Passive Income Ideas to Boost Your Retirement Income
Create passive income streams and just enjoy retirement…
Passive income streams are therefore ideal for retirement. In retirement we are trying to maximize the time we spend on leisure activities while minimizing work or burdensome endeavors.You can generate passive income from savings, your other assets or even with smart use of your time.
Here are a TON of ideas for how to create passive income:
Create Passive Income by Investing in Real Estate
If you own your home, then most financial experts would say that you already have enough exposure to real estate for a well-diversified portfolio. However, real estate investing can be an excellent way to build wealth and is probably the most universally effective of all passive income streams.
You have many options for real estate as income:
1) Buy Rental Property:
If you have some savings, you might want to consider investing in a rental property. Investing in a commercial building or a residential property can be an excellent way to boost monthly income. The trick is in having enough money to buy the building and ensuring that the rental income pays for the mortgage as well as profit for you.
2) Invest in Real Estate Funds:
If you cannot afford to purchase a property on your own, you have options. You can invest in a Real Estate Investment Trust (REIT). REIT’s are a type of security that you can buy and trade like a stock.
3) Explore Real Estate Crowdfunding
Crowdfunding is a relatively new way to raise money for a business venture. The idea is that many people invest a small amount into a particular project. The crowdfunding concept is becoming an increasingly popular and low-cost way to invest in real estate.
4) Finance a Mortgage or Reverse Mortgage:
Perhaps you have friends or family who need or want to get a mortgage or reverse mortgage. You can finance a private loan. However, this can be complicated and there are downsides to mixing money with family and friendships.
Make Passive Income with Your Own Home or Property
Your home is probably your most valuable existing asset. You should definitely consider ways to use your home to create passive income.
1) Rent a Room:
House sharing is becoming more and more common. By renting a room (or rooms) you generate a great source of income and increase your social and support network which is critical to retirement happiness.
2) Be a Vacation Rental:
Airbnb has absolutely exploded in popularity. Listing a room on Airbnb in your existing home — either on a permanent or short-term basis — is an ideal passive income stream because it uses an existing resource to generate money.
3) Rent Your Driveway:
JustPark is a platform that lets you rent out parking places. this is an ideal opportunity if you live near a popular venue.
4) Offer a Campsite:
Do you live on a piece of land where people might want to camp? Hipcamp allows you to host nature lovers while earning extra income.
Create Passive Income with Your Stuff
The sharing economy is alive and well and people are making money from all kinds of assets. Think creatively about what you own and explore ways to rent it out.
Do you have an RV or other recreational toys? People are making money these days by renting out their boats, motorcycles, bicycles and more…
If you have something that you think other people might enjoy, research sharing economy web sites for that particular object.
Here are a few examples:
Do you have an RV that spends some time in your driveway? Rent it out! Outdoorsy and RVShare make it easy for you to make money from a potentially under used asset.
Do you have a sports car? Sprinter van? Just a regular old sedan? Turo and GetAround are platforms that enable you to rent out your vehicles.
Whether you have a little tin fishing boat, a party patio barge, a water ski boat, a sailing ketch, a luxury yacht or any other kind of floating toy, Boatsetter enables you to rent your boat and make passive income.
Whatever you have, someone else might want to rent it from you. Zilock lets you rent out your power tools, cooking equipment, popcorn machines, ladders, anything and everything!
This platform also enables you rent out anything and everything that might be of use to other people, but is best for sporting goods and electronics — particularly cameras, drones and the like.
Cameras are beloved expensive items. But, if you are willing to share, you can make some passive income.
A you ready to drive a mobile billboard? Carvetise and Wrapify put advertising on your car and you get income for just driving around as you normally do.
Okay… Your body is not at all stuff. However, it is something you can use to generate income. ClinicalTrials.gov lets you search for sleep and other medical and psychological studies — some offering you monetary compensation.
