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You don’t always have to work hard for the money. Passive income streams allow you to earn cash while putting forth minimal effort.
Of course, you have to find the right passive income stream and invest time and effort into setting it up. Some strategies require specialized skills and a little luck, while others are more straightforward.
Looking to earn some passive cash in 2024? Here are some methods everyone should consider:
1. Rental Income
It’s not a novel idea, but purchasing a home to rent out can help you generate extra income. This is typically more of a long-term investment, as you’re able to take advantage of a gradually-appreciating asset.
Essentially, your renters cover the cost of the mortgage and other expenses, while the home value rises. In time, you should be able to raise the cost of rent, which will allow you to turn a higher profit.
However, rental income doesn’t necessarily have to come from an entire home. If you don’t have the money — or desire — to purchase a rental property, there are several other options.
You could find a roommate, rent out your attic for storage or rent a parking space you’re not using. There are also apps that allow you to invest in shares of rental properties. Getting a little creative can allow you to earn passive cash.
2. Annuities
Annuities are insurance contracts issued and distributed by a financial institution. They offer guaranteed income and are purchased with monthly premiums or lump-sum payments. They’re often used by retirees for a guaranteed income stream.
Designed for long-term use, this type of investment differs from a savings account or savings certificate. Payouts can provide income that can be guaranteed for the rest of your life.
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For example, Gainbridge’s FastBreak annuity product has a APY* — higher than most banks. You’ll get locked-in rates, the ability to withdraw your money without a tax penalty before age 59 and a half, and the use of using a self-managed platform.
Annuities are available for purchase in three to 10 year terms, with values ranging from $1,000 to $1 million.
3. Online Courses
You might not realize it, but you probably have some specialized knowledge. Think long and hard about what that is and consider turning it into an online course.
For example, you might create a course on coding, public speaking or productivity. Essentially, this is a great opportunity to literally put a strength of yours to work.
There are plenty of platforms to host your online course, including Udemy, Thinkific and Teachable. Setting up a quality course that people want to purchase will require significant time and effort, but when you’re finished, you can sit back, relax and watch the payments roll in.
4. E-Books
If you enjoy writing, an e-book can serve as both a fun and potentially profitable endeavor. Your e-book can be about anything you desire — it can be fiction, non-fiction, self-help or anything you choose — but focus on topics poised to sell.
There are plenty of platforms to publish your e-book on, including Amazon’s Kindle Direct Publishing, Apple Books for Authors, Barnes & Noble Press and Rakuten’s Kobo Writing Life. Consider having a third party edit your e-book to ensure it has a polished and professional look.
Make Your Money Work Better for You
5. Printables
Not everyone has an artsy side. If you do, consider creating printables people can download for a fee.
For example, you might make graphics, drawings, templates or wall art that can be sold on sites like Etsy or Canva. You only need to create these items once, then an unlimited number of customers can purchase, download and print them.
Your online shop can have as many printables as you desire. Add to your content on a regular basis or rarely at all — it’s up to you.
6. Stock Photography
You don’t have to be a professional photographer to sell stock photos. Businesses want these photos for a variety of reasons, such as blog posts, websites and advertising materials.
Photos of a wide-variety of subject matter are in demand — people, landscapes, objects. There’s few limits to what your portfolio can include. There’s no shortage of websites where you can sell your stock photography, including iStock, Getty Images and Dreamstime.
7. High-Yield Savings Account
A seriously easy way to earn extra income, putting your money in a high-yield savings account will allow you to collect interest each month. If you take this route, you’ll of course need to have money to deposit, but your work will be done after setting up your account.
This type of account typically offers significantly higher rates than a traditional savings account. However, unlike with the stock market, there’s no risk involved — assuming your account is FDIC- or NCUA-insured.
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You might be required to maintain a certain minimum balance and be limited to a set number of withdrawals per month. Despite that, high-yield savings accounts are liquid, allowing you easy access to your funds.
*Annuity rates are subject to change at any time, and the rate mentioned may no longer be current. Please visit Gainbridge.io for current rates, full product disclosures and disclaimer. Withdrawals above the 10% free withdrawal amount subject to a withdrawal charge and market-value adjustment. FastBreak™ is issued by Gainbridge Life Insurance Company in Zionsville, Indiana. FastBreak™ is not a tax-deferred annuity; instead, it is taxed annually.
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