5 Passive Methods for Extra Income in Retirement

Retirement can be a process that can be quite costly, and if you haven't yet reached your long-term financial goals, it may be beneficial to turn to short-term passive income ideas. Don't worry, as there are many ways to earn money that require little effort.

One of the easiest ways to create passive income is to open a high-yield savings account. This account allows you to earn interest income with almost no effort. Choose a bank, open your account, deposit your funds, and earn interest each month to increase your cash flow.

Many banks offer high-yield savings accounts, but they are mostly online banks. Since each bank has different rules regarding account features, minimum balances, and fees, it is important to do your research before opening an account.

You don’t need to invest in real estate (Real Estate Investment Trusts - REITs) or rental properties. If you have a garage full of tools, consider renting them out to earn extra income. You can list your tools and other equipment on sites like Rent My Equipment and start earning money.

Create a list for rental, set your price—taking fuel costs for gas-powered tools or equipment into consideration—and wait for people in your local area to rent them. While rental sites typically charge a commission fee, you keep the remainder.

After retirement, your household probably won't need more than one vehicle. However, if you still have at least two cars, it might be a good option to utilize your extra vehicles on platforms like Turo or Getaround. This can be a way to earn passive income from something you already own.

You can rent your car on a schedule that suits your needs. Both Turo and Getaround offer insurance and 24/7 customer support to help you feel secure.

If you are looking to earn money in retirement, these methods can enable you to generate significant income. According to Turo, the average annual income per vehicle is $10,868.

If you enjoy photography, why not turn this hobby into a passive income source? Stock photography sites allow you to share and sell your photographs. For example, Adobe Stock pays contributors a royalty fee of 33%, iStock pays 15-45%, and Shutterstock pays 15-40%. In general, the more photos you share, the more you will earn, so it's important to take and upload quality images.

If you have always dreamed of writing a book, retirement can provide that opportunity. This process can not only be a fun way to earn passive income but also be fulfilling in terms of creativity and intellectual property.

Publishing a digital book will be a quick, efficient, and cost-effective way. You can write a career book related to your field using your years of experience in the business world or create a work on any topic you choose. Once you finish your book, you can publish it on Amazon’s Kindle Direct Publishing platform. This site offers two options for standard royalty rates of either 35% or 70%, allowing you to choose what best fits your book.

This method can help you earn profits that accumulate over time. For instance, under the 70% royalty rate, you could earn $3.35 per sale of an 8-megabyte e-book priced at $5.99.