fbpx
U

The Passive Income Mirage

October 18, 2019
passive income

YouTube videos and articles advertising the money you can make through passive income are everywhere online. They all promise to reveal different ways you can earn money while doing nothing. Logic and common sense would normally tell us you can’t easily make money doing nothing, but in the age of the internet anything seems possible.

What are the different types of passive income?

On our most recent show, Passive Income Exposed: 3 Ways To Actually Make Money, we covered what are probably the three most common types of passive income: real estate, blogging/YouTubing/etc., and portfolio income. We didn’t have time to cover every potential stream of passive income on the show, and we won’t be able to in this article either, but there are a few more notable ideas that we felt deserved a mention.

Airbnb

Renting out a room in your house or your apartment has become very popular in recent years, and is another potential source of “passive” income. This might not be a bad idea for some people, but beware: renting your house or apartment on a service like Airbnb still requires effort. You’ll need to keep a clean home, maintain a presence online and attract potential renters, and share your space with others. Strangers staying in your home or apartment aren’t going to take care of it like you do because it isn’t their home. There are many horror stories online of Airbnb tenants who trashed their host’s home.

Believe it or not, some people also rent out their cars just like they would their home or apartment. This is appealing to car owners because they can theoretically make money when they aren’t using their car, and it’s appealing to the car renters because they can use a car for a short period of time without going through a rental agency. Renting out your home or apartment may be a good idea, but letting a stranger borrow your car seems like less of a good idea. Rental cars are notorious for being treated badly and “driven like they’re stolen.” The risk here is probably greater than the reward.

Royalties

Royalties are a great stream of passive income, provided you create something that can earn a decent amount of royalties. Many different things you create can potentially earn royalties, such as an invention, a book, music, or other creative works. You may be able to create something great, but that doesn’t guarantee you’ll make money; anyone can self-publish a book or music today, so the market is over-saturated with content. The biggest obstacle to overcome will be making your work stand out.

Make an app

There are now over 2 million apps available for download on the App Store, and over 6,000 apps are released on the Google Play Store every day. Apps on the App Store generate about $4,000 on average, while apps on the Play Store only generate $1,125. Creating an app can be very lucrative in some cases, but many who try to create an app have no development experience and don’t know how to go about creating the app of their dreams. The lion’s share of the profits go to the most popular apps, and the average app might not even make enough money to cover the development costs.

This is by no means a comprehensive list of passive income ideas. It seems like everyday someone is creating a new scheme to earn money with doing little or no work. In reality, even passive income takes work, at least in the beginning. If you haven’t watched our show about passive income, check it out now.

FILED UNDER: Blogs
TAGGED WITH: passive income

Connect

Subscribe

Most Recent Episodes

What I Learned From Being BROKE!!! (And Why I Wouldn’t Change It)

No one disputes the fact that being broke isn’t great. We want to spread the word that no matter where you came from, you can build wealth. In this episode, Brian and Bo share personal stories about their journey to wealth and lessons they learned along the way....

Top 10 Mind-Blowing Money Stats (2023 Edition)

These 10 money stats will blow your mind! We’ll discuss the unbelievable amount of money Americans save, when most reach millionaire status, and how many Americans carry a credit card balance. Research and resources from this episode: Most Americans don't have enough...

Wealth Multiplier Revealed: The Magic of Compound Interest!

There’s a reason why Albert Einstein called compounding interest the eighth wonder of the world! Do you know exactly how it works and how much your dollars could turn into by retirement? The Money Guy Wealth Multiplier can show anyone just how powerful every dollar...

From $0 to Millionaire in 10 Years (Is it Possible?)

How can you become a millionaire in 10 years or less? We’ll discuss common ways we see millionaires build wealth quickly, including through real estate, entrepreneurship, and the stock market. Discover how real wealth is built and why building wealth quickly may not...

Financial Advisors React to INFURIATING Money Advice on TikTok!

Brian and Bo are BACK to react to some more TERRIBLE financial TikTok advice! Join us as we take a look at some of the worst financial advice on the platform and tell you what to actually focus on in your own financial life. Enjoy the Show? Sign up for the Financial...

Investing Showdown: Dollar Cost Averaging vs. Lump Sum!

It’s a debate as old as time: what’s better, dollar cost averaging or lump sum investing? In this episode, we’ll cover the nuances and pros and cons of both, including in-depth case studies comparing investors at different times. Research and resources from this...

Is Inflation Really Ruining Your Finances? (You Won’t Like the Answer)

Inflation has changed our daily living expenses dramatically over the last few years. While we can’t control all of our expenses, there are many things in your control that can help you become a Financial Mutant and build wealth better than your peers. Enjoy the Show?...

Are $1,000 Car Payments Becoming the New Norm?!

New data shows more Americans than ever have car payments over $1,000. Is this becoming the new normal? How much could having a car payment of $1,000 be costing you for retirement? For more information, check out our Car Buying Checklist!