To make sure you’re getting the most out of your passive income, drop that extra cash in a high interest savings account like our Save account. When considering a passive income that’s right for you, you should choose one that suits your individual skills and budget. Some passive income streams are high effort and potentially high risk, while others are safer and easier to get off the ground. Passive income is when you earn extra money without necessarily doing a lot of extra work. Plus, she says, "If you can lock up cash for a little longer - one or five years, for example - in a certificate of deposit, you may find rates hovering around 2.5%.We all dream of working less and earning more, right? Passive incomes are a great way to boost your earnings with little to no ongoing extra effort. That's because Snider says interest rates are trending upward, and while the national average interest rate for savings accounts is 0.1%, you may be able to secure a rate north of 1.5% at an online bank. While opening a savings account isn't going to net you thousands of dollars in passive income each month, unless you have a ton of money to set aside, financial planner Susannah Snider says it's still worth considering. While it's not easy to become a best-selling self-published author, Hogue says the benefit of publishing your book and putting it on a book retailer's ecommerce platform (like Amazon, Apple Books, or Barnes and Noble), is that you might get traffic from people searching for books on a daily basis, as opposed to just writing blog posts on your own website (which might only attract a limited and smaller audience).Īccording to a self-publishing resource website, authors can make $1,000 a month selling their own books. Once you know what you want to write about, Hogue says it's not only easy to publish the book on your own (using platforms like Amazon Direct Publishing or Barnes and Noble Press), but you can price the book low enough that a recession won't affect people's decision to purchase it.
"Everyone has a book idea in them," says Hogue. If you're someone who enjoys writing or has always wanted to write a book, financial advisor Joseph Hogue says that self-publishing books is a great way to earn passive income during a recession. While owning real estate can require some active management to maintain high occupancy and ensure the upkeep of the property, you can also consider investing in dividend-generating REITs as another way of earning passive income. "The passive income derived from term rents and leases is recession-proof and has a low correlation to market volatility," says Nicola. Real estate is a passive income stream that also includes tax benefits, and is one that financial planner George Nicola says is worth considering in case a recession happens. You can list items that you want to rent to others on a variety of websites like Friend With A or Loanables, and every time the item is booked, you get to pocket the cash. In this example, she also advises adding a truck, tools, garden equipment, tents, and sporting goods for a larger inventory. Your investment will be around $2,000 and you can put a photo of the trailer on your Facebook page and put signs on it that it's available for rent." "During a recession, individuals do more of their chores themselves that require specific equipment and tools," says Erickson. One way to start a passive income stream is to look around your house and see what you have that other people are eager to rent.įinancial planner Marli Erickson says that if you have the capital available, you can even consider purchasing an item that is in high demand to be rented. You can invest in self-storage facilities in many different ways, whether you want to buy your own facility or invest in specialist REITs ( real estate investment trusts) that operate a large portfolio of self-storage facilities already. Since recessions might call for people to sell their homes, downsize, or temporarily move to new places, investing in self-storage facilities could not only be a good investment but also a good source of passive income.
If you have the cash available and you're looking to take on a new business venture, financial planner Tammy Trenta says it could be a good idea to look into investing in self-storage facilities.
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