25 ways we can create passive income in 2021
Passive income has been one of the most discussed topics within the last couple of years. Everyone wants to find ways they can save money and create new streams of income. I have thought of some ways that you can create passive income. Some of these ideas can take some time to develop and need your nurturing to grow. Some ideas require you to speak with a financial expert to advise you. I have used a few of these methods to create passive income and I know a few people who have used some of these ideas to create passive income as well.
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1. Create a course- Are you well versed in a topic and consider yourself an expert? Did you know you can teach what you know and create a course and sell it online? You can tutor others and make passive income by doing this. There are different online platforms that give you tips on how to create a course and even help you sell your course online. One popular online platform is Udemy. Check it out and start planning your course today!
2. Affiliate Marketing- Affiliate marketing is a great passive income generator. You can partner with various companies and become an affiliate to receive commission on their products. This method takes time and is not an overnight process, but if you keep at it and find what works for you can make great passive income. I know many people who have become affiliates of different make-up and hair product companies.
3. Cash back credit cards- Cash back reward cards are a great way to create passive income. Some credit card companies offer different percentages of cash back on various purchases like groceries, gas, restaurants, hotel stays and more! Also, there are credit card companies that give up to 2% cash back on every purchase. Visit one of my favorite websites bankrate.com to review different credit card options.
4. High yield Savings Account- High yield savings accounts are a great way to create passive income over time. Some accounts have a APY of 2.5 percent. Over years of putting money into the savings account you can start to make a great passive income by just depositing money in a savings account.
5. Create an app- Creating an app can be a great investment. We all use apps on our smartphones and tablets. Do you have a great idea for an app that can help simplify issues? Or do you have an idea for an addictive game? Consider hiring a programmer and creating your app. Your app can have add-on features for the consumer to purchase that can generate revenue overtime and become a great source of passive income.
6. Refinance your Mortgage- Interest rates are low, and this is a great time to discover if you can save money. Some can save hundreds of dollars by refinancing and that will give you more money in your pocket each month.
7. YouTube Channel- Some people believe that YouTube will eventually be a thing of the past. I personally don’t think so. A YouTube channel is a great passive income generator and if you take it seriously and create great content you can do very well. You can get paid based on the number of subscribers and video views you have. Getting views of over 100,000 or more can create great passive income.
8. Rental Properties- Cash flow, Cash flow, and Cash flow! When you invest in real estate and have rental properties, they can create great cash flow! Notice that I said “can” because you need to make sure you know what you’re doing. There are real estate courses, webinars, and books that can help guide you. When you are ready to invest into properties check out RealtyMogul and Roofstock online.
9. Invest in stocks- Investing into the stock market is a great way to create passive income overtime. I am not a financial expert but if you are unsure about stocks you can buy a few self-help books and learn how to trade stocks. It’s a great investment! There are some companies that have robo-advisors to help you invest depending on your investing style. If you don’t like robots helping you, that’s fine, you can call your broker to assist you instead!
10. Rent out your Car- If you work from home and rarely drive your car. You could rent it out for the weekdays you don’t drive it or even the weekend. This can be a great way to pay for your car note. It’s also a way to create passive income! There are apps out there that help you facilitate this transaction. I know some people are skeptical about renting their car to a stranger, so be sure to have the necessary paperwork in place to ensure you’re covered if anything happens to the car or the person renting from you. Consult with a lawyer if you have any questions.
11. Vending Machine business- If you work in an office building you might have some vending machines in your break rooms. Did you know that some vending machines are owned by an individual who runs a vending machine business. Vending machine businesses are known for their low maintenance and passive income capabilities.
12. Create a Blog- Blogs can generate passive income, but it will take a lot of work and marketing of your blog to readers and companies you want to become an affiliate with. It’s not an overnight process. If it were so, trust me, I would tell you. It takes some time to develop just like plants take time to grow.
