Getting a formal education is a great first step in obtaining a high-paying career, but it also comes with a lot of expenses. Things like rent, food, and student loan debt can weigh heavily on your bank account and can make it seem impossible to get out of that student debt.
Having passive income streams is one of the best ways to alleviate those stresses. This article explores different avenues of passive income for college students, the different types of passive income, and some passive income strategies you might want to consider as a college student.
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What Is Passive Income?
Passive income is money you earn with minimal effort, sometimes without direct involvement. It can be hard to solely rely on your active income, which is why it’s so beneficial to have a passive income stream that you can fall back on if needed. Having a passive income can provide you with financial assurance, especially as a college student.
Passive Income Strategies for College Students: Types of Passive Income
If you’re looking for a passive income opportunity, the list below can assist you in determining which kind of passive income strategy you might be want to pursue.
Rental income requires you to rent out a space or room. Here, you’ll have to determine the property’s cost and expenses where your tenant will pay you monthly. This requires minimal effort on your end. However, it will be your responsibility to handle any necessary repairs within the rental space.
Affiliate marketing requires you to promote a third-party’s product or service by including affiliate links within your social media posts. Typically, your social media profiles should have a decent following, as your income is reliant on commissions. You will earn passive money every time someone purchases the product or service through your affiliate link.
Financial Investments Income
Financial investment income is a fancy way of saying you will be investing in stocks, mutual funds, or dividend stocks. When the value of the funds or stocks increases, you are likely to earn more. It’s important to obtain advice from fund managers before you start investing thousands of dollars.
10 Best Passive Income Ideas for College Students
1. Make YouTube Videos
YouTube has over two billion active users, which makes it of the best online platforms for vlogging or posting other content for passive income. As your engagement with your audience and number of subscribers grows, you could find yourself earning thousands of dollars. Once you get to 1,000 subscribers and 4,000 views, you can monetize your content and eventually display it through advertisements.
2. Start a Blog
Although starting a blog might take a lot of time and effort at first, it will eventually become sustainable on its own. Once you’ve gained an audience through social and organic traffic, your blog will benefit from affiliate links and sponsored posts, products, and courses. Running a blog is cheap, and attending creative writing courses can strengthen your writing skills to ensure you are producing the best content.
3. Sell Digital Products
College students are often tasked with testing their creativity by producing research papers, detailed class notes, and flow charts. You can also use those skills to sell digital products online like PDFs, printables, graphic designs, and other digital goods. The great thing about this one is that you’ll only have to do it once, but can reap the benefits of earning extra money for years afterward.
4. Invest in Stocks
Investing in the stock market is one of the best investment and passive income options. According to the World Bank, the stock market return was reported to be over 10 percent in 2020. Investing in stocks in the stock market is a great way to build long-term wealth. You can reduce the risk by selling and holding stocks until they appreciate.
5. Sell Stock Photos
There are many stock photo websites available to sell your photography on. If you’re a photographer, monetizing your photography by selling it to stock photo websites is a great way to earn extra income. Websites like Alamy, Shutterstock, and Adobe Stock are all great options for producing a steady flow of money.
6. Store People’s Belongings
If you have extra space that you’d be willing to rent to someone for storage, then this passive income idea is for you. Allowing people to rent your space will provide you with additional money, while you hardly have to do anything. Once the items are in the space, you shut the door and wait until they are ready to take it back.
7. Design Shirts
Designing concepts for digital products is a quick and easy gig that will earn you extra money in college and add to your passive income portfolio. All you have to do is create the design, and the supplier will handle the rest of the process. When the item sells, you get paid. Amazon Merch is a reputable platform to get you started. There are graphic design courses you can take to help you enhance your skills.
8. Write an Ebook
Writing an ebook is an affordable way to earn money, making it a great passive income idea for college students. If writing is your passion, then writing an ebook is an excellent opportunity to hone those skills while profiting from them. An ebook is short, usually composed of 30 to 50 pages, and you can rely on your expertise for the topic.
9. Rent Your Parking Space
If your student accommodation comes with a driveway but you don’t own a vehicle, then you might want to look into whether or not you can rent out that parking space. There are a lot of students who would be thrilled to have that space since monthly fees can be costly. If your place is near the campus, then that parking spot is a catch for students who have cars.
10. Advertise Using Your Car
If you have a car and wouldn’t mind a company’s advertisement decorating the outside of it, then this one’s for you. You can actually make a fair amount of money by allowing advertising companies to rent the available space on your car.
Other Ways to Make Extra Money as a College Student
- Become a pet sitter. Pet sitters are receiving more attention as people are beginning to return to work. You can join apps like Wag or Rover where you can apply as a pet sitter and walk other people’s dogs.
- Answer survey sites. Some survey sites will pay you to answer their surveys. Although you shouldn’t expect to get a large amount of money from doing so, it is still a quick and easy way to earn some cash.
- Do freelancing. Freelance work is great for those who might have some spare time on their hands and want to lend their services to others. You can do simple tasks like transcribing, data entry, or designing. There are great freelance jobs out there that pay well, too.
- Sell old gadgets. If you have old devices or gadgets that you’re not using anymore, selling them is another way to get rid of them, while still getting a portion of your money back.
- Tutor other students. Some students have difficulty grasping certain concepts and require the help of a tutor. Many colleges pay students to tutor other students from the same campus. Alternatively, there are online websites that allow you to advertise your tutoring services.
How to Make Passive Income for College Students
Earning passive income as a student is a great way to procure an easy monthly income in college. Getting a college education is expensive and having multiple streams of income will help remove some of the pressure. There are a lot of passive income streams college students can benefit from, including real estate, affiliate marketing, and stock investment.
Passive Income for College Students FAQ
A 20-year old can make passive income by creating a blog, selling digital products, making real estate investments, or affiliate marketing on social media platforms. Some other passive income ideas for students include starting a YouTube channel or renting out your parking space.
Some of the easiest sources of passive income for college students include selling stock photos, using your car for advertising, and investing in stocks. All of these passive income sources require minimal effort in a busy college student’s schedule.
Creating a YouTube channel allows you to earn a passive income with no money. Creating a YouTube channel is free and you can use whatever resources are available to you to get started. Once your YouTube channel begins gaining attention, there is a higher probability of receiving paid partnerships and monetization.
Creating an ebook, selling digital products, and freelancing are all different ways for students to make money online.
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