries, you may as well earn money when you do.
Cashback apps or web extensions like Rakuten and TopCashBack give you a percentage of your purchase back when you shop online. Maximize your earnings by using one of the best cash back credit cards so you can double dip.
Bottom line
It's difficult to supplement your income without a significant initial investment , but it can be done.
However, if you don’t have money to invest, you should plan to use your knowledge, time, and efforts to create something valuable.
Passive income is derived from products or services that help people solve problems, so keep that in mind as you choose which avenues to pursue.
Money tips that can work for everyone
No matter what your bank account balance is, there's always an opportunity to optimize and improve your finances. Here's a quick checklist of things you can look at today.
Focus on paying off your debt. Debt can hold you back from making progress with your overall financial well-being. Aside from cutting expenses, there are tools that can help you pay off debt faster like balance transfer credit cards and debt counseling.
Earning extra income can give you breathing room. If finances are tight, earning some extra money to supplement your income can make a huge difference. A new job is one option to consider, but if you're not ready to make a big change or already retired, a part-time side job could be a better choice.
Cut your expenses. It sounds painful and so not fun, but it doesn't have to be. Take a look at your biggest expenses because that's where you'll probably find the biggest savings. For example, auto insurance rates have been soaring so shopping around for a new insurance company can be the fastest way to cut your bill. Also, look for ways to cut your grocery bill (despite rising inflation).
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