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Creating a passive income stream is a great way to help you meet your financial goals. Whether you want to fund an international vacation or save up for your child’s college tuition, a second income can help bring your plans to life.
When you’re on the lookout for passive income ideas, you want to go with something that doesn’t take up too much of your time and energy. Ridesharing or making deliveries can be profitable, but they may also take away from your family and relaxation time. Truly passive income streams may take longer to generate a significant amount of money, but they’ll also require much less of a time commitment. Let’s learn more.
Rent out your car
If you have a second car that’s collecting dust in the garage, put it to good use through car rental apps like Turo and Getaround. Car sharing lets you rent out your car to people who need one on a daily, hourly, or weekly basis. Turo claims you can make an annual income of over $10,000 by renting out your car, while Getaround claims that you can earn around $800 to $1,000 per month.1,2 These car share companies may have certain rules and requirements for car owners, but overall, they provide a great way to make some extra money if you don’t use your car often.
Rent out a spare room
An unused finished basement or a mother-in-law suite could just be your next source of income. A site like Airbnb lets you host guests on your own property if you can provide a safe, private, and comfortable room. A spare room could quickly attract eager tourists and travelers since many people find online rentals cheaper and more convenient compared to hotels.
Sell digital downloads
Digital downloads can be eBooks, design templates, art print downloads, and more. These products offer a high profit margin with no storage or inventory required. You typically only work on your offering once, and you’ll make money each time someone pays to download it. Consider options like:
- Wedding invitation templates
- Greeting card designs
- Poster
- Banner templates
While professional artists and designers benefit from selling digital downloads, tools like Canva make this easily accessible to anyone with a good eye for design.
If your passive income stream takes off, be thoughtful about how you use your funds. Alongside meeting major goals like building retirement savings, you can consider increasing your whole life insurance or universal life insurance coverage, investing your money, or adding some of it to your emergency fund and setting the rest aside for your next vacation.
Sources:
1 https://turo.com/us/en/car-rental/united-states/list-your-car
2 https://getaround.com/blog/turn-your-car-into-a-pay-check/