In an age when costs are continually rising, even having a small amount of extra cash can make a big difference. Alas, with many of us already working more than we’d like and having many other responsibilities and duties to boot, finding the time to take on extra hours and pad our income typically isn’t a realistic prospect.
The solution? Boost your bank balance while you sleep. That might sound like a dream — you are sleeping, after all — but it’s a viable option. While the amount of money you can earn from passive income varies wildly, even the lowest amounts can make a difference.
In this post, we’ll run through a few smart — and often underrated — strategies for getting your passive income started. And remember, you don’t just have to select one from this list!
Buy a Website
Starting your own website and working to make it profitable is the best way to generate a passive income. But that process takes time (and can also be extremely difficult unless you have experience in this field). The better solution? Look at buying an existing website. Webmasters put their websites — profitable websites! — up for sale all of the time, usually because they’re tired of the project and want to cash out.
Sites like Flippa offer the chance to buy websites that generate cash via affiliate marketing, advertisements, sales, and so forth. Take a look at what’s available and see if anything catches your eye.
Invest in a Local Business
Prefer to invest in something more real, more local? Investing in a local business is an excellent way to generate passive income while also helping to boost the community. There are many small, independent businesses that are profitable but which periodically require an injection of cash so that they can reach the next level. By investing your money you’ll become a part-owner of the business and will be eligible for a slice of the profits.
Remember to do your due diligence and to make decisions with your head, not your heart. You’ll likely start earning a passive income immediately, but it may take years for you to recoup your investment, so you’ll need to select a business that has the potential for long-term success.
Use Your Land
Have a lot of land that you’re not using? Then you may be sitting on a small fortune. There are countless ways to make money from unused land. If it’s located in a popular area, you could turn it into a small campground by allowing visitors to pitch their tents or RV on your property. Another option is to allow a cell tower company to place a tower on your property. With cell tower rental rates averaging more than $20,000 a year, this can be a highly profitable source of passive income. Finally, if you’re a horse-lover, look at building some stables and allowing locals to keep their horses there.
Beyond that, it’s all about using your imagination. Done correctly, your land can offer significant, long-term passive income.
Or Rent Your Property
Don’t have that much land, but still want to make money via your property? Then look at renting out a room — or, if you’re going on a trip, the entire space. Depending on the location, this option could net you anywhere from a few hundred to thousands of dollars a month.
You’ll earn more money if you’re located in an area that tourists frequently visit, and you’ll also have the benefit of only accepting short-term stays. With that said, don’t discount the idea of taking on a long-term lodger. While your natural instinct may be to live alone (or just with your immediate family), allowing someone else to live with you can be more fun than you might think! Start with short stays of 1 – 3 months, and see how things progress.
Create Digital Products
Digital products have long been an excellent way to generate passive income. Why? Because people love digital products. Once you’ve developed yours, you’ll simply need to make it available for sale, invest in a bit of marketing, and then watch the money roll in. There are plenty of different types of digital products you can create, including e-books to e-learning courses. Not sure where to start? Think of what you’re already knowledgeable about or see what types of products are trending. Once you’ve put together a few high-quality products, you should find that you start generating some cash. How much cash will depend on the products, but it’s not uncommon for productive producers to make more than $2000 a month.
