Setting up a stream of passive income is an excellent way of bringing in an extra cash flow, whether you make it your full-time job or just want to make your monthly income stretch to cover your bills. You can also rely on it if you were to suddenly lose your job or just need to take some time off of work. There are several types of passive income you may want to look into.
Consider Real Estate Rental Properties
Real estate is still one of the best investments out there, and it can come with high returns. Plus, investing in real estate can be an excellent way of rounding out your portfolio and balancing out what you get out of it. One option is to take advantage of a real estate investment trust (REIT), which tend to be less risky, offering higher returns, than other options. One of the more appealing advantages to many investors is the tax benefits. You can look over a guide on the tax advantages of REITs if you want to know more for yourself.
Create a Bond Ladder
If you have not yet invested in bonds, now may be an excellent time. With a bond ladder, you can get a set of bonds that will be mature over a period of time, rather than all at once. By staggering the maturity dates, you can get your finances organized and reduce the risks when it is time to reinvest. If all the money was mature at once, you would run the risk of interest rates being too low when you were ready to invest the funds again. The funds from recently matured bonds can be used to acquire new bonds, and if you are retired, you may start to use some of the funds for living expenses.
Try Car Advertising
If you drive around town a lot, you may want to look into car advertising. You can reach out to an advertising agency, who can look over your driving habits to see how many miles you go and where you typically drive. They can then match you with an advertiser who will pay you to have ads placed on your car. Of course, you will typically need to have a good driving record, and many advertisers don’t want to put ads on older models. You still have to get out driving to be successful, but if it is something you do already, it can be a good source of passive income, and you could earn up to several hundred dollars every month. You may be paid by the miles you drive. You could use the extra funds to cover your gas money. If you are interested in this idea, make sure you find a real agency since there are a lot of scammers out there.
Rent Out Unused Household Things
Consider renting out household items others may need but do not want to purchase. You may have tools in the garage, tents, lawnmowers, or other higher value items others may need for a shorter period of time. You can then come up with a way for clients to find you and pay for the privilege of using the items.