10 Most Effective Income Streams (Passive & Active)

I work a normal 9-5 job and lucky for me, it usually stays 40-45 hours a week. Assuming I sleep 8 hours a day for those 7 days, that’s 56 hours a week, leaving me with 67 hours of leisure or “anything I chose to do” time. Here are some things that I’ve actually done to make money within those 67 hours.

Passive Income (This usually means taking money to make money):

  • Investments and Dividends – This is the obvious one that everyone talks about. No need to get into details. Expected rate of return: 7%
  • Peer-to-Peer Lending – I recently discovered this one. Sites such as Lending Club or Prosper allow you to act as a bank for loans by building a portfolio (diversify) of “notes” you will invest in or you can choose your own notes to invest in. You will receive monthly payments of principle and interest and the site will take a cut (both sites take a 1% cut).  The site takes reasonable action on collection notification when the customer is delinquent on its payments, but do be aware, you are taking a risk and may not be paid back in full for your investment. So if they don’t get paid, you won’t either and the site won’t take the fee. I just started a 3 year experiment with Lending Club that you can check out here. Expected rate of return: 5% – 7%
  • Rental Income – While I don’t invest in buying multiple complexes to rent out, I do have a place of my own that will eventually be rented out. Since I don’t have the experience yet, I won’t comment on this. I’ll eventually have a post on being a landlord in California. Expected rate of return: Unknown. Depends on where you live.

Active Income (This usually means having to actually work for it whether at home or not):

  • Blogging – For the longest time, I didn’t really understand how people were making thousands of dollars by ad affiliates if they didn’t have a strong subscription base. After some research, most people use their blog as a platform to sell products. In most cases, the product is an online course that they have specialized skill in, a tool that was built, or consulting work. Most people have stated that ads make up a small percentage of their blogging income. Expected Income: Unlimited
  • Youtubing – I haven’t tried it, but I’m sure it works hand-in-hand with the blogging.  Expected Income: Unlimited
  • Online Tutoring – I recently started this as well. You literally tutor online. You can work from almost anywhere that has internet. They have a rigorous screening process. How rigorous? Expected Income: At least $50 a week (requires 5 hours commitment per week)Capture
    • Step 1: Application process to ensure you meet the qualifications (live in US or Canada, have a valid SSN/SIN, can work in US or Canada, fluent in English, and be a college sophomore or higher including have a degree from an accredited US or Canada University)
    • Step 2: Decide what you want to teach by passing subject exams. These are not easy exams. Most require at least a 80% pass rate with 50 questions and all exams are multiple choice. Sometimes there isn’t a high enough demand in one subject, so you need to pass 2 subject exams to move onto the next step. They allow you retake the exam after 24 hours if you don’t pass.
    • Step 3: Prove you can tutor in a Mock Session. Download their application and choose an hour session with a qualified Tutor who will pretend they are the student so they can get a feel if you’re able to tutor. Ensure your application works as well as audio and microphone. I believe they allow you to retake the mock session if you don’t pass.
    • Step 4: Go through a Background Check. This is pretty standard for any job.
  • Call Center Rep – I’ve never actually tried this and I can’t really comment on this one, but there are companies out there who outsource their call center to folks like us who can work from home. Expected Income: Roughly $20/hour, but requires usually 10-20+ hours commitment a week)
  • Craigslist Gigs – I know this sounds super shady, but this is how people in California do things. We find our roommates on Craigslist. So if you’re confident, Craigslist’s section on gigs is absolutely amazing and untapped. What can you possibly find on here that is worth your time?
    • Casino Game Dealer – My husband and I have been doing this for over 3 years now. We are pretty much Blackjack Dealer pros and good enough to work in small town casinos, believe it or not! They also train if needed and there’s opportunity to learn other games for higher pay such as craps and roulette. Most clients are corporate events, fundraisers, or birthdays. This has allowed us to travel to venues we would never normally go without having to pay lots of money to enter. For example a few years ago, a client had their holiday party at the Academy of Sciences in San Francisco. The normal entrance fee is $35 per person, but since we worked that evening, we quickly walked through the museum during our breaks and didn’t have to pay the $35. In fact, we were paid that night instead!  Expected Income: Usually $20 – $30/hour with higher pay during the December holiday season
    • Catering Staff – Similar the Casino Dealers, you can be attending events and getting paid to serve food to guests. I haven’t tried it, but I’m sure this requires a lot less training than the Casino Dealers. Expected Income: Usually $20 – $30/hour with higher pay during the December holiday season
    • Bookkeeping – I have seen many small companies/individuals who cannot handle their own bookkeeping and offer to pay people to take care of this from their own home. If you know some basic accounting, this will be easy money for you! Expected Income: Usually $20 – $30/hour

Why commit part of your 67 hours to another stream of income? Uncertainty.

In today’s world, no 9-5 is for certain anymore and you could be laid off or your job could be eliminated at anytime for whatever business reason. While there is 6 months of unemployment checks coming in, let me tell you from past experience…”funemployment” gets boring FAST. There’s only so many jobs you can apply to in one day and only so much TV/sleeping you can possibly do before you’re bored to death. Theses extra streams of income not only bring in additional money during unemployment, but it also keeps you active in the community and in life. It gives you a sense of purpose and motivation after 3 months of fruitless job search. In fact, some people have turned these passions into a full-time job and quit their 9-5 to work on these things that may bring greater joy in their life.

So, if you are interested in learning more about any of extra streams of income above, please leave a comment!

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