10 Ways to Get Passive Income in the Philippines

PHOTO BY ADOBE STOCK

(SPOT.ph)Looking for passive income? It seems like everyone is. Gone are the days when a single salary from a 9-to-5 job was enough to make ends meet. What was once a niche financial strategy has now turned into a mainstream pursuit.

Why wouldn't it be? Passive income offers a way to make money without putting in the daily or constant work, providing an additional safety net that can help with unexpected expenses. It can come from various sources like investments, rental properties, or online ventures. The idea is to supplement—not replace—your main income.

Thanks to the internet, earning passive income has never been more within reach. Plus, with the gig economy and remote work on the rise, it has become a whole lot simpler to manage several ways of making money on the side.

Let us help you get started. Here are 10 smart ways to make your money work for you, even when you’re not working.

Also read:Here Are the Philippines’ Highest Paying Jobs, According to the PSA

How to get passive income in the Philippines

High-yield savings accounts

High-yield savings accounts are becoming more common in the Philippines, especially with the rise of digital banking. These accounts offer significantly higher interest rates compared to traditional savings accounts, making them an attractive option for saving money.

Look for banks that offer the best rates and terms that suit your savings goals. It's important to check the minimum balance requirements, fees, and ease of account management. We recommend RCBC’s Diskartech, UNO Digital Bank, and Maya Bank for a 6% per annum interest rate and above.

These digital banks require minimal requirements for account opening, such as one valid ID, selfie verification, and personal details. Some of these banks also run promotional offers that can temporarily boost the interest rates under specific conditions.

Invest in government savings programs

Investing in government savings programs like Pag-IBIG MP2 and PERA offers benefits such as generous tax incentives and potentially higher dