The COVID-19 pandemic forced many people to look for alternative sources of income, with many people seeking out ways to create passive income.
Passive income basically refers to any kind of income that doesn’t come from an employer or contractor; with The Internal Revenue Service (IRS) claiming passive income can come from two sources: rental property or a business in which one does not actively participate.
Passive income is often acquired through royalties or stock dividends. But, nowadays, there are a variety of ways to create passive income.
Passive income is often considered to be some kind of get-rich-quick scheme or getting lucky and finding a niche in the market to capitalise on and earn.
However, the reality is it’s just a job like any other, except you do most of the work upfront.
This isn’t to say all the work, as often passive income requires additional labour along the way too.
Whether this equates to tracking an investment, updating a product, or ensuring a rental property is well-maintained, all of these passive income sources require some kind of upkeep.
Whatever it may be, creating additional financial security for yourself is a very appealing prospect and one that many are taking to in 2024.
How to Make Passive Income With Money
Beyond your main job, getting a second job is the most straightforward way of creating a second income in any household.
However, this isn’t really a true passive income, as you need to show up to work to get paid and passive income is about creating a consistent stream of income without having to work as much as one does for a primary job.
In terms of creating passive income with money, there are a wealth of different ways to achieve this.
But, generally speaking, those looking to create passive income with funds in the bank often invest in assets that pay out dividends or interest.
This can extend to things like stocks, forex (FX), and earning interest by holding various different cryptocurrencies.
How Can I Make Passive Income With No Money
For those keen to find a stream of passive income with little to no money, then you will have to invest your time and energy.
This will only really be necessary at the start, as after a while you will find you’ve built up enough money to invest into building a more reliable and consistent form of passive income.
Okay so you have the time, how do you use that time to create a stream of passive income?
Well, find something you enjoy or have expertise in and try to use that to your advantage; so, if you’re good with your hands, software coding skills, or whatever kind of niche creative skill you may have.
This could equate to creating a course, building an online presence, or setting up in-house classes.
The essence of creating an income with no money is using your time until you have enough capital to fund a passive income scheme.
For those that are excited by the fast-moving cryptocurrency industry, it certainly has a role to play in building a passive income.
If you’re familiar with digital assets, you’ll be aware there are some quite lucrative investment strategies that can be applied when investing in crypto assets.
Most notably are ‘Earn’ products on crypto exchanges and investment platforms, with companies like Pionex offering particularly profitable annual percentage yields (APY).
Moreover, for those who are looking to start out creating a passive income with very little capital, crypto firms offer centralised lending, which works much like a loan from a bank.
Users can invest these funds and earn an APY on the coins they hold.
Another great option is to set up automated investment bots to handle your digital assets and automate regular investments, removing the necessity to sit behind a monitor and track the markets for 12 hours or more a day.
In fact, if you decide this is for you, crypto exchange Pionex offers twelve different automated trading bots, which are supported with educational tools to get traders started.
On top of that, users can also access the Pionex Earn product, as another means to create a passive income.
Sponsored Posts On Social Media
From pensioners to teenagers, social media is seemingly a part of everyones’ lives.
If you have a reasonably strong following on platforms such as Instagram or TikTok, you have the opportunity to make some real money.
Consumer brands will pay you to post about their product or feature their names on your feed.
One of the disadvantages of this is that you will be labelled a “sell out”, as you’ve curated your content to suit the requirements of a brand.
For those that boast a natural unedited lifestyle account, this can be difficult.
But, for those that can leverage their social media presence, it’s quite an attractive business model for passive income—especially when brands are sending you free products and trips!
On the contrary, most of this content is scripted and you are given direct instructions about what to do and write in your posts.
This makes the process quick and easy, with little chance of things going wrong. In terms of passive income this is a great option.
Advertise On Your Car
For most people a car is the principal form of transportation. As such, it would be beneficial to earn a little extra money by simply driving your car from A to B.
But, how do you achieve this? Well, it’s all about availability.
The first port of call is to contact a local specialised advertising agency, which will make an assessment of your driving patterns, how many miles you drive, and where you go.
If the company feels “wrapping” your car with ads will increase the company’s reach, then they will cover your vehicle in ads at no cost at all.
What’s more, they will then pay you a fairly hefty annual or monthly fee to drive around with their company logo scattered all over your car.
Generally speaking, agencies are looking for modern cars, as they are more likely to turn people’s heads.
Car owners can earn hundreds per month, with no extra cost. In some cases, agencies will pay drivers by the mile, which can be extremely lucrative!
Airbnb Rental Arbitrage
Real estate is the go-to for tangible trading assets, with many dreaming of creating a stream of passive income through flipping houses.
However, for those that simply don’t have the capital to erect their own rental properties, the Airbnb arbitrage offers a simpler, more financially viable solution.
This is done by renting a property long-term, then putting it up on Airbnb for people who are looking to use it for short stays.
This can be especially lucrative in major cities, where people commute through or are frequently visited by tourists.
The one downside to this is the increasingly high Airbnb fees, making it difficult for property owners and renters to ensure they make a profit.
To avoid any issues down the line, do check with the law in the country where the property resides and whether or not the owner of the property accepts property arbitrage.
Invest In Vending Machines
This may seem silly, but surprisingly vending machines can be rather proftiable. As is often the case with property, vending machines are all about location.
Ensuring you’re in high-traffic locations, such as hotels, manufacturing facilities, offices, and industrial parks, is key to success.
An average vending machine can generate up to $400 per month in passive income.
Though maintaining and keeping them well-stocked does require some time and effort.
A few hours a week is all, depending on how much machines you have and where they’re located.
One major downside is the fact they’re prone to vandalism, which will come with it’s own costs.
But, as we said at the start, if you find the right location, this can be avoided.