How to Make Passive Income
Millionaires typically have 7 income streams. Since no one can work 7 jobs, you need to look at other options. It’s about working smarter, not harder. Be smart with your time, find ways to generate income with little or no effort and you’ll find your net worth increases much easier.
Passive income is income you generate with little or no effort. Often you need to spend some time and money upfront but once it’s ready, it can make money easily for you, even in your sleep!
How I Make Passive Income
Personally, I’ve been working on passive income for years and it is something we are now working on as a family. Our current passive income includes:
Book royalties, blogs which don’t require me to work on them to make money, shares, business, eBooks, rental properties, stock photos and peer to peer lending.
That said, while we technically get an income from these, most of them get reinvested. For example, dividends from shares/stocks get reinvested. Rental income is being saved to develop our property portfolio further.
In the future, we will be focused mainly on business, real estate and shares.
1. Digital Products
Anyone can be an eBook author on Amazon or similar now. If you have your own site, you can sell your books on there too. I have eBooks listed in a variety of places so get royalties each month from Amazon, direct payments from my site and royalty payments from my publisher too.
Digital products are great because you can make them once and sell them for years. Two of my eBooks are over a decade old.
Two other digital products include printables which you can sell on your own site or sites such as Etsy and courses which is another option popular among bloggers and influencers.
2. Book Royalties
In 2010, a large business publisher saw an article I wrote and wanted to turn it into a book. We did this and there was an extra eBook created from one of the chapters. For years I collected royalties on the print book then I negotiated the rights back.
However, I still collect royalty payments for the eBook AND since you get payments as an author in Australia for anyone borrowing the book from the library, I get paid for that too. I forget about it until I get the email every few months.
It’s a nice surprise which I can invest immediately into shares or crypto.
Being a landlord is not always as passive as it is made out to be. Repairs, dealing with tenants or property managers, late rent or similar issues can chew a lot of your time.
However, if you are fortunate enough to have one managed well by someone for you, all repairs etc taken care of and the money simply put in your account, it is a great passive option. This is where we are at.
Our properties are overseas and taken care of by family there. The money is split, they get some and some is saved for us to develop the property. Since they live in Vanuatu, the income they have is pretty low and the rental income helps put family members through school, ensuring a brighter future for them.
Airbnb is a popular option for many as well. Since people can self check-in, you have rules and can have a cleaner for between bookings, for many, it is pretty passive. I (Ms Aspiring Millionaire) have previously done quite well with Airbnb.
Renting a room in your home can be fairly passive. Whenever we’ve done it, we were usually lucky enough to get people we know. Rent/board was set up to be paid automatically and since we come from big families, it didn’t bother us to have extra people in the home.
As a single mother (previously), having a boarder reduced my workload as they also helped clean at times.
Lastly, renting out the garage. Other than handing over the keys, this has always been a passive option. The garage has been used by people to store items, run a business or store a car. Each time, payments were automatic and I barely saw the person using it.
Invest in index funds, learn and invest in specific shares you want or look at micro-investing to get started. Before investing, take some time to learn. Too many people invest blindly then lose money.
The sharemarket goes up and down but if you have a longterm view, reinvest and don’t plan to use the income (dividends) until retirement, your portfolio can continue to grow nicely.
Spaceship is one microinvesting option which you can get a bonus $10 with. Use the code S801FV0EE2 when you sign up and invest a minimum of $5 within 14 days.
Raiz is another option which offers a $5 bonus. Be aware both have monthly fees now though.
5. Advertising on Your Car or Fence
With a newer car, you can be moving advertising for any business. They pay for a car wrap or magnet to be placed on your car. This works best in cities and if you drive a fair bit or your car is parked somewhere with a lot of traffic.
If you live on a busy street, some businesses will pay you to have signage on your fence as well.
Both of these don’t require effort after the initial set up. But be aware it can damage paint.
6. Affiliate Marketing
We do this through our websites and it forms a significant part of the website income. It’s easy enough o set up a website, market it well then outsource it to make money without your input.
Affiliate marketing is where you get paid when someone buys something through your link. Many sites are set up as Amazon affiliate sites or similar. It’s a way to sell or promote items without having to have them in stock.
Some of our best affiliates involve food and finance items.
Build a website (The Thrifty Issue has a simple guide on it) and either sell your own products, do dropshipping or do affiliate marketing as mentioned above.
