How to Make Passive Income on Active Duty

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How to Make Passive Income on Active Duty

When you’re in the military, every once of time is focused on your job and well earned rest and relaxation. Thare is very little time to manage your wealth and assets or to find a side hustle to help you make ends meet.

So it is critical for our servicemen and women to invest their savings in ways that will create passive income. This allows them to make money while they sleep or while they are performing the most important jobs in the world.

Generally, there are three ways to make passive income: investments & savings, providing goods or services, & selling online products or services. 

And these can be done without a full-time commitment or active participation. Some do required upfront effort to maximize profit while others are significantly more passive (but will tend to have lower returns). The financial rewards can be enjoyed immediately or sometime later down the road for “a rainy day”. Either way, it is an excellent opportunity to have your savings (and sweat equity) create passive income for you.  

Here are some of the ways on how to make passive income on active duty.

How to Make Passive Income on Active Duty

1. Mutual Funds

General Overview

As an investor, you’ll buy shares of the mutual fund. Then, companies will pool the money and invest it on stocks, bonds, securities, etc. In terms of profit, each investor on the mutual fund will have a pro-rata claim.

Benefits

Unlike other forms of investments, you don’t need a large amount of money to start investing in mutual funds. In fact, certain mutual funds allow you to buy shares for as low as $50. You can also raise your shares over time, further boosting your earnings as profit relies greatly on funds you invested.

Risk

Although you can receive a high profit, especially in the long run, it is also dependent on its market performance. There’s a chance that the value will fluctuate, in some cases even by 30-40% overnight. With this, you must know what to do given the market’s behavior.

Platforms to explore

There are various options available, with some of the best mutual fund companies, namely Fidelity investment, American funds, and Vanguard.

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2. Annuities

General Overview

Annuities are insurance contracts that promise your comfortable retirement life by giving you monthly payments or lump sum during payouts. During your contribution period, you can either pay once or in series (usually monthly or quarterly).

Benefits

Annuities are a good source of money once you’re no longer receiving a salary. The amount of your payout will depend on your type of annuity and your payments during the contribution/accumulation phase. There are also various types of annuities that you can ask with your insurance provider.

Risk

Although the benefits are promising, you have to be wise in choosing your insurance provider. Remember, you’ll get your payouts during retirement, so make sure that the company will still be there by then. Also, as a long-term investment, withdrawing your payouts or stopping your contribution early on might cause your penalty charges.

Platforms to explore

Some of the best annuity companies to explore include Annuity Gator, Blueprint income, and Facet wealth.

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Annuities

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3. Online Selling Business

General Overview

Internet and social media were a game-changer in the business landscape. Businesses maximize social media presence to advertise and to sell or resell products or services. All you need are mobile device/s and an internet connection, which most likely you already have, to get you started.

Opportunity

If you spend a few hours online every day, this is one of the best ways to turn it into income. While browsing, you can just spend a few minutes posting, advertising, and managing the responses, payments, and delivery method. Online selling also provides you with a broader market since you can also cater to various local and even international clients.

Risk

It may take time before you can have a reasonable income, especially if you’re still new to the business. Likewise, there’s a chance of not earning at all as various products may be saturated online. Also, be careful of what may harm your business, especially that spreading hate and fake news are relatively easy online.

Platforms to Explore

You can opt to have your own website, which may cost you a few dollars. But if you lack funds, you can set a free account on social media platforms like Facebook, Instagram, and Carousel.

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The Best Book on How to Sell ANYTHING Online

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4. Passive Income Applications

General Overview

Aside from selling online, you can also maximize the internet and your mobile devices through passive income applications. Most applications, like Earnably, will require you to finish a series of tasks or activities to gain points convertible to cash. Others will just get your browsing data, like the sites you often visit, for analysis.

Opportunity

Although this is a relatively slow way to earn extra, it’s still a side hustle, especially if you’re active online. If you enjoy watching videos, playing games, or answering surveys, this might be for you. Some will also let you earn points by just checking your browsing behavior even without asking you to do anything.

Risk

Since these applications will gain some of your necessary information and will be connected to your devices, ensure their legitimacy. Your security and privacy are at high risk, especially since it’s the internet we’re talking about. 

