by Brian King, Marketing Director for Compass Offices
It’s always nice to have a little more money to spare. Whether it’s to finance your next getaway, upgrade your car, or to fund your new startup. Yet there are only so many hours in a day you can put in for work.
Unless you’re in the kind of job that pays by the hour, it’s hard to earn more just by working longer hours. Most of us who work 9 to 5 jobs feel that it doesn’t offer us enough freedom, which is why the idea of earning a passive income sounds so appealing.
Generating multiple streams of income can have a major positive impact on both your finances and your life. Beyond just making more money, having multiple streams of income reduces the risk of being left without any income in the case of getting laid off from an active income source, giving you financial security.
Passive income is money you earn without doing too much work. However, before this money starts flowing in, you need to put in a lot of work. Passive income ideas require an upfront investment and a lot of nurturing initially until they start to bring in consistent revenue.
Choosing the right low effort passive income ideas will enable you to have a steady flow of extra income from several side gigs. Here are some passive income ideas to get you started:
1. Use Social Media to Make Your Personal Interests Profitable.
If you use the internet and don’t live under a rock, then you’re probably well-aware of who Kylie Jenner is. She has been named by Forbes as America’s richest self-made millionaire, with a billion dollar company – Kylie Cosmetics – to her name. Kylie is from the Instagram age and has smartly leveraged social media in her journey to become a multi-millionaire. If you are social savvy, start a brand new Instagram account or polish your own account to start acquiring followers. Who knows, you might even end up earning an income from sponsorships being a social media influencer. There are many lessons to be learned from Kylie Jenner’s smart social media strategy and her use of influencer marketing.
2. Get a Roommate, or Rent Out Your Flat.
Airbnb and similar accommodation sharing companies have been enabling people around the world to easily find accommodation for rent when they travel. Because it costs a lot less than expensive hotels, more and more people are interested in renting these short-term spaces. By participating as a host on Airbnb, you can rent out your residence or even a spare room in your apartment to accommodate guests and earn a little extra money.
3. Try Affiliate Marketing.
Out of a long list of passive income ideas, this is by far the most popular. Specifically for all those who have an active blog or website. Depending on your niche or industry, you can promote certain products/services on your website and get paid for it once the sale is complete. Before venturing into this arena, do make sure you perform a thorough research on the various affiliate marketing platforms and understand its several forms to pick the ones that will suit your needs.
4. Make Money out of Lending Money.
Investing in Peer-To-Peer (P2P) lending platforms, such as Lending Club is one of the more accessible and ultimate form of passive income ideas. Peer to peer lending enables you to offer other people funds for loans on an interest ratio of up to 10% per year. Although unlike banks, P2P lending have major risk factors attached to them, potential losses can be minimized by consulting with your financial advisor and making a few small initial investments.
5. Earn from Your Craft.
If you are a creative person with a hobby or a passion, then you can easily start a side business and earn a passive income. The possibilities are endless. Whether you paint, craft, write, make videos or take photographs – whatever creative side gig you have going on, you can promote it on your website or blog or dedicate a social media or Etsy page to it and start selling right away.
6. Start Saving.
Saving means more than working hard on your saving account, it also involves keep you away from unnecessary spending or, say impulse spending. Spending money is easy, while earning is hard. Think twice before getting a new gadget or fancy high heels that will be only be worn once, eat out less, and spend your valuable time cooking healthy meals. Bank in the amount of money that you were going to spend (which you didn’t), and then enjoy the growth under your saving accounts a few months later. This is possibly the most ignored investment ever, but is also the one that makes a huge difference.
There are hundreds of passive income ideas that can help you get started with earning multiple streams of income. The choice is yours. Explore your passion, conduct research on the passive income ideas that interest you and start earning from your side hustle, so that you don’t have to stay dependent on a single active income source only.
Originally from the UK, now based in Hong Kong, Brian King works for Compass Offices as the Marketing Director. With over 20 years of experience working in B2B marketing across USA, Europe and Asia in technology startups, business information and real estate industries, Brian writes on topics including startup marketing, marketing automation and business best practices.