Passive Income in 2022 took a hit for many people as inflation started to increase rapidly and consumers started to rein in their spending. As of the time of writing, the holiday season has kicked off in the US, and that typically means an increase in consumer spending on travel, gifts, and specialty foods – so here are some Passive Income Ideas for 2023 to start the year off right.
So, it’s probably too late to ride the tide of the holiday season if you haven’t already set up your passive income machine. But, you can always prepare for next year, as the best time to start a passive income stream is the same as when to plant a tree: 20 years ago. Building a passive income stream takes time, so the sooner you start the better. Micro Real Estate is al about semi-passive and passive income, because life is too short to work like a dog.
New Year, New Ideas
There’s always new passive oncome ideas that pop up every year, and I’ll highlight a few that I’ve come across.
1. Owning and Operating Electric Vehicle (EV) Chargers
With the passage of the infrastructure bill through Congress, there are going to be a lot more EV charger installations across America. If you want to earn some money, then it might be wise to install new EV chargers in high traffic areas, or even buy an old dilapidated EV charger that is in a good spot, but needs some work. Owning an electric vehicle charger is similar to owning a vending machine and existing vending machine operators should consider operating EV chargers too.
2. Passive Income from Tabletop Game Designs
You can design a card game and have it professionally printed on demand (similar to how t-shirts are printed on demand) through thegamecrafter.com. I made a card game called Passive Income that is a mix of monopoly deal and Cards Against Humanity (or maybe it’s closer to Apples to Apples, since my card game is not really offensive). I made this game in 2019, but I think board games and card games are going to become even more popular in 2023, and if you’ve got some creative juice to space, they can be a fun way to make passive income.
The major issue with this type of passive income is that there is a lot of completion, which means you need to figure out a passive way to market your card game or board game, which usually means some type of digital marketing like paid ads on The Game Crafter website itself or through search engine ads and search engine optimization (SEO).
3. Dividend Investing with Option Strategy ETFs
Investing in stocks or mutual funds that pay dividends can provide a passive income stream. As the company generates profits, it can choose to distribute a portion of those profits to shareholders in the form of dividends. Exchange Traded Funds (ETFs) can also generate dividends, and some ETFs use options (calls and puts) on the underlying assets of the ETF to boost dividend yields to the holders of the ETF. Some examples of these ETFs are NUSI, JEPI, and QYLD.
An option strategy ETF uses options as a key component of its investment strategy. An ETF is a type of investment fund that holds a diversified portfolio of assets and is traded on a stock exchange, similar to a stock. An option is a financial derivative that gives the holder the right, but not the obligation, to buy or sell an underlying asset at a predetermined price on or before a specified date.
Option strategy ETFs use options in various ways to generate income, protect against potential losses, or speculate on market movements. For example, an option strategy ETF may use call options to bet on a stock or index rising in price, or put options to bet on a stock or index falling in price. It may also use combinations of options, such as a covered call strategy, to generate income from the underlying holdings while also providing some downside protection.
Option strategy ETFs can offer investors the potential for higher returns and diversification, but they also come with additional risks and complexities compared to traditional ETFs. It’s important for investors to thoroughly understand the specific investment strategy and risks of an option strategy ETF before investing. It’s also important to consider the potential tax implications of investing in an option strategy ETF, as they may generate different types of income and capital gains compared to traditional ETFs.
4. Vending Machines Galore
Vending machines are not higher on this list because they are not truly passive income, but can be a semi-passive income source because they require minimal ongoing effort once they are set up and running. Here are some potential benefits of vending machines as a semi-passive income source:
- Passive income: Vending machines can generate income on a continuous basis with little ongoing effort, as they are typically stocked and maintained by a vending machine company or an independent operator.
- Low overhead: Vending machines require minimal upfront costs, and the ongoing expenses (such as electricity, maintenance, and restocking) are typically low.
- Flexibility: Vending machines can be placed in a variety of locations, such as office buildings, schools, airports, and malls. This allows you to choose locations that have high foot traffic and are likely to generate a good return on investment.
- Residual income: Vending machines can continue to generate income even when you are not actively managing them. This can provide a steady stream of residual income.
It’s important to note that vending machines are not a guaranteed source of income, and there are risks and challenges involved. For example, vending machines may be subject to vandalism, theft, or regulatory issues. It’s also important to carefully consider the location and type of vending machine, as well as the terms of any contracts or agreements with the vending machine company or independent operator.
5. Fabric Design with Spoonflower
Selling fabric designs on Spoonflower.com can be a creative and potentially lucrative way to generate passive income. Here are some potential benefits of selling fabric designs on Spoonflower:
- Passive income: Once you create and upload your fabric designs to Spoonflower, you can continue to earn income from sales with little ongoing effort.
- Wide audience: Spoonflower is a popular online marketplace for custom fabric, wallpaper, and home decor items. This can give your designs exposure to a wide audience of potential buyers.
- Flexibility: You can sell a wide range of fabric designs on Spoonflower, including patterns, illustrations, and photographs. This allows you to showcase your creative skills and appeal to a variety of customers.
- Easy to use platform: Spoonflower has a user-friendly platform that makes it easy to create, upload, and sell your designs.
- Supportive community: Spoonflower has a large and active community of designers, which can provide support, inspiration, and networking opportunities.
It’s important to note that selling fabric designs on Spoonflower is not a guaranteed source of income, and there are risks and challenges involved. For example, you may face competition from other designers, and you will need to invest time and effort into creating high-quality designs and promoting your work. It’s also important to carefully read and understand the terms of service and any contracts or agreements with Spoonflower.