Looking for the latest phones to get or gift this holiday season?
How to Earn Passive Income: A Beginner's Guide
Do you dream of making money while you sleep, travel, and pursue your passion? Then consider learning how to earn passive income! It will take some time, energy, or money upfront but once it's set up, you can earn with minimal effort.
Think of it like this: active income is your typical job where you work for money, while passive income lets your money work for you. It's ideal if you want:
- Financial freedom: It provides a cushion that reduces financial stress and can eventually earn you as much as, if not more than, your active income.
- Time flexibility: It allows you to focus on hobbies, family, or other projects.
- Diversified income: It protects against the loss of a single income source.
Ready to start? Keep reading to explore different ways to earn extra income.
Explore Ideas for Passive Income
Try more than one of these passive income ideas in the Philippines to see which best suits your interests and lifestyle.
Most passive income ideas fall into three main categories: investments, real estate, digital products, and marketing. The best option for you depends on your resources and how much you can invest upfront.
Investments
Got cash but limited time? Investments might be a good fit. Apart from monitoring and decision-making, it requires minimal effort. Some investment ideas include:
- Dividend stocks: Earn after purchasing shares of companies. You can use Investagrams and other investing apps to make this easier.
- Bonds: Lend money to governments or corporations and earn interest over time.
- High-yield accounts: These include savings accounts, time deposits, and more.
- Startup investments: Get equity or a share of the profits when you invest in a startup company.
Pro Tip: With GCash, you can start investing with GInvest for as little as ₱50. Your money is in good hands with partners like ATRAM Investment Manager, Seedbox Philippines, and BPI Investment Management Inc.
Real Estate
If you have the funds and are willing to put in the effort, real estate can be a great option. Apart from your initial cash-out, you’ll need to manage properties, screen tenants, or handle maintenance. You can earn through:
- Long-term rentals of homes, apartments, condos, or commercial spaces
- Short-term rentals through platforms like Airbnb
- Real estate crowdfunding, where you put money into a funding pool with others to invest in large real estate projects
Digital Products and Marketing
If you have more time than money, consider creating and selling digital products or exploring online marketing strategies. These include:
- E-books: Write and self-publish on various platforms, including Amazon Kindle Direct Publishing, Barnes & Noble Press, and Gumroad.
- Online courses: Share your expertise on specific topics. If you’re planning to sell an online course, there are several platforms you can use, like:
- Print on demand: Create designs for clothes, accessories, and more. Arrange to print and ship the items out with companies like Printful or Printify. Then sell them through online stores like Etsy or Shopify.
- Ads and affiliate marketing: Promote products and sellers on your blog, TikTok, Instagram, YouTube, etc. While you do have to keep updating your channels and feeds to stay active, older videos can continue to earn money years into the future.
Bonus: Digital products and marketing allow you to sell to an international market for increased income.
Follow These Tips to Get Started
Do a self-check and research your options as the first steps to earning passive income.
With so many ways to earn passive income, you may be confused about where to start. Here’s how:
1. Self-assess.
To choose the right passive income stream, consider your interests, skills, and available resources. Ask yourself:
- What do you enjoy doing?
- What are you good at?
- How much can you invest?
2. Do your research.
An ounce of research saves you a ton of regret. Understand the risks, benefits, and potential returns of real estate, stocks, bonds, and more. Research also helps you ensure you make wise choices when investing.
3. Start small.
When learning how to earn passive income, you’ll probably want to try several types of investment methods before settling on one. Start small and see how you do before going all-in. Some of the questions you should ask yourself are:
- Do you enjoy working on this income stream? (If not, you may risk burning out quickly.)
- Can you commit to it long-term?
- Do you have the time or money needed to make it work?
- Can you afford the loss if it doesn’t work out?
If you’re a newbie at investments, start with something low-risk, like a high-yield savings account or time deposit. Getting started with dividend stocks? Set a limit on how much you’re willing to invest.
4. Scale up.
Once you see returns, find ways to grow your venture and earn more. For example, you can expand into other marketplaces if you sell a product. You can hire an assistant to help you manage and sell inventory or automate some processes, so you can focus on other money-making ideas.
5. Track and adapt.
Successful passive income earners don’t rest on their laurels. To maximize earnings, you need to track your income stream and adjust based on trends and customer feedback. Monitor what works and what doesn’t to keep growing your business.
6. Diversify.
Relying on just one income stream can leave you vulnerable. Having two or more gives you a buffer for low-income periods or acts as a backup in case of a complete loss. The good news is that diversifying becomes easier once you gain some success.
For example, if your vlog or print-on-demand shop takes off, consider creating an eBook or online course to teach others your secrets to success. This could even lead to opportunities as an influencer or online guru with speaking engagements and brand collaborations.
Ready to Start Earning?
Increase your savings for emergencies, retirement, or travel by learning how to earn passive income.
Now that you know how to earn passive income, you can start your journey to financial independence. If you’re focusing on online income, make sure you have a reliable home internet connection. Choose GFiber Postpaid to enjoy fast and strong connectivity with a monthly subscription. Or try GFiber Prepaid to tailor your package to your needs and budget. With the right tools and strategies, you can build a brighter financial future.
