5 passive income ideas that don’t require a huge investment
EVEN while the economy may be showing signs of hope once more, for many who have lost their jobs, taken pay cuts, or suffered losses because of the COVID-19 pandemic, there are still those of us who greet the future with great financial scepticism. More than ever, we are realising that the one steady stream of income may not always be steady, and unforeseen circumstances can leave us vulnerable if we do not have a cushion.
Passive income can be that cushion, says personal finance blogger Trevann Hamilton, curator of goodyonabudget.wordpress.com.
“Simply put, passive income is any way in which you can make money without continuously putting significant effort into the service or product,” she told All Woman. “It’s often referred to as making money while you sleep.”
Hamilton pointed to home and car rental as popular sources of passive income, but noted that unless you already have extra space at home or a vehicle at your disposal, then those options might not be ideal for someone on a tight budget.
“The truth is that even passive income requires a fair amount of investment initially, whether it’s financial or your time and effort. But once you establish whatever it is, then you will just have to maintain and collect.”
Hamilton suggested five ideas for earning passive income that do not require a large financial investment to get off the ground.
Rent appliances or tools
“If you have things that other people find useful enough to want to borrow, then you might want to consider loaning them at a fee,” she said. “A computer, digital camera, blow dryer, foot spa system, your prized orchids and anthuriums, or even a baby’s crib that you’re no longer using can be rented out to friends to make passive income.”
Write a book
“Writing a book can be time-consuming, but once it’s written and published then you will have the income it generates for years to come,” Hamilton explained. “You can self-publish on a platform like Amazon, and set it up so that whenever your book is purchased, the funds go to your account. You can also get a traditional publisher who would handle the marketing and getting the money to you.”
Start a blog
“You can start a blog for free, and eventually make money from it,” Hamilton said. “You just have to be consistent and have your own website (domain). Registering a domain might require a small fee initially, but if you do this, you can allow ads and earn money when people click on the website and/or the ads.”
Hamilton added that you can also earn money (and free products) from your blog by doing paid reviews and direct advertising when you have enough traffic.
Start a YouTube channel
“If you can do hair, nails, cook, sing, or just about anything that someone would want to watch, then YouTube is the place for you,” the blogger said. “You can get paid for doing sponsored content and for clicks on your videos and ads if you allow ads to run on your videos. You can make money for years to come from one video you made today. Some people are living solely off their YouTube income.”
Buy stocks
“Buying stocks in a company can make you some passive income if you have some money and want to invest,” she advised. “Just remember that the dividends aren’t guaranteed at any point so if you are depending on the money, it’s not a great idea.” Hamilton added that the more you invest, the bigger your earnings — or losses — will be, so it’s best to consult with a broker before taking big financial risks.