Platforms to explore

Some of the legitimate and top passive income applications you can try to include Honeygain, Sweatcoin, and Swagbucks. 

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Passive Income

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5. Rental

General Overview

From car and apartment rentals to equipment like projector rentals, there are various businesses that you can explore here. But since you have to own at least 1-2 units to begin, costs can be higher compared to others. This might also need more work than other passive income as a rental business requires monitoring and maintenance.

Opportunity

There’s a high demand for these necessities. Also, as mentioned, you can start with a few units then add as you master the right strategies to use. You can also outsource other people to lessen your workload like for maintenance purposes. 

Risk

You won’t feel the profit instantly. Plus, you also need to ensure that your income will be way past your costs. It’s essential always to consider your total costs, return on investments, and financial risks before venturing on this business.

Platforms to Explore

Aside from Airbnb, you can also try other alternatives for house or room rentals like Booking.com and TripAdvisor Rentals. For car rentals, try Turo, Drivy, and Getaround while you can maximize social media and physical posters/flyers for equipment rentals. 

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The Book on Rental Property Investing

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6. Affiliate Marketing

General Overview

If you happen to have a website, blog/vlog, or numerous social media followers, you might want to consider affiliate marketing. This means you can earn through commissions by promoting another party’s product or service through your posts. By posting their product or website link, you’ll get to make depending on your agreement (i.e. per click or purchase).

Opportunity

There’s an excellent opportunity to earn particularly given your number of followers/clients & appeal and credibility of the product/service advertised. You can also explore partnerships with multiple companies offering different products/services. Affiliate marketing can also effectively widen your sphere of influence and market following.

Risk

There’s a possibility that this won’t work for you specifically if the product/service being advertised is not profitable at all. It’s also a challenge to persuade people to patronize something, more so if you have few followers/clients. You have to do a lot of work when it comes to marketing strategies.

Platforms to Explore

The big names for being an affiliate partner include Amazon, eBay, Awin, and ShareASale.

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How To Make Money With Amazon Affiliate Marketing

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7. Automotive Marketing/Advertising

General Overview

By merely letting some companies put advertisements on your car, you can earn extra while driving around. Although, companies have strict requirements before they let you advertise, such as a clean driving record or newer automotive. 

Opportunity

Automotive marketing/advertising allows you to earn without additional costs. It won’t require much effort on your end, especially if you’re used to going out and driving. You can also use your vehicle for additional income in a less stressful way compared to car rentals and servicing.

Risk

Beware of partnering with fraudsters. Scams are common in this business. Just remember, in this type of engagement, you are not supposed to spend money. Stop when anything becomes suspicious in the process.

Platforms to Explore

Some of the trusted, legitimate operators include Carvertise, Wrapify and StickerRide. If they don’t operate in your area, try looking for local companies. But again, remember to check their legitimacy.

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Mastering Automotive Digital Marketing

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8. Blogging or Vlogging

General Overview

If you love writing, you can start making your own blog. But if a video is your medium and you’re comfortable with the camera, maybe vlogging or video tutorials is for you. Whatever your preference is, both will give you income depending on your readership or subscription. A higher number of views means higher earning.

Opportunity

You can work with various topics and content. You have the freedom to express yourself and do what you want. Still, take note that the quality of your content is as important as the quantity. You can also learn from the strategies of those who’ve been in the industry for quite some time. 

Risk

Like other passive income, it may take time before you earn. Sometimes, you have to wait for a couple of months before reaching the number that will allow you to make a profit. There’s also a risk that people wouldn’t be interested in your content. You have to earn your place and work your way up.

Platforms to Explore

For vlogs or video tutorials, the most popular platform is YouTube. Meanwhile, for blog starters, WordPress is the usual platform used.

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How to Be a Blogger and Vlogger in 10 Easy Lessons

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Final Words

Although it’s passive income, these investments often still entail some time and effort. Passive income is an alternative way to earn money but can sometime take time to generate profit.

Choose from the list above then do your homework. Conduct additional research regarding the opportunity of your choice and take necessary action. It might be challenging at first. But trying and investing until you meet what’s best for you is already a good start.

 

 

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