Even with a steady, regular paycheck, life can be expensive. That’s why creating passive streams of income can be an excellent idea, allowing you to make money when you’re working your regular job, spending time with your family, on vacation or even while you’re asleep.

There are many potential passive income sources, each with different benefits and levels of effort and upfront investment. The three main ways to generate passive income include investing, asset building and asset sharing.


Investing can be one of the best ways to make passive income, but it usually requires a good amount of upfront money. You might have to save up before getting involved in any kind of investing, but with intelligent decisions, investments can be a great way to bring in money without spending a lot of time on the clock.

Real estate

One of the simplest and most direct investments you can make is getting into real estate. You might own your home, but real estate investment is a bit more complicated than simple homeownership. When you own an investment property, you are responsible for tasks like finding tenants and performing maintenance. But with the right approach and responsible management, you can create a regular cash flow for yourself while building equity that could come in handy down the road.


Another common way to invest is by placing money in the stock market. Of course, this kind of investment comes with risks as stocks can go down and companies can even fail, so you should do research and work with a credible financial professional. In addition to selling stocks, hopefully for a gain, you can also earn dividends, which are payouts of company profits for people who own stock.

Asset building

Asset building happens when you acquire or create an asset that you can sell repeatedly, earning passive income each time. This kind of passive income requires an initial time investment to establish or acquire the asset but does not come with a high financial barrier to entry like investing.


Creative licensing

Suppose you’re a musician, photographer, designer or any other kind of artist or creator. In that case, you can make your creations available online for people to purchase or license the right to use. For example, if you take great photographs, you can place them on a photo-sharing site where people pay a fee to use them. You’ve only put in the time to take the photo and upload it to the web, but you make money every time someone wants to use your image.

Affiliate sales

You can make affiliate sales when someone makes a purchase after clicking on a link or using a referral code online. You can post these codes on a blog or share them in a video or podcast to earn a commission when someone makes a purchase using one. However, there is a lot of competition in the affiliate marketing world, so you need to have interesting, regular content with a reliable audience.

Asset sharing

Asset sharing allows you to make passive income with things you already have, which means that it can be accomplished without a significant upfront investment of time or money. You simply rent out your existing assets to others, usually using an online platform to connect you with users.

Land or home rental

If you’re not willing or able to take on long-term renters in a property, you can try short-term rental of spare rooms in your home or your entire house while you’re on vacation. If you own a piece of land, look into renting it out to campers or RV enthusiasts who need a place to park their vehicle. You can even rent out your car for others to use when you don’t need it.

With these ideas, you can start earning extra money above and beyond what you bring home from your job. This provides an additional layer of financial security by diversifying income streams and providing a backup source of income in case something happens at your job. With a little bit of forethought and planning, you can create passive income streams that work for you and your family.

Finances FYI is presented by 1st Security Bank.

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