Are you in your late teens or early 20s looking for a way to earn income? If the answer is yes, there are many benefits to having multiple income streams, which means earning money from more than one source. This is especially beneficial now that the prices of almost all goods and services have increased, as it provides a safety net if one source of income is affected.
Passive income streams offer a liberating way to earn money. With just a little investment, you can start a stream that fits your lifestyle and preferences. Fortunately, there are several passive income options available for young adults, regardless of their budget and interests. This flexibility puts you in control of your financial future, allowing you to earn money on your terms.
Here are 16 passive income ideas you may want to start with:
Creating Your Digital Products
Are you good at creating things? You can make digital products like apps, eBooks, templates and more and sell them to earn passive income. It may take some time to make these pieces, but once you are done, you can sell them through platforms like Etsy, Gumroad and eBay.
Create Your Content
Want to share your content with an audience? You can earn a steady amount by making content online. You can create content on any topic that catches your interest and post your content on your preferred social media platform. Use hashtags when posting, and you can start with just a phone!
Partner With Affiliates
If you plan to create content, you can add affiliate marketing to increase your passive income. Affiliate marketing is a type of performance-based marketing where you earn a commission for promoting products from stores you partner with. When your unique affiliate link is used to make a purchase, you will earn a percentage of the sale.
Do Online Courses
If you specialize in a specific skill and you can teach, you can record your classes and sell them as an online course. You may need to invest in a good camera and microphone to record your courses, but you can earn consistent income with the right platform and the proper marketing. However, it is best to research first before you record because there may be specific courses that may be highly requested.
Do Stock Photography
Have you got an eye for photography? Why not sell stock photos? Many stock photo websites, like iStock, Shutterstock, and more, pay decent amounts for excellent stock photos. Review the criteria before uploading your stock photos on these sites to ensure you are getting appropriately paid for your work.
Investing In Etfs And Index Funds
You can also start investing in the financial market to help diversify your portfolio and generate a steady stream of passive income. For beginners, you can invest in index or exchange-traded funds, as they can diversify your portfolio without worrying about high fees. If you don’t want to do this alone, ask a financial advisor to help you pick the right option and get your investment rolling.
Sell Illustrations Or Music
Like selling stock photos, you can earn income from selling stock music and art. You only have to upload your work to a paying stock website and earn a percentage from those who use it.
Be A Streamer
Love gaming and speaking to people? You will be surprised by how much you can earn as a streamer. As you get known and get more viewers, you earn much more. You can even get sponsors, which will increase your revenue. You will need to invest in a stream setup to improve your stream.
Try Dropshipping
Do you want to open an online store but want to avoid stocking up on products? You can try dropshipping! In dropshipping, you forward the orders to your chosen supplier, who will pack and ship them to the buyers. You only need to maintain the store and market the products.
Print On Demand
Print-on-demand shops are similar to dropshipping because, with this type of online selling, you only need to design the print that will go on the selected material. Then, a print-on-demand partner will handle the printing and shipping for you. Some popular products you can sell in your POD shop include shirts, tote bags, mugs, electronics, and more.
Rent Your Vehicle
If you have a car and don’t use it often, you can earn passive income by renting it out to others. Partner with reputable rental companies who can include your vehicle in their roster and sort out the rental details for you. Before you include your vehicle for rental listings, ensure your insurance covers it because it may affect your vehicle’s value and the coverage you will have once you rent your car out.
Offer Your Parking Space For Rent
You will be surprised by how much money you can earn from renting your parking space to others, especially those needing parking in their home or condo units. You can advertise your parking space on social media or through unique platforms that host rental listings for these spaces. If you use third-party platforms, they may ask you for a percentage as payment for their service.
Real Estate
Real estate is undisputedly valuable when it comes to making passive income. However, if you have a lot of money to spend, it is highly recommended that you invest in properties that are sure to increase in value in the future.
Investing In Real Estate Investment Trusts (Reits)
If you don’t want to own the property but still wish to invest in real estate, your next option is REITs. REITs entail purchasing a property as a group and renting it out to earn money. However, REITS are taxed regularly and come with extra fees.
Getting A High-Yield Savings Account
You can also put your money in a high-yield savings account and earn a passive income thanks to its high interest rates. However, these accounts can have risks because of their low returns.
Peer-to-peer Lending
You can also invest in peer-to-peer lending sites to earn high returns with the help of reputed partners. However, there is a risk of borrowers defaulting, so you may not be able to get your money back when that happens.
Remember, finding ways to earn extra income, especially those you can rely on when your primary income is insufficient for your needs, is always possible. Before trying out these ideas, do a trial run and tweak it to match your situation. Once you get the rhythm right, you can add more passive income sources and see the cash flowing steadily into your accounts. The potential for growth is immense, and with each new stream, your income can grow exponentially, giving you a sense of achievement and financial security.
Passive incomes are important for freelancers. Find out why in my book here.
