8 Ways To Earn Passive Income For Outdoors Sports Enthusiasts
Do you want to spend more time outdoors, while earning money in ways that don’t require you to be at a job? Then passive income may be for you. There are many ways to earn passive income. While most take up-front effort, after that they only take periodic maintenance and leverage your time. Here we describe the passive income ideas that work well for those who love the outdoors.
What is passive income, anyway? There are two types of income: active and passive.
Active income occurs when you receive money as a direct result of the work you put in. It is the most common form of income, often referred to as “trading time for money.” For example, if you have a 9-to-5 job where you earn a salary, or if you work on an hourly basis, these are both considered active income. Even as a bartender or contract worker, you’re earning active income by exchanging experience, effort, and time for money. You have to expend effort every day in order to receive your wages or salary.
Passive income is different. It requires almost no daily effort to generate income, that’s the gravy part. The work up front can be substantial, however, after putting in initial work you are able to continue reaping the rewards for years to come. An example of this would be when a musician writes and records music, or an author spends a few months or even years writing a book. They are then paid for every copy of the book that gets sold. Depending on the success of the book, the passive income could last an entire lifetime (and beyond!).
Of course, we want you to know how to make passive income in smart ways that are highly likely, if not guaranteed to earn you income, without depending on a book publisher or media contract. So, in this article we cover the types of investments, real estate, and ways to turn your own talents into passive income that are much more likely to be successful.
There are many benefits of passive income, some of which include:
Extra Money. By supplementing your regular paycheck with a passive income stream, the extra income can allow you to enjoy the great outdoors more often, or with better gear and more travel.
Job Flexibility. You’re dependent on your job and working at your job location when it’s your only source of income. When you develop passive income you could potentially cut back on your work hours and use the extra time it to travel more frequently, while still earning income.
Flexible Lifestyle. Not everyone will make it to this stage, but with enough passive income, you can quit your job (a day many people look forward to!), and have a much more flexible lifestyle. Some may call this early retirement, but whenever it happens, there are many examples of people who have had enough success in building their passive income that, other than monitoring and updating their passive income investments to make sure they are on track, or supplementing them from time to time, they are set for the forseeable future or even fully retired.
The Reality Part
Passive income can be great, but like many things, there is more than meets the eye. Even though you can earn money for an indefinite period of time, the depending on what types of passive income you rely on, money may be earned in increments, so you may need to cultivate multiple sources of passive income.
Another big issue is that depending on what type of passive income you pursue, a large portion of passive income projects fail. Using the same example mentioned above, writing a book or performing music can take a lot of time and effort to do well, and yet you have no guarantee that it will sell. Some people are not in a position to be able to take this risk. This is especially true since pursuing passive income could require you to leave your active income, at least temporarily.
That’s why we recommend that you start with smaller investments of your time in dividend-yielding stocks and bonds, real estate, and selling forms of your own talent (in a passive way not active) that are both low risk, and have a high chance of success, and we outline each of these passive income ideas below in more detail.
Is it possible to learn how to create passive income with no money at all? Well, probably not 100% no-money, but the different forms of passive income require different amounts of investment, which we’ll describe in the specific examples below. Usually some investment is required, but there are ways to generate passive income with very little upfront cash required, to ones that take a lot of money.
For this reason, there is no “one size fits all” answer to the question of “best passive income ideas.” How to generate passive income is not the same for everyone and how you’ll make your passive income depends on your unique situation. Active income is the way to go if you need to earn money right away. An active income approach is a safe way to ensure you will have money coming in each month. You can build your budget or debt resolution plan around that monthly amount. Active income strategies typically require little to no monetary investment paid upfront, and you can see the returns quickly. However, if you are financially set with your active income, or at least have time on the side for a side gig or two, then start pursuing passive income streams and it can be a great opportunity.
We just want to make sure that, as awesome as ways to make passive income can be, you go in eyes wide open. In fact, it’s a huge mistake to think that passive income doesn’t involve any work – and anyone who sells you on that idea shouldn’t be believed. Patt Flyn, the creator of the website Smart Passive Income told Forbes that there is no such thing as the 100% passive income.
“Even with real estate you still have to manage your properties, or even with the stock market, which is potentially passive income, you still have to manage your portfolio. With online business, there is no such thing as 100% passive income — and this is coming from a guy with a blog called SmartPassiveIncome.com. The definition of passive income is ‘building these businesses of automation,’ but in order to keep them automated and keep that trust going with your audience on top of that, you do have to keep it up every once in a while — so a lot of time upfront and a little time after.” he explained. “There is always time involved.”
