Passive Ways to Earn Income in the Philippines

Having a 9 AM to 5 PM job is not the only means to earn money and pay your monthly dues. In fact, there are plenty of ways to make money on the side given today's multi-hyphenate generation. From vlogging to selling online goods, one can easily find ways to generate passive income in the Philippines. Before getting into different passive income sources, let's deep dive into what passive income is and why people get into it.

What is Passive Income?

An alternative means to generate income, a passive income stream is money earned or maintained with minimal effort. The common misconception is that to earn passive income is to make money fast without work. 

General Types of Passive IncomePassive income streams can be obtained through investments, which are savings allocated in either business capital or an investment vehicle like stocks. Becoming a shareholder of a company through stocks is a good way to profit especially if your investment pick performs well.

Rental income is also a source of passive income when you invest in real estate. When deciding to lease a property, it's important to identify metrics like your estimated ROI, cost of maintaining the property, and other risks of owning a rental property. 

Online side hustles are among the ways to earn passive income with everyone basically hyperconnected via the Internet. Content creation, online teaching jobs, or setting up an online store or online business are among the ways to earn income on the side. While this requires work, one still gets to enjoy the luxury of having a flexible schedule on their hands.

Advantages of Making Passive Income

Having an additional source of income is a great way to earn or build your savings. Having an alternative for your active income is an efficient use of your time and energy to achieve financial independence. Passive income is a great way to fund your contingency in the event of unexpected financial interruptions.

More importantly, having multiple alternative income streams encourages one to diversify portfolios. A diversified portfolio is a great way to decrease risk of investment since you always have fall back when one of your investments fail.

Best Passive Income Ideas in the Philippines

1. Online Content Creation

In today's hyperconnected world, everyone has something to say and everyone has an audience. If you have an intense passion or hobby to share with the world, it's high time to create content about it through blogging or vlogging and earn income without feeling like it's work. Creating an online journal or website with captivating images and videos is a good way to connect with like-minded people or audience. As soon as you build a substantial online following, sponsors or advertisers will be drawn to your online content to advertise. Blogs and vlogs can generate too through sponsored content. The key is to build authentic, quality content that an audience will find relatable and useful in daily life. 

2. Teach Online

Be part of the good force of the Internet by offering your reliable expertise to the world. These days, people opt for online courses because it's a convenient way to get educated without depleting too much time, money, and physical energy that commuting entails. Educators have the luxury of creating and sharing an online course and selling and distributing them through sites like Coursera, SkillShare, and Udemy. Online educators also include language experts, tutors, and even certified life coaches or nutritionists who have the luxury of earning a steady stream of passive income outside their clinics and physical classrooms.

3. Affiliate Marketing

Did you know that you can earn a commission by promoting products and services on your website or blog? Affiliate marketing is good way to earn extra bucks minus laborious work. All you have to do is set up your site, join an affiliate program, and recommend products and services through your affiliate link. Driving traffic to your site generates income with minimal amount of energy. 

4. Dropshipping

Start earning passive income through dropshipping, a type of business that entails selling products without any physical inventory. Upon receiving an order from a customer, you contact the supplier and they ship the products directly to the customer. It's a low maintenance type of income generating business in the Philippines with little upfront investment as well. While this proves to be a convenient way to earn passive income today, it also has its flaws. The margins are slim, and you’ll need to work hard to find good suppliers and promote your store.

5. Leasing out a real estate investment property

Turn your real estate property investment, whether a condominium or house and lot, into a money-making opportunity. Investing in a property also appreciates over time especially in prime locations where office workers and business executives, even expats who want to live in the Philippines, can seek short and long-term residencies. In 2023, revenge travelers soared and Airbnb rentals are once again sought after by tourists who wish to be nearer the local scene. Listing your property on Airbnb can also be a good way to make passive income via renting out your property.

6. Making financial investments

A popular financial investment is buying stocks or shares of a company to become a shareholder. When your investment pick performs well and grows over time, you enjoy profit from your investment. Other financial investments that generate possible passive income are mutual funds, bonds, and peer lending. These require minimal follow-up work since they accrue interest. The main appeal of making financial investments is they tend to have a higher chance of earning through higher interests versus putting your money in savings account. 

The goal of creating passive income streams is to build your savings whether for retirement or contingency in the hopes of becoming financially secure. Of course without carefully studying or researching your chosen type of passive income, things can easily go south. Know the pros and cons of each business idea and make sure it's the passive investment that you're going to be willing to work hard and commit to.