So you want multiple streams of income, but how do you get started? Hopefully, some of these ideas will get your gears turning on how you could add another stream of income to your life.
The unfortunate reality is there is no such thing as a truly passive income. But there are varying degrees of passivity and urgency to which the income stream will require attention. So here are some of my favorite passive income ideas:
1. Rent Some Space with Airbnb
This is one of my favorite ways that a person could earn extra income. I have heard of people earning $5,000+ a month from a single condo listed on Airbnb.
One reason I like it so much is how flexible it is. By renting short term vs. long term, you can amp up your real estate investment returns.
You can rent out:
- Individual room
- Basement
- Guest Suite
- Guest House
- Entire House
There is even a method called “rental arbitrage.” Where an Airbnb host can lease space from a landlord and then turn around to set it up as a furnished short-term rental to list on Airbnb, of course, this needs to be done with proper documentation and disclosure to the landlord, as almost all leases do not allow subletting without addendums!
2. Rent a Vehicle with Turo
Did you know there is a platform that allows you to rent out your vehicle? In effect, starting a miniature car rental company?
Turo is a platform for renting out your vehicle. For example, Josh saw an entrepreneur earning passive income with Turo by renting out a fleet of cars at an airport.
Just like with Airbnb, there is a level of commitment to what you can rent. You could technically rent your personal vehicle on days you are not going to be using it. You could buy a vehicle specifically for renting on Turo. You can even maintain a small fleet of vehicles specifically to rent out.
3. FB Ad Agency
Did you know that local businesses are looking for ways they can advertise on Facebook? They are just waiting for someone to pitch them on the idea of running their ads for them.
This is a great passive income idea if you are low on start-up funds and have some time to get it started. The great thing about it is once you have some clients, the ongoing account maintenance is usually something you can do when you have the time available.
4. Rent Storage Space
Did you know that you can rent out your garage or other storage space in your house? This is kind of like renting space for people to stay at your house, except for lower ongoing maintenance. Getting paid for renting out space that you already have not been fully utilized sounds pretty good to me!
There are tons of people who pay for self-storage at the big facilities. But some apps bring this to the peer-to-peer marketplace. For example, allowing you to rent your garage as a storage unit to someone directly.
- Stashe
- Store At My House
5. Start a Trucking Company
Currently the most out-there idea on this list. Did you know you can buy an 18 wheeler, get a driver, and lease it on to one of the large carriers?
Purchasing a used truck can often be done for under 50k. According to Schneider Carriers a single truck can earn $175,000 a year. Of course, you will have expenses of the driver, truck, maintenance, fuel, and insurance.
There is also the option of becoming your own Operating Authority. This would allow you to get your own routes etc. However, this starts to deviate pretty far from being passive income.
6. Start a Blog
Suppose you enjoy writing and have a passion for a subject. Then, starting a blog could be a great option for you.
It does take a considerable amount of effort to get a blog running and for traffic to continue to come to the blog. However, when a blog is running, you do not need to manage it 24/7. You can take time off from it when you want and maintain the schedule you like.
Typical ways of monetizing a blog are through ads and affiliate links. You can also use it as a platform to sell a product or course you created.
Blogging can be a great option because you choose your work hours and do it in your spare time. If you know you consistently have a busy fall with sports for the kids or something but have time every winter and spring, then this might be a good option for you! You can choose your hours, work your niche, and earn money while you sleep.
7. Create a Course
Do you know a lot about a subject that other people on the planet would want to know about too?
Do you have a passion for teaching and want a way to get paid to do it passively? Then, creating an online course is a great way to make money while you still have a full-time job.
Udemy can be a great platform to launch your online course on. It is good because it is similar to Etsy, where the platform itself has people searching for courses.
Teachable is a standalone platform that you can use, which allows you more control over the whole process. It does not have a platform where they market your course, though, so you would have to do it from your own social media or blog presence.
8. Sell Stickers
Etsy is a pretty great business for people looking to build a side hustle or build some passive income. Even Elon Musk is on board with the Etsy e-commerce train. In addition, Etsy has proven to be a reliable source of income for many creators that use it as their platform to market their unique products.
I kinda love Etsy
— Elon Musk (@elonmusk) January 26, 2021
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Selling stickers on Etsy is a great way to build up a passive income stream. My friend That Frugal Pharmacist wrote a great guide on making stickers to sell on an Etsy shop. You do not have to be a graphic design savant either.
9. Peer to Peer Lending
Short-term consumer debt can crush your gains from generating passive income. Assuming you have your own ship in order and have extra cash, maybe you would like to help others get out of their debt problem.
One way to make an impact is by lending through peer-to-peer lending platforms. While these are still companies out to make a buck, they provide a service to their users by offering debt that might be at a rate slower than would otherwise be available to them through other lenders.
- Prosper
- Worthy
- Funding Circle
- Lending Club
10. Become a Hard Money Lender
Being a hard money lender is similar to doing peer-to-peer lending, except you will be actually originating the loans without a platform between you and the borrower.
There are tons of real estate investors in every market looking for funding sources for their next flip or rental property.
There is the potential for much higher returns this way.
Also, you can be more familiar with the person’s business to who you are lending the money than with peer-to-peer lending.
11. Real Estate Crowd Funding
Much like lending to real estate investors you know directly, you can lend through a platform. It is easy to sign up with these companies, deposit your initial investment and start earning your monthly return.
The main benefit of a crowdfunding platform is that another company does the vetting, documentation gathering, and legal work. Sure, you still need to vet the project and developer to ensure it is a good fit for your risk profile, but this makes it easy to invest your money and start earning a residual income.
- Crowdstreet
- Fundrise
- Yieldstreet
Wrapping it Up
Earning multiple streams of income is an important step to becoming financially free. Well before that, though, it can be used as a way to supplement your income or take some of the cash flow stress out of your life. I hope you can implement one of these ideas into your life!
