20% of American households earn passive income to help boost their finances. While everyone would love a little extra cash, most people aren’t sure how to go about it, which is why the number is so low.
However, there are some easy ways to a little extra money that people don’t think about. If you’re wondering how to build passive income, here are some ideas.
1. Rent Out a Room
Renting out a room is one of the best passive income tips, particularly if you live in a sought-after area that a lot of tourists frequent. You could either rent it out to a roommate who intends on using it for a long time or put it on Airbnb, where many people might want to rent it out.
Just make sure to research local laws in your area, as these often affect Airbnb properties.
2. Petsitting
If you love animals, building passive income by looking after pets can be a great way to boost your cash. Register on sites like Rover and Wag, write a solid bio, and watch as people bring their pets to you (or you go to them).
You can walk dogs, do drop-ins, housesit, board, or any combination of the four. Start with low prices to attract customers and, as you gain more experience and become more desirable in your area, you can raise your rates.
3. Investing in Real Estate
If you have the money to put into something big, investment real estate can be a way to generate a lot of passive income.
It does require having the money to spare at the start, but you can make a lot more of it quickly.
4. Create a Blog
If you’re looking for passive income tips that you can do from your computer, look no further than starting a blog. If you get a large enough audience, you can run ads on it where you get money every time someone clicks.
If you’re more of a visual person, consider starting a YouTube channel instead, where you can do the same thing.
5. Advertise on Social Media
Advertising on social media is another great method for building passive income. If you take the time to build a decent audience on Instagram or TikTok, people will be willing to sponsor you to advertise their products or services.
The top influencers make a lot of money by doing this, though they tend to have millions of followers.
This Is How to Build Passive Income
If you’ve been wondering how to build passive income to get that extra cash, there are many methods available — and there will be something to suit you! Consider starting a blog if you’re a more creative person or, if you have the cash, invest in some real estate and watch your finances boom.
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