Looking to escape the 9-5 grind? Wondering how you can stop exchanging time for money? Dream of having more freedom in your life?
Creating passive income has been my solution, and it could be yours as well! Don’t worry, it isn’t necessarily as difficult or time-consuming as you may think… in fact, you could be generating passive income by the end of this week! Within a few months, that could add up enough to cut back on your hours at work or even quit your job entirely!
If you already own your own business, you could cut out some of your 1-on-1 services in exchange for passive income streams that work for you while you sleep! This means MORE TIME to do whatever it is you love to do, whether that’s hanging out with friends and family, diving into some fun new activities, or even traveling the world!
The world is your oyster.
In this post, I’ll be going over what passive income is and how you can start creating some passive income for yourself. Creating just ONE passive income stream can make a HUGE difference in your life!
Ready to get started? Keep scrolling…
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What is Passive Income?
Let’s start with the basics by going over the difference between active income and passive income.
Active income is what most people in the world make. It’s going to something like a 9-5 job and trading your time for money. If for any reason, you don’t go to work, you also stop earning money, which obviously can be a bit of a problem if you’re like most people and have bills to pay!
Passive income is residual income you earn from an investment that usually requires little to no effort to maintain it. An investment is an asset created with the intention of generating income over time and usually requires you to put money, time, talent, and/or emotional energy into it upfront.
The Benefits of Passive Income
Passive income is about working smarter, not harder. It’s a way of creating MORE TIME for yourself. Although it can potentially take some time to build upfront, the results can work for you for years to come!
Passive Income Allows You to Create:
- More freedom
- A flexible schedule
- The ability to be your own boss
- The ability to create your own products, courses + services
- The ability to do work you truly love
- The ability to work from anywhere
- Scalable income
- More time to spend with your family and friends
- The freedom to travel the world
- Less stress and worry
How to Start Creating Passive Income Streams
Begin by thinking about what people are wanting and what they are searching for. If there’s a need for something in particular, YOU can be the one who creates a solution for it!
Here Are a Few Quick Tips:
- If there isn’t something out there that helps people with a particular thing, create it!
- If there is something out there that helps people with a particular thing, but you feel like you could make that thing better, create it!
- If someone has already created something that helps people with a particular thing, and it has also helped you, then tell others about it and use either an affiliate link or a referral code to earn a commission.
Okay, now that we’ve gone over the foundation of what passive income is, let’s move onto the good stuff!
1. Sell Digital Products
If you’re the creative type, you could create a digital product once and then sell it over and over again! Even better, since it’s digital, you won’t have to worry about storing, producing, or shipping physical products. Everything can be done right online and you can run your business from anywhere you are in the world! This can be a great solution for people who love to travel or who don’t want to be tied down to any one place in particular.
Digital Product Ideas
- Wall Art
- Workout Trackers
- Meal Planners
- Shopping Checklists
- Journals or Notebooks
- Thank You Cards
- Gift Certificates
- Print Mockups
- Premade Logos
- Premade Brands
- Social Media Templates
- Business Cards
- WordPress Plugins
- Website Themes
Easy e-Commerce Solutions
If you’d rather set up a shop on an already-established platform, some options for you could include:
The difference is they would handle the marketing, production, fulfillment, and customer service for you, in exchange for a percentage of your profits (but sometimes that’s the best way to start out and then create your own e-commerce website later.)
2. Sell Stock Photos
If you love photography and traveling, you could take photos of your adventures and sell them online for a profit (not to mention, put money in your travel fund!) Once you have your photos loaded and ready to sell, you can sit back and relax and let the passive income roll in!
Where to Sell Stock Photos Online:
3. Sell Custom-Designed T-Shirts, Tank Tops + Hoodies
Whether you’re a graphic designer or not, this could be a great opportunity for you to make some passive income. Simply sign up on one of the following print-on-demand platforms and submit your designs, quotes, or funny sayings and then sit back and relax. They will print, ship, and deliver your custom-designed t-shirts, tank tops, and hoodies for you while you enjoy the profits. Easy peasy!
Where to Sell T-Shirts Online:
4. Sell Custom-Designed Home Decor
Are you a creative who also loves home decor? Combine your two passions by creating some unique products people can enjoy around their homes! Simply sign up for one of the print-on-demand platforms listed below, submit your designs, words, funny sayings, quotes, etc. and then choose the home decor items you’d like your designs to be printed on. These will then be printed, shipped, and delivered for you while you sit back and enjoy your profits!
Home Decor Ideas:
- Canvas Prints, Framed Prints, Posters
- Blankets, Duvet Covers
- Yoga Mats
- Floor Mats
- Water Bottles
- Flasks and Bottle Openers
- Pet Supplies
Where to Sell Custom Home Decor Online:
5. Sell Custom-Designed Bags
Everyone needs a way to carry around their stuff! If bags and creativity are your thing, why not create your own! Simply sign up for one of the print-on-demand platforms listed below, submit your designs, words, funny sayings, quotes, etc. and then choose the types of bags you’d like your designs to be printed on. These will then be printed, shipped, and delivered for you while you sit back and enjoy your profits!
