On this article, we’ll share with you the 9 great but simple and easy to establish sources of passive income in the Philippines. This will definitely provide you ideas on how you can start building your “money-machines” now and enjoy the passive income after.
If you’re looking for passive income ideas, this article will surely help. Are you ready? Let’s do this!
What is Passive Income?
Before we continue, let’s define again the meaning and basic of passive income.
Passive income is an income you earned/generated without trading your time for money. As simple as that.
But wait, don’t get me wrong. In order to build and establish “sustainable” sources of passive income in the Philippines or anywhere, you have to do all the work upfront(lots of work) and you will make it on “autopilot” along the way. Meaning, you do the hard work now and enjoy the benefits later.
Don’t believe or buy the idea that you can build sources of passive income without doing anything. Always remember, if it’s too good to be true, that might be a scam. You still need to invest time, effort and money upfront to make it happen.
9 Sources of passive income in the Philippines
1. Savings accounts
Bank savings account is one of the easiest ways to earn passive income in the Philippines. You deposit your money in the bank and earn “interest” from them. Although the interest rates are low, it is still better than keeping your money under your bed. Yeah right!
Check and compare interest rates of savings account on the Philippines here.
2. Time deposit accounts
A time deposit is almost the same with a savings account – you deposit your money in the bank. The difference is that, in time deposit, there is a certain timeframe (called maturity) when you can claim or withdraw your money back. Meaning, you have to wait for the maturity period to earn from it.
Although time deposit interest rates in the Philippines are not high, it is still better than a savings account.
3. Stock Dividends
One of the simple sources of passive income in the Philippines is by earning through stock dividends. If you invested in the stock market, you can earn money when the company(shares) you owned give dividends to their shareholders. This usually happens when the company is earning more.
Stock dividends can be in form of cash or shares. You can read the understanding dividends in the stock market to get a more detailed explanation.
4. Stock price appreciation
Another way to earn money from the stock market is from stock price appreciation. I considered it passive income as you don’t need to excel full effort when buying stocks. You can have it automated and focus other important areas of your life.
Day trading which means trading and monitoring stocks real time is considered active income. Long term investing is where you bought “good stocks” now and plan to sell it 10 to 20 years after.
Investing in the stock market this day is super easy. With your P5,000 you can already open an account. Check it here.
A blog can be your best source of passive income right now. It is easy to set up and has a lot of potentials to give and provide your passive income in the future. This blog is one of our sources of passive income. We earn considerable amount from ads/sponsor that can help us pay our bills.
By having a blog, you can create multiple sources of passive income. To name a few, here are some of the ways you can earn money from your blog.
- Selling your own information products(Ebooks or E-courses)
- Earning from Affiliates
Update: You can check how we earned more than P200,000 in blogging in this article.
There are many other ways to earn passive income from your blog. I just shared the basic. But as mentioned above, you will need to put the hard work and invest time and some money to make it happen. It doesn’t happen overnight. It takes time.
You can check my 5-part blogging tutorial here.
6. Building smartphone application
If you have the knowledge in programming, you can create useful “apps” and earn passive income from it. Almost everything is now being done through smartphones by the help of apps or applications. If you have the skills and passion, this can be a lucrative money-making machine for you.
Once you build the app, you can apply and upload it to the online app store and earn passive income from them. You worked hard, then earn the benefits later.
7. Vending machines
Vending machines are one of the simplest ways of earning passive income in the Philippines. Coffee vending machines are available everywhere right now and are helping Pinoys earn passive income.
Although this may need “little maintenance” for complete operation, this can still provide you passive income earned while working on your full-time job.
8. Earning from Royalty
If you can create music or write books on your own, you can definitely build a great source of passive income. Once the music was produced, you can have it sell or use by other people or company and earn royalty payment from it. That’s a passive income!
On the other hand, if you’re a passionate writer and can write books, you can also have it sell by other stores or people and earn royalty payment from them. This may sound easy but we know it’s not. It definitely needs full effort, skills, time and passion.
9. Rental Income
Rental properties are one of the well-known sources of passive income in the Philippines. Many Pinoys invested in condominiums, apartments, townhouses, and others and run them as a business.
This may require knowledge and skills about “real estate” but it can be a very sustainable source of passive income for anyone. I read many successful stories of Pinoys in real estate industry and they are very inspiring.
This may need more time, hard work and money at the beginning but once setup and running, it can be a real passive-income-generating business.
Alright, there you have it! These are just 9 simple sources of passive income in the Philippines you can start today. I know there’s more.
As you can see, these are simple and easy to start aside from #9. If you have the skills and knowledge in any of these, start now and build your passive income machines!