Dropshipping is a hugely popular option as you can design and create products but not have to stock them. They are sold through your site and shipped directly to the customer without needing a warehouse.
8. Silent Business Partner
Partner in a business without being one to make all the decisions. You can either set up a business and be a financial partner or buy into a business. The businesses we own are split between us being active partners and one where we are silent partners.
9. Stock Photos
Sell your photos on sites such as iStock. Since we travel and take numerous photos for the marketing work we do through our travel, selling stock photos is a great side option. Once uploaded, we make commissions when they sell.
We do not upload our best, only generic style ones we don’t care about.
10. Peer to Peer Lending
We’ve mainly done this as a charity option but if you have a decent amount of money, you can start doing peer to peer lending through various websites. We have just started with Plenti and will share our experience with that soon.
How do you make passive income?
How Can You Make $10,000 in 10 Days?
After reading We Should All Be Millionaires, I was inspired to try the $10,000 in 10 days challenge she sets. When I decided to do it, I had no idea how it would work. With a baby who was teething and completely unsettled, teens, study, work and so much else on, it felt like a lofty goal.
Amazingly, within 10 days I got 2 payments totalling over $10,000! Both were unexpected but welcomed.
Because of the success the first time, I decided to do it again. Only this time, I made it public.
Last time, I had no doubt I could do it even though I had no idea how. Whenever I feel that way, live with that completely confident mindset, everything falls into place. If I have doubts, it fails.
What Can You Do?
When you’re looking at making money, one of the best things you can do is have a brainstorming session. In this session, write down all the ways you can make money, even if they seem ridiculous at the time.
Once you have your ideas, work out which ones feel the best to you, which excite you and which you will actually follow through on. Focus on them. Here are some ideas. Remember, it doesn’t need to be $10,000 from one thing, although that can be nice.
Make $10,000 Buying Things to Resell
I listed a few things today and used to make thousands a month doing this. In fact, when I was dedicated, I made over $10,000 a month doing it. There is a guide on how to make $10,000 a month buying things to resell which can help.
My best items are $1 to $2 pieces of clothing from second-hand stores which I can resell for $50 on average, sometimes more. Websites, I’ve bought and resold cars, photography equipment, books, collectables. Anything I know about and know I can make a profit from, I’ll try.
One time I bought some jewellery from a store when it was closing down. I tripled my investment with that one.
Rent or Boarders
I’m going away and can rent my place for $1,200 for the time I am gone. Other times, I have made $1,300 in a week doing this and when I had boarders they usually paid $250 a week rent which meant I made well over $10,000 in a year from it.
Have a clear contract in place and interview thoroughly if you do have a boarder.
If you have a business, can you increase prices? Is there an extra service you could provide? What about creating and selling a course or book or doing presales for something. Brainstorm how you can use what you have to generate more without much work.
Instant Cash Offers
Banks often offer cash bonuses for joining. Up has $5 instantly when you join here. 86 400 offers $10 with the code S7VL6WF here that you get once you use the card for the first time. CoinSpot gives $10 worth of BitCoin when you invest $10. Spaceship offers $10 when you use the code S801FV0EE2 here and invest.
One of my favourite ways to make money has been freelance writing. I see loads of opportunities for new writers as well as better paid opportunities for experienced writers.
Facebook groups has been my best source of getting freelance writing gigs and by spending a couple of hours pitching, I often secure $2,000+ worth of freelance writing when I want to.
Cleaning, gardening, mowing lawns, ironing, babysitting or any domestic style work is often high in demand. It will take a while to get to $10,000 but is still income.
Some of the tasks I have done took only a few minutes for $50. You really need to sort through but those odd jobs pay within a few days and you can take on as many as you’re accepted for.
Check all your VIP and reward programs to see if there is anything you can cash out. Look for refunds and rebates you can cash in. If you are a member of any cash back programs, check them too. Cash Rewards gives a $10 bonus, as does Shopback. I use both for all my shopping by comparing and using the one with the best cash back offer at the time.
Go through your home, car and everywhere to look for cash. Under your lounge, under appliances, in pockets, purses, the console of your car etc. You’ll be surprised at what you find.
I have learnt to be open minded when it comes to where the money can come from. Most of the large amounts of money I have received when doing challenges like this have not been from my work. Referral bonuses, small inheritances, unexpected cash gifts, refunds etc have all added up to thousands of dollars.
