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Discover the Top 10 Passive Income Streams in the Philippines 2023

Last updated: June 5, 2023
Written by: Mark Anthony | Reviewed by: Joshua Morales

Key takeaways:

  • Passive income can provide financial security and independence
  • With passive income you can earn an average of 5,000 to 25,000 php monthly
  • Passive income streams can be unpredictable
  • A solid financial plan includes both passive and active sources of income

10 ideas for passive income

Are you tired of living paycheck to paycheck? Are you looking for a way to increase your income without having to work longer hours? There’s a solution that can help you achieve financial freedom: passive income.

Passive income is money earned with little to no effort on your part, and it’s the perfect way for low-income individuals to make extra cash. Whether you’re a student, a single parent, or simply looking for additional income, passive income can help you reach your financial goals.
In this article, we’ll explore what passive income is, how it works, and some easy ways you can start earning passive income today!

What is Passive Income?

Passive income is a type of income that is earned from sources that do not require active involvement or ongoing effort to generate revenue. This means that you can make money even while you are not actively working, such as through investments in stocks, real estate, or other assets.
The key characteristic of passive income is that it continues to generate revenue over time with minimal or no effort required from the earner.

What are the types of Passive Income

Whether you’re interested in stocks, real estate, or other assets, there’s a passive income opportunity that can suit you. With the right strategy, you can start generating a substantial income within a year.

Here are some common types of passive income:

★ Investments:
Passive income generated from investments such as dividend-paying stocks, mutual funds, and peer-to-peer lending platforms.

★ Rental income:
Passive income generated from rental properties such as apartments, houses, and commercial spaces.

★ Royalties:
Passive income generated from creative works such as books, music, and photography.

★ Online businesses:
Passive income generated from online businesses such as e-commerce stores, affiliate marketing, and digital courses.

★ Interest income:
Passive income generated from interest earned on savings accounts, bonds, and certificates of deposit.

★ Crowdfunding:
Passive income generated from investing in different projects through crowdfunding platforms.

★ Intellectual property:
Passive income generated from patents, trademarks, and licensing fees.

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How much can you earn with passive income?

The amount of passive income you can earn in the Philippines as it varies based on individual circumstances. However, with careful planning and investment, it is possible to earn a significant amount that can supplement your active income or even become your primary source of income.

It’s important to note that not all passive income streams are equal, and some may be more reliable or lucrative than others. Here’s a data table on possible passive income in the Philippines:

Type of passive income Average Monthly Earnings
Rental Income Earnings from leasing out properties such as apartments, rooms, and commercial spaces PHP 15,000 – PHP 30,000
Dividend Income Earnings from owning stocks and receiving dividends from the company PHP 5,000 – PHP 10,000
Interest Income Earnings from investments in bonds, time deposits, and other fixed-income securities PHP 3,000 – PHP 7,000
Capital Gains Earnings from selling assets such as stocks, real estate, and other investments Varies widely
Online Selling Earnings from selling goods online through platforms like Lazada and Shopee PHP 5,000 – PHP 20,000
Affiliate Marketing Earnings from promoting products or services and receiving a commission for sales made through your referral PHP 5,000 – PHP 15,000
Blogging/Content Creation Earnings from creating content online through platforms like YouTube, blogs, and social media PHP 10,000 – PHP 50,000

What are the advantages and disadvantages of passive income?

Passive income can provide financial security and independence, allowing people to pursue their personal goals and interests without worrying about financial constraints.

However, this type of income has a number of advantages and disadvantages that are worth considering before making a decision.

General Advantages of Passive Income:

  • Passive revenue streams can offer economic stability and autonomy
  • Passive income requires minimal effort to maintain, freeing up time to focus on other pursuits.
  • Passive income can provide a variety of income streams, reducing dependence on a single source of income
  • Passive income can be scalable, allowing you to increase your income with minimal additional effort.

Disadvantages of Passive Income:

  • Passive income often requires an initial investment of time or money to set up, which can be a barrier for some people.
  • Passive income streams such as investments carry a level of risk, which could lead to losses if not managed correctly.
  • Some passive income streams such as investments or rental properties require relying on external factors that are beyond your control.

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List of 10 Passive income ideas in the Philippines

Rental income is the Best Passive income in the Philippines

Rental income is a type of passive income  that is generated by leasing out a property to tenants.

Pros of rental income include the potential for a steady stream of passive income, tax benefits, and the opportunity for property appreciation.  However, there are also some cons to rental income. These include the cost and effort involved in maintaining and managing the property, the potential for problematic tenants , and the risk of damage to the property or unpaid rent.

You can use popular platforms for listing and renting properties in the Philippines, the most popular include Lamudi, MyProperty and Airbnb

Renting Out your Car or Motorcycle

Renting out your car or motorcycle can be a good way to generate passive income Philippines. For exapmle It is possible to rent out your car or motorcycle through various peer-to-peer car-sharing and motorcycle-sharing platforms for example Book2wheel or Zoomcar and other platforms.

To rent out your car or motorcycle, you will need to sign up for an account on the platform of your choice, provide information about your vehicle, set your rental price and availability, and upload photos of your vehicle. Once your listing is live, potential renters will be able to view your vehicle and request a rental.

Note: Check the legal requirements for renting out your vehicle in the Philippines. This may include having proper documentation such as registration and insurance, and complying with safety and security regulations.

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Blogging as passive income

Monetize Your Passion for Interesting Topics through Blogging and Vlogging

Blogging and vlogging can be a way to generate passive income by creating content that can continue to earn money even after it has been published. This can be done through various methods such as affiliate marketing, sponsorships, and ad revenue. By creating high-quality and engaging content, bloggers and vloggers can attract a loyal following and earn passive income from their content.

