If given the chance to make more than what you’re earning now, would you take it? When you’re opportunistic enough, you could earn more on the side without having to give up the career you’ve started. In comes the concept of passive income investment.
Contrary to popular belief, not all of your money has to be “hard-earned.” Smart side investments can take little to no effort when you have the determination to grow it. Whether you’re a student looking to get ahead in life, a minimum wage worker planning to start something bigger, or an OFW looking for side investments in the Philippines, you can most likely attain your financial goals with one or more of these 13 passive income ideas.
13 Passive Income Ideas in the Philippines to Earn Extra Income
A Brief Introduction: What is Passive Income?
Passive income refers to the gains that you earn for investing in vehicles that don’t require a hefty amount of work. But earning passive income isn’t necessarily making money out of nowhere. It takes good judgment to know if your investment of choice is worth a go. The best choice for you should be one that plays with your strong suits. If you already have an established familiarity, investing in these vehicles will come much easier.
Passive Investment Vehicles
There are different investment vehicle ventures that you can try in the financial world. However, not all of them are hassle-free. Some require careful attention and a good amount of time and effort to really grow some success stories from it. Others, however, can almost take care of themselves if you play your cards right. Here are some common investment vehicles that will earn you a fair amount of income without taking too much of your time.
1. Dividend Stocks
Stocks are one of the most popular ways to invest your money if you’re looking for a short-term fix. If it’s passive income you’re after, you would need to look for ones that yield Dividends.
Dividend stocks are the companies that regularly pay their shareholders. They are usually big companies with impressive track records. More often than not, these companies will pay quarterly.
Any Filipino can participate in the Philippine stock exchange no matter where they are in the world. It takes a lot of research to completely figure it out how it works, though the annual yields in a matter of years can go up to 50 percent if you’re smart enough.
2. High Yield Savings Accounts
Saving your money in the bank is definitely a wise way to prepare for future expenses. But keeping it where it is now won’t necessarily get you high enough yield to be considered passive income. Some banks don’t offer more than 1 percent annually.
The solution to this is for you to find a bank that offers the highest yield you can afford. Look through brochures, ask consultants, and go through the options that will not only secure the money you currently have, but grow it to a considerable amount as well.
3. P2P Lending or Microlending
This investment vehicle may not be the most conventional, but will pay off if you’re careful about it. Most commonly known to us Filipinos as “utang,” Peer-to-peer lending is taking a chance on someone by loaning them a certain amount of money with a return percentage coming back to you. The advantage of this is that it takes away the “middle man,” such as banks and corporations, and all the profit goes back to you. The disadvantage is its informal nature, which can lead to some major security problems and broken trusts among peers.
This investment vehicle works best when you’re someone who knows how to judge people’s character. People who keep their word will most likely put their loan to good use. Others may not be the same. Be picky when you’re choosing who you can trust. If payments cannot be made through money, perhaps there is an agreement that you can work out.
Business Ventures
You don’t need a professional degree or prior experience to start your own business. While most entrepreneurs put all their time and effort to keep their business afloat, there are some opportunities in the Philippines that don’t necessarily require that. Here are a few business ideas that anyone can start on the side.
4. Second-Hand Selling and Renting
The “ukay” culture of the Philippines makes secondhand selling one of the most popular kinds of business. But you don’t need to own a shop or a kiosk anywhere to get started on this venture. You can take a light approach by selling items you don’t need to people you know by posting them on your socials. And if there aren’t any takers, there are websites such as carousell.ph that allow you to sell your preloved items to the online community.
Other items that are high in value such as top-notch equipment, real jewelry, or expensive clothing don’t need to be given up right away. You can also rent these out to people who are only looking to use it for a period of time. Just make sure that there is an agreement beforehand to ensure they come back to you in one piece.
5. Small Side Business
There are many ways to go about starting small side businesses.
If you’re a home chef, you have the option to do some old fashioned catering in your office events or sell homemade goods and bakes upon request. It also gives you the chance to share your culinary skills and earn from it too.
Got an office that’s a little bit farther from the closest convenience store? Earn just a bit of extra income by being the go-to person for Postpaid loading. While you’re at it, you can even sell other small items such as coffee sachets or tea packets to people in the morning.
You can explore other ideas that don’t necessarily have to expand to something bigger. When you have a hobby or talent that you can easily turn into a service or turn out a product that people would enjoy, take advantage of it. If you see a small business opportunity to capitalize on, take a chance on it. There’s no harm in putting your skills and opportunistic mindset to good use for a bit of income.
6. Buy an Existing Business
Passive income can come in the form of a much bigger opportunity. When you’ve got your eyes set on owning a business but don’t really have the time to start one yourself, then find one that you can pick up from. If you go through classified ads or scroll through some online ads on sites like linkbusiness.ph, you’d be able to find established businesses being sold by the owners.
Ideally, the kind of business that you would want to purchase is a business being given up for other reasons than financial struggle. There are owners that sell their business for reasons like retirement or the owners are migrating elsewhere. When they are selling it due to the decline in sales, then it would take a lot of time and money to get the business going again. So in order to make sure you’re taking a business that can run itself at a good price, make sure to check their revenue history and see if their papers are all in check.
