More than ever, creating passive income streams has become important to Millennials. Many young adults from this cohort are navigating the job market, saving to buy a house, and working on building wealth. However, many Millennials are feeling like salaries alone are not enough to live comfortably. So, what kind of passive income streams are perfect for young adults? Here we’ll discuss five passive income ideas for young adults.
1. Rent Out Your Stuff
Most Millennials are familiar with renting out a room or their entire home using sites like Airbnb, but there are other things that you can rent out that are more passive. If you live in a city, you can easily rent out your parking space using companies like SpotHero. You can easily sign up to be an independent seller and set prices for your spot to generate extra cash.
Additionally, there are a variety of peer-to-peer rental options that can help you build passive income streams. For example, you can even rent out your wardrobe, household items, party decor, or furniture. You can use Facebook Marketplace to advertise your items or use sites like Fat Llama for household items or Tulerie for clothes and accessories. Ultimately, these are all great passive income ideas for young adults.
2. Affiliate Marketing
If you have an online presence, affiliate marketing is just one of many passive income ideas for young adults. Companies will pay you a commission for promoting, testing, or reviewing their products. You can easily sign up to be an Amazon Affiliate, where you will receive a small commission when customers use your link to make purchases. While this side hustle isn’t totally passive, many Millennials find this income stream lucrative, fun, and not too time-consuming.
3. Buy Crowdfunded Real Estate
Have you heard of crowdfunded real estate? If you don’t have enough capital to purchase an investment property, crowdfunded real estate may be a good passive income stream for you. Crowdfunded real estate pools funds together to let average investors participate in the real estate market through private real estate investment trusts (REITs) You can find investment opportunities with companies like Fundrise, Yieldstreet, or Realty Mogul.
4. Create Digital Products
While creating digital products will take some upfront work, after creation the income generated will be passive. There are many ways to make money online. For example, you can create a course based on the skills you possess, you can sell digital photography stock photos, or you can write an eBook. All of these digital products can create a significant passive income stream to help you reach your financial goals.
5. Diversify Your Investments
Investing has become so much more approachable in recent years. One of the best ways to grow your money passively is to invest in the stock market or cryptocurrency. With apps like Robinhood and Coinbase, you don’t even need a lot of capital to get started investing. Watching your investments grow over time is not only rewarding but can lead to even more growth and wealth.
How do you plan on creating passive income to grow your wealth? Let us know in the comments.
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Teri Monroe started her career in communications working for local government and nonprofits. Today, she is a freelance finance and lifestyle writer and small business owner. In her spare time, she loves golfing with her husband, taking her dog Milo on long walks, and playing pickleball with friends.
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