In today’s difficult economy, working parents have it way tougher than their parents. With the price of rental properties escalating resulting in families having less and less disposable income, combined with the possibility of upsizing to a more appropriate home becoming more and more remote for families who own their own home, work as hard as we might the economy is always against us.
Thus, more and more parents are turning to sources of passive income to supplement their day jobs and finally facilitate their dreams. Whether you have substantial money to invest in something that will later yield a big dividend or if you’re looking for something useful to do with a small amount of savings, there are ways to generate passive income quickly and easily without necessarily needing to dig deep into your pockets.
Real estate… It’s a no-brainer
There’s a reason why so many people from all kinds of backgrounds become absentee landlords and landladies making money from leasing out either a family property of their own that they’ve since outgrown or a property bought strictly for investment purposes. If you’re renting your property, there are certain caveats. As a landlord you have legal commitments to your tenants and the income from rent on your property is taxable and any profits you make will be subject to a hefty dose of capital gains tax. You can, however sidestep this in a number of ways. Incorporating is a great way of turning your investment into a viable business and therefore reducing your personal liability. You can also sidestep your tax liability on a property sale by reinvesting your profits into a 1033 exchange property. You can learn more about this by visiting Triple Net Gateway. While real estate is one of the surest bets in an uncertain economy, it’s by no means the only way of earning passive income.
Play it safe with savings
If you’re of a risk averse disposition, generating passive income can be as simple as choosing the right savings account. Your high street banks, however, may not be able to get you that great of a deal in terms of interest rates. Many online banks will give you a competitive APY without tying your money up for years at a time.
Sell your photos
If you’ve a flair for photography you can make a little extra money by taking photos and selling them to stock photography sites like Shutterstock and iStockPhotos. These platforms will allow you to sell your photos while retaining a percentage of the sale price or charging a small flat fee. By taking a single photo and selling it to multiple platforms you can make passive income from your hobby.
Rent out your extra space
If you have more space than you know what to do with, but don’t feel comfortable letting some space out to a lodger, then using Air BnB may be more palatable. This is not technically passive income as you’d have to manage the letting yourself and deal with guests via email but it’s so easy and potentially profitable that it barely qualifies as work and can easily be managed alongside even the most demanding of day jobs.
