Selling handmade crafts on Etsy or becoming a rideshare driver on nights and weekends are great side hustles, but they take time. Passive income, on the other hand, can keep the virtual cash register active—even when you’re not. Here are some ideas to help you dream in dollar signs:
- Monetize your expertise. What’s the thing your friends and family always ask you about, the thing you can discuss at greater length than anyone else you know? Turn that expertise into what’s known as an “information product” like an e-book, a YouTube channel, or even a mobile app. Yes, there’s a large time investment up front, but when you’re done you can earn money from it anytime—even when you sleep.
- Rent out a room, amenity or an entire property. If you have a second home, renting it out either as vacation property or on a long-term basis can be lucrative. Renting out a room in your home with a site like Airbnb can bring in quite a bit of money—or, have a pool? You can even rent that by the hour with Swimply (swimply.com).
- Get into money lending. With peer-to-peer (P2P) lending services like Prosper (prosper.com) and Peerform (peerform.com), you can offer partial loans and then earn interest on them. It’s not entirely passive income, as it requires ongoing monitoring and research (these are unsecured loans, after all), but for the financially savvy, P2P lending can be an excellent source of almost-passive income.