Passive Income

Passive income tends to be investment income: Money you get for letting someone use your money or your stuff. Here are the classic categories of passive income. (By and large, this whole category is only available if you have money to invest.)

1. Interest

Interest is money you get from something like a bond, CD, or savings account, where someone pays you to use your money.

Not so long ago — before the financial crisis — there were plenty of reasonably safe interest-bearing investments that paid 3%, 4%, or even 5% over inflation. Those days are long gone. Now, CDs or bonds can barely beat inflation, and that’s only if you’re willing to tie your money up for a long time. Still, interest income can serve as a secondary income stream, and the opportunities are likely to get better in the near the future. (So, be careful about locking up your money for the long term at current rates.)

2. Dividends

Dividends are your share of the income earned by companies in which you own stock, and are also earned from baskets of investments that hold stocks, such as ETFs or mutual funds. Unlike the interest earned on a bond or CD, dividends can rise or fall unpredictably, depending on the success of the firm or the fund. Although some risky companies can pay high dividends, stable companies tend to offer modest returns, typically under 5%.

3. Rents

In theory, rents can be pure investment income, like interest and dividends, but in practice, being a landlord is more like taking on a second job — you have to find tenants, accept rent payments, keep the building maintained, deal with broken appliances, and so on. You can hire a management company to do that work, but that’s an extra expense — and the income still isn’t purely passive, because you still have the work of managing your relationship with the management company.

Still, rental income can be an incredibly flexible second income stream. Airbnb, RelayRides, and similar companies now enable individuals to rent out things like spare bedrooms, vehicles not in use, and earn extra income with less effort.

4. Royalties

Royalties are money that you get for letting someone make more limited use of something that you own. If an oil company operates a well on your land, they’ll pay royalties. If a publisher sells a book that you wrote, they’ll pay royalties. The possibilities are vast, and in essence include anything people can use — land, books, photos, patents, trademarks, etc.

It’s worth noting that most people who sit down to write a book don’t end up getting any significant income from it. That’s probably even more true of people who sit down to invent something. Still, books, online stock photography, and even less-successful inventions can all generate extra income and diversify your earnings.

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11. Install Mobile Apps That Collect Your Data

Market research involves collecting feedback on shopping trends and patterns. Check out apps such as SavvyConnect and MobileXpression and score rewards for sharing data on your purchase history and mobile data usage.

79. Start a Blog

If you’re a natural storyteller and feel comfortable sharing your tales on a public platform, you can make money blogging online. Choose a blogging topic that you have a strong understanding, passion and expertise for because you’ll want to write about it regularly. Once you have a consistent audience, you can start to make money off your blog through an ad network like Google AdSense or with affiliate marketing. Get started with a free blogging platform like WordPress, Blogger or Tumblr. If you decide that you love writing but running a blog isn’t for you, you’ll still end up with a portfolio of writing that you can use to land another gig.

Freelance Writer

Freelance writing is another way on how to make money outside of work. Freelancers or virtual assistants can work on their schedules, set their rates, and keep all of the profits!

– Find clients through your network or online platforms like Upwork 

– Set up payment terms with each client, including deadlines and milestones 

– Create good contracts for yourself that detail what you are doing as well as any expectations they may have (e.g., an article of at least 500 words) 

– Keep track of every hour spent working by using Trello, Basecamp, or another time tracking app, so the client knows their bill. Clock in and out at the start and end of each task with this timer app if you need to

– Send invoices and keep track of your receivables with this budgeting app 

– Once you have received payment, send a receipt via email or text to verify the transaction on their end.

Freelance writing is not for everyone, but it’s something that every millennial should at least consider if they want to know how to make money outside of work. Remember: freelancers don’t always just write articles! They may be ghost-writing someone else’s article, editing/proofreading, copyediting, or rewriting content in other languages.

There are also opportunities like reviewing apps that pay $50 per hour (or more) through companies like App Reviewer Pro. Plus there are even opportunities available as editors for magazines like Glossier!

Life Coach

If you are a millennial who is at a loss with what to do next in your life, then this might be the perfect opportunity for you to invest some time and money into becoming a life coach. This profession has been on the rise over the last decade due to an increasingly competitive job market.

Coaching is teaching others how to achieve their goals. You will provide them with the tools they need such as resume templates, tutorial videos on landing interviews, developing social media profiles, among others.