An affiliate program is a type of passive income where bloggers and vloggers earn a commission by promoting other people’s products or services. This can be done by including affiliate links in their content that lead to the product or service being promoted. When someone clicks on the link and makes a purchase, the blogger or vlogger earns a commission.

Turn Your Foto Hobby into Passive Income

If you are an amateur photographer, you can start by building a portfolio of high-quality images. Then, sign up with one or more stock photo websites, such as Shutterstock, Getty Images, or iStock, and submit your images for review. Once your images are accepted, they will be available for purchase and download by individuals and businesses.

Note: To increase your chances of earning, it’s important to regularly upload new images and optimize your metadata, titles, and descriptions for search engine optimization.

Monetize Your Expertise: Build Your Own Online Course

To make an online course your passive income on stock platforms you should create a high-quality course on a topic that you are knowledgeable about.

To create an online course in the Philippines, you can follow these general steps:

  1. Choose your topic and target audience – Decide on what you want to teach and who your course is for.
  2. Determine what you will cover in your course and how you will structure it. Create a course outline or syllabus.
  3. Develop your course content in a variety of formats such as video, audio, text, and images.
  4. Choose an online course platform . Some popular options include Teachable, Thinkific, and Udemy.
  5. Upload your course content to the platform and make it available for purchase or enrollment.
  6. Promote your course through social media, email marketing, and other digital channels to attract potential students.
  7. Provide support and feedback to your students as they go through your course to help them achieve their learning goals.

Invest in the Purchase of a Vending Machine

Another option for passive income in the Philippines could be a vending machine, as it requires minimal effort and can generate revenue 24/7.

However, it also requires some initial investment in purchasing and installing the vending machine, as well as ongoing maintenance and restocking. The profitability of a vending machine depends on factors such as the location, the type of products being sold, and the pricing strategy. With proper management and strategic placement, a vending machine can provide a steady stream of passive income in the Philippines.

For a new vending machine, prices can range from around Php 50,000 to Php 150,000 or more, depending on the features and specifications of the machine. Generally, you may be able to find used vending machines in the range of Php 20,000 to Php 80,000

Passive income in Philippines

Buy and Sell Domain Names

Buying and selling domain names is a unique way to create passive income in the Philippines. You can purchase domain names that are in high demand or have potential to be in the future, and then sell them for a profit. List your domain names for sale on marketplaces like Sedo or Flippa to attract potential buyers. It requires a bit of research and knowledge about the market, but can be a lucrative source of passive income

In the Philippines, the earnings from the resale of domain names can range from a few thousand pesos to millions of pesos, depending on the value and demand of the domain name.

As an example, let’s say you purchase a domain name related to a popular tourist destination in the Philippines for Php 10,000. After a few months, you receive an offer from a travel company to buy the domain name for Php 50,000. In this scenario, you can earn a profit of Php 40,000 from the resale of the domain name.

Explore Dropshipping as a Passive Income

Learn about the advantages of dropshipping to make it your passive income.  Start by selecting a niche market or product category that you want to focus on. Then, find a reliable supplier that offers dropshipping services and establish a partnership with them.

Create an online store using platforms such as Shopify or WooCommerce, and list the products from your supplier’s catalog on your website. When a customer places an order, your supplier will handle the packaging and shipping of the product directly to the customer

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Create an in-demand Mobile App

Developing a mobile app is a great way to generate passive income in the Philippines. If you have coding skills or can hire someone to build an app for you, you can earn money from in-app purchases or ads displayed in your app.

Identify a problem or niche market that can be addressed through an app and create a solution for it!

Learn the benefits of Сrowdfunding

To make crowdfunding a passive source of income, you can invest in crowdfunding platforms that offer returns on investment. These platforms allow you to pool your funds with other investors to support a particular project or business in exchange for a percentage of the profits.

You can start investing in different projects or businesses that align with your interests and financial goals.
While crowdfunding can be a passive source of income, it still requires some effort and research on your part: make sure to stay up-to-date on the projects you have invested in and regularly review your portfolio to assess its performance.

FAQ

  • What is passive income?
    Passive income refers to any income that you earn without having to actively work for it.
  • Is passive income taxed in the Philippines?
    Yes, passive income is subject to taxes in the Philippines. The tax rate depends on the type of passive income and the amount earned.
  • How much passive income can I earn in the Philippines?
    Some passive income streams can generate a few thousand pesos per month, while others can generate much higher amounts.
  • What is the most profitable passive income?
    Some common passive income streams in the Philippines include rental income, dividend income from stocks, interest income from savings accounts or fixed deposits, and income from online businesses or investments.

Final Thought

Is it possible to live in the Philippines on passive income alone?

Depends on various factors such as the cost of living, the amount of passive income generated, and the lifestyle one desires. In general, it may be challenging to live in the Philippines on passive income alone, as the cost of living can be relatively high in some areas.
It’s essential to have a solid financial plan that includes both passive and active income streams to ensure financial security. Combining both types of income can provide a more stable and varied source of income.

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Authors

Mark Anthony
Author pages:
Mark Anthony is, the Finance and Accounting Manager. of Digido Finance Corp., monitoring and controlling the flow of cash that comes in and out of the company to meet the company’s business needs, preparing the financial reports and analysis of income and expenses, and monitoring tax compliance.
Joshua Morales
Author pages:
Joshua Morales is the head of Customer Care Dept. and Online Sales Dept. of Digido Finance Corp. creating articles, blogs, and other learning mediums that helps Filipinos struggling on their financial literacy. Joshua also loves Cycling, Photography, Cinematography, Online gaming, Fine Arts, and dreams of becoming a Doctor of Veterinary Medicine.
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