The thing to remember is, while there is always time (and usually some money) involved, once your passive income stream is set up, it is earning for you with much less time involvement than before. Think of it as leveraging your time – for example while renters pay rent, which pays any mortgage you may have on the property, may yield positive cash flow, and allows the property to grow in value over time. All while you go hunting or fishing or pursue your outdoor passion of any kind.
So bottom line, if you are comfortable with this passive income definition, and are up for the hard work up front, then you can reap the rewards for years to come.
If you search ‘passive income opportunities’, you will get endless results and hundreds of ways to earn side income passively. You can use affiliate programs, collect ad revenue, sell your own products and so much more. In this article we will have a look at examples of types of income that are specifically suited for those who love the outdoors and want to spend more time there.
1. Rent Property
Real estate continues to be a preferred choice for people who want to generate passive income. If you live in a desirable place, a charming hamlet, or a big city, the chances are that someone would like to stay at your place for a few days, and they will be willing to pay you.
There are many websites (such as AirBNB.com or VRBO.com or HomeAway.com) that connect the people who have a space to rent and those looking for somewhere to stay. You get to set the price and availability for your rental, and actively market your place. If you are unable to rent out your whole property, you could rent out a room or part of the land for a tent or RV, or consider building and renting a cabin or cottage on your property. Another way to rent your property is to lease it for hunting, if you are interested in that see our related article.
If you are a hobby enthusiast you might have extra gear that you aren’t using. If that’s the case, you can make money renting it out. Examples of things that can be rented out are sports equipment, camping gear, and fishing gear. Renting gear can be expensive so adventurers are looking for ways to lessen the costs. This is especially true for people who are new to the hobby and want to try it out without a large monetary commitment.
3. Sell Your Skills, Knowledge, or Talents
Do you enjoy teaching or coaching beginners and others in the sport? Selling your skills, as a freelance outdoor sports writer, a trainer, or even building an online presence of your own, is a great way to earn passive income on the side. It might not be as passive as some of the other possibilities, but it can be passive depending on the amount of work you invest upfront and the type (e.g. online income vs. other forms). If you are a natural hunter or fisher, you can write an e-book, a blog, a skills or training website, or offer other courses to people who want to obtain the same skill. The good news is, since you already have the skills, this can be one of the best business to start with little money, especially when compared to investing in real estate or which requires substantial upfront money.
Competition is going to be a difficult part of maintaining passive income. The more niche the topics you write about are, the better. They key to obtaining an audience is consistency. For example, if you post once a month, that post should come out at the same time and date each month.
You can also sell the information you provide your readers. For instance, if you’re writing a fishing or backpacking blog for example, you can write a number of travel guides or how-to skill manuals or and then charge your readers to download them.
If there is any area where you consider yourself an expert, or have knowledge or skills to share, the possibilities can be endless. This is a great situation because you can start making money from sharing your knowledge about something that you enjoy. Essentially you are only limited by your own imagination, the time you want to devote to these projects, and your creativity. And fortunately, whether it stays a hobby or becomes your full time endeavor as a home income system, this can be one of the cheapest business to start. For more on how to make passive income online, take our related course below.
One of the easiest ways for people to create passive income – often called “income investing” – is to put money in dividend stocks because you’re effectively getting paid to own them. There are many types of stocks, representing your ownership of shares in a company. Growth stocks, cyclical stocks, mutual funds etc are all stocks, be we are interested in income producing stocks, such as those that pay a quarterly or annual dividend to their shareholders. For more on the question “what are stocks?” see our related article How To Start Investing.
When a company generates earnings, the company keeps a part of it as retained earnings, meaning money that will be used for ongoing and future business activities, and a portion of the earnings is paid back to the stock owners as a dividend. This money can be received as a cash payment to you, or you can choose to have it reinvested to purchase additional shares.
Dividend-paying stocks are especially attractive to those who are trying to make a living with passive income investments, because they consistently pay out each quarter. The amount you receive will depend on how much profit was there to divide, and how much stocks you own. Examples of quality, dividend yielding stocks you may be familiar with are Home Depot, Chevron, and Microsoft.
