5 Passive Side Hustles to Boost Your Income in 2022
Updated: 2 days ago
We've all fantasized about making money while we sleep — what's better than waking up to extra cash in your bank account? Nevertheless, many believe that building a passive income stream means no further involvement. You'll find that regular maintenance and portfolio upkeep is necessary to sustain your passive side hustles.
Table of Contents
5. Invest In Real Estate — 3 Different Ways
a. Old-School Real Estate Investment
b. Commercial Real Estate Investment
The 4-Types Of Passive Income
You might wonder why passive income is classified into different categories. The answer is simple — passive income streams have different characteristics, and it's easier to manage once you know how you make money! You can earn passive income from assets that generate money without your involvement.
i. Cash-flowing Assets
It's the good old money that helps you make extra money! It includes dividend stocks that you reinvest to make extra income, money earned from rental properties, etc. This category is the most extensive, as every passive income source can be reinvested and employed to make you even more money.
Are you interested in different cash-flowing assets? Learn more about how to make your money work for you!
ii. Assets That You Build
This category includes digital products, online stores, and other brands you build over time. These assets usually help you scale your business and — who knows — build an empire! It's one of the most profitable passive side hustles that can help you build wealth for the long turn
iii. Rental Assets
You can earn passive income from renting or even selling things you own. Whether it's an apartment or your Internet connection, you can make extra money without much effort. You can rent your car, list your apartment on Airbnb, or rent your Internet bandwidth to Honeygain and make passive income!
iv. Cutting Your Expenses
This passive income category is also known as "reverse" passive income because you're simply discontinuing spending your money on unnecessary expenses. It doesn't include side hustles or directly earning money while you sleep, but it can help you manage your finances better!
Passive Income Ideas
Many passive side hustles require upfront investments which is an obstacle for a beginner. However, you can achieve financial independence through passive income ideas without paying thousands of dollars for real estate, equipment, or other associated costs. Get started with a minimal setup and make passive income with these ideas!
Passive income is crucial if you want to retire early. Have you heard about the FIRE movement? Read more about it in our blog post to become Financially Independent, Retired Early.
1. Do Affiliate Marketing
Affiliate marketing is one of the most popular online side hustles. It's a great way to generate passive income when you have an audience on your blog or another medium.
You can post links to certain products and services to earn commissions whenever someone from your audience purchases something.
Many companies offer affiliate or ambassador programs through which you can make free money by promoting these brands to your audience. It's an excellent income stream for influencers, bloggers, and anyone who wishes to make extra money online!
2. Start A YouTube Channel
Gen Z grew up watching YouTube videos daily — many of us had our favorite YouTubers who entertained us. How did those people have time to produce videos every week? The truth is they were paid to do it.
YouTube introduced full-scale monetization back in 2008 with pre-roll ads playing on the creator's videos. YouTubers make anywhere from a couple hundred to millions of dollars every month.
How can you start making good money from your videos? Firstly, start your channel and upload consistently. Secondly, don't think you'll be able to get a million as your monthly income from your channel.
It takes years to build a brand and a streak of luck to hit this jackpot (it's possible, but don't set your expectations too high!). Thirdly, check the requirements to monetize your channel and start making money!
3. Sell An Online Course
Selling an online course is another passive income idea that can set you up with an additional revenue stream. If you have skills or knowledge that can be useful to others, try your hand at teaching!
You can choose to cover any topic from time management to gardening — make sure you give valuable information, so people purchase your course.
There are countless online learning platforms where you can upload your course to reach a global audience. Don't forget to promote your course on your social media profiles to gather even more people! It's a profitable side hustle through which you'll make commissions as long as your course is available on the learning platform.
4. Open An Online Store
Have you ever dreamed about your quiet corner shop selling knick-knacks? Thanks to the Internet, you don't need to negotiate leases, experience rush hours, or even own inventory! Countless online stores sell niche products, from skincare to tech gadgets. They're exclusively e-commerce shops that perform their operations online.
You can open a dropshipping store so you won't hold any inventory. However, some retailers prefer to manage their goods personally and provide the best customer experience. Nevertheless, e-commerce businesses grow exponentially every year — they took up only 7.4% of total retail sales worldwide in 2015, and this number increased to 18.8% in 2021. Try it out yourself and see what the buzz is about!
5. Invest In Real Estate — 3 Different Ways
Investing in real estate may seem like something only rich people can afford. While it's partially true, people with little capital can find this investment lucrative! You can invest varying capital in different properties.
There are several ways to earn a return on investment from purchasing real estate. If you're a first-time buyer, consider getting a mortgage for your primary home so you're not left with pennies in your pocket!
a. Old-School Real Estate Investment
Real estate investments are costly, but they are one of the best ways to protect your money against economic downturns. Many older generations prefer to put their hard-earned cash into houses, summer retreats, or apartments for their children, as such investment has a relatively low-risk factor. Nevertheless, you'd need a significant starting capital to buy such properties!
b. Commercial Real Estate Investment
Another way to invest in real estate is to buy commercial properties. If your budget doesn't allow this, look into crowdfunded real estate and purchase a portion of the property! Commercial real estate is excellent for leasing it to businesses and transferring monthly income to your bank account. Keep in mind that commercial properties have more documents, security checks, more significant deposits, and more bureaucracy tied to them than private rent!
c. Rental Properties
Renting properties is a fantastic way to earn monthly income. We have many applications and websites where you can list your property and get short-term or long-term tenants. You'd need to sort out cleaning services after each stay, but you can outsource it and hire people to do this for you! If you own property at a desirable location, check the market for how much you can rent it out for and pocket that money.
Everyone Should Have A Passive Side Hustle
Whatever your preferred method of making money is, you should diversify your income streams and consider making money passively. It's especially true for those who strive for financial independence and want to retire early. If you want to test the waters, sign up for Honeygain and discover the world of a passive income!
