How to Make Passive Income While on Active Duty in the Military
When you’re in the military, there is often very little time to manage your wealth and assets or to find a side hustle to help you make ends meet.
So, it’s critical for our servicemen and women to invest their savings in ways that will create passive income. This allows them to make money while they sleep or while they are performing the most important jobs in the world.
Generally, there are three ways to make passive income: investments and savings, providing goods or services, and selling online products or services.
These can be done without a full-time commitment or active participation. Some require upfront effort to maximize profit, while others are significantly more passive (but will tend to have lower returns). The financial rewards can be enjoyed immediately or sometime later down the road for “a rainy day.” Either way, having your savings (and sweat equity) create passive income for you is an excellent opportunity.
Here are some of the ways how to make passive income on active duty.
How to Make Passive Income on Active Duty
1. Mutual Funds
General Overview
As an investor, you’ll buy shares of the mutual fund. Then, companies will pool the money and invest it on stocks, bonds, securities, etc. In terms of profit, each investor on the mutual fund will have a pro-rata claim.
Benefits
Unlike other forms of investments, you don’t need a large amount of money to start investing in mutual funds. In fact, certain mutual funds allow you to buy shares for as low as $50. You can also raise your shares over time, further boosting your earnings as profit relies greatly on funds you invested.
Risk
Although you can receive a high profit, especially in the long run, it is also dependent on its market performance. There’s a chance that the value will fluctuate, in some cases even by 30-40% overnight. With this, you must know what to do given the market’s behavior.
Platforms to explore
There are various options available, with some of the best mutual fund companies, namely Fidelity investment, American funds, and Vanguard.
2. Annuities
General Overview
Annuities are insurance contracts that promise you a comfortable retirement life by giving you monthly payments or lump sum during payouts. During your contribution period, you can either pay once or in series (usually monthly or quarterly).
Benefits
Annuities are a good source of money once you’re no longer receiving a salary. The amount of your payout will depend on your type of annuity and your payments during the contribution/accumulation phase. There are also various types of annuities that you can ask with your insurance provider.
Risk
Although the benefits are promising, you have to be wise in choosing your insurance provider. Remember, you’ll get your payouts during retirement, so make sure that the company will still be there by then. Also, as a long-term investment, withdrawing your payouts or stopping your contribution early on might cause your penalty charges.
Platforms to explore
Some of the best annuity companies to explore include Annuity Gator, Blueprint Income, and Facet Wealth.
3. Online Selling Business
General Overview
The Internet and social media were game-changers in the business landscape. Businesses maximize their social media presence to advertise and sell or resell products or services. To get started, all you need are mobile devices and an internet connection, which most likely you already have.
Opportunity
If you spend a few hours online every day, this is one of the best ways to turn it into income. While browsing, you can just spend a few minutes posting, advertising, and managing the responses, payments, and delivery method. Online selling also provides you with a broader market since you can also cater to various local and even international clients.
Risk
It may take time before you can have a reasonable income, especially if you’re still new to the business. Likewise, there’s a chance of not earning at all as various products may be saturated online. Also, be careful of what may harm your business, especially since spreading hate and fake news is relatively easy online.
Platforms to Explore
You can opt to have your website, which may cost you a few dollars. But if you lack funds, you can set a free account on social media platforms like Facebook, Instagram, and Carousel.
4. Passive Income Applications
General Overview
Aside from selling online, you can also maximize the internet and your mobile devices through passive income applications. Most applications, like Earnably, will require you to finish a series of tasks or activities to gain points convertible to cash. Others will just get your browsing data, like the sites you often visit, for analysis.
Opportunity
Although this is a relatively slow way to earn extra, it’s still a side hustle, especially if you’re active online. If you enjoy watching videos, playing games, or answering surveys, this might be for you. Some will also let you earn points by just checking your browsing behavior even without asking you to do anything.