Create Passive Income Streams Doing What You Love to Do
You don’t want to work — working is not a “passive” income stream. You want to be retired!
However, maybe you enjoy cooking, woodshop or spending time with dogs. There are more and more ways to make money from these types of hobbies.
If there is something you enjoy doing, you can probably figure out a way to get paid for it.
Do you love animals? Did you know that it is pretty easy to make good money while offering pet services? DogVacay and Rover make it easy to find gigs with animals.
Why not create passive income by dog sitting in your own home? Or, try dog walking which is a great opportunity to be healthy, have fun and make money.
Do you enjoy working with your hands? Building things? Personally, I adore vacuuming (okay… maybe house cleaning is more work than fun). At any rate, it is so satisfying to complete a project!
TaskRabbit and Zaarly let you find gigs for home services like house cleaning, gardening, handy man, errands…
Are You Happiest in the Kitchen? Do you pour over cooking blogs and race to get every new cookbook? Mealsharing and Feastly are online platforms that enable you to sell home cooking.
Make money from your culinary passions!
From crochet, to custom artwork, Etsy is a platform that helps artists and crafts people to sell their handmade goods. Turn your creative hobby into income!
Are you one of those people who loves to share your knowledge of your home town and you live in an area that receives tourists? Be a tour guide for visitors to your area. Advertise your services on Vayable.
Are you an amateur photographer? There are lots of platforms like Shutterstock and istockphoto that enable you to sell photos online.
Do you enjoy kids and were a pretty good student back in the day? Wyzant is a platform that connects tutors to kids who need help. From teenagers who need help with AP statistics to grade school kids who just need to get through their homework, tutoring is a great way to make money and be among the young — keeping you young at heart!
8) Whatever You Love to Do, Advertise Your Services on NextDoor:
Whether you like repairing bikes, gardening or something else, there is probably somebody who doesn’t really enjoy that activity and they might be willing to pay you. NextDoor is a community message board, ideal for finding clients for these types of services.
Share Your Expertise or Your Passion and Make Some Money
By the time you retire, you have accumulated a lot of knowledge. If you would love sharing your work expertise or passion for a specific hobby or area of interest, then here are a few passive income ideas for you:
1) Start a Blog:
If you like writing, start a blog and share your expertise or passion online. Generate and
publish content and then you can run advertising on your content — generating passive income.
2) Launch a Podcast:
Do you enjoy talking with experts or peers about your area of expertise? Try recording those conversations and starting a podcast. Get sponsorship for your podcasts and earn some passive income.
3) Teach an Online Course:
Online classes are a growing gig. An online class is kind of like a blog, but it is prepackaged and sold to people who want to learn what you have to share. Teachable.com and Udemy are popular online teaching platforms.
Pay Off a Credit Card or Other Debt
Huh? You might be curious how paying off a credit card could be a way to produce income.
And, while it is true that you are not creating an income stream, you are eliminating a fixed expense which does permanently
improve your cash flow — so the impact is the same as increased income.
Imagine if you could spend the money you use to pay off a debt every month! The same is true of paying off your mortgage — this is such a massive opportunity to have more money to spend every month and help you feel truly financially free.
Here are 7 Reasons to Pay Off Every Penny Before You Retire…
If Using a Credit Card, Turn it Into Income
If you are using a credit card for purchases, make sure your card offers perks that make sense for you.
Most top reward credit cards enable you to earn anywhere from 1 to 5 percent back. This translates to easy passive income.
Discover Passive Income by Creating a Budget and a Detailed Financial Plan
Passive income can come from improving your own finances — now and for the future.
Budgeting is a powerful way to discover opportunities for saving money. When you document what you are spending you are likely to see easy ways to cut costs — improving your cash flow.
2) Creating a Financial Plan:
When you plan for the long term, you will make smarter decisions now and find the motivation to create more income. The NewRetirement Retirement Planner makes it easy to create and maintain a financial plan.
