10 Ways to Make Your Money Work For You


Passive income is money you earn on a regular basis with little to no effort put into it. For many people, it sounds like a dream come true; after all, passive income is probably more appealing than working overtime at your job. Who wouldn’t want to earn money while they slept?

If you’re interested in earning a passive income, there are a number of different ideas you could consider. Some require an upfront investment, while others require a little bit of creativity. It helps to think outside the box and play to your strengths when developing a passive income stream.

Keep in mind that passive income is still income, and in many cases will still be subject to tax. You can’t win them all!

Here are 10 passive income ideas to get you started.

1. Rental income

Renting out property is perhaps the most well-known method of earning a passive income, and for good reason. Tenants pay you rent, which can in turn cover the mortgage. If there’s no mortgage to pay off, that money goes straight into your pocket. What’s more, if you own a rental property, you are usually eligible for a range of tax deductions.

2. Rent out part of your house

If you don’t have the cash to invest in a property, why not consider renting out a room in your own home? Companies like Airbnb have made it easy for people to rent out part or all of their home on a short-term basis. This could be a good fit for people whose children have moved out of the home, leaving behind spare bedrooms, or for those whose home is unoccupied for part of the year.

3. Rent out a parking space

Don’t have a room to rent out? A private parking space that you don’t use could be your ticket to a passive income. These car parks are hot commodities, particularly in a city’s CBD. Apps like Spacer and Carparkit can help you connect with someone who is looking to rent a car space for a fixed period of time.

4. High-yield savings account

Make your money work for you by depositing it in a high-yield savings account. Each bank offers different introductory and bonus rates, so it’s worth checking out different offers. For example, if you put $10,000 in a savings account with a 2% annual interest rate, you’d earn $200 in 12 months for doing absolutely nothing.

You could also consider a term deposit, where you agree to deposit money into a bank account for a fixed period of time. The more you deposit and the longer the length of the term, the higher the interest rate tends to be.

5. Credit card rewards

Credit card reward points can actually earn you money if you’re smart about it. Choose a card with an initial points bonus, then use it for everyday purchases where you earn points. The key is to make sure you pay the credit card off at the end of each month, or you could find yourself accruing interest and getting into debt.  

Credit card points can be converted into dollars, which you can spend with affiliated companies. Usually these companies are places where you’d spend money anyway, like supermarkets or department stores.

6. Affiliate marketing

This one requires some upfront work, but once you’ve put affiliate marketing into place it is a very effective way of earning passive income. You’ll need a website that receives regular traffic before you can start. The next step is to join affiliate programs (such as those offered on Amazon), where you promote other people’s products on your site. For each sale you make, you’ll earn a commission.

7. License your photographs and videos

Got an eye for photography? Your high-quality photographs and videos could be earning you money on websites like Shutterstock. Create an account, upload your photos, and earn a percentage of the sales price or a flat fee for every time they are downloaded. You can retain the image copyrights and license non-exclusively to maximise your earnings.

8. Invest in dividends

You could invest in companies on the stock market that pay dividends to their shareholders. In most cases, these companies pay out quarterly dividends of 1% to 4%, so you’ll see cash in your account four times per year. Higher dividends don’t necessarily mean more money for you, as these can be high-risk investments.

9. Create a product design

This is where you can get creative: come up with a design that is easily mass-produced and sold. Potential products include mugs, phone cases, t-shirts, greeting cards, or prints. Websites like Society6 make it easy to upload a design and apply it to a variety of products that you can then sell to the public. All it requires from you is the initial artwork, then the rest is passive income.

10. Peer-to-peer lending

Also known as ‘marketplace lending,’ peer-to-peer lending matches people who have money to invest with people who need a loan. Investors can then earn interest on the money they’ve loaned out. The lending risk falls on the investor; if the borrower doesn’t pay their loan, you’re the one who loses.

Remember that no passive income venture is guaranteed to be successful, and all of them do come with some degree of risk. Do your research before investing your money or your time in any new passive income ideas.

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