Risk
Since these applications will gain some of your necessary information and will be connected to your devices, ensure their legitimacy. Your security and privacy are at high risk, especially since it’s the internet we’re talking about.
Platforms to explore
Some of the legitimate and top passive income applications you can try include Honeygain, Sweatcoin, and Swagbucks.
5. Rental
General Overview
From car and apartment rentals to equipment like projector rentals, there are various businesses that you can explore here. However, since you have to own at least 1-2 units to begin, costs can be higher compared to others. This might also need more work than other passive income as a rental business requires monitoring and maintenance.
Opportunity
There’s a high demand for these necessities. Also, as mentioned, you can start with a few units then add as you master the right strategies to use. You can also outsource other people to lessen your workload like for maintenance purposes.
Risk
You won’t feel the profit instantly. Plus, you also need to ensure that your income will be way past your costs. It’s essential always to consider your total costs, return on investments, and financial risks before venturing on this business.
Platforms to Explore
Aside from Airbnb, you can also try other alternatives for house or room rentals like Booking.com and TripAdvisor Rentals. For car rentals, try Turo, Drivy, and Getaround, while you can maximize social media and physical posters/flyers for equipment rentals.
6. Affiliate Marketing
General Overview
If you happen to have a website, blog/vlog, or numerous social media followers, you might want to consider affiliate marketing. This means you can earn commissions by promoting another party’s product or service through your posts. By posting their product or website link, you’ll get to make depending on your agreement (i.e., per click or purchase).
Opportunity
There’s an excellent opportunity to earn particularly given your number of followers/clients & appeal and credibility of the product/service advertised. You can also explore partnerships with multiple companies offering different products/services. Affiliate marketing can also effectively widen your sphere of influence and market following.
Risk
There’s a possibility that this won’t work for you specifically if the product/service being advertised is not profitable at all. It’s also a challenge to persuade people to patronize something, more so if you have few followers/clients. You have to do a lot of work when it comes to marketing strategies.
Platforms to Explore
The big names for being an affiliate partner include Amazon, eBay, Awin, and ShareASale.
7. Automotive Marketing/Advertising
General Overview
By merely letting some companies put advertisements on your car, you can earn extra while driving around. However, companies have strict requirements before they let you advertise, such as a clean driving record or newer automotive.
Opportunity
Automotive marketing/advertising allows you to earn without additional costs. It won’t require much effort on your end, especially if you’re used to going out and driving. You can also use your vehicle for additional income in a less stressful way compared to car rentals and servicing.
Risk
Beware of partnering with fraudsters. Scams are common in this business. Just remember, you are not supposed to spend money on this type of engagement. Stop when anything becomes suspicious.
Platforms to Explore
Some of the trusted, legitimate operators include Carvertise, Wrapify and StickerRide. If they don’t operate in your area, try looking for local companies. But again, remember to check their legitimacy.
8. Blogging or Vlogging
General Overview
If you love writing, you can start making a blog. But if a video is your medium and you’re comfortable with the camera, maybe vlogging or video tutorials are for you. Whatever your preference is, both will give you income depending on your readership or subscription. A higher number of views means higher earnings.
Opportunity
You can work with various topics and content. You have the freedom to express yourself and do what you want. Still, note that your content’s quality is as important as quantity. You can also learn from the strategies of those who’ve been in the industry for quite some time.
Risk
Like other passive income, it may take time before you earn. Sometimes, you have to wait a couple of months before reaching the number that will allow you to profit. There’s also a risk that people wouldn’t be interested in your content. You have to earn your place and work your way up.
Platforms to Explore
YouTube is the most popular platform for vlogs or video tutorials. Meanwhile, WordPress is the usual platform for blog starters.
Final Words
Although it’s passive income, these investments often still require some time and effort. Passive income is an alternative way to earn money, but it can sometimes take time to generate profit.
Choose from the list above, then do your homework. Conduct additional research regarding the opportunity of your choice and take necessary action. It might be challenging at first, but trying and investing until you find what’s best for you is already a good start.