Passive income is a smart way to make sure that you have other sources of money coming in besides your regular job. And with online resources, it’s easier than ever.
Why should you care about setting up something like this? While unemployment may keep you from living on the streets, if you’re laid off (a real possibility for anyone in these uncertain times) things can get tight. With a source of passive income made online, you won’t be completely out of cash and you’ll have breathing room until you can make your next move. Some folks can even turn their passive income into a main source of financing when they get really good at it!
Here are some of the best ways to do it online.
If you have an extra bedroom or a property that sits empty, it’s not a bad idea to rent it to get some extra income flowing each month. You can do long-term rentals (6 months to a year) or go the Airbnb route and get short-term guests every now and then. Cleaning the place after each guest might be the most work you’ll have to do, but if you end up getting lots of passive income, you can always hire a cleaning company. Then, all you have to do is sit back, welcome guests, and get paid.
Do you live in a walking city where cars are expensive to keep and in high demand? Apps like Turo allow you, in essence, to rent your car to people in the area. You decide when your car is available and you decide how long they can drive it. It’s great in big cities where some people may not own a car, but may want one for several hours.
If you don’t like the idea of someone driving your car, you can also contact certain ad agencies who are looking to wrap ads around cars. All you need to do is drive around advertising for a company. The website My Free Car will pay you based on how big your car is and how many hours a week you’re commuting.
We have links to both companies below.
Websites such as Prosper not only lend you money, but they let you invest. Your money will be broken up, then lent to borrowers, and you’ll earn interest as they pay it back. According to the Prosper website, investors usually get back about a 5.3% return.
This type of passive income will require you to do some homework beforehand. For example, recessions probably aren’t the best time since people are more likely to default on their loans.
Investing in stocks doesn’t have to look like a scene out of Wolf of Wall Street. In fact, by using Charles Schwab’s Automated Investing, all you have to do is answer some questions and their bots do all the work for you. You get to see a chart showing how much of your investment is in stocks and how it’s performing. The best thing about this type of investing is that if you choose a taxable account, you can take the money out as needed. If you’ve got cash lying around and you want to grow it, then head over to Schwab’s Intelligent Portfolios (link below).
A time deposit is a bank account that has a set maturity date. You put money in and you cannot withdraw it until a designated date. During that time, your investment gets a higher interest rate than a regular savings account.
One example of a time deposit is a CD or Certificate of deposit. Many banks offer CD accounts. To start, you’ll want to shop around to see which institutions offer the best rates. One downside to the CD is that if you do withdraw the money early, you’ll have to pay a penalty.