I’m assuming you’re here because you’ve been preached to about the beauty of passive income and are now on a quest to make it happen for yourself – me too! So glad you’re here. I’m Holly, a stay at home mom to 2, and I am exploring the best side hustles with a special nod to moms or parents out there. I’ve compiled a list of ways you can get started on your passive income adventure today!

I started this blog for a few reasons, one of the catapults was that I was super tired of men writing blogs on how to make money for stay at home moms. They kept mentioning that their suggestions were easy ways for me to make money in all my “free or spare time”. What spare time?! I’m sure they did not mean this in a derogatory way (huge benefit of the doubt here), but I felt that I needed to step up and be a voice for moms. I know you don’t have a ton of time everyday. Let’s work with that.

My other pet peeve: those writers suggested things like babysitting and dog walking.These to me, these things are not passive income. Yes, you are currently caring for your own children – why not add a few more? Caring for children is super active income in my eyes. I was growing annoyed with the “homemaker” old school approach to making money. I think starting a day home for children is a fabulous way to make money, but you will work your butt off for hours every day. 

I also do not have hours of spare time at my leisure. My kids go to bed at 7pm. So, my “spare time” starts from then until I can’t keep my eyes open anymore (usually 10pm). The list that I’ve compiled below are not just side hustles. These are things that will need some initial hard work but should be very lucrative down the road with minimal adjusting.

What is passive income?

Passive income refers to money earned with little to no ongoing effort or active involvement on your part. It is income generated from assets or activities that require upfront time, effort, or financial investment, but once set up, they can generate income on an ongoing basis with minimal additional work. The key characteristic of passive income is that it continues to flow in without the need for constant, active participation. So, it’s a set it and forget it (hopefully while it makes you money!) kind of thing.

What are the benefits of passive income?

There are plenty! Let’s break a few of them down.

• Financial Freedom: Passive income provides financial freedom by reducing reliance on traditional employment income. It allows you to cover your expenses and maintain your lifestyle without being tied to a 9-to-5 job.
• Flexibility and Time Freedom: Passive income streams often require less time and active involvement, providing you with more flexibility and control over your time. This can lead to a better work-life balance and the ability to pursue other interests or spend time with family and friends.
• Diversification: Relying solely on a job for income can be risky. Passive income streams, especially when diversified across different sources, provide a level of financial security and reduce dependence on a single source of income.
• Wealth Building: Passive income can be a tool for wealth accumulation. Investments that generate passive income, such as stocks, real estate, or business ventures, have the potential to appreciate over time, contributing to long-term wealth growth.
• Reduced Stress and Job Security: Knowing that you have income streams that do not solely depend on a traditional job can reduce financial stress and provide a sense of security.
• Retirement Planning: Passive income is often associated with retirement planning. Building passive income streams can provide a reliable source of income during retirement, allowing individuals to maintain their lifestyle without relying solely on savings or pensions.
• Opportunity for Entrepreneurship: Passive income can be generated through entrepreneurial endeavors, such as creating and automating online businesses. This provides an opportunity for individuals to explore entrepreneurship without the need for constant active management.
• Long-Term Sustainability: Well-established passive income streams can provide a steady and reliable source of income over the long term. This can be especially beneficial for individuals looking to create a sustainable financial future.

I could go on and on and on….. however, while the benefits of passive income are pretty huge, it’s important to note that achieving and maintaining passive income requires careful planning, initial effort, and ongoing management. They are not quick, easy hustles you can get going overnight. If you have managed that, please let me know how here!

What are the best sources for passive income?

There are tons of ways you can get started earning passive income. The best approach will differ from person to person depending on your skills, interests, and financial goals. The list below is not in any type of order. Your best option might be at the bottom of the list!

1. Real Estate Investments
2. Create an Online Course or EBook
3. Affiliate Marketing
4. Create a YouTube Channel, blog, or Podcast
5. Automated Online Businesses
6. Create an App
7. License your Photography or Artwork
8. High-Yield Savings Accounts or CDs
9. Automated Investing with Robo-Advisors

1. Real estate investing

Common forms of real estate investing are residential and commercial properties. Residential properties are single-family homes, apartments, or condominiums that are rented to tenants. These rental properties can generate passive income through monthly rental payments AND they pay off the rental property mortgage. Win/win! If you hold onto these properties for a while, they can be another source of retirement income.

Commercial real estate includes office buildings, retail spaces, or warehouses, which then get leased to businesses.

Depending on where you live, this may or may not be a viable passive income solution. Before investing in rental properties, it’s essential to conduct thorough research, assess your financial situation, and have a clear understanding of the local real estate market.

2. Create an online course or e-book

If you have expertise in a particular subject, you can create and sell online courses or eBooks. Platforms like Udemy and Amazon Kindle Direct Publishing can help you reach a wide audience.

It’s challenging to provide specific income figures as the success of an online course or eBook depends on a unique combination of factors. Some creators may generate a modest supplemental income, while others may achieve substantial earnings. There is a lot of upfront work with a book, but once it is ready to be published, it can be entirely passive income for you.

3. Affiliate marketing

Promote other people’s products and earn a commission for every sale made through your referral which can be done through a blog, YouTube channel, or social media. I had a short stint with affiliate marketing on Pinterest – check it out here and let me save you some time.

Affiliate marketing can be a very passive way to make money but it does require up front work to get started. It is much easier to sell things if you have an established base or following. These people likely already trust you and would be happy to buy things you suggest. Amazon Associates is a very popular site to get started on with affiliate marketing because the entry is easy and they already have built great trust with customers. There are loads of affiliate programs you can get involved in. Check out Shopify’s list of 45 of the best affiliate programs here.

