3 Ideas to Start Earning a Passive Income

3 Ideas to Start Earning a Passive Income
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Money for nothing: it’s not just a pretty good rock song with an even better Weird Al parody version. It’s the dream we all aspire to, deep down in our heart of hearts.

There’s no shame in admitting it. We all need money to survive and live our lives the way we want. Everyone wishes they had more leisure time to enjoy those things they cherish the most, whether that be spending time with their family, indulging in a gratifying hobby, or traveling the world. Unfortunately, at some point in history, some doofus invented currency, so now we have to pay for, well, everything.

It can sometimes be difficult to get by on one paycheck alone, which is where passive income comes in. Want to make more money for less work? Here are three tried-and-true beginner strategies to earn a passive income.

Rent Out Rooms

Everybody needs a roof over their heads, and anywhere there’s a need, there’s a market. One of the least complicated and most time-tested ways of generating passive income is by renting out rooms to tenants. This can mean either converting extra space in your own house into an apartment, or it could mean investing in a new property for the same purpose. Maybe you also have to travel often and could rent out your whole living space while you’re away.

Either way, renting not only helps you earn passive income, but also increases property values. If you’ve ever wondered “What is my home worth?” then renting rooms is a great way to ensure the answer to that question is sweet, sweet music to your ears. Weird Al parody version not included.

Invest in Stocks

If renting property represents one of the least intimidating ways a beginner can start earning a passive income, investing in stocks might very well represent one of the most intimidating ways. For those on the outside looking in, the stock market can seem chaotic and confusing. However, while there is a lot to learn when it comes to buying and selling stocks, at its core it’s a very simple idea: buy low, sell high, profit! 

“What about stock market crashes and other fluctuations?” you ask. Sure, stocks come with a lot of risks, but those risks can be mitigated in a number of ways. You don’t have to be Gordon Gecko to make money on selling stocks. Modern investment apps like Robinhood, E*TRADE, Acorns, and Stash help rookies learn the ropes on a much smaller, safer scale. Fortunately, there are also plenty of resources available online to help you learn more about the stock market so you can decide if this is the right avenue for you. 

License Creative Works

Let’s get something straight: despite what your parents say, being a content creator of any kind—author, photographer, artist, blogger, YouTuber, musician, whatever—is not a form of passive income. This takes a huge amount of work to bring in money, so it’s not something you can do without devoting a lot of time towards it. Creating original work is just as active a way to make money as other, more “traditional” jobs. So there, Mom and Dad!

That said, creative works can go on to generate passive income many years after their original creation. It doesn’t matter how old a picture, painting, video, song, or story is; as long as you’ve retained the rights to it, you can continue licensing it out for others to use even while you actively work on a newer project, which you can then license as well while you work on newer-er projects. It’s the circle of liiiiiiife!

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