How to earn hundreds in passive income this year
Additional income always comes in handy. Whether it's to bridge budget gaps or set aside money for a particular purchase, passive income can help you reach your goals faster. And you don't need a ton of time to earn it, so you can fit it into your existing schedule.
There are plenty of passive income streams to choose from. Below, we've rounded up some popular ones with the potential to earn hundreds of dollars each year, depending on how much time and money you invest in them. Some could earn this much on their own, while others have combined earning power if you do two or more.
How to earn hundreds in passive income this year
The IRS defines passive income as "trade or business activities in which you don't materially participate. You materially participate in an activity if you're involved in the operation of the activity on a regular, continuous, and substantial basis."
In other words, passive income is money you earn from sources outside that you're not significantly involved in. Some passive income streams require occasional work to maintain, while others are essentially "set it and forget it." What they all have in common is they don't require a huge amount of time on your part.
1. Open a high-yield savings account or CD
It doesn't get much more passive than earning money on money you've parked in an account. With a high-yield savings account or certificate of deposit (CD), your savings earn interest at some of the highest rates available. You deposit the money once, and it grows without any extra effort from you. It's as simple as that. If you deposit enough, you could earn hundreds of dollars of interest with just this one strategy.
2. Earn rewards for everyday shopping
You're shopping for goods and services all the time — why not earn a little for doing it? Rewards sites like Rakuten and Ibotta pay you for shopping through their portals, and rewards credit cards earn cash back for purchases made in specific categories.
There's no extra effort on your part; you buy things you were going to buy anyway, and companies reward you for it.
3. Micro-invest
Stock investing is a great way to generate passive income, but not everyone has the money to invest a lot at once. Enter micro-investing.
Apps like Acorns allow you to invest small amounts over time. With Acorns' "Round-Ups" feature, every purchase you make using a linked bank account is rounded up to the next dollar, and the difference is invested. It's a pain-free way to grow your investments without straining your budget.
4. Create content
If you have knowledge or opinions on a particular topic, you can earn passive income by creating online content. Ways to do this include:
- Blogging
- Podcasting
- Creating a YouTube channel
- Publishing e-books
- Creating online courses
Some of these ideas involve more work than others. For example, blogging and podcasting require regularly creating new content, which you can monetize using things like affiliate partnerships. With e-books and online courses, you can create the product once, then make a profit each time someone purchases them.
Either way, they can be a great way to make some money from sharing your thoughts on things you're already interested in.
5. Sell stock photos
If you have a good eye, you can earn money by selling your photos on stock photography sites like Shutterstock, Getty Images and iStock Photo. Your images could be used on everything from blog posts to company websites, and you're paid each time someone downloads one.
6. Do gig work
Whatever your interests and skillset, there's a gig for you. Gig work is flexible, so you can do it on your schedule in whatever free time you have. Examples of gig work include:
- Delivering food through platforms like DoorDash and Grubhub
- Rideshare driving through platforms like Uber and Lyft
- Freelancing through sites like Fiverr, Freelancer.com and Upwork
- Performing one-off tasks through sites like TaskRabbit
- Testing websites through sites like UserTesting.com and BetaTesting.com
7. Sell stuff online
Garage sale and thrift store shoppers can cash in by flipping items they find on sites like eBay and Facebook Marketplace. From vintage clothes to collectibles, if you've got a knack for finding hidden treasures, you can earn significantly more than you pay for the right items.
8. Sell handmade goods
Crafters can monetize their hobbies by selling their creations on sites like Etsy. Whether you make jewelry or quirky birdhouses, chances are there are people out there looking to buy it.
9. Rent out your space
Make the most of the space you're not using by renting it out to people who need it. You can rent:
- A whole house through sites like Airbnb and VRBO
- Storage space through sites like Storage at My House
- Parking spots through sites like SpotHero
- A yard through sites like Sniffspot
- A pool through Swimply
The bottom line
Passive income streams are a great way to earn some extra cash without investing a ton of time and effort. Choose one idea on this list or several, and you can start boosting your cash flow today!
