Passive income isn’t entirely passive. Yes, it’s absolutely possible to set up income streams that will provide extra cash without requiring much ongoing effort from you. That said, you need to put in time and effort during the early stages to successfully establish those streams.
You may also need to invest money. That can discourage some people from pursuing their financial goals. If you feel you can’t justify spending money to invest in the stock market, promote an e-book, buy a rental property, or develop any other passive income stream that involves early expenses, you might decide not to try setting up a passive income stream at all.
That’s an understandable reaction. However, it’s important to know that there are plenty of passive income strategies that don’t require major financial investments. While they might require spending some money, there are options that are suitable for those who can only afford to invest a modest amount.
Consider the following examples. They’re among the more affordable passive income streams worth keeping in mind.
Renting Out Property or Vehicles
Thanks to AirBnB and various other platforms, it’s easier than ever to earn extra cash by renting out a home, your car, or even your driveway. For example, some platforms allow users to rent out their driveways as parking spaces when popular nearby events attract large numbers of visitors.
If you already have something to rent out, you may not need to spend a dime to begin earning money. Other rentals may require nothing more than the modest cost of cleaning supplies. All you have to do is set up an account on a relevant platform.
Writing an E-book
If you have expertise in a given subject area, you could write and self-publish an e-book to sell online. Yes, you’ll have to invest the time it takes to write the book, and you may have to spend some money to market it.
However, if the book is in the right niche, it may start selling consistently on its own once you secure the first few sales. Thanks to word-of-mouth, satisfied customers might essentially promote it for you.
Developing Study Materials
This is another affordable idea you may want to consider if you’re an expert in a particular subject or skill. In many cases, you can record video lectures, develop study materials, and create interactive lessons without spending any money. In some cases, you may need to buy software that allows you to record video lectures or to format and publish lesson plans and activities that are user-friendly.
It is likely that you will also need to spend a modest amount of money and a significant amount of time on marketing, similar to the strategy for e-books. This is also another passive income stream that’s become relatively easy to set up thanks to the Internet. You will not be restricted to customers in your area; you can find plenty of interested parties online. Again, like an e-book, once you get the first few customers, word-of-mouth may be the most effective (and free!) form of marketing.
Monetizing Your Content with Ad Revenue
For people who enjoy writing, blogging is another potential passive income stream that requires a minimal financial investment up front. If you already have a computer, all you’ll have to pay for is a blog account on your chosen platform, as well as any marketing campaigns you may choose to run. A blog can be monetized with advertisements, and as you gain a loyal readership, the number of people who click on banner ads—and therefore the amount of money you make—will increase.
You will have the best results monetizing if you take the time to develop “evergreen” content. This term refers to content that will remain relevant no matter how much time has passed or what time of year it is. Producing evergreen content with SEO-friendly keywords to ensure that relevant searches will list your website as a result minimizes the amount of time you have t and o spend updating your website or producing new content.
Engaging in Affiliate Marketing
If you want to increase your earnings from established web content even further, you might consider becoming an affiliate marketer. Affiliate marketing involves promoting someone else’s products via your blog (or YouTube channel, website, Instagram, etc.). For every sale attributed to your endorsement, you get a percentage of the profits. And once your content lives on the Internet, it can generate additional income without further involvement on your part.
As with the other items on this list, affiliate marketing does require that you expend the necessary startup costs (both money and time) to become established on your desired platform. Additionally, your content needs to focus on a subject that lends itself to affiliate marketing. For example, if you provide content on home cooking, you could recommend kitchen gadgets. On the other hand, a personal blog probably won’t attract many affiliate partners.
The main point to remember, though, is that while you may have to spend money to earn passive income, you don’t necessarily need to spend more than you can afford to. These examples prove it.