Many people who are struggling to get out of debt consider asking for more hours or even applying for a second job just to make ends meet. If you’re in this situation, it’s important to understand that these aren’t your only options. Instead of working night and day to earn more cash, consider finding a passive income source to solve your financial troubles.
Passive income is a source of steady income that requires little or no effort on a daily basis. Earning passive income can increase your cash flow and make it easier to pay off your debts faster. If you’re ready to achieve financial security, try these 7 passive income ideas to help you get out of debt:
Open A Savings Account
Don’t save your money in a piggy bank or store it under your mattress. Instead, invest your money in a savings account to earn passive income. Even if the interest rate is low, you are still earning something, which is more than you would earn by saving your money at home.
You don’t need a lot of cash to open a savings account. Many banks only require an initial investment of $25 to open an account. The money you invest in this account will earn a small amount of interest every month, which you can put toward paying off your debt.
Not only will opening a savings account help you earn passive income, but it will also protect your savings. The Federal Deposit Insurance Corporation (FDIC) insures up to $250,000 per depositor, per insured bank. This means you won’t lose your money even if the bank goes out of business.
Invest In A Certificate of Deposit (CD)
Another option is investing your money in a certificate of deposit (CD) instead of a savings account. A CD is a type of savings account that offers a higher interest rate to depositors. This means you will earn more money by investing your money in a CD instead of a traditional savings account.
However, CDs have fixed term lengths, whereas traditional savings accounts do not. The term length for a CD is usually three, six, nine, 12, or 18 months. Once you open a CD, you must keep your money in this account for the entire length of the term. If you choose to withdraw the money before the term is over, you may be charged an early withdrawal fee. For this reason, putting your money in a CD is only ideal for people who are sure they won’t need the cash in the near future. In this case, investing in a CD can help you earn more passive income than investing in a traditional savings account.
Apply for A Cash Back Credit Card
You may be hesitant to open a new credit card if you are already struggling to pay off your debt. But opening the right type of credit card–and using it wisely–can help you pay your debts off faster.
Look for a credit card that offers cash back rewards. As its name suggests, a cash back credit card is a type of credit card that allows you to earn money for your purchases.
For example, a card might offer 2% cash back on all purchases, which means you will earn $2 for every $100 you spend. Some cards may only offer cash back on certain types of purchases, whereas others may offer different cash back percentages for different purchase categories. Make sure you understand the terms of your card so you can earn as much income as possible with your card.
It’s important to note that you shouldn’t use your card to make extravagant purchases just so you can get cash back. Instead, use your card to purchase things you would purchase anyways, such as groceries and gas. This way, you don’t incur additional debt while trying to earn cash back.
Rent Your Extra Bedroom
Owning a rental property is one of the best ways to earn passive income, but this is out of reach for most people who are struggling to pay off their debts. However, now anyone who has an extra bedroom in their home can earn passive rental income.
There are a number of apps that make it easy to rent your spare bedroom, including AirBnB, Cozy, and SpareRoom. You can advertise your listing on these apps and view more information about each person who is interested in staying in your spare room.
AirBnB is typically used to book short-term stays, whereas Cozy and SpareRoom are typically used to find long-term living arrangements. Regardless of which option you choose, you can use all or some of your tenant’s rent to pay off your debts.
Wrap Your Car
If you own a vehicle, you can earn passive income just by driving it around town as you normally would. All you need to do is agree to wrap your car with advertisements, which will essentially turn your vehicle into a moving billboard.
Use the Wrapify app to connect with companies in your area that are willing to pay for this service. The amount you can earn by wrapping your vehicle will vary depending on your driving habits and the company’s budget. But it’s estimated that the average driver earns between $264 and $452 per month for agreeing to use their vehicle to promote a company.
Putting an advertisement wrap on your car will not damage it, so you won’t need to pay for repairs once you’re ready to take the wrap off.
Create Online Educational Content
If you are an expert in a specific field, use your knowledge to earn passive income by creating educational content for online providers such as Udemy, SkillShare, or Teachable. These sites require contributors to create their own presentations, lectures, study materials, and other content.
Preparing this content takes time, but it will pay off in the long-run. Your content will be available to thousands of students once it’s uploaded onto one or more of these sites. The more your content is accessed, the more money you will make, so you can continue to earn passive income from your efforts long after your work is done.
Sell Stock Photos
Most of the photographs you see in magazines or on websites or blogs are stock photos purchased from major providers such as Shutterstock. If you enjoy taking photos, you can earn passive income by submitting your photographs to these stock photo websites. If your photo is accepted, you will receive a commission every time it is downloaded or purchased.
To maximize your earnings, research what type of stock photo is downloaded the most. In general, stock photos featuring people in authentic settings sell well. You should also check the stock photo website to see which categories are the least competitive. If one category has tens of thousands of images, there’s not a good chance that someone will stumble upon yours. But if a category only has a dozen images, taking images that would fit into this niche could be a lucrative opportunity.
These are all great ways to earn passive income, which can help you pay off your debts faster. But in the meantime, if you need fast cash to make ends meet, consider applying for a title loan with I Need Cash Now. Taking out a title loan can help you quickly secure the cash you need for unexpected expenses while you work on earning more passive income.