1 BBC. (2023, November). Passive income: Can easy side hustles earn big money?
The concept of passive income has been cropping up all over social media and blogs as people look to find extra ways of earning cash. Nearly one in five American households make passive income, and that trend is starting to expand worldwide.1
This article includes tips, suggestions, and general information. We recommend that you always do your own research and consider getting independent tax, financial, and legal advice before making any important decision.
Sometimes called a "side hustle," passive income is just a secondary way of earning money that could require little added effort. This guide will address how to generate passive income — including the pros and cons — and provide some passive income ideas.
Passive income, or secondary income, typically requires little effort or day-to-day involvement. Some examples include:
These are just a few examples, and this guide will get into a variety of different passive income ideas for various budgets.
It can be overwhelming trying to figure out how to make passive income. There are many options, and the right choice depends on the amount of time one might have available as well as their skill set.
The following are not guaranteed to make money, but they do represent some common ways to get started with passive income:
Affiliate marketing usually refers to making a commission by selling someone else's product online. Starting a blog about cooking and including product links for the best kitchen accessories is one example of affiliate marketing.
Using affiliate marketing for passive income could take other forms. For instance, there are influencers who often take fees for promoting a product to their followers on social media.
Creating an app is another route to generating passive income. But there are some disadvantages to trying to build an app — the main one being it usually requires skill in software programming. But for those creators whose apps succeed, it can be a source of passive income for years.
Digital products — such as designs, stock images, e-books, and websites — are another way to make passive income. This idea is especially well adapted to people in creative fields, such as web designers, writers, and photo editors, as they already have the skills necessary to make these products. Since digital products are usually created just once and then sold repeatedly over time, they can be a good source of passive income.
When people think of rent as passive income, they're usually thinking about renting out space, such as a flat or room in a home. But passive income from renting can take other forms, as well. Now it’s possible — especially with the help of different apps — to rent out a car, designer clothing, and even appliances such as lawnmowers.
Passive income from blogging can be a fun secondary revenue stream. Whether a professional blog or one created around a hobby, putting one together is relatively straightforward. Here’s how:
The benefits of passive income are numerous. They can include:
There may be disadvantages to earning a passive income, too, such as:
The PayPal digital wallet can securely store bank accounts and credit cards in one place. People can use it to start selling in their passive income businesses — whether it’s used books or designer clothes.
The PayPal QR code allows for speedy, in-person payments. Also, PayPal's personal payment links and invoices can make online checkout easy. All payments on PayPal are end-to-end encrypted, helping that both parties' transactions are secure.