Best Passive Income Streams of 2018
Some of the best passive income opportunities are better than others when it comes to turning a one-time investment of time and money into a continual source of revenue. The key is to choose something for which you already have a basic affinity. That way, you can make smart choices during the startup process and stay on top of current trends if you need a new marketing strategy.
The Best Passive Income Investments to Consider This Year
In this article, you’ll learn about:
- Real Estate Income
- Personal Property Income
- Creative Content
- eBooks and Online Classes
- Credit Card Rewards
1. Real Estate Income
What is passive real estate investing? Buying a building that’s ready for or has existing tenants is the very definition of passive income. These turnkey residential or business ventures mean you don’t have to think about your income generator very much. That’s especially true if you partner with a realty agency that takes care of property management and other details.
Alternatively, a real estate investment trust can diversify your investment by splitting it among several real estate investment opportunities, with the risk/reward level that’s best for you.
2. Personal Property Income
Creating passive real estate income is simple. If you want to start small, consider renting out your own home through Airbnb or similar platforms. Set up your home for rent while you’re away on vacation. Longer term, set up a room or refurbished basement space within your home. (Choose from among applicants who have been rated highly by previous property owners.)
Many people even refurbish vintage buses or vans or build basic cottages at the edge of their properties. Even if the plumbing or power options are rudimentary, as long as you’re straightforward about the “rustic experience,” you’re sure to find like-minded people eager to have relatively inexpensive vacation lodging.
3. Creative Content
After you’ve created content, like unique drone footage or instrumental music, the piece can continue to generate income indefinitely. For many people, outlets like these represent the best passive income streams because they involve expressing themselves.
Instead of just pleasing your friends on Instagram, put your photos or videos for sale on a service like Shutterstock. This platform enables websites and filmmakers in need of stock footage and images to search for them by category (whether it’s a winter landscape, an aerial view of a dock, a woman jogging, or a Mexican meal) and purchase them. Every time the photo or video clip is bought by a new user, you’ll be paid.
Similar sites exist for music, including Shutterstock Music. If you can create a short instrumental piece you think would make good background music for vloggers and corporate filmmakers, this might be another passive income stream worth investigating.
4. eBooks and Online Classes
Your expertise in a specific subject can be turned into an eBook, audio book, or pre-filmed online class. This kind of passive income stream is another example of creating content that can provide years’ worth of profits.
Whether you’re a retired tax accountant who’s still keeping up with current tax law or a homebrewer specializing in unusual beer flavors, chances are there are scores of people out there who want to add your book or class to their digital archives.
Where you offer your packaged knowledge will depend on how much effort you want to put into it. You can create a website on which you market and sell the products directly. On the other hand, some authors choose to advertise their eBook on blogs and websites that have similar subject matter. In addition, you can offer pre-filmed online classes a platforms such as Udemy.
5. Credit Card Rewards
Using your credit cards more creatively can be more lucrative than you think. Start by paying down any existing balances on them that you’ve been carrying month to month. You could “make” a few thousand dollars this year, simply by avoiding the accruing interest from carrying balances of $10,000 or more.
The really passive income potential involves switching over to credit cards that offer ample cash-back rewards on all of your purchases — some by as much as 5 percent. That includes all of the monthly goods and services you would have spent money on anyway, like gas, groceries, dining out, and clothing. You’ll be earning a percentage of that money back.
Many of these cards are flat rates, which means no matter where you use the card, you’ll earn 1 to 2 percent of the purchase price. Others offer higher percentages for certain categories, such as travel, dining, or gas, so check out your various options carefully.
And if you have another income stream for which you need to pay upfront expenses, don’t forget to put these goods on a cash-back or points-back credit card. Look for a business-focused card. Preferably, look for one where the higher percentage categories include things like using a web host, purchasing office supplies, or even paying the utilities on your rental property.
What do many of the above passive income opportunities have in common? They offer creative outlets as well as financial opportunities. You may not want to devote an entire career on interior design, for example. But fixing up a cute trailer for an Airbnb venture might be right up your alley. Let your imagination run wild, and you’ll probably think of scores of realistic but exciting passive income streams to try in 2018.
Which of the passive income opportunities mentioned above would you want to invest in this year? Let us know in the comments section below.