Bag Design Ideas:
- Tote Bags
- Weekender Bags
- Drawstring Bags
- Duffle Bags
- Beach Bags
- Laundry Bags
- Makeup Bags
- Zipper Pouches
- Fanny Packs
Where to Sell Bags Online:
6. Sell Custom Designed Clothing + Accessories
Are you a creative who’s into clothing and fashion? Why not create stuff for people who enjoy unique clothing items (and maybe even make some stuff you’d wear yourself!) Simply sign up for one of the print-on-demand platforms listed below, upload your designs, and then choose the clothing items you’d like to sell. Your designs will be printed, shipped, and delivered for you while you sit back and enjoy your profits!
Clothing + Accessory Ideas:
Where to Sell Clothing + Accessories Online:
7. Sell Custom Designed Phone Cases
Almost everyone these days has a cell phone and most people enjoy customizing their phones to match their own unique personality. If you’re a creative type you could create an online shop that sells custom phone cases with cute designs or funny sayings on them! Furthermore, if you have a blog or YouTube channel, you could link it to your shop to create your own passive income stream selling your own products!
Simply sign up for one of the print-on-demand platforms listed below and upload your artwork. Your custom phone cases will be printed, shipped, and delivered for you while you sit back and enjoy your profits!
Where to Sell Custom Phone Cases Online:
8. Sell an Online Course
If you have some knowledge to share and enjoy teaching, you could create an online course! You would create this once and then sell it over and over again. The only maintenance you’d really have to do after that is to answer any questions from your students and update it periodically.
Where to Host Online Courses:
9. Sell an eBook
Love writing? Have some knowledge to share? You could write a book and sell it digitally as an e-book!
This is a great passive income opportunity because all you need to do is create it once and then you can continue to market it and make money on it for years to come!
Another alternative would be to set up your site using the free plugin Easy Digital Downloads which allows customers to receive their purchase automatically after payment. You can see an example of this on my client’s site here.
Other Places You Can Self-Publish eBooks:
9. Start a Blog
Blogging is my absolute favorite way to make passive income (I’ve personally created 4 successful blogs since 2013!) You can either create a niche blog, a personal blog, or a lifestyle blog and then write about whatever topics you want!
Once you get your blog set up, you can start creating blog posts that help your readers in some way. This could include teaching them how to do something, writing reviews about different products or services you’ve tried so they can make a quicker decision, creating a resource page full of recommended tools, creating a post that lists your referral codes and helps your audience get deals on various goods, etc.
To start building passive income, you can add affiliate links or referral codes to your posts so when someone clicks on your link and purchases your recommendation, you earn a commission!
Another option to make passive income is to use banner ads, however, I would recommend using those sparingly as they can take away from your own content and even cause people to bounce from your site.
You could also set up a shop on your blog where you sell your own products and services and then use your blog posts to help educate, give value, and promote whatever it is you do! See an example of my client’s blog here.
Want Some Help Setting Up Your Blog?
Check out my design services here or check out my posts below!
10. Start a YouTube Channel
If you enjoy making videos, you could set up a YouTube channel and create video content like makeup tutorials, product reviews, travel tours, daily musings, demonstrations, or even comedic content! You can literally talk about anything you are interested in and there’s probably someone else out there who’s interested in it as well. Plus, I personally believe people are more likely to watch or listen to videos these days (vs reading a blog) as they can do it while they are out and about during their days.
You can make passive income through ads that are displayed on and throughout your videos, or add affiliate links to the description box below your videos, which would link to products you used or talked about to help people can find and purchase anything you recommended.
Another way to build passive income for yourself through YouTube is by setting up a shop on your website and using your videos to market and advertise whatever you want to sell. This could be your own products, courses, ebooks, services, etc. You could add a link to your website in the “About” section on your channel or add a link in the description box to a particular product you talked about in your video.
If you have a blog on your website, you could post your videos in your blog posts to add richer, more dynamic content. This can help develop that know/like/trust factor with your audience while also helping you gain YouTube subscribers and build up your channel.
11. Rent Out a Spare Room or Your Entire Place
If you own your condo or home and have a spare room that doesn’t get much use (or better yet, your entire place!) you could rent it out to create some substantial passive income.
Where to Host Your Home:
To optimize the passive income, you could set up a keyless entry so guests can let themselves in and out without you having to be there. You could also hire cleaners to clean the place between guests so you can be doing your own thing anywhere else in the world.
If you hire a company to do the cleaning for you, the only ongoing work you’d need to do is purchase supplies when they run out (for example, toilet paper, shampoo and conditioner, coffee, etc.) and then make yourself available to communicate in a timely fashion with your renters.
