A financial coach who books $8,000 a month shares 9 easy ways to earn passive income
Lisa Andrea
- Lisa Andrea launched a financial blog in 2021 and consistently books $8,000 in monthly revenue.
- It may feel like a scary time to invest but you'd be wise to build a financial strategy, she said.
- Andrea outlines 9 of the easiest ways to earn passive income, including resale and blogging.
By the time Lisa Andrea was 15 years old, she was making hundreds of dollars a month selling old clothes on eBay. Today, as a 34-year-old entrepreneur, those earnings have turned into thousands of dollars and inspiration for her business.
She took her experience building passive income streams and teaching herself the fundamentals of financial literacy to launch the financial-advice blog The Financial Cookbook in February 2021. Through her company, Andrea teaches other women how to scale their income and find financial freedom.
Her business, which she runs as a side hustle, typically books $8,000 in revenue a month, which Insider verified with documentation. What's more, she makes additional income through investing in stocks and real estate.
The current economic climate, which has seen rising prices and layoffs in high-profile industries, has deterred many from taking a financial risk, Andrea said. But it's actually a good time for investment opportunities, she added. While the number of new business applications peaked in July 2020, the number of new businesses created each month remains significantly higher than pre-COVID-19 levels, according to US Census data.
"I see it as an exciting time for investors," Andrea said in a follow-up email. "History has shown that the market projects upward over time, so it's a great time to get your financial strategy down to a science."
She suggests starting by analyzing your financial goals. From there, research the markets and trends to determine the most lucrative opportunities and meet with a financial advisor to set your plan.
Andrea shared her own financial strategy, including the nine methods of passive income she encourages everyone to try.
1. Start a side hustle
Andrea continues to work full time as a marketing expert for a Big Four accounting firm for the income, network of colleagues and friends, and additional events and opportunities. However, she does advise people to start side hustles in industries they are knowledgeable about if they're looking for extra cash.
For her, that came in the form of financial coaching, which she performs through her online blog. But certain industries are more promising for entrepreneurs right now, like freelancing and content creation.
2. Google Ads
If you have a website with regular viewership and traffic, Andrea suggests charging advertising fees.
For example, Google's advertising program AdSense allows online-content creators to monetize their websites or YouTube videos and generate income through ads.
"AdSense works by matching ads to your site based on your content and visitors," and content creators should enable advertising space and ensure it's available on their websites and sign up for the AdSense program to start earning, according to Google.
3. Affiliate marketing
Affiliate marketing allows content creators to direct viewers to another brand's site. Then, when a viewer makes a purchase, part of the profits go toward the creator.
"All you have to do is apply for affiliate programs, explain why you want to work with them, and how you'll drive income," said Andrea.
Some popular affiliate programs include Amazon, LTK (previously known as rewardStyle), and Partnerize.
4. Sponsored posts
Julia Chesky
Andrea said companies typically contact her about brand partnerships, but she encourages other entrepreneurs to be more proactive when looking for passive income avenues. Sponsored posts can be a lucrative way to generate income as a content creator.
When reaching out to brands about potential partnerships, make sure your media kit is comprehensive and enticing — it's how companies gauge whether they want to work with you.
5. Sell products, templates, and courses
Andrea also sells her own products, including a résumé template and a virtual "75 hard" challenge, which allows users to track their habits for 75 days.
Depending on what you're knowledgeable and passionate about, creating and selling virtual or live courses is another way to generate extra cash, she said.
For example, Jessica Hawks is a virtual assistant and career coach. Her online courses, which she launched in 2020, helped scale her business to $1 million in company sales.
6. Invest in bonds
Bonds are loans corporations or institutions take out and give to investors. They are low-risk market investments in comparison to stocks, making them a great option for beginners, she said.
When purchasing a bond, investors have to wait until the value "matures" to see the return. But if you are willing to wait long enough, some bonds have interest rates as high as 9%, Andrea said.
7. Invest in stocks and crypto
The stock market can be really complicated, which is why Andrea breaks it down into two categories throughout her blog posts: stocks with dividends and cryptocurrency.
When deciding where and how to invest, you should look at your budget, timeline, and risk tolerance, she said. For example, some crypto stocks have experienced recent volatility.
For those who are unsure about investing in the stock market, there are financial advisors. However, those services can be expensive, which is why Andrea also recommends robo-advisors.
"These robo-advisor sites will ask you a series of questions related to your goals, age, family, and retirement plans," she wrote in a blog post, adding that all of the information goes into an algorithm which informs "the system what your risk tolerance level is and aligns it with your goals."
Andrea suggests using tools like this, especially if you are a beginner with a low-risk tolerance.
8. Real estate
Getty Images.
Purchasing, renting, or selling properties is a common route to passive income. But even those without large sums of expendable cash can take part through fundraising strategies like crowdfunding, she said.
Some companies, such as Fundrise and DiversyFund, allow people to invest as little as $100 into real-estate properties and generate a percentage of their investment when the property earns money, Andrea said. However, people should do their due diligence on these platforms to ensure the fees and costs make sense for their budgets.
"If you're investing $100, you're not going to make a huge return, but you're still going to make the same percentage as the person that invested $100,000," she said.
Startup founder Mallory Rowan said that slowly building your real estate portfolio is a safe way to grow. Moving at a steady rate allowed her to purchase three properties without significant investments or down payments, she added.
9. Sell on e-commerce sites like eBay
eBay is the most cost-effective platform for e-commerce sales, Andrea said. She recommends selling old clothes, coupons received in the mail, or finds from garage sales or local stores.
Nicholas Waskosky, a Poshmark seller, earns five figures a year selling old or upcycled clothes on the platform.
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