Passive incomes are a must-have, especially with the Philippine’s economy struggling with the coronavirus pandemic. These days, everyone needs extra income to financially support themselves and fulfill the needs of not just themselves, but their entire family.
Well, what’s a better solution than to get yourself a passive income? It’s the best way out of this situation. Here are the best passive incomes in the Philippines that anyone can do.
What are passive incomes?
Passive income is money that you earn without active involvement. In other words, it is income that isn’t attached to an hourly wage or annual salary.
Even while you work your main job, you can have extra income flowing in, so that if ever you are in a tight situation where you run into problems with your primary job, you can have financial security.
Passive incomes are a strategy that you can use to your advantage in ways such as accumulating savings, generating investment funds or building wealth in general.
But, what exactly does passive income mean? Well if passive means “not active”, then passive income means to earn money without being actively involved in it. These are low effort, but profitable sources of income.
Why should I get a passive income?
Through passive incomes, you can have multiple sources of income. That means you can have extra streams of cash flowing in even while you work in your main job. In short, you get more money than if you only had one source of income.
Why is it important to have multiple sources of income?
Having multiple sources of income is the best way to get rich. You can earn millions if you compiled all the money from your passive incomes and main job.
Multiple sources of income also provide financial security. If one of your businesses fail or if you get fired from your job, you can still have an extra source of income to financially provide for your needs. This is backup money to help build up your financial status in case you’re in a tight situation.
With financial security, you can have financial freedom and that’s something everybody wants.
Passive Incomes in the Philippines
Here are passive incomes in the Philippines that anyone can do:
This is the most popular form of passive income in the Philippines. You’ve probably already bought from an online business before or you have a relative who owns one. Even children can make their own online business (under parental supervision, of course) These businesses are everywhere and you can have one too.
What can I sell?
Through online businesses, you can sell absolutely anything from food and clothing to machines and vehicles. When I say anything, I mean anything and everything.
If you have machines that you can put out for rent, then that’s also a spectacular way of offering products through your online business. There are a number of people who offer machines like stand mixers for bakers or espresso machines for coffee enthusiasts. They even let people rent their heavy equipment like welding machines or concrete cutters.
The most common product that people sell these days is food because who can’t get enough of food? There are a lot of talented chefs and bakers out there and if you have the talent too then go for it!
If you like to do retail, you can resell products on online platforms. This is a very common, but profitable practice even in real-life physical businesses.
If you have the skill, you can sell handcrafted items like paintings, wooden carvings, furniture, clothing, home decorations and more. These days, Nordic and Scandinavian furniture and decor are super popular.
Where can I sell?
Most online businesses in the Philippines operate mainly through social media platforms, especially on Facebook and Instagram.
Ever since the beginning of the pandemic, online shopping platforms like Shopee and Lazada have gained a lot of popularity. These are popular platforms for both buyers and sellers because it’s fast, convenient and a cheaper option.
Some online businesses even become successful enough to open a physical store.
Why make an online business?
Online businesses never die. Because of its convenience, people will always buy from them. This sector of the market is growing and will keep on growing. As long as your products or services appeal to your customers, making an online business is one of the best sources of income.
Many people in the Philippines are starting to invest in real estate. There are many ways to use real estate to your advantage. This is one of the proven and trusted through time the best passive income in the Philippines.
Investing in Land/Condominium
Buy land while the price is still low then sell when it’s at a higher price. The value of land is always growing, which is why it is an ideal investment for many. With the growing population in the metro, you can keep track of big real estate developer building and constructing new properties.
Its advisable to do a background check, check online reviews and community feedback before diving into real estate investment since this is a long-term commitment and require more planning and budget.
Some of the well known and popular property developers:
- Robinson’s Land Corporation
- Vista Land
You can build a house on one of your lands, furnish it and you’re good to go. You can earn big money from letting people rent out the house per night.
Of course, it doesn’t necessarily have to be a house. Just decorate a space that you can sleep in and let people rent it out. It can be an apartment, a small studio or even a room in your house.
Rent Out a Space
If you have spare space in your house or apartment, you can let people rent a room. A lot of people are looking for homes, especially in big cities. Who knows? Maybe you can provide them a roof to sleep under and profit at the same time.
