Turn What You Do Into Passive Income

Contrary to its name, passive income begins with action. Passive income does not require regular work to produce. You must invest money, time, effort, or a combination of the three to set yourself up to make money while you sleep. Here are some ways to make passive income from what you already do.

Licensing

If you are a musician, photographer, painter, designer, etc., you can sell the use of your work. The music you hear in movies, television shows, and YouTube videos is licensed. Musicians then license art for album covers and merchandise. Businesses license songs, artwork, and photographs for logos and advertisements. As your popularity increases, you can use your creations for your merchandise, such as shirts and canvas bags.

Dividends

Invest in stocks and funds that provide dividends. Perhaps the most recommended passive income stream is investing in funds that yield dividends. It is one of my personal favorites. There are no additional requirements to earn profits after you own the stock. As long as the company continues paying dividends, you will receive them. This investment is two-fold since the stock market historically performs better long-term than a savings account. You have the opportunity for both passive income and growth for retirement.

Teach

Teach others what you know. If you’re good at something, you can teach others via ebook or online course. While not passive at first, you could potentially earn income on one product forever. If you decide to increase your offering, by writing additional books, then you can earn even more passive income. Your investment is the time and energy to create the product, as mentioned earlier. Teaching is probably the least expensive but the most labor-intensive option.

Youtube

If selling isn’t your strength, you could start a YouTube channel with affiliates and advertisements. You get paid for likes and engagement rather than per purchase. If you can sit in front of a camera and talk, you can make money. However, YouTube is less passive than recording and editing one video for Teachable or Coursera. The more content you have on YouTube, the more money you will make. Regular uploads increase your traffic and engagement.

Rentals

Lastly, and perhaps the easiest, get a roommate. Renting your space works exceptionally well if you own your place, and you have several rooms available. Splitting your housing costs with as many people as possible is an instant win. If you live in a highly-populated metropolis, such as New York City, you probably see this all the time. As a co-tenant, your rental expense decreases, and you will share utilities. As an owner, you have the same perks, and you reduce your tax liability. Every home I owned had at least one tenant at any given time. I felt safer, and I earned a regular income on my unused space. This same theory also applies to short-term rentals, such as Airbnb. The differences are the pay isn’t as steady, and you have to clean up after your guests. Ensure your rental manager, housing association, or co-operative allows leasing your space. For example, I cannot have a tenant for less than a year in my current place per the association rules.

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