10 Best Ways To Make Passive Income in the Summer of 2024
For most kids growing up, a summer job was a rite of passage, as well as a practical way to learn about work, money and responsibility. When we shift from adolescence into adulthood, there can be lots of other “summer jobs” we take on, but the one you want for summer of 2024 is labeled under “passive income.”
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This is a revenue stream that you set up and hopefully do not have to do a lot to manage, other than keep an eye out for problems and fix any issues that might arise. Sounds better than mowing lawns in the hot heat, doesn’t it?
Here are the 10 best ways to make passive income in the summer of 2024.
Also here are things to avoid when making passive income.
Rent Out Property on Vacation Rental Platforms
“With the increase in travel during summer, renting out your home or even just a room on platforms like Airbnb can provide significant income,” said Dennis Shirshikov, finance professor at the City University of New York and head of growth at Go Summer, a vacation home design and management company. “Particularly, consider renting during local events or holidays when demand spikes.”
Todd Stearn, founder and CEO of The Money Manual, also suggested rental properties, calling them “a great way to make passive income.”
“And even if you can’t afford that upfront investment, you may still be able to get into the rental property game if you’re a homeowner,” Stearn said. “You can use sites like Airbnb to rent out your entire home if you’re going away for part of the summer or you can even rent out a room. Be sure to research safety and security guidelines if you go this route.”
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Invest and Save
According to Shirshikov, dividend stocks are the way to go for investing in passive income for the summer of 2024, as they have been for many summers previously.
“Investing in stocks that pay high dividends is a classic method for passive income,” Shirshikov said. “Look for companies with a strong history of dividend growth that perform well in summer, such as those in the travel and leisure sectors.”
But if you are finding yourself a little more risk averse and not wanting to keep track of the market every day, Stearn recommends opening a high-yield savings account.
“The top savings accounts right now pay over 5% interest and are mostly available at digital banks,” Stearn said. “Compare that to the 0.46% national average available at most traditional banks and you can see why switching to a digital bank could ramp up your passive income.”
Peer-to-Peer Lending
“Platforms like LendingClub or Prosper allow you to lend money to individuals in smaller increments, earning you interest as passive income,” Shirshikov said. “Summer could see higher loan demand for vacations or home improvement projects.”
This is a lower-maintenance way to earn income, said John Crist, founder of Prestizia Insurance.
“Platforms connect you to borrowers around the world,” Crist said. “Summer often leads to increased loan demands for vacations or home improvements, which can yield higher interest rates.”
Create an Online Course
Ask yourself: “What am I good at?” Once you find the answer, you probably can figure out how to teach it to someone else, doing it all from the comfort of your computer.
“Almost any hobby or skill can be turned into an online course, which is something you build and then no longer have to invest too much time in,” Stearn said. “Think about your hobbies and skills: gardening, writing, customer service, art, cooking — there are so many possibilities. Do a search for ‘start online course’ to find out how to get started.”
“If you have a skill or hobby relevant to summer activities (like gardening, photography or outdoor sports), creating an online course can generate income as people look to develop new skills during their vacation time,” Shirshikov said.
Automated Investment Platforms
“Using robo-advisors for investing can generate returns with minimal involvement,” Shirshikov said. “These platforms manage your investments based on algorithms, making it a truly passive way to potentially grow your funds during the summer.”
Sell Digital Products
“Whether it’s e-books, photography or digital art, summer-themed digital products can attract buyers looking to enhance their seasonal activities,” Shirshikov said. “Platforms like Etsy or Shopify can facilitate these sales.”
Those products could be ones that you create all on your own, such as authoring your own e-book, which maybe could tie into a course that you offer.
“You could write a single e-book teaching people about whatever it is that you have advanced knowledge of,” Stearn said. “Or you could even write fiction. Long gone are the days of having to land an agent or get a publishing deal. There are many free resources available online that can help you learn how to self-publish on Amazon and even how to market your e-book.”
License Your Photos
“With the explosion of content creation in the summer, photographers can license their summer-themed images through platforms like Shutterstock or Adobe Stock, where marketers and content creators are in constant need of fresh imagery,” Shirshikov said.
Invest in REITs (Real Estate Investment Trusts)
When it comes to REITs, Shirshikov advised to look into “particularly those focused on vacation properties or commercial real estate, [which] often see heightened activity in summer. This is a way to invest in real estate without the hassle of direct management.”
“Investing in dividend-paying stocks and real estate investment trusts can lead to significant passive income,” Stearn said. “If this is your goal, you’ll want to make sure you’re choosing ‘safer’ stocks. You could go with an investment fund like an exchange traded fund (ETF) instead of making the picks yourself.”
Vacation Pet Sitting
“Summer is a peak time for vacations and many travelers need reliable and affordable pet care when they are away from home,” said Thomas Brock, a certified public accountant (CPA) and expert contributor at Annuity.
“This presents a great opportunity to offer pet sitting services tailored to vacationers,” Brock said. “This is not exactly a passive income stream; however, if you are an animal lover, it could seem like one.”
Vehicle Advertising
“If you live in a tourist-heavy area, companies might pay to advertise on your vehicle,” Shirshikov said. “This can be especially lucrative during the summer months when exposure increases.”
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This article originally appeared on GOBankingRates.com: 10 Best Ways To Make Passive Income in the Summer of 2024