It doesn’t have to be in a house or apartment. It can be your garage, your backyard, your storage, anything! As long as it’s a space that people want or need, you’ll be profiting in no time.
If you have a commercial lot that is not in use, you can rent it out to other people. Renting out is a cash cow and people are always scouting for lots to put up their businesses, so if you have a commercial lot on hand, consider renting it out.
As long as you have content and good editing skills, YouTube is worth your time. With YouTube, you can earn money by posting entertainment for people to watch. You can post anything you want and when people watch your videos, you get paid. If you’re popular enough, you might even get sponsored!
Through new technology and new social media platform, the new conten in the form of vlogging becomes a new trendy source of passive income in the Philippines. The entertainment industry was hit hard by COVID19 virus and pandemic that limited the acitivity in doing TV shows and movies.
Local Artist, have started to do more content in YouTube to earn extra income or become the main source of income which literally becomes your passive income if your regularly uploading new videos every week.
Why should I create a YouTube channel?
Well first of all, it’s an easy way to earn cash. You can post pet videos on YouTube and thousands of people will watch them.
Not only is it easier to do, you can advertise your own business through your channel. Maybe you’re selling a product, you can show everyone how it works, its advantages and why you should buy it. The best part is while you’re advertising your product, you’re earning money because people are watching your videos.
On YouTube, you can also put ads on your videos, so you can get ad revenue. You don’t even have to put in effort to advertise someone else’s products because YouTube will do it for you.
Another big benefit of creating a YouTube channel is you can get sponsored. Basically, you’re advertising someone else’s product and they’ll give you free stuff.
- You’re getting paid because people are watching your videos.
- You’re getting ad revenue.
- You’re entertaining your viewers.
- You’re advertising a business and you get free stuff at the same time.
It’s a win-win situation! Clearly, there’s a lot you can profit from YouTube. But, takke to be creative and be original on your video platform to show your authenticity and branding.
Make a Blog or Website
With a blog or website, you can basically just write whatever you want. You’ve probably been wondering how people earn money from blogs (I know I have). There are actually a few ways to do this.
- Business Websites
- Building Websites
In the digital space, this is the equivalent of real estate, if your building your website or blog to provide helpful tips, how-to and general information of your expertise or topics your knowledgeable about. This is considered one of the best passive income in the Philippines, since you can sold it at later time if you plan to exit and move on to another new project.
How do people earn from advertisements?
Have you noticed that almost every single website you click on has an ad? That’s because people get paid to post ads on their website. This is the reason why people can post recipes or information on the internet for free. Most websites thrive on ad revenue and every time someone views an ad on your site, you get paid.
How do people earn from business websites?
Business websites are basically online stores. You can create a website that sells your products. On this site, you can also put advertisements, so you earn ad revenue while you get extra cash from your online business.
How do people earn from building websites?
If you know how to build websites, then you can sell them to other people. Majority of people don’t know how to build websites, so you can do it for them and earn cash. This is a skill-based job, which leads us to our fifth passive income.
Photo, Art and Music Royalties
If you have the talent, skill and passion for photography, art or music, then you can use this to your advantage. Many people sell their works to sites like Shutterstock, Spotify or Pond5.
Photography and Art
Ever wonder where stock photos come from? People all over the world sell their photography and art to stock photo sites like Shutterstock. Each time a person downloads your work, you get paid through royalties. The work you uploaded is still yours, but you get paid when people use it.
If you want to upload videos, you can do that on Pond5 and whenever someone downloads it, you also get paid in royalties.
You can upload your music onto platforms like Spotify and Pond5. On Spotify, you get paid every time someone listens to or downloads your music. Pond5 on the other hand is most famous for its sound effects. You can upload random sounds on Pond5 and you get paid through royalties whenever someone downloads it.
Peer-to-peer lending is basically just lending money to other people, but you earn interest when they pay you back. It’s a bit riskier than other types of passive incomes or investments, but if you’re lucky, you can get loads more money than in other types of investments.