13. Selling an eBook- eBooks are a great way to generate passive income, but it’s a venture that you must work at and grow over time. When you create an eBook, you can’t just put it on Amazon and think that’s all you need to do to make money. Marketing your eBook is essential to helping you create the passive income you want overtime.
14. Peer to Peer Lending- Peer to peer lending can create passive income. There are websites that allow you to be a lender and loan money out to individuals who didn’t qualify for traditional loans. One popular website is Lendingclub.com. Lenders can get 3-5% returns on the money they lend.
15. Rent your home on Airbnb- There are people who rent their homes on the weekends or monthly and are able to generate enough money to pay their mortgage …see, passive income
16. Annuities- This one will require you to talk to a financial advisor. Annuities are insurance products that can pay yourself monthly after a certain amount of time, which can create passive income
17. E-Commerce- Have you been on shopify lately? Ecommerce has been one of the biggest sources of passive income the past couple of years, especially since the pandemic. There are courses available that can help you set up an ecommerce business and teach you how to sell online and be able to create passive income.
18. End unwanted subscriptions- This one was a huge one for me. I had so many subscriptions that I forgot I signed up for. I had 4 music subscriptions, Netflix, Hulu, HBO, Starz and about 6 more subscriptions. When I canceled 90% of the subscriptions, I saved over $60 dollars.
19. Cash back Websites- There are awesome websites that pay you to shop! Over time you will be able to receive checks, gift cards or get rewards on your website account by just making purchases online.
20. ATM machine business- Just like the vending machines some of the ATM’s that we see in our malls and in bars and clubs are owned by someone running an ATM machine business. ATM machines make money on the fees set by the ATM owner. You might think that a $4.35* usage fee doesn’t seem like a lot, but when hundreds of people use the ATM for cash that $4.35 adds up quickly. *This fee amount is used a lot in my city, but your city ATMs could charge higher or lower. All states have different requirements for running this type of business so be sure to follow state guidelines if you want to own your own ATM business.
21. Monetize your social media- If you have a social media account and have products or services you sell, social media has made it easy for you to do so. You can sell courses, e-books, books etc. on your page and it can become a stream of income overtime…if it is done correctly.
22. Flip websites- Do you know how to build a website from scratch? One way to create passive income is by flipping a website. Create a website and sell the template. Many entrepreneurs are looking for a way to create passive income so there is a market for you to reach with your website development ability. Many entrepreneurs either don’t have the expertise or time to create their own website, so if this is your niche, you can definitely create a web platform where entrepreneurs can sell their products. For some examples check out Shopify “Exchange Marketplace.”
23. Sell your Photo’s- I heard about this passive income strategy but wondered how it really worked. If you’re a photographer or aspiring photographer you can take pictures and sell them to clients who will use the photo’s for their websites, blogs, magazines, or even canvas’. Some examples of websites where you can sell photos are www.pexels.com, www.Shutterstock.com, and www.istockphoto.com. Before choosing a website, please do your research to make sure the website you choose is right for you.
24. Print on Demand Online Store- I’ve heard about print on demand as it relates to books, but I didn’t know the same strategy could be used for sweaters, shirts, mugs, or even phone cases. Printing products that are related to your brand can really give your business a big boost. For this idea I researched the price for some printing machines and based on the prices I found, there’s a slight upfront cost to prepare for, but if you plan your business strategy right, that cost will easily be covered by your profits.
25. Write a book (Series)- Do you enjoy writing and always wanted to write a book? Books can create a passive income and you can maximize your book series and sales if you also book speaking engagements. You can sell your books at your speaking engagements while also getting paid to speak. Now some may argue that a book series is not always necessary and that is true, but a series can help you sell more if customers love your first book, especially if you sell your books in a set. Think about the Harry Potter book franchise, or Lord of the Rings.
Thank you for reading my post “25 ways we can create passive income in 2021”. I hope that these ideas inspire you to find a way to create passive income for you or even family and friends. If you are new to Millennial Oaks, please subscribe and feel free to share this post.