With remote work quickly becoming the standard arrangement for numerous workplaces, you may have found yourself with the desire to pursue side hustles outside of your full-time job. Part-time gigs are an excellent opportunity to explore other skills and interests.
But while many of us want the benefits of extra income, not everyone has the luxury of dedicating a good chunk of their time to a part-time job. Don’t write side hustles off immediately. There is a way to get the best of both worlds.
According to Investopedia, passive income can take the form of rental properties, limited partnerships, or other businesses. These usually require minimal supervision, save for the work that comes with starting out.
Four Opportunities to Earn Passive Income
Whether you are saving up for something big or simply looking for a way to increase your monthly earning, these are just several ideas to begin your journey in earning passive income.
Foreign exchange, shortened as forex, is an initially intimidating undertaking for beginners. Trading may seem like an area that only the experienced are allowed into, but it is never too late to dive into the practice.
There is a bit of a learning curve, but take it step by step. Once you learn how to read currency pairs and link up with a reliable broker, you will feel more confident to invest.
You don’t have to start big, either. Forex brokers usually allow investments to begin at a minimum of $100. There are also plenty of tools online that simulate trading conditions in the marketplace for further familiarization.
Once you learn the hopes, you will be able to navigate your chosen platform with ease and more courage.
Depositing Money in a High-yield Savings Account
It is possible to earn money by simply depositing it into a savings account. Just do a bit of canvassing to find an institution with not only the best interest rates but also reasonable fees and minimum deposit requirements.
A high-yield savings account is preferable for busy professionals. All it requires is to make regular deposits like any other bank account, but instead, this one grows at a much faster rate than your normal savings account. As long as you store your money in a bank backed by the Federal Deposit Insurance Corporation, your savings are insured for up to $250,000.
If you have children, it is also wise to keep their savings in a bank account with a higher interest rate. While children’s savings accounts will not usually have as high an ROI as accounts for adults, a better interest rate helps your child reach short-term goals while learning how to manage their money.
Rent out Your Property
Rental properties are some of the most popular ways to earn money passively. If you have a second home that is just gathering dust, it is time to do some cleaning up and then list your house online for rent.
You should also understand the different perks of your home to market it effectively to potential renters. Is your home located in a vacation spot or a residential area? What facilities are close to the property?
By understanding the market that your property will appeal toward, you can set up an appropriate home and put it up for rent via the proper channels.
Rent out Equipment
Your home is not the only asset that you can rent to interested parties. You can also rent your belongings to other people, believe it or not.
Do you have power tools and other equipment that are in good condition but are just tucked away in your garage? This is the time to bring them out and put them to good use. For example, lawnmowers, pressure washers, tents, drones, and many more are useful equipment that various people may be interested in renting.
To figure out the best price, it helps to research similar services in your area and derive your rates from there. Make sure to provide explicit instructions on how to properly care for the tools and a reminder that borrowers are responsible for the damages while they are renting those tools.
Stay Smart About Your Finances
The COVID-19 pandemic has changed how many professionals approach their streams of income. Learning how to earn passively is a smart method to increase your regular earning without burning out.
As you grow in both your full-time employment and side hustles, set financial goals. These goals will keep you constantly grounded and motivated to put in the time and effort.