There are multiple platforms on the internet where you can do peer-to-peer lending. Many people engage in this investment because it’s a cheaper option than banks or other lending companies. The people who engage in peer-to-peer lending are usually business owners who need funds for their business.
With peer-to-peer lending, you’re letting your money grow while it is in someone else’s hands. Not only is your money growing, you’re helping someone in need of financial aid.
Stocks, Dividends and UITF
This is a popular type of passive income that many Filipinos engage in. Though some people lose more than they earn, you should not be afraid of investing in the stock market.
This is the trick to not losing money. Don’t put all of your savings into the stock market. Start small, so it can grow big. If you start small, you lose less money, but if you start big, you might lose all of your savings.
Another trick is to familiarize yourself with the stock market first because how can you do things properly if you don’t know what you’re doing? A lot of people who go into the stock market don’t know what they’re doing, so they end up losing money. It is important to research first before jumping into investments.
The final trick is to have a strategy. Don’t blindly buy and sell stocks. You need to have a plan, so you earn more than you lose. Think first and see if the value of the stocks benefit you before buying or selling them. Having a strategy lowers your risk rate.
If you want, you can put your money into UITFs or mutual funds. These are investments, but instead of you handling them, you pay a fund manager to buy, sell and manage stocks for you.
In stocks, you can also earn from dividends. The company you invested in will pay all of their shareholders, so that you earn from interest.
Cryptocurrency is very similar to stocks. You invest in digital currency, then buy and sell according to its value. It also has the same principles as stocks, start small at first, familiarize yourself with cryptocurrency and have a strategy.
Don’t worry, eventually you will learn from your mistakes and see which strategy appeals to you the most. Everybody starts as a beginner and you’ll get a hang of it soon.
Nonetheless, cryptocurrency has been extremely popular these days all over the world. Many youngsters are starting to invest in cryptocurrency. It’s actually better to start as early as possible because with time, the value of your cryptocurrency will grow. Just make sure that you think before buying and selling and you’re good to go.
Time Deposit Account
Time deposit accounts are especially beneficial for children. You can put savings into this account and as long as you don’t touch the money, it will grow because of interest.
Related: Open a Time Deposit with 6% Interest for 6 Months with Tonik Bank
Pick a bank that offers big interest. With time, your money will grow. It won’t be fast, but at least your savings are slowly increasing. This money can be used for your children’s education or an investment in the future.
Time deposit accounts are ideal if you need a form of financial security. The money in your account can be used in case you need to pay for a medical emergency or if you need retirement funds. The longer you leave it in there, the more you’ll earn in the long run.
This type of investment is super low-risk and takes earning money while you sleep quite literally.
However, the downside nowadays is that the interest earned on traditional time deposit account is low, around .020 to 1% per annum, that the inflation rate eclipse the interest earned plus withholding tax fee. Your money is losing value instead of preserving and having capital appreciation.
Its advisable to only keep emergency fund on your bank account and divert your other resources to higher earning interest product available like Tonik bank, the first ever digital bank available in the Philippines available in iOS and Android app store.
Buy a Business
When you buy a business, you’re letting someone think of a business idea for you, so you can make it work. You don’t have to start a business from rock bottom because you’re buying someone else’s already established business. This is a lot easier don’t you think? All you have to do is manage the business.
You can hire employees to manage the business for you while you work your main job. Now you can have two high profit jobs!
You don’t have to completely own and handle a business. You can be a co-owner and still have a share of the profits. Just make sure that you have a trustworthy business partner, so you don’t run into any problems in the future.
When it comes to passive incomes, get creative. Think of a way –absolutely, any way– that can help you profit. Passive incomes are built to be more flexible than your main job.
If you don’t have the required skills to do something, don’t worry! Did you know that you can learn everything on the internet? There are millions of videos on YouTube that can teach you anything skill-based. Cooking, drawing, crafting, building, engineering, vlogging, everything is there. If you’re good at a skill, you can teach people how to do it on YouTube and you’ll profit. Creative, right?
With multiple streams of income you’ll earn big time in no time. Don’t stress it, with every failure, you’ll earn both money and knowledge through experience.
If you have any questions, feedback or suggestions about this topic, you can leave us a comment below.
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