Can you really make money by driving around, letting people "borrow" your things, or even while sleeping? We often think earning extra cash requires a second job, but there are many ways to build residual income without adding extra work to your plate. In some cases, you might already have everything you need to get started.
Rent your way to prosperity
What happens to your stuff when you're not using it? Usually nothing. But your car, spare room, vacation home, and even your lawnmower could be earning money instead of gathering dust.
Monetize your vehicle
Your car can make money for you in two distinct ways. First, you can allow an advertising firm to wrap your car in an ad for one of their clients. A specialized advertising agency will evaluate your driving habits, including where and how many miles you drive. If you're a match with one of their advertisers, the agency will "wrap" your car with the ads at no cost and pay you a one-time or monthly fee.
However, you need to conduct some due diligence. If a company wants payment upfront or you see other warning signs, move on. As in many industries, there are scammers out there.
If your car sits idle most of the time, you can also list it on a car-sharing platform such as Turo, Hyrecar, or Getaround. Similar platforms exist for boats, RVs, and bicycles. Just make sure you understand the terms and insurance coverage before you sign up.
Rent your space and stuff
If you're nervous about a stranger "borrowing" your vehicle, boat, RV, or bicycle, you can rent your pool and keep an eye on your property while making money. You can also make a spare room, your whole house, or even a vacation property available to rent. You can list these on a rental site or on a local site such as Facebook Marketplace or Craigslist.
Interested in renting out other stuff? Several peer-to-peer sites exist for tools, such as SpareToolz, and virtually everything else, like FriendWithA. That lawnmower you use once a week could be making you money the other six days. If you have a two-car driveway and only one vehicle, or an extra parking space, you can even rent it to someone who needs a parking spot.
Participate in trials or focus groups
If you have some spare time, pharmaceutical manufacturers and other healthcare companies are always conducting paid studies and clinical trials. A quick search will turn up trials in your area as well as national trials, such as those funded by the federal government.
Generally, these will have specific requirements regarding age, gender, or medical conditions. And yes, there are actually studies where participants are paid to sleep.
Make your money make money
If you regularly invest in individual stocks or mutual funds, choosing stocks that pay dividends, or mutual funds composed of dividend-paying stocks, have the potential to offer both regular income and long-term growth.
While bank accounts offer a stated interest rate, many well-known companies pay dividends every quarter that can provide an alternative source of income, though with a different risk profile. It's important to remember that unlike a bank, dividends can fluctuate and your investment isn't insured.
Explore peer-to-peer lending
You can also invest in peer-to-peer lending on sites such as Prosper or Lending Club. Investments start at only $25. There are obvious risks in lending to strangers, so don't skimp on due diligence before investing.
Crowd-funded real estate
If you'd rather invest in buildings than people, you can also put your money in a Real Estate Investment Trust (REIT) or crowd-funded real estate on platforms like Fundrise, CrowdStreet, or Upright. These projects are vetted and managed by others, but again, you must do your due diligence.
Invest in real estate
Rental property has the potential to provide both steady income and long-term growth. With rental rates soaring, homes in many areas can generate rents that will cover the mortgage, utilities, maintenance, and other expenses with income left over.
Years from now, that property may be worth more, or much more, than it cost, meaning a potential extra income boost when you sell it. Owning rental property requires a lot of upfront research, and there are potential financial and tax considerations. As noted above, invest some time in due diligence before investing your money.
The Facet difference
Managing multiple income streams and assets requires a clear strategy. At Facet, we don't just hand you a one-time document and walk away. You'll work with a CFP® professional who works with you to create a dynamic, ongoing, and evolving financial roadmap for all aspects of your life.
Our membership model is built on a flat fee, so we don't charge a percentage of your assets. This means our objective advice is free from product commissions and AUM-based fees, keeping our focus on helping you achieve self-fulfillment and financial wellness. Whether you're renting out a spare room or building a real estate portfolio, we're here to help you navigate every step of the journey.