You can start by offering coaching services through one of many websites like Zoom.us, enabling people from anywhere in the world to schedule an online video chat with you.

Active vs. Passive

When it comes to income, you can make money actively or passively. Actively means you’re trading your time or services for money. This is the case with waiters, for example, whose wage and income depends on the hours that they work at their job. The same goes with attorneys, who bill their hours and are paid on how many hours they bill. They, and most professionals, make money based off their time spent working.

Passive income is when you are paid for something you’ve already done, but don’t actively need to do. A classic example of this is a book, which takes incredible amounts of upfront work, and then continues to passively bring you money without doing any more work once completed.

For us side hustlers, active income is a great option for quick money. You can actively make money without much upfront work, which means you’re earning money faster. This is a great strategy for specific saving goals like paying off student loans, saving for a wedding, a big vacation or paying off a credit card. In such situations, you’re probably prioritizing making money and are willing to actively work for it.

When you’re first starting out with side hustling, a good rule of thumb is to spend 75% of your time actively making money and 25% passively making money. Here’s how to begin actively making money today.

Ways to Earn More at Your Current Job

What better place to look for extra money than the job that’s already paying you?

182. Get a promotion

For the vast majority of us, our day jobs are our biggest source of income, by far. If you currently make $40,000 per year at your job and you know that by moving one rung up the ladder you can make around $45,000 per year, that’s a big payoff that may be worth pursuing.

Talk to your boss, let them know you are interested in a promotion, and ask what specific goals you would need to meet in order to be considered. Then ask if you can check in again in three to six months to review your performance and talk about a promotion.

183. Ask for a raise

If you are underpaid compared to others in your industry with your qualifications, and you can back up your claims, it’s a difficult conversation worth having with your boss.

If your request for a raise isn’t successful, it may be time to start looking for another job. Most substantial pay raises happen when someone changes employers. Otherwise, most companies are only willing to give small incremental raises to their existing employees.

184. Work overtime

I’m not a huge fan of directly trading your time for money, but sometimes the offer of working overtime is too good to pass up. Ask your boss if you can pick up some extra hours each week.

185. Refer new employees to your company

Some employers offer rewards to employees for referring new candidates to the company. This is typically more common with larger companies.

If your company offers an employee referral program, and if you love working there, then keep an eye out for job openings. Whenever you see a position come available, send it out to your network or anyone you know who would be a good fit. Depending on your company and the role filled, you could earn between $1,000 and $5,000 for each successful referral. Check with your company’s HR department to see what your company offers.

186. Get your 401(k) match

A 401(k) is an employer-sponsored retirement plan, meaning you sign up through your employer. If your company offers a match, then you could earn additional money for your retirement. For example, if your employer offers a 1-for-1 match at 4%, that means when you contribute 4% of your paycheck, they contribute another 4% from the company’s money.

Ask for your company’s vesting schedule. This will tell you how much of the company’s contribution you have access to over what time period. Some companies offer 100% vesting upfront. Others offer it over three or four years, meaning if you leave the company during that time, you only get a portion of what they invested in your 401(k). If your employer offers a match at all, that’s a 100% return on your investment, which is a great way to make extra money for your retirement.

Conclusion

Your side hustle can help you make money online and earn some extra cash each month. But it can also help you develop new skills, build your personal brand or portfolio, and achieve more freedom. So, have fun with it! Take a risk by starting a business or pursue a new hobby you’ve always been curious about. A side hustle is your best opportunity to live life on your own terms. And with some more money in your pocket, there’s nothing stopping you from making your dreams come true.

What Are Good Side Hustles?

Here are 11 good side hustles to make extra money each month:

  1. Start a dropshipping business
  2. Start a wholesale business
  3. Work as a freelancer
  4. Become an affiliate marketer 
  5. Launch a print on demand store
  6. Start a blog 
  7. Sell information products
  8. Become an Instagram influencer
  9. Offer virtual assistant services
  10. Sell your photography
  11. Get a part-time job

Which side hustle appeals to you the most? Did we miss a great side job that pays well? Let us know in the comments below. 

How to Make Money On The Side: 10 Great Side Hustles to Pursue

#1. Start a Dropshipping Business

Dropshipping is one of the best side hustle job ideas. It allows you to sell a product directly to the customer without having to buy any inventory. Why’s that great? You don’t need to have a big startup costs budget, keeping your risk low. The manufacturer not only carries the inventory but also ships it directly to the customer for you. Your main focus should be marketing and customer service – the lifeline of the business. If you have a strong marketing background and want a side hustle that plays to your strength, this is it. It’s one of the rare side jobs that allows you to scratch a true entrepreneurial itch. You get to be the owner of your very own business.

