This is everyone’s dream isn’t it? To make as much money as possible for doing as little work as possible. Some people want to learn how to make money from home, or to make money online without paying anything. Others just want to be their own boss and make money without working for someone. Regardless of your reasoning, there are plenty of ways that you can make money without working a “normal” job, and if all goes well, eventually you might not have to work at all!
Making Money With Passive Income
You may have heard the term “passive income” thrown around before. The whole idea behind passive income is to set yourself up to make money without actively working. Now, this may require startup money or some work upfront, but after it’s set the goal is to just sit back and rake in your earnings. Some people use passive income opportunities as their primary source, whereas most use it as a secondary source of income after their job. Regardless of what is primary vs secondary, we highly recommend establishing multiple income streams. You should always have a plan B and an open mind for new opportunities.
Passive Income Options
There are many different ways that you can establish a stream of passive income. Passive income ideas can be goods or services, online or in person. Let’s take a look at some common sources.
- Renting – You could consider renting as an additional source of income. Whether it be an additional property you own, a car, or any other item that people would be interested in using temporarily, this can be a great way to make some extra cash for things you wouldn’t be using otherwise. Being a young adult, options may be limited here. But think out of the box, maybe you could rent out your calculator from last year’s math class for the next semester. You’d be saving the renter money, and making some yourself.
- Online – Passive income online can be extremely profitable if you are able to get an in on a popular or niche market. From ad revenue to dropship stores to becoming a contributing writer of a blog, there are several different ways you can make money online. Even if you’re a beginner and not tech-savvy enough to build a website on your own, there are tons of great resources out there to easily put together a website for whatever industry you want to target. Just be sure to do your research and find something you’re passionate about. Planning and organization is the key to success here.
- Peer to Peer (P2P) Lending – If you have some money to work with, you could consider peer to peer lending. This is when you loan money to individuals or businesses through online companies that match you (the lender) to borrowers. The borrowers pay interest, just like any other loan and you would be repaid for your contribution plus a portion of that interest. There is of course a risk involved if the borrower defaults on their loan. Be sure to review your investing platforms terms and policies before making any contributions.
- Invent or Create a Product – Easier said than done, we know. However, with a creative mind and the right marketing, this could be a lifetime source of income if you create a new product that takes off. Think about what you struggle with, or any time you think “Wow, I wish I had [your creation] this would be so much easier!”
Advantages of Passive Income
There are many advantages to securing a source of passive income. The sky is truly the limit. You have the potential to create a long lasting income stream for yourself as well as others if your business grows. You can branch off and expand your investing, product, or website – or create new, better ones from the knowledge you’ve gained along the way. Not to mention all of the networking opportunities that could lead to valuable partnerships. Sometimes it’s all about who you know!
Disadvantages of Passive Income
Along with all of the perks and opportunities that come with passive income investments, there are disadvantages and risks involved. Depending on the type of business you want to start or invest in, sometimes it takes money to make money. For example, it’s difficult to begin investing or engaging in P2P lending without any starting capital. These ideas can also be more long term projects, which require time and patience to age and gain traction. And even though eventually the “passive” will kick in and you can make money without working, these ideas often require a significant amount of work upfront to get the ball rolling.
Lastly, there are no guarantees. Here at Teen Finance Tips, we will always be honest with you. Especially when it comes to building your own brand and business, it’s very hard. It’s extremely likely that some of your ideas will fail – and that’s okay! Just keep your head up, reflect and determine what you could have done better, and take that to improve next time.
Making Money Quickly Without Working or Investing
If you are looking for more of a short term solution, there are still ways to make money without working, all while avoiding the start up efforts and cost of most passive income methods. These ideas are typically not long lasting, but can be a great solution to get you a little extra cash when you need it, or help to accumulate some starting capital for another effort.
Sell things you don’t use – If you’re like most teenagers, you’ve probably accumulated a lot of junk over the years (trust us, we know from experience). Take some time to go through the things you don’t use anymore and see what they’re worth. With how easily you can sell things online nowadays via platforms like Facebook, Craigslist, or Ebay, you should have no problem making a quick turn around on some of your things. If you wanted these at some point in time, chances are there is someone out there that wants them now. So if you have old trading cards, videogames, action figures, or anything else – give it a shot!
“Flipping” – When most people hear the word “flipping” they think of houses, when you buy properties to sell or rent them for a profit. While houses can be a very profitable item to choose, really, you can flip anything. Cars or houses may be a little outside of your budget, but thrift store flipping may not be. Go to thrift shops and find those hidden gems. Check the resale value online first. By taking advantage of discount days, cleaning up and fixing your finds a bit before reselling them, and shopping in high-end neighborhoods, you could turn a good profit over time.
Passive Income Investments
Even if you are not using investing in stocks or P2P lending as your income idea here, we highly recommend you still invest once you start to make some money. It’s a great way to build up wealth over time, and being a teenager will give you a huge advantage over most people if you start investing now. Do your research on the best ways to start investing at a young age, and try talking to those close to you that have experience in investing such as an older sibling or parent. Whether you choose to take an aggressive, high risk approach to investing or use more passive techniques, don’t wait. You can always change your investing strategy down the road.