Carefully Invest Your Money in Passive Income Sources
All profitable investments are technically passive income — but profits from savings are usually reinvested — growing your principle. However, some investments do offer a monthly paycheck — passive income.
Consider the following passive income investment opportunities:
1) Peer to Peer Lending:
Lending Club is an example of a peer to peer lending platform. With Lending Club, you can provide loans to people seeking money for a business. While this can be highly risky, the platform enables you to invest in hundreds of different businesses all at once — offering you the potential for high returns while trying to minimize risk.
Annuities are a way to lock in passive income. When you buy a lifetime annuity, you are exchanging a lump sum of money for a guaranteed income stream for the rest of your life — no matter how long that turns out to be. You can also opt to protect your spouse or other dependents with the income and you can even guarantee that the income will grow with inflation. Use an annuity calculator to estimate how much annuity income you could earn. Or, take a quick annuity quiz to find out if an annuity is right for you.
3) High Dividend Stocks:
Some stocks pay dividends. This money is considered a passive income stream — especially if you are not putting the money back into the company.
Bonds are a popular retirement income investment. When you purchase a bond, you are buying debt. So, in a way, you are lending money and — in exchange — you get interest payments and the promise of repayment at a specified future date (maturity date). Learn more about bonds and bond ladders.
5) Invest in a Small Business:
Look around your town and think about the people you know; do you see a small business that is doing well — might they benefit from some kind of expansion? In exchange for your investment, the business could give you an equity position. The business owner manages the day to day operations while you act as a silent (passive) partner. This can be rewarding, but very risky.
Reputable Multi-Level Marketing
A multi-level marketing business sells products directly to consumers through independent sales people. The sales person is compensated based on their own sales as well as on their ability to recruit new sales people into the company.
So, income from sales you make would be regular income. Income from sales by your recruits could be considered passive income.
Multi-level marketing has a questionable reputation, but there are plenty of well vetted, even beloved companies that could be great work and passive income for retirees.
If you are interested, consider the following:
Avon is a publicly traded company with more than 5 million sales consultants. If selling cosmetics sounds fun to you, give it a try. I think you can still earn a pink Cadillac.
2) The Pampered Chef
Love cooking? Maybe being a sales consultant with The Pampered Chef is a good fit for you. Consultants host cooking shows in homes and sell merchandise during these demonstrations.
3) Rodan and Fields
Rodan and Fields makes skincare products developed by the dermatologists who also created Proactiv. They have over a billion dollars in sales.
doTerra sells aroma therapy oils and kits and already reports to have 1,300 employees and a billion dollars in sales.
5) Forever Living
Forever living sells a range of health-related products including aloe vera juice drinks and cosmetics, supplements and more.
Make Your Cash Generate Income
The trick with successfully creating passive income is to pay attention to all opportunities. Making sure that your cash is earning as much interest as possible is an easy way to increase your passive income. Put your cash into a high-interest savings account.
Some banks are paying 2% or more and while this is not a massive return, it is a low risk and easy way to modestly boost income.
Make Money Shopping and Browsing
If you are willing to let companies track your online browsing and spending, then you can generate passive income.
1) Inbox Dollars:
Inbox Dollars gives you multiple options for earning money. You can play games, open emails and more.
When you are signed up with Swagbucks and shop at Target, Walmart, Amazon and other major retailers, you earn money. Get additional income by watching videos, answering surveys and other online activities.
Get rebates when you shop while using the Ebates browser extension. Just start an Ebates account, install the extension on your browser and shop as you normally would and get rebates.
How Does Passive Income Impact Your Retirement Plan?
Money you rely on for retirement should not be invested with too much risk. And, you want retirement income to be predictable.
When factoring passive income into your retirement planning, be sure to think about when the income stream might start and stop and only count it if you are relatively sure that it will come to pass.
The NewRetirement Planner lets you document multiple income streams with different start and stop times — making planning with passive income more realistic.