By Paul McCoy, CIMA®, AIF®
Passive income is money earned in a way that doesn’t require much active effort, traditionally through investments or stake in a business. Active income, on the other hand, requires trading your time and participation or service for income. While you likely spent the majority of your life earning active income, finding financial freedom in retirement typically requires the use of passive income. As you near or transition toward retirement, consider getting creative with the ways you earn. Below are a few ways in which anyone can earn passive income in retirement.
Tip #1: Write a Guide or Online Course
A great way to earn passive income is to utilize your wisdom and insights gained over the years to write a guide or online course. If you have considerable knowledge about any particular area of interest, from how to build a table to how to build a business, consider formulating it into a guide and offering it to others for a fee. If you have your own site, you can offer it on there. If not, you can reach out to other websites or popular bloggers with similar content and ask them if they are willing to sell it.
Alternatively, you may consider creating an online course yourself. There are services and resources available online that allow users to create and sell these types of virtual courses. You create the course and allow a third-party service to take care of the rest. Alternatively, you could share your insights on a video streaming service, such as Youtube. As one of the most popular social media platforms on the planet, your success in developing a Youtube tutorial series could create steady, passive income over time.
Tip #2: Store People’s Things
Many Americans have a habit of buying new things while finding it hard to let go of the old. Naturally, people are always seeking out cheap ways to store their belongings, especially those more fragile items with sentimental value. If you have an empty, unused basement or shed, you can use that as a storage space for others. Another option is to invest in buying a storage facility yourself and then offering storage services to others for a fee.
Tip #3: Rent Out Unused Space or Assets
With the rise in popularity of rental platforms like Airbnb or VRBO, travelers are opting more and more to rent out homes and spare bedrooms over hotels or motels. If you live in an area that receives a fair amount of tourism traffic, you may want to consider renting out a room or two when you can.
Apart from your living space, you can rent out other belongings, such as a truck, car, trailer, kayak, boat, etc.
Tip #4: Sell Your Photos
If you enjoy snapping photos on your phone, consider turning your favorites into income. There are a variety of apps that allow phone users to actually sell their favorite photos. If you’re a photography enthusiast and own your own digital SLR camera, you can also sell your high-resolution photos to stock photo companies, such as iStockPhoto for even more.
Tip #5: Write a Book
Maybe you’ve had a great idea for a book, but didn’t have the time to pursue it. In retirement, you’re likely to find yourself with more free time than ever before. Use this as an opportunity to bring your idea to life. Self-publish and promote your book on your own, or connect with publishing houses to pursue working with a third-party publisher.
Earning passive income in retirement can be an important part of any well-rounded retirement plan. And while you may be relying on larger vehicles for the majority of your income, it’s always fun to find a creative way to earn even more.
This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.