I’ve personally hosted a room out of my place for a year and found the experience to be a pretty easy way to make some passive income! Plus, it was fun meeting new people!
12. Rent Out Your Car
If you barely use your car, you could rent it out and earn passive income while you do anything else but drive your car! This could potentially earn you thousands of dollars a year! You could use the extra money to pay off expenses on your car, pay other bills, or even take a vacation the same week someone is renting your vehicle!
You could rent to people who are looking for an alternative to large car rental companies like Hertz and Enterprise, or rent your car to Rideshare drivers that drive for Uber or Lyft!
Where to Rent Your Car Online:
13. Rent Out Your Parking Space
Have an extra parking space you’re not using? This could be a lucrative passive income opportunity for you! Put your unused parking space to work by listing it for others to rent during the days or times you aren’t using it. This could be hourly, daily, weekly, or even monthly!
To expand this opportunity even further, this does not include just cars, but could also include bicycles, motorcycles, recreation vehicles, campers, and boats!
Where to Rent Your Parking Space:
14. Rent Out Extra Storage Space
If you have extra space in your home that isn’t being used, you could rent those out as storage space to make some passive income every month! This could include your garage, extra rooms in your house, a closet, your basement, a loft, an attic, a shed, a warehouse, or even your driveway!
Here’s How it Generally Works:
To get started, signup with one of the online platforms below, and they’ll match up your empty space with other people’s extra stuff for free! After confirming your phone number, identity, and email address, you can add your listing and set your price using the suggested list price as a guide.
Once your space is listed for rent, potential tenants can chat with you about it. You can review their profile and, if you both agree, the renter will be able to rent your storage space through the app. The renter’s credit card will be charged automatically each month and payouts will be directly deposited at the end of every month.
Create a new passive income opportunity for yourself this week by listing your extra space today!
Where to Rent Your Storage Space:
15. Rent Your Stuff
Have a bunch of stuff lying around your home that you don’t really use? Help a neighbor out and make some extra money by renting out things like drones, video cameras, camera lenses, lawnmowers, ladders, drills, game consoles, musical instruments, sports equipment, electric scooters, and more!
Below are a few platforms that can help you advertise your stuff and connect you with others in your community who are interested in renting. The best part about these is they help reduce overconsumption and make it even easier for people to find and rent stuff for a fraction of the cost of buying. This helps everyone live a little lighter and reduces waste on the planet!
Where to Rent Your Stuff Online:
16. Credit Card Rewards
This idea may not have as big of an income potential as some of the others I’ve listed in this post, but nonetheless, there can be times where every little bit counts!
With a credit card reward program you’ll get 1-5% cashback every time you use it. It’s a great way to maximize what you earn on what you spend! If you love to travel, you can pick a credit card that will reward you with frequent flyer miles. Or if you eat out often, you can pick a credit card that gives you high cash back at restaurants.
Where to Get Cash Back Reward Cards:
17. Use Cashback Apps + Browser Extensions
Another way you can earn a bit of passive income is to use cashback apps and browser extensions.
Where to Get Cashback Apps and Browser Extensions:
- Rakuten – An online app and browser extension that automatically detects savings for you based on the website you are shopping on and alerts you of the potential cashback when you purchase anything on that site. As a bonus for signing up through my link, you’ll receive your first $30!
- Honey – Honey is a free browser extension that unlocks the internet’s best deals. Whether you’re shopping for clothes, booking a trip somewhere, or ordering a pizza online, Honey will automatically find, test, and apply the best coupon code for you at checkout, no matter which site you’re shopping on! Honey can even find better prices on Amazon for you!
- Dosh – Receive automatic cashback when you shop, dine, or travel. Simply download the app, link your credit and debit cards, then live your life as usual. Every time you purchase something using one of your cards, Dosh will search for available offers for you. If it finds one, you’ll earn cashback! Once you accumulate $25, you can transfer it to your bank, PayPal or Venmo… or even donate to charity! What I personally like the best about this app is that there’s no need for coupons, remembering discount codes, or receipt scanning! It’s all done automatically for you! As a bonus for signing up with my referral code, TARAT102, you’ll receive your first $10!
- Ibotta: An app and browser extension that helps you to earn cashback whenever you shop, both online and in-store. Shop from your phone or your computer and get rewarded with cashback on everyday purchases like groceries, takeout, delivery services, apparel, travel, and more.
- Checkout51: Earn cashback on groceries and gas. Take a photo of your receipt and upload it to receive cash back on select offers.
Bonus Tip: You can also earn money for referring others to these apps!
Want Some More Ideas?
What Do You Think of These Passive Income Ideas?
Are there any you’re thinking of trying out? Have any other ideas you’d like to share?
Comment below and let me and others know!