Earning an income beyond your day job sounds like a great idea for boosting savings, but the time commitment can be a huge barrier for many. This is where the concept of a passive income stream comes in.
This form of income stream allows you to earn more money with a minimal time commitment, which means you’ll be able to enjoy the financial benefits while still having time for the things in life that bring you joy, be it painting, climbing mountains, or gaming online, where social casinos use a play-for-fun virtual currency.
But which passive income methods can you leverage to increase your income without draining your free time? We’ll explore 11 passive income streams you can start from home. Some require money or time upfront, but their value can far outweigh the initial commitment.
High-Yield Savings Account (HYSA)
A high-yield savings account may not bring in massive amounts of cash, but it’s a great way to have the money you’ve set aside work for you. HYSAs offer higher interest rates than other savings accounts, allowing you to earn more and take advantage of compound interest, which earns you even more interest on the interest you have already earned.
These types of accounts are ideal for savings like an emergency fund, which you (ideally) don’t have to access often but need quick access to in the event of an emergency or unexpected expense. They allow money that would otherwise be sitting there doing nothing to earn you more money. Many HYSAs even allow you to sign up online to start earning interest from the comfort of your home.
Stock or Bond Investments
Stocks and bonds are excellent long-term passive investment options. You can start from home with investment apps or through a financial advisor, making investments based on your risk tolerance (though keep in mind that low risk usually means low reward). Over time, you’ll see your money grow.
Real Estate Investment Trusts (REITs)
Real estate is often considered a secure and reliable investment, but it has a high entry barrier. With REITs, you can bypass the high costs of property ownership by investing a smaller amount into a commercial building with other shareholders. Eventually, you’ll be able to enjoy dividends from the investment or reinvest them. As with HYSAs and other investments, you can invest online from home.
Rent Out a Room
If you have a spare room in your home, you could turn it into a passive income generator by renting it out to a roommate or short-term renters (like travelers looking for a place to rest their heads for a night or two). It’s easy to list and advertise such spaces thanks to online marketplaces, such as Kijiji, Airbnb, or Facebook Marketplace.
Rent a Parking Space
Similar to renting a spare room, you can also rent out an unused parking space. This is particularly valuable if you’re in a densely populated area with few parking options or near a concert venue or commuter hub such as a college or office building.
Car Advertising
You could turn your car into a passive income stream by wrapping it with ads. Online platforms like Carvertise can help you set up everything you need, and all you have to do is drive your regular commute or run errands.
Drivers who display ads on their vehicles can earn an additional $100 to $500 monthly.
Audiobook Narration
Recording an audiobook is a great way to earn passive income. It requires some upfront work, but then you can enjoy royalties from your book recording for a long time to come. You’ll want to familiarize yourself with narration techniques and editing, but once you have a handle on these, you can start auditioning to record books for major platforms like Audible.
Dropshipping or Print-on-Demand Business
Starting a dropshipping or print-on-demand business can be a fantastic way to earn extra cash with minimal costs and a relatively small time commitment. Much of the time and money is invested in setting up a website and advertising your products, but once you get the ball rolling, the time commitment can decrease.
With a print-on-demand business, you may need to spend more time creating your products, but if you’re artistic or interested in design, you’ll likely enjoy the process.
Sell Digital Courses & Products
Another fantastic online income stream is selling digital courses or products. As with dropshipping and print-on-demand businesses, most of the work is upfront, building the product and setting up a platform or website to sell it. However, once the work is done, you can start selling and enjoy the fruits of your labor.
Content Creation
Becoming a content creator or influencer on social media, YouTube, a blog, or a podcast requires a significant upfront time commitment to build an audience, but it can become a major passive income stream if you stay committed. Through content creation, you can build brand partnerships, have your work sponsored, or share affiliate products that earn you a commission for every sale linked to your content.
Short-Term Home or Apartment Rental
If you’re planning a trip and will be away from home for a while, this could be a money-generating opportunity. Similar to renting a spare room or parking space, you can rent out your entire home while you’re away and earn extra cash.
Conclusion
The online world has made it easier than ever to generate passive income from the comfort of your home. These 11 ideas are just a few of the many options that can help you build your savings, leave your nine-to-five, or splurge on your favorite things in life.
