Top 10 Ways to Earn Passive Income in the Philippines in 2022
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What is passive income?
A passive income is a source of income that requires minimal to low effort in order to earn and maintain.
In other words, it is income earned “passively” since it needs little upkeep and time to keep it running.
Having additional sources of income is always a smart move, considering the current state of the global economy.
With the increasing prices of basic commodities and big-time oil price hikes, it’s no surprise that most Filipinos find the concept of passive income very appealing.
If you found yourself searching topics online such as “how to earn passive income”, “ways to earn extra cash in 2022”, or “how to earn more money in the Philippines”, then this one’s for you.
Without any further ado, let’s jump into the different ways to earn passive income in the Philippines in 2022.
1. Rental Property Business or Real Estate
Do you own a piece of land and would like to turn it into a profitable passive source of income? Then getting into rental property business or real estate sounds right for you.
Whether you decide to rent out your property for commercial or residential purposes, owning a rental property or real estate business will provide you with a steady source of passive income.
A few downsides to this investment would be the occasional expenses associated with the repairs and maintenance of your properties, the potential for problematic tenants, and the liability for accidents (eg. fires) that may occur on your property.
Other than that, you will be receiving cashflow from tenants and lessees on a regular basis.
Of course, there are still several steps and pre-requisites for you to comply before you can successfully turn a piece of land into a thriving rental property business or real estate, but if you have adequate financial resources to invest, this is definitely one of the best passive sources of income to consider.
2. Airbnb Hosting
Did you know that there are people who make almost ₱ 50,000 a month on average by renting their spare guest rooms on Airbnb?
Airbnb is an online service that lets you rent out a part of your house to tourists and travelers who might prefer to stay in a home environment rather than a hotel or an inn.
Since the Philippines is home to plenty of tourist attraction areas, there won’t be a shortage of tourists willing to rent your spare room at home any time soon, especially if you live near a tourist destination spot.
All you need to do is download the Airbnb app, take decent pictures of your room or house for rent, set your rate, post it, advertise, let tourists rent, and then boom — earn passive income.
3. Brand Sponsorships / Affiliate Marketing
Are you famous and active on social media with a strong following or fanbase?
Lucky for you, there are ways to earn money from online popularity, especially in this golden age of social media and digital marketing.
According to a study conducted by Global Digital Report, the Philippines is considered as the “social media capital of the world”, with almost 63% of Filipinos (about 60+ million people) having regular access to the Internet and social media.
This makes the Philippines a honeypot for brands and companies aiming to boost their social media presence online.
Using your online fame, you could potentially get brands or companies to sponsor you through brand sponsorships or affiliate marketing.
In return, you have to advertise their products by posting them on your social media accounts, blogs or vlogs, and persuading your online followers to buy them.
Most brands will pay you a fixed percentage commission every time someone buys their products through your advertising. This task will definitely be a piece of cake, especially for veteran social media influencers.
In short: Be famous. Attract sponsorships. Advertise. Earn passive income from commissions.
4. Dividend Stocks
Before delving into dividend stocks, it is essential to have a basic understanding of the stock market and how it works.
The stock market is basically a place where people buy and sell stocks. Here in the Philippines, you can trade stocks through the Philippine Stock Exchange (PSE).
For beginners, you may be wondering: What exactly are stocks?
A stock (or equity) represents the ownership of a percentage of a company. Basically, if you buy a company’s stocks, you become one of the company’s owners or stockholders.
For example, if Company X is divided into 500 stocks in the stock market and you buy 50 of its stocks, you are now the owner of 10% of Company X.
There are several types of stocks, but Dividend Stocks in particular are stocks from publicly traded companies that regularly share their profits or earnings with stockholders through dividends.
A dividend is paid per share of stock, so the more stocks you own in a company, the higher your annual cash dividends will be.
Before investing, it is important to know that dividend stocks are not 100% guaranteed to last forever. Sometimes, companies may be forced to cut shares, mainly due to financial difficulties or a possible pending bankruptcy.
That said, investing in Dividend Stocks is still a good way to earn some passive income.
It is however, important to do your research first before buying stocks and to keep yourself up-to-date with latest news in the stock market. That way, you’ll know when the best time would be to buy and sell stocks.
5. Cryptocurrency Trading
If you’ve heard of Bitcoin, Etherium, or Doge Coin, chances are that you’ve probably heard of cryptocurrencies.
But for those who are unfamiliar with it, what is a cryptocurrency?
For starters, cryptocurrency is a type of virtual currency that exists on a decentralized network of blockchain technology.
Simply think of it as digital money that exists on an online network that is unregulated by any government agency (hence, “decentralized”).
Although most people consider cryptocurrency trading as a “long-term investment”, some also see it as “long-term gambling”.
I personally think that it’s a mixture of both, but I tend to favor the latter. So, why is that?
The first thing that you need to be aware of is that the value of cryptocurrency is extremely volatile — meaning there is no guarantee that you’ll be able to see any returns for your investment. In a sense, it’s almost akin to long-term high-stakes gambling.
Unlike the stock market, trends in cryptocurrency are highly unpredictable. The value of a cryptocurrency could be high one day, then suddenly hit an all-time low the next day.