Brett Owens, a Forbes contributor, told Forbes that dividend investors who look ahead have the potential to score annual total returns of 15%, 20%, and even 25%, if they pick the right dividend. Total returns represent the combination of the dividend and appreciation in the value of the underlying stock. That said, you need to be ready to hold on to the stock during periods of a downturn, when the price of the stock may decrease. However there’s a silver lining when the price of the stock goes down, assuming they continue payout out a divided which most companies do – the dividend rate (called “yield”) actually goes up, because the amount you get paid relative to the price of the stock increases.
When this happens, assuming the company is still a quality one, it often makes sense to buy more of the underlying stock, which will not only increase the amount of dividends you earn as passive income, but will also decrease the average cost at which you purchased all of your stock in that company (called the “cost basis” which results from “dollar cost averaging” over time), which can increase your return when you choose to finally sell the stock. If you do this well, over time you’ll accumulate a good deal of “income generating assets” which will start to pay you handsomely.
Bonds are also important to own, if you want to generate multiple sources of income. On the one hand they are similar to dividend yielding stocks, in that they generate an income “yield” like dividend stocks. On the other hand, the underlying investment is different, in that it is the debt of a company (or municipality, or the US Treasury) that you are earning interest on.
In effect, when you purchase a bond, you are loaning money to the company or organization that issued the bond, and they are paying you interest in return for being able to utilize your money for whatever investment or project they are undertaking.
For example, bonds are issued by governments to build highways and bridges and other infrastructure. Corporate debt is issued to invest in new computer systems, or build a new oil refinery, or these days to invest billions in programming websites and developing online content. You get the idea, you’re loaning money to someone else. There are many types and investment quality grades of bonds, so we’ll save that discussion for another, longer article.
Fortunately, with some of the new investing apps it’s now easier to invest with little money than ever before, and you can start building your passive income portfolio, whether in bonds or dividend yielding stocks week by week. Ok now, back to a few examples where you can create (at least partially) passive income by actually working outdoors.
Successfully creating a fishing area can bring in a lot of money, if you do it right. Fishing ponds that are man-made are stocked with fish and can bring in about $15-$30 per day, per fisherman.
You will have to check the federal, state and local requirements for running a fishing pond business in your area. If you are able to get your project approved, you can start working on building the pond. You will need to plan your location so that it is exposed to equal amounts of sunlight and shade. After that dig a hole and install the liner over the hole. Next you can fill it with fresh water and install a pond pump, an air filter and a water diffuser. Lastly, add some plants to make the pond more like the fish’s natural habitat and the fish to the pond. You will also need to well educated on the types of fish that you are stocking and have a reliable source to restock them. You will also need to diligently maintain the pond, which is an example of how even the greatest passive income can require continual work.
7. Make a Gardening Center (Rent Garden Plots)
Gardening centers are becoming more popular as people are looking for new ways to get outside and connect with nature. Renting plots for others to garden is becoming very popular as many people otherwise wouldn’t have the ability to garden, especially if they live in an apartment building or urban environment.
Depending on the amount of land you have, you can grow many different types of crops and sell them at farmers markets or to local stores. However, growing produce to sell is no necessarily passive income. The way that you can turn it passive would be to rent out portions of your land to others who want to try to try their hand at growing produce. You could either charge a flat percentage each month, or require a percentage of the produce sold.
Depending on where you are located, having rentable garden space could be a really popular idea. This is especially true if you are near a city where most people live in apartments or townhouses and do not have their own space to grow produce. Another reason this would be a popular idea is because purchasing organic and local produce is becoming more popular and customers would find value in growing their own food.
8. Create a Dog Area
Many dog owners are always looking for safe spaces to allow their animals to stretch their legs. Similarly to the suggestion regarding renting garden space, some pet owners who live in cities do not have enough space of their own for their pets. If you are considering creating a rentable dog space, you will need to check local, state, and federal ordinances to ensure you have all of the necessary permits. You will also want to make sure you are protected against any liability if a dog attacks a person or another dog.
Once you are ready to start creating the space, you will need to look for an accessible site. Then make a budget for materials, maintenance and fencing of the dog park. Next, place benches or tables throughout the park so the dog owners can relax, and make a number of areas meant for shade and water. Lastly, provide covered garbage cans and waste bags.
There are endless options for how to create passive income. These examples are just the tip of the iceberg. If you are able to find an option for making passive income you will be able to spend more time doing the things that you love.
See our many other articles with more details on investing, passive income and saving and investing apps, and how to make money in the outdoor world by visiting our Home Page and looking through our Most Popular and many other articles! As you will find, we don’t make empty promises like many websites, such as “How to make 1000 a month” or more, but we offer realistic, practice, and straightforward financial information and advice.