None of those I could have planned for but they all made a big difference. Be open to money flowing to you instead of focusing only on what you can do.
Check out 99 Side Hustles for a huge guide on ways to make money, how to get started, different options you have and how to market them to make more money.
What Am I Doing?
I’ll share my daily updates below. In the next 10 days (today being Day 1 which is Sunday, 19 September 2021), I am going away which limits my options. I can’t list as much for sale as I normally would because I won’t be here to post or meet if I sell anything. That doesn’t mean I won’t be able to do it.
Day 1 – $1,200 Renting Out My Home
Since I am going away, my place can be rented out. I’ve done this many times before through Airbnb. Living a few hundred metres from the beach in a popular tourist spot this time makes it even easier. There is also a significant housing crisis here so no shortage of people needing a place to stay.
I could rent it out for more but wanted to help someone who is currently trying to secure a rental instead of renting to a holidaymaker. Having a solid home for a few weeks will give them some breathing room to focus on getting a place.
This feels better to me ethically given the situation where I live right now because I have been homeless before.
How to Rent Your Home out
Airbnb is my preferred method because if anything goes wrong, there is help, insurance and a security bond. Facebook groups or friends and family are also great ways to find someone to rent your place. Unless it is someone I know, I will always create a listing on Airbnb and send the person the link so they can book and I am covered.
There are fees associated with Airbnb but I feel it is worth it for protection. If I had a regular holiday rental, I would have it managed by a real estate here.
Look up how much homes are going for in your area. Clear your home out of personal items and your valuables. Take a video before you leave of everything so you have proof of how it was before you left.
Create a welcome kit. I usually have some chocolates, basics such as milk, bread, butter, some nice items from locals and sometimes a bottle of wine, depending on the length of the booking. I also have coupons for the local area with a guide on things to do, the public transport etc.
Make sure your entire home is spotless. Provide all the necessities including toiletries, cleaning supplies, linen etc. People are critical!
Think of how you would want a holiday home presented and make your home be the same.
Day Two $455
Today I unexpectedly sold a device of ours. I say unexpectedly because I had not listed it for sale yet. A reader of another site of mine emailed asking for advice on second-hand devices for Vanuatu as my partner is Ni-Vanuatu and we have spent lots of time there. I gave advice and said we were about to sell this one if they were interested.
They were and it worked for everyone.
$55 came from referral bonuses.
I also spent time today pitching for freelance writing but due to a 2 hour medical test and helping a friend, my time today was limited. Still happy that my current total is $1,655 in 2 days!
Day Three $10
A sick baby, teenagers needing stuff and not much time meant I could barely think about my $10,000 in 10 days challenge today. I got $10 from a referral bonus through my cousin but that’s it.
We did drop some things at the second-hand shop to clear the clutter. Whenever I clear out the clutter in my life, it frees up my headspace to be able to focus and I needed that. Whilst there, we picked up a few items for $1 to $5 to resell for around $50 each.
Day Four $95
Today I flew to Tasmania so my day was spent driving to Brisbane, at the airport, in the air then getting settled. I managed to sell a few things online still but it was not a hugely profitable day.
Day Five $2,500
On the first day, I pitched some freelance writing gigs and today confirmed some. They might not be paid within the next 5 days but they will be paid promptly. It all fell into place unexpectedly as they are in Tasmania, where I am now and would not have happened if I wasn’t here.
Day Six $720
Originally, I was going to wait until day 10 to cash out from my online surveys but because of a slight error with one, I decided to cash them out now. Online surveys are easy to do when you are waiting at the doctors, waiting in line to pick up the kids or sometimes at the grocery store.
All those little pieces of time where you are bored and scrolling Facebook you can now make money with!
Day Seven – $147
I cashed out my cashback programs today. $147 cashback total between Cash Rewards, Honey and Shopback. Some of this is my own spending, some referral bonuses.
Day Eight – $4,000+
Yesterday I listed something for sale which should get around $4,000 to $5,000. Today, I am negotiating with a few interested buyers. This may or may not be finalised within the 10 days but I am including it.
Day Nine – $0
Today I went for a hike down where there is limited reception. I had no time to even think about way to make money, list anything for sale or do anything else.
Day Ten – $0
Returning from the hike and time with family meant another day of nothing.
Overall, while I didn’t get all the cash in the 10 days, I did generate $10,000 so I am happy with that. Maybe next time, I’ll be able to get the money all in the 10 days.