Given its volatile nature, it’s very important to remind yourself that trading cryptocurrency is an unreliable source of passive income.
Although it could sometimes be profitable, it would be financially wise to not put all of your life savings into it, just in case it doesn’t work out for you.
To learn more about cryptocurrency trading and how to profit from it, I recommend checking out r/cryptocurrency on Reddit for detailed guides.
You can download the following apps on your phone to start trading cryptocurrency now:
• Binance
• Coins.ph
• Whalefin
• Maya (formerly known as PayMaya)
6. Peer-to-peer Lending or “Pa-utang”
The concept of peer-to-peer lending or “pa-utang” is simple. You, as the lender, receive interest from individuals or businesses who borrow money from you.
If you have a substantial amount of capital and you’re willing to lend or let people borrow money from you with reasonable interest rates, then peer-to-peer lending can be a source of passive income.
Caution: Before letting people borrow money from you, it would be wise to do a financial background check. This is to ensure that they will be able to repay the money they owe you, along with the accrued interest amount.
Ask the following questions:
• Will this customer be able to pay me back?
• Will they pay me on time?
• Do they have a history of not paying off their debts?
These are important factors to consider when getting into peer-to-peer lending to avoid potential bankruptcy.
7. Selling Unused Items
Do you have unused items at home? Whether these are outgrown clothes, sentimental plushies from your ex-boyfriend, old textbooks and novels, or spare gadgets, there are several online platforms where you can sell secondhand items on the market and earn some money.
If you’re familiar with the KonMari Method, then you’ve probably heard of the saying:
“Keep only those things that speak to the heart, and discard items that no longer spark joy.” — Marie Kondo, a Japanese organizing consultant
Now don’t get me wrong, that is a very sagely piece of advice. But instead of discarding unwanted or unused items, why not sell them and earn some money?
Start earning passive income today by selling your secondhand items on some of these popular online selling platforms in the Philippines:
• Facebook Market
• Shopee
• Lazada
• Carousell Philippines
• Ebay
8. Answering Paid Online Surveys
Another convenient way to earn passive income is through answering paid online surveys.
There are survey apps available online where you can make some extra cash or earn free gift cards by simply answering a few questions or sharing your opinion.
The best thing about this method is you’ll only need three (3) things to start earning:
1. a working smartphone, iPad, tablet, laptop, or computer
2. a decent internet connection
3. a PayPal account (click here to make one)
Note: You might need a Maya virtual card to connect with your PayPal account if you do not own a debit card or a bank account. This is how you will be able to withdraw your earnings.
Paid online surveys are completely free to participate as long as you meet the selection criteria of your chosen surveys.
Here is a list of a few paid survey sites available in the Philippines:
• Viewfruit Philippines
• Timebucks
• Univox
• Surveytime
9. A High-yield Time Deposit Account
Instead of keeping your funds stagnant at home or locked away inside a safe, why not invest it in a high-yield Time Deposit account and let it grow?
Owning a high-yield Time Deposit account is a great way to start earning passive income for beginners, especially young people and students.
It’s a relatively safe and low-risk form of investment that is sure to yield passive earnings within months or years, depending on your chosen terms.
The Philippine Deposit Insurance Corporation (PDIC) provides a maximum deposit insurance coverage of ₱ 500,000 per depositor per bank, so rest assured that your Time Deposit funds will be kept safe until they reach maturity.
All you have to do is get your cash deposit ready, prepare the bank’s requirements, visit your trusted bank of choice, create a Time Deposit account, and wait until your money matures before you withdraw.
It’s as simple as that.
10. Drop Shipping
Drop shipping works by selling products to customers without the need for any physical inventory or stocks.
Meaning, when you receive an order from a customer, all you have to do is contact the main supplier and they will ship the products directly to the customer.
The main advantage of this business model is that it doesn’t require any investment capital and it’s relatively easy to get started. All you need to do is find a drop shipping supplier and start your drop shipping business online.
You can also run this business any time and anywhere, or maybe even automate the selling process with the help of drop shipping softwares.
As long as you have a working phone or laptop and a stable internet connection, this passive source of income offers a high degree of flexibility. Earn at the comfort of your own home.
Conclusion
After reading this blog, you may be wondering: Why didn’t you include making YouTube videos, blogging, online tutoring, or other money-making freelancing gigs in the list?
While those ideas certainly generate income, they require tons of effort, creativity, skills, and time, which goes against the very definition of passive. It might be best to classify those ideas as “side hustles” rather than sources of passive income.
I also think it’s important to remember that most passive income sources won’t turn you into a millionaire overnight, but we all start somewhere, don’t we?
As they say, the early bird gets the worm. Money won’t suddenly appear out of nowhere (unless you win the lottery), so the earlier you start investing into the above-mentioned passive income sources, the better.
It’s time to find a passive source of income that works best for you and start building your wealth while you can. Because when it comes to investments, time can be one of your biggest allies.
The best time to invest in passive income sources is now.
Don’t forget to check out my other blog on the Top 10 Side Hustles for People Working Full-Time Jobs to further boost your income streams!
