Top 5 passive income ideas to start for free (Part1)

Coming up with passive income ideas can seem so fun and exciting because it allows you to buy back your time in some way.

Isn't it great to make money in your sleep? What if you could earn money while you watch TV or on vacation?

Sounds nice, but making passive income is not a walk in the park. Luckily, I will share with you 5 different passive income ideas to help you get there!

Most of us earn what is called "active income". This means you can go to work or work from home and trade your time for money.

There is nothing wrong with that and I fully support the work that you love and that gives you purpose.

If you no longer have to work in exchange for money, you will not only diversify your income but also free up additional time to do what you love.

5 passive income ideas

Passive income requires a lot of work and effort. You also don't need a lot of money to start earning passive income.

This blog has been generating passive income since the beginning. You can read my very first income statement and then see how all of my income has grown over the years.

Here are 5 passive income ideas you can try.

1. Rent a storage space

Been wanting to try Neighbor for a long time. Renting out storage space is easy, and it's a great way to generate passive income.

Neighbor is like Airbnb, only you don't have to host anyone - just their stuff! Whether you have extra space in your garage, closet, basement, or attic, Neighbor gives you the opportunity to start making money from your space.

Compared to competitors, storage rates through Neighbor can be up to 50% cheaper.

The neighbor can be the perfect part-time job for those who don't have much time to dedicate themselves to earning extra money. Once a host listing is booked, approved hosts are paid at the end of each rental month.

2. Invest in high yield savings accounts

You can earn a passive income simply by taking your money and putting it into a high yield savings account. These accounts will allow you to get a good return on investment by simply leaving your money in the bank.

Traditional conventional banks have savings accounts, but the interest rate doesn't really justify opening an account.

Online banks offer better rates and make placing your money in a bank more profitable. Some banks offer APY around 1% which is great. Capital One 360 allows customers to open up to 25 savings accounts.

Of all the passive income ideas, this one should be on your to-do list.

While I enjoy having an emergency fund, I also enjoy earning interest.

Thus, my money always grows without any additional action on my part.

3. Rent a car to share

If you can't make money from the space in your home, how about renting out a car? Yes, there are actually several sites that allow car owners to list and rent their cars.

If you want to increase the mileage of your car, Hyrecar is a car listing platform for Uber or Lyft drivers.

Because both Uber and Lyft require vehicles to pass inspection, make sure this is done before attempting to rent a vehicle.

The inspection document must include photographs of the vehicle and registration when creating a profile.

Car owners control how long they would like their vehicle to be rented. When handing over the keys, be sure to walk around the car with the renter to check for scratches or dents.

4. Self-service laundry

Owning a laundry will require some expenses such as utilities and car maintenance. It can still be profitable and worth the investment.

According to Brian Wallace, president of the Self Service Laundry Association, a single laundromat's annual gross revenue can range from $30,000 to $1 million.

Clean clothes are what a family needs, and if they don't have a washer or dryer, they should contact the laundry to help with that.

5. Renting rooms

I'm sure you've already heard of Airbnb. This has been one of the most popular passive income ideas for homeowners who want to pay off their mortgage faster.

This is another passive income opportunity that won't require much effort from you. Some people make a living by renting out rooms or even entire houses to travelers.

Airbnb can calculate the rent in the area and give you an idea of how much you could be earning daily, weekly, and monthly renting from them before you list your place for sale.