If you want to earn more money without the burnout of working more, meet passive income. (Psst…here’s how to know if burnout is impacting you.)
What is passive income?
Passive income is the money you make without having to consistently work to earn it. Because working smarter > working harder. It might take hard work on the front end to get your income streams flowing. But once they start, you can take it easy and the cash will just keep coming.
How can I make passive income?
Investing is one way to earn passive income, but hobbies can be a good starting point, too. One of the best moves: focus on what you already have access to. Know a lot about a specific topic? Turn your knowledge into an online course or ebook.
Teaching isn't my thing. What other passive income ideas can I try?
Here are five more ways you can start boosting your income without the extra work:
Rent a space
For homeowners, or those renting a place that allows subletting, turning a space into a short-term rental can be an easy way to earn passive income. If you don't have room for guests, how about for cars? If you live in a place where commuters are often frustrated by the lack of parking spaces (oh hey, California), join an app like Pied Parker to rent out your driveway or garage.
Share your ride
No extra parking? If you work from home or don’t drive often, apps like Turo can help you rent out your vehicle for extra cash.
Start earning dividends
Depending on the stocks you choose, you could start earning dividends every month or quarter. Don’t know much about investing? Start out with exchange-traded funds (or ETFs), which can combine multiple dividend-earning stocks.
Invest in your 401(k)
Speaking of investments, you could already be earning passive income if you contribute to your 401(k). Sure, your 401(k) might not bring in extra income as quickly as renting out your driveway. But for long-term investors, it’s a great tool that can pay off big time in retirement. Fun fact: one Fidelity report said there was a 32% increase in people who became millionaires from their 401(k) contributions last year. So keep contributing. Even if you switch jobs. (Hint: Here's how to rollover a 401(k).)
Sell stock photos, templates, or filters
If you’re a creative person, try your hand at making templates. Sign up on a site like Etsy or Redbubble and sell designs for Instagram Stories or Pinterest graphics. And if you like photography, you can even sell stock photos to make some extra cash. If you go this route, you’ll have to put in the time to create your designs or take a few photos. But once you’ve got a final draft, just list it and let customers purchase digital copies.
There are plenty of options to earn passive income. Whether you’re a homeowner with extra space around the house or a newbie investor, there’s a way for you to bring in extra income without extra stress or burnout.
Subscribe to Skimm Money
Your source for the biggest financial headlines and trends, and how they affect your wallet.