Avoid burning yourself out

Finally, it’s worth remembering one golden rule: Money is not more important than your mental or physical health. While you technically can spend every waking moment working and getting paid, it may not be the best choice when it comes to your wellbeing.

Before taking on extra work, consider whether you have the time or energy to do so. The last thing you want is to end up burning yourself out.

Jobs for extra cash are great, but what about your professional career? Submit your CV for a free CV critique to find out if it’s in shape for your job search.

Words of wisdom (or caution)

The good news is that there are numerous ways to make money outside of your full-time job. However, it’s important to consider how much extra work you can handle without stretching yourself thin. It’s challenging enough to keep your stress levels in check while working a full-time job, so the last thing you want to do is to add more stress to the situation. Figure out exactly how many hours you could realistically work outside of your regular job, determine the days per week you’re available, stick to a schedule, and cut back if you begin getting sick or feeling overwhelmed. Take it from me, your health needs to be a priority.

You also want to play it safe. Do your due diligence and beware of scams. Proceed with caution before providing your personal information — if it sounds too good to be true, it probably is. All the organizations and resources provided here are ones that I or someone I know have used. However, everyone’s experience is different, and organizations can change over time. It’s important for you to find reputable organizations and opportunities that work for you. Also, check with your current organization’s Moonlighting and Conflict of Interest policies to ensure you’re keeping in line with those policies when choosing your desired part-time gig(s).

Now that you have some side job ideas and resources to work with, give yourself some time and be patient as you venture into this brave new world.

Click on the following link for more career advice.

Is your resume ready for any job opportunity? See how it stacks up, with a free resume review.

Offline Side Hustling Ideas

Sometimes, working offline when you side hustle is a more lucrative prospect – especially depending on your skill set. However, these gigs don’t mean you’ll never touch a computer. You might still need to list your side hustle project online or market it online to get leads and customers.

20 side jobs you can with a full-time job

Here are 20 side jobs that will allow you to make more money without interfering with your day job. Many of these can be done either online and/or on the weekends.

  1. Work as a transcriptionist.

  2. Start a blog.

  3. Offer web design services.

  4. Create a YouTube channel.

  5. Teach English (or another language) online.

  6. Sell used items.

  7. Stage homes.

  8. Pet sit.

  9. Become a rideshare driver.

  10. Run errands for people.

  11. Make something and sell it.

  12. Paint houses.

  13. Become a tutor.

  14. Clean offices.

  15. Offer handyman services.

  16. Become a mystery shopper.

  17. Walk dogs.

  18. Become a brand ambassador.

  19. Offer freelance writing services.

  20. Take online surveys.

Related: 20 Part-Time Jobs That Pay Well

1. Work as a transcriptionist

Fast, accurate typists can often find transcription work online, either on platforms dedicated explicitly to transcription or by searching job sites for gigs. Transcriptionists are usually paid per word. People who type quickly can accomplish more work in a short amount of time and earn a decent wage.

2. Start a blog

Create a website and blog about a topic which you are both passionate and knowledgeable. Use ads and affiliate links to generate an income from your blog. This is an excellent option for people who love to write, enjoy spending time online and want to share their interests, experiences and opinions with people. If you need fast cash, this may not be the best option as it takes some time to establish your blog before the money comes in.

Related: 11 Online Jobs for Work Flexibility

3. Offer web design services

Offering web design as a service requires some expertise and previous experience. If you know how to do graphic design and coding, pitch your web design services to businesses that do not have a professional-looking website or consider reaching out to local companies. As you work, make sure to add completed professional work to a portfolio to show potential future clients.

4. Create a YouTube channel

If you can think of a topic you are interested in and know a lot about, you can create a YouTube channel focused on that topic. Create and upload videos with the goal of educating viewers or discussing a topic. Your channel will need to reach certain milestones before YouTube grants you the ability to monetize your account.

5. Teach English (or another language) online

Teaching languages online has become a popular way to earn money online and on the side. There are many sites you can join to become an online teacher and teach English as a second language to people from other countries. This job can turn into a steady side income when you commit to holding regularly-scheduled classes.

