For better or worse, almost every individual needs money to participate in modern society. While many rely on a primary source of income โ whether it’s an office job or alternative career โ it’s always beneficial to have multiple revenue streams. The biggest advantage of passive income is, as the name suggests, that it typically doesn’t require the same amount of time and effort as a primary income source. However, even passive income streams require initial work to build, as well as ongoing effort to maintain. Some of these ideas even require tapping into existing skills or resources โ such as a hobby, talent, or creative passion โ that have the potential to generate a profit. However, these potential revenues still won’t be as demanding as a strict 9 to 5 โ making them worthwhile endeavours. Whether you’re looking to start a little nest egg, create a financial cushion, or just want extra cash for happy hour, it never hurts to work smarter โ not harder โ by building a lasting source of passive income.
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Investing
Prerequisites: An investment account โ typically a brokerage account. Existing money for making investments.
One of the most common ways to generate passive income is by investing money you already have. Building an investment portfolio is particularly attractive because it requires minimal daily effort on your part. We highly suggest researching the type of investment that best aligns with your lifestyle, current financial status, and long-term goals. For most beginner investors, starting with high-dividend stocks is a great choice, as they tend to be less risky and provide steady returns โ making them a near-perfect example of passive income! However, be aware that financial markets are never 100% safe โ so don’t go sinking everything you have into one place.
Selling Handmade Goods Online
Prerequisites: A creative skill or hobby that generates a sellable final product. Necessary supplies.
Imagine knitting three cosy sweaters for your own enjoyment, then simply stashing them away into storage โ now that’s just leaving money on the table! If you have a creative hobby or skill like crafting, knitting, or painting, that you’d already be doing otherwise, why not start selling your creations instead of letting them pile up at home? Through the power of the internet, it’s now easier than ever to become a small private seller. If you prefer having more control over the process, building your own website is the way to go. Alternatively, aย more convenient yet reliable option for online sales is to set up an Etsy shop, where the existing interface shoulders a lot of the work for you.
Selling Digital Creative Products Online
Prerequisites: A creative skill or hobby that generates a sellable digital final product. Necessary supplies or software.
While selling tangible items is already a great source of passive income, selling digital creative products takes it a step further by eliminating the need to physically ship items to buyers. Whether it’s digital artwork, printable art, templates, patterns, or even fonts, there’s a market and a method to sell your products online. The best part is that each sale won’t require much action on your end, as items would be available for instant download. Additionally, most digital products can be sold multiple times โ create something once and sell it for years on end!
Stock Photography
Prerequisites: Basic photography skills. A quality camera.
Good news for amateur shutterbugs: you don’t need to be a world-famous photographer to start earning money from your snapshots. While this might not be a viable source of passive income for someone with no interest in photography or without a quality camera, those who already have the passion and the right equipmentย can turn their hobby into profit. Stock photo websites like Shutterstock or iStock buy images from non-professional snappers.
High-Yield Savings Account
Prerequisites: A bank account. Existing money for a minimum opening deposit.
Even if you’d rather not touch your money too much and have it sit in your bank account instead, there are still options for generating a passive income with your savings. While choices may vary based on where you bank, most institutionsย offer some form of high-yield savings account. These accounts provide higher interest rates than standard ones, allowing your money to grow faster. We recommend reviewing your finances and goals, as well as consulting with your bank before opening this type of account, as it may not be the best fit for everyone.
Youtube
Prerequisites: A skill or area of interest/expertise. Necessary recording equipment.
Hear us out. When suggesting Youtube as a source of passive income, we don’t mean you have to become the next Mr. Beast. You’d be surprised at the number of faceless (and even voiceless) videos on Youtube that generate thousands, if not millions, of views. For example, if you’re a crocheter, simple instructional videos or pattern tutorials have the potential to draw a large amount of eyeballs. This possible revenue stream is a slow-burner, so be prepared to receive minimal returns initially. However, if you’re patient and consistent enough, you may eventually be rewarded.
Developing An App
Prerequisites: A varying level of knowledge in tech and app development. A varying amount of startup capital.
Let’s face it, there’s an app for practically everything these days. Although the app market continues to grow more crowded every year, it has also become less challenging to develop your own app without extensive knowledge of programming languages or tech skills. In fact, the time, effort, and money you invest in development are entirely up to you and your vision. No-code app makers like Appy Pie or even AI tools can help you create a simple app on your own. Even with free apps, you can generate revenue through ads, in-app purchases, and more. One look at the range of products available on the App Store will tell you that there’s truly no idea that’s too simple, too boring, or too silly.
Born in Korea and raised in Hong Kong, Min Ji has combined her degree in anthropology and creative writing with her passion for going on unsolicited tangents as an editor at Friday Club. In between watching an endless amount of movies, she enjoys trying new cocktails and pastas while occasionally snapping a few pictures.
