Income is good, but passive income is the best, especially when you already have multiple streams set up. If you are saying to yourself “but I don’t have any passive income right now,” you might want to take a closer look at your finances. Chances are you already have several additional sources of revenue working behind the scenes. Now is your chance to maximize your potential earnings.
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“The key to getting the most out of these passive income streams is to treat them as free money,'” explained Ed Huang, side hustle and finance expert at SideHustles.com. “Don’t use rewards and cash back as excuses to purchase more. Rather, utilize these strategies in a way that saves, reinvests or grows your money in the long run.”
Here is what Huang pointed out as passive incomes you might not know you already had and how to take full advantage of them.
Rewards and Loyalty Programs
Numerous credit cards, supermarkets and retailers offer cash-back rewards or points, Huang highlighted.
“Provided that you are strategic about using them and spend the rewards on necessities such as groceries or gas, then you have the opportunity to free up cash that you can save,” Huang said.
“A number of cards allow you to convert points back into credits on your bills, which decreases your bill payment each month,” Huang added. “However, the major risk is overspending in order to earn points — this contradicts making extra money.”
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Cash-Back Apps and Bank Bonuses
Rakuten, Honey and Ibotta are all platforms that reward you with money back when you shop through their apps, according to Huang.
“When purchasing necessities, why not receive some money back?” Huang asked. “Sign-up bonuses in banks also reward you with free money if your deposits meet their requirements. Keep in mind that some of these bonuses come with restrictions, such as having to maintain a large balance in your account or incurring charges if your balance falls short.”
Subscription and Bill Optimization
Huang explained that platforms such as Rocket Money or Truebill monitor your current subscriptions and can reduce your bills.
“You can save some extra cash by canceling unwanted subscriptions and depositing it into a high-yield savings account or in stock dividends. Some services do charge a portion of your savings, so keep an eye out for that,” Huang noted.
Selling Unused Gift Cards or Store Credits
“If you have some old gift cards that you won’t use, sell them online through platforms such as CardCash or Raise and receive cash for them,” Huang said. “Also, with store credits or refunds, you can purchase products that you can resell and convert them into real money.”
Huang pointed out that the drawback with this passive income strategy is you’ll sometimes receive less than what your gift cards/store credits were worth, and some resale websites take a percentage of your earnings.
Turning Your Assets Into Income
“Most people own things that they don’t even realize they can make money off of,” Huang said. “If you have something like a driveway, tools or even extra internet bandwidth, websites such as Neighbor, Fat Llama or Honeygain can help you rent them out to make some extra money.”
On the flip side, Huang cautioned that anyone going this passive income route ensure that assets receive proper maintenance and consider any tax regulations.
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This article originally appeared on GOBankingRates.com: The Passive Income Streams You Already Have (And How To Maximize Them)
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