4. Create a youtube channel, podcast, or blog

Regardless of the platform you choose, building a successful online presence takes time and effort. Focus on creating high-quality, valuable content, and be patient as you grow your audience. Consistency, engagement, and a genuine passion for your chosen niche are key elements for long-term success on YouTube, podcasts, or blogs.

My blog is still in it’s infancy, and it has taken a surprising amount of time and effort, but I am SO happy I took a leap and went for it. It’s been really fun and I’ve learned a ton. I’m definitely not generating any income from it right now, but I’m feeling optimistic about the future. I bought my domain for less than $35 for the year with Bluehost and I will be monetizing it with Google Adsense.

It takes time to build up an audience, maybe 6 months or more for blogs, but if you’re creating quality content in an interesting niche, people will come. The important thing to remember is to stay consistent – even when no one is reading your blogs. It is HARD to keep going when it feels like no one is there. So, here I am!

While these avenues aren’t something you can set on autopilot early on, they can have huge payoffs if you stick with it.

How much will you make? It’s a hard thing to nail down for all of these categories. I will go super ball park here for beginners:

• Blog: $0-$5,000 per month. (expect closer to $0 for the first few months. We’re thinking long term here, people!)
• YouTube: about $18 per 1,000 views.
• Podcast: $500 – $900 for around 10,000 downloads

5. Automated online businesses

Create and automate an online business, such as dropshipping, where you sell products without handling inventory, or an e-commerce store with automated processes. Think: Printify and Etsy. These are two huge ones popping up right now. I’m currently working on an Etsy digital store right now and it has been super fun, but a ton of work. Read more about it here.

Online courses and e-books can technically be grouped in this category as well since they can be automated. However, I want to keep this one more about quick products that can be produced and sold. Think digital here. Nothing is physically mailed. The initial creation phase will take some time but once it is finished, anyone can download your product as many times as they want.

6. Create an app

If you have programming skills or can hire a developer, creating a mobile app that addresses a specific need can generate passive income through app purchases or in-app advertisements.

One of our friends created a Poker app a few years ago, sold it, and made great money. I know this sounds far fetched, but think about how many apps you use daily that were probably created by a mom who saw a need and created a solution. The Huckleberry app for infant tracking was an absolute game changer in our house.

How about the Solid Starts app? If you’ve done baby led weaning or have been thinking about it, this app was life saving. Both of these ideas were thought of by Mom’s who saw a hole in the market and did something about it.

Is this still sounding far fetched? Apparently there are sites out there that can create an app for free to make you money. Disclaimer: I have never tried this myself, but it seems with AI and the internet, the sky is the limit! Check out here how to get started.

7. License your Photography or Artwork

That’s right! You can license your work for use in various media, earning royalties each time it’s used. There are a TON of websites who will pay for photos these days. Shopify has compiled a list of the 17 best websites to try. Anyone can do this. No need for a fancy camera with the latest smartphones available.

How much can you earn? Around .25 cents per download (depending on platform). It is best to do some investigating into the huge number of platforms that exist today with different rules around royalties, so ensure to look into things before you sign up. For example, ClickASnap is a platform where you can earn money each time someone clicks and views your photo.

8. High-yield savings accounts or CDs

While the returns may be lower compared to other investments, high-yield savings accounts or certificates of deposit (CDs) provide a low-risk way to earn passive income through interest. If you’re lucky enough to have a nice stash in the bank, you might as well make it work for you!

9. Automated Investing with Robo-Advisors

Robo-advisors automatically invest your money based on your risk tolerance and financial goals, providing a hands-off approach to investing. Technology is a crazy thing. This option is great for beginners as they are low-cost, low-minimum platforms tailored to what you are looking for. Nerdwallet breaks down the 12 best robo-advisors here.

This next suggestion on getting started with investing is not with robo-advisors, but just a heads up. Many banks are now offering opportunities to begin investing right from your phone. These are tailored to beginners and many offer explicit instructions and videos to help you get started.

I always assumed you needed to be an expert in stocks or have a ton of money to invest. Wrong! It has never been more accessible or easy to invest. In Canada right now (it may be available in other countries as well), at TD Bank they offer $50 if you invest $50 in your account and keep at least that amount in assets until June 30, 2024. There are no monthly fees and you have access to 50 commission free stock trades every year. Read more about beginner investing with TD here. 

How do I get started?

If you were swayed in any way by my list of reasons why passive income is amazing, all you need to do is choose something that interests you at this point. Start investigating. Interested in real estate? Check out your local market to figure out if it’s the right time to buy. Feeling like you need to fill a creative void? Youtube, Etsy or blogging could be your answer!

Had you told me two months ago I would be writing a blog to help other moms financially I absolutely would have laughed at you. I knew nothing about blogging. I know a bit more now, but I learn something new everyday. You don’t have to know EVERYTHING to get started – you just have to know the first step.

Don’t overthink or feel like you are too old or don’t know enough or are too far behind to start any of these. ANYONE can do these things – you just need to invest some time into learning a bit more about them.

Finally, don’t feel like you’re alone. I’m here with you, cheering you on! Taking those first steps can be terrifying, but they wouldn’t be worth it if they weren’t.

I’d love to hear what you’re up to here. Have you had any success in any of these areas and have advice or caution? Looking forward to chatting with you!