6. Sell used items

Have a look around your home for items you do not use. List them for sale in Facebook groups or on eBay or host a physical yard sale. In addition to making some extra money, this can help clean up your home. You may also have friends or neighbors who have things they would like to sell but do not have the time. You can offer to sell their items and split the profits with them.

7. Stage homes

People with an eye for design can offer to stage homes for realtors. Create a portfolio to showcase your staging experience and approach real estate offices and house flippers with your service and rates. This may not be steady work, but it can pay very well depending on the number of rooms and the size of the home being staged.

8. Pet sit

When pet owners go away on vacation without their pets, they need someone to watch them. Offer to pet sit for them for a fee. Pet sitting involves feeding the animals and providing affection while the owners are gone. Responsibilities often include taking dogs for a walk or giving the pets any necessary medications. This work is unsteady but suits people who love spending time with animals.

9. Become a rideshare driver

Use your vehicle to drive other people around town as an Uber or Lyft driver. If you are friendly, punctual and a good driver, you can do very well as a driver for one of these companies. This can be done whenever you have spare time and allows you to write off some of your vehicle expenses as tax deductions.

10. Run errands for people

A quick search online will give you a list of sites where you can offer to run errands for people. The work is not often steady but it is often quite easy to drive from one place to the next and pick up a package or drop off some dry-cleaning in your spare time.

11. Make something and sell it

Creative individuals who are skilled at making things can sell their products online or in a local store. For example, knitters can sell their knitted items or gardeners can sell excess produce. People who excel at baking or cake decorating can sell their baked goods. Examine your hobby and see if there is a way you can make money from it. Reach out to local shops and ask if they will allow you to sell your product there.

12. Paint houses

Being skilled with a paintbrush can be an excellent opportunity to make extra money. Many people do not have the time or the desire to paint their own houses and are more than willing to hire someone else to do it for them. Word of mouth and local advertising can lead to regular work on the weekends and a decent supplemental income.

13. Become a tutor

Individuals who are skilled or knowledgeable in a subject can become tutors and teach others. Chemistry majors can assist high school chemistry students with their studies. No matter what particular subject you excel at, chances are you’ll be able to find someone who needs tutoring in that area.

14. Clean offices

This is a great weekend or after-hours job that can pay well and lead to steady extra income. Office cleaning is typically done after everyone has gone home for the day. This means that you may be able to clean offices right after you finish your full-time job. Cleaners must be professional, responsible and trustworthy to be left alone in the office unsupervised. Satisfied customers can refer other businesses to you and increase the money you earn.

15. Offer handyman services

People who know how to build and repair things around the house can offer handyman services to people who are either inexperienced or too busy to do it themselves. You can advertise your services on online community sites and also through word-of mouth. In time, you may be able to create steady extra work for yourself through referrals.

16. Become a mystery shopper

Search for sites that are hiring a mystery shopper and sign up for the stores nearby. You will be required to shop and then answer a survey about your experience. This work is often sporadic but can provide pocket money that you otherwise wouldn’t have. Note that there are many scam sites out there, so be sure to do due diligence and vet mystery shopping opportunities through online reviews and employee discussion.

17. Walk dogs

Many people don’t have time to walk their dogs every day. This job keeps you active and doesn’t often take too much time. You may even be able to walk dogs for multiple people at the same time and earn more for the same number of hours. Dog walking can turn into steady work and become a reliable source of extra money.

18. Become a brand ambassador

If you are knowledgeable in social media platforms like Instagram and Facebook, you could become a brand ambassador for a company looking to promote their products on these platforms. Brands will often provide you with a unique discount code that you share with your followers and pay you a percentage for every product purchased using your code.

19. Offer freelance writing services

If you have a knack for the English language or simply enjoy writing, consider becoming a freelance writer. Several websites, magazines, newspapers and blogs utilize freelance writers, and there are even freelance writing agencies that can match you with projects that best suit your writing skills. This side job is something you can do both online and in your spare time, choosing the frequency of writing gigs to fit your schedule.

20. Take online surveys

There are several online platforms that pay individuals to take surveys to assess how well a website works, the quality of a product or any other service that needs to be measured and rated. Surveys often don’t pay much, but you can sign up for as many survey sites as you wish to increase your overall income with this method. This is another side job that is prone to scam sites, so make sure you research the online survey employer carefully before signing up.

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