Passive income streams may require an initial investment and effort depending on the type, but they’ll maintain themselves and steadily bring in extra cash flow. The idea of passive income is to support your main salary and investments. It will help to diversify your portfolio and build up savings for you to use in the future.
There are several streams you can choose from. These include passive investing, renting out your space, affiliate marketing, and selling certain items. Each stream provides a different type of income, which will be affected in various ways by economic trends. The more income streams you have, the more diverse and secure your portfolio will be. Here are ten popular ways to make passive income.
Robo investing
If you’re not very experienced in the stock market, you could try using the best Robo Advisors to help you. These are tools that will analyse market trends for you and choose the most suitable investments for you according to your unique requirements. You can decide how much to invest in and monitor your portfolio with the help of an automated financial advisor.
Forestry investment
Perhaps you would rather invest in something a bit different this year, in which case you could consider forestry investment. Forestry is a long-term and tangible investment, which is its main appeal. It suits socially responsible investors who are interested in climate change and biodiversity. There are also tax benefits related to the growth and sale of timber. Forestry investment can be complicated to get your head around at first so it’s a good idea to get professional advice and discuss the possible benefits for you.
Invest in local businesses
If you would like to support local businesses, why not invest in one? You can invest small amounts in the form of bonds for minimal risk. Look for companies in need of private investors and thoroughly research them before making a decision. These types of income streams are more suited to those with investment experience, but you can find plenty of information online.
Holiday homes
If you’re ready for a second property then a holiday home could make a great investment. There are several advantages to buying a holiday home. The staycation trend is here to stay and more holidaymakers are looking for local accommodation. You could also use the property yourself when it’s not being rented. Holiday homes tend to have a higher rental yield because you only let them for a short period of time and at a higher rate. They’re also exempt from recent tax relief changes affecting buy-to-let properties. You can read more here about holiday homes vs buy-to-let to decide which is the better investment for you.
Rent out your driveway
Rather than renting out an entire property, you can advertise your drive instead. Sites such as Park On My Drive make the process very easy. If you’re not using your driveway you may as well make some money from it. It will be more profitable if you live nearer the central hub of a city. Many workers will be in need of a more affordable parking space close to their offices. You can provide this on a one-off or monthly basis. This type of passive income stream requires minimum effort on your part, but it may be difficult to predict how much money you’ll make.
Car sharing
Instead of your driveway, you could rent out your car. There are reputable car-sharing sites and apps you can use. Renting out your car is a private business but the third-party sites will ensure you’re protected. If you have a vehicle you’re not using at the moment it could be a temporary solution for you.
Affiliate marketing
If you’re willing to put a little more work in, affiliate marketing can be very lucrative. One way to do this is by setting up a blog to promote certain brands. You can do this by writing reviews, selling ad space, or with affiliate links. Here is a complete guide to affiliate marketing so you can decide whether it’s worth investing your time. Once you’ve established yourself online, however, it’s usually a pretty manageable and consistent source of income.
High yield savings accounts
If you would rather not risk investing, or spend time on a semi-passive business idea check out some of the best savings accounts around. Earn the interest directly off your savings and the more you put in the more you will gain. There are different types of savings accounts so it’s a good idea to do your research to find the most ideal one for your lifestyle. Speak to your bank and see what they have to offer, if you’re not convinced you can always shop around.
Sell your photos
Budding photographers make a surprising amount of money selling photos. If you like taking pictures as a hobby, but want to stick to your day job it could be a good source of passive income for you. Brands will buy photos to use for their own purposes and the majority of websites and magazines use stock photos. The best thing to do is sign up with a third-party stock photo website where clients will easily find your photos. You’ll then automatically receive a commission each time they’re used. Here are some of the best websites for selling your photography to give you an idea.
Sell your stuff
If you’re downsizing or simply have too much stuff you don’t need, you can sell all kinds of items online. It’s easy to use certain websites to get cash for clutter, and most buyers will pick up the goods as well. You can sell anything from clothing, furniture, household goods, electronics, toys, gadgets, books, you name it. As long as it’s in good condition there’s no reason why one person’s trash wouldn’t be another one’s treasure. Selling items is a short-term solution, but it’s a simple way to make extra income. Choose the passive income stream that is the most convenient for you.
