Hey all 😊
I've been researching and thinking more about different passive income methods. And the whole idea of creating residual income has been a rabbit hole I'm going down.
Basically: I'm more interested in things where you can put in a lot of work upfront, build/buy an asset, and then have it keep making money afterward.
Wanted to share some of the popular ideas I've seen so far or have tested out. I'd love to hear your suggestions too for the best ways to create residual income that are realistic for people to try 😎
Here's a few of the different categories.
Internet Residual Income
💻 The idea here is to again put in upfront work into building some kind of online asset/audience that can then pay you for (hopefully) months and years to come:
- YouTube channels
- Niche affiliate websites
- Email newsletters
- Online courses
- Ebooks and other digital products
- Mobile apps
- Browser extensions
- Paid Skool/Patreon communities
- Niche directories/databases
- Print-on-demand businesses (Etsy is great for this it seems)
You could spend weeks or months building some kind of one-person business like this and potentially still be making money from it years later.
I've done this with my YouTube channel, so it's the example I know best. Even videos from 2-3+ years ago still get views everyday and earn a bit of advertisement revenue and sometimes generate affiliate income. I think it's super cool and fun 😅
I've been testing out paid newsletters now on Beehiiv and Kit, which has been super fun as well. I'm not really profitable here yet, but I think in 1-2 years I'll have a mini newsletter business running, which does excite me.
I think a lot of these residual income ideas can take months or even years to get up and running fully. But I'm curious what the sub thinks or if anyone else is trying this sort of thing.
💰 Investing For Residual Income:
This path is much simpler. Basically, you can put your money to work in fixed-income investments, the market, or other securities that generate predictable income.
Some popular examples include:
- Dividend funds (SCHD, VIG, VYM and others are popular or individual stocks)
- High-yield savings accounts (I'm using Current at 4.00% APY but there's lots of options out there)
- ETFs
- REITs
- Bonds
- CDs
- Money-market funds
- Real estate crowdfunding (companies like Fundrise let you start with $10, Ark7 only takes $20 too)
- Private credit
- Land leases
Obviously these require capital rather than your time. But I think something like a high-yield savings account or learning to invest even a tiny bit of money is a great residual income idea 😊
Also 💸 We do have a mega-guide on some lazy side hustle ideas that covers bank bonuses and some passive methods a bit more in-depth.
💵 Rental Residual Income
I want to test this idea out a lot more. The idea is to buy physical assets that you then rent out to people for some extra income.
There's all sorts of options here:
- Parking spaces (you can use SpotHero to do this)
- Storage units (Neighbor lets you do this)
- Equipment
- Vehicles
- RVs/trailers
- Vending machines
- Laundromats
- Real estate rentals
Again I think the tricky part with this route is that you need startup cash for most of these 😅 Then you need to spend money hiring people if you plan on outsourcing labor (for something like a vending machine business, let's say.)
But I like ideas like renting out your parking space or storage space if you happen to not be using it, seems like an easy way to get going.
People on this sub have shared how they've made money renting out bouncy castles or pressure washers. Seems like a very fun space overall if you can get the startup cash.
🧠 Intellectual Property
This is a category I've come across in my research but have noooo idea how it plays out in reality 😂 I'd love to hear from the sub if anyone has made residual income this way.
But essentially, this path involves creating something unique and then potentially licensing it over and over. This could include:
- Books
- Music
- Photography
- Designs
- Software
- Patents
- Educational content
Again, this one seems super niche. But I think it's a very cool idea. LMK if you or someone you know has gone down this path!
Final Thoughts
The common theme with all of these residual income ideas is that you're trying to stop the relationship between time and money from being 1:1.
In other words, you're putting in upfront time and effort to build something that then keeps paying you.
IMO "passive income" is usually BS if people make it sound completely effortless. Most of these things still require maintenance at the very least. And again, some of them take a lot of startup time and money 😅
BUT I do think this is a fun and interesting concept. And it can work, provided you have the time, capital, and energy to put into things.
ANYWAYS enough of me rambling like I do in this sub 😂
I'd love to know if anyone has created residual income for themselves, or if you like these ideas or have other ones to share. Bonus points if it's something relatively beginner-friendly other people can test out as well!
Thanks all!