7. Silent Business Partnership
You may know a handful of passionate colleagues willing to start a business of their own. If you can think of one or two whom you really trust would do incredibly well if only they had help, then that’s where you can step in.
Being a silent business partner has its multiple pros and cons on both ends. When looking from your end as someone looking for passive income, the benefits will only appear as positive depending on how you look at it. The difference between you and an investor is that most major business decisions will be run through you and you will earn a great portion of the profit. However, you will surrender most of the control of the business to your active business partner.
If you’re the type of person that is willing to support a colleague’s passion and have them define the brand, then this would be an ideal arrangement. But before diving into a good friend’s business plan, it is still important for you to judge whether or not your partners are reliable enough to keep the business afloat.
Real Estate Investments
Real Estate is known for bringing in high yields. But it isn’t quite easy to keep afloat, so it sounds almost good to be true that there are passive income options in this investment vehicle. But with the right kind of strategy, you can profit with the land that you already own or make the most out of your purchased property.
8. Transient Rooms or Put them on Airbnb
Every town or city is known for something at a certain time of year. Seasons such as summer or holidays draw in crowds of tourists who need a place to stay. If you have a place with an empty room, then rent it out for the time being. Lots of people would rather find transients to stay at lower costs compared to hotel rooms. And if you think you’d have a hard time finding temporary tenants, you can put your property out on Airbnb.
9. Condotel Investing
Some passive income investments come with perks outside of financial profit. This is true with the concept of condotel investing, a rental concept that has steadily gained popularity among real estate investors. Derived from two words, “condo” from condominium and “tel” from hotel, this type of investment is popular among OFWs who want to own a property in the Philippines and profit from it at the same time.
Being a condotel investor entails purchasing a condo unit of your very own and renting it out short-term, much like a hotel, when it’s not in use. Developers find tenants for you and manage their every need like professional hotel staff. The upsides of this investment is that you own your very own property and you’re profiting from it as well. The downside is that it may require a hefty amount of capital. Luckily, some developers such as CitiGlobal provide affordable leisure, making sure you own a piece of paradise at an agreeable rate.
Online Investments
The internet has opened doors for virtually almost anyone to profit from. Influencers have even made their online personality and brand as their main source of income. But that doesn’t necessarily mean that you have to become one yourself. With a bit of creativity and ingenuity, you can earn money online while doing the things you love. Here are some possible online options to venture on.
10. Start a blog
Got a knack and passion for writing in your spare time? Then head on over to your desktop and start a blog of your own. From the stories of your everyday life to industry-related niche topics, there is certainly an audience that will take an interest in what you have to write. But starting one isn’t as simple as it once used to be.
To really profit from this venture, you will need to invest some money into purchasing a domain name and handle maintenance fees for it to stay up. It also needs some time before your blog can truly blow up to be considerable for monetization. Blogs earn through many ways, most commonly through selling ad space on their site. Alternatives to this include offering paid guest blog posting, using Affiliate Links in your content, sell digital products, and many more.
11. Make and Sell Websites
If you’ve got the tech-savvy skills of a developer with an eye of a designer, then put your skills to good use. Many aspiring businesses are looking for already made website templates to use. There are directories online where you can create websites and put them up for bid.
12. Online Streaming
Websites such as YouTube and Twitch allows its users to stream live. This feature is often used by Gaming Influencers and can earn them a significant amount of money when viewed by multiple people. If you’re wondering how this works, the answer is pretty similar to how monetizing blogs work as well.
You can run ads in the stream by which you get paid by the platform. Affiliate programs are also another avenue for streaming videos to earn. But if you’re willing to, you can accept fan donations as well. If you enjoy gaming but can’t edit videos, this would be a great option to be paid for a pastime hobby.
13. Royalties
If you have a passion for the arts in fields like photography and video or graphics editing, then you can very well earn yourself some extra for your talent.
Aesthetic snapshots on your phone can easily be submitted to sites like iStock, Flickr, and Shutterstock who will compensate you every time your photos are downloaded for stock image use. You may not be a professional photographer, but you’ll never know what kind of image people online are looking for. The same applies to stock video, which you can submit to the same sites mentioned.
There are many ways you can earn enough to live a comfortable life if you choose to look at the brighter side of things. You can very well try climbing up the corporate ladder, though it might take a while before that works out. Saving money can also help If there is an opportunity for you to earn something on the side while reaching your goal, there’s no good reason why you shouldn’t give it a go.
Earning passive income still comes with its pros and cons. There is still a risk factor when your side investment doesn’t work out. But that doesn’t mean you should stop trying. It may be slow at first, but it will continue to build as you go. Some investments may even go a long way, earning you more than you expect. Investing your money towards a better future will pay off eventually.
ALSO READ: 20 Ideal Investments in the Philippines in 2020
Essentially, one of the main reasons for investing is so you can live a better life in the near future. But you don’t necessarily have to wait for a life of luxury if you decide to start condotel investing with CitiGlobal Realty and Development, one of the most reliable real estate developers that can help you earn passive income and own a piece of paradise at the same time. CitiGlobal offers a stress-free condotel investment plan, which allows you to earn money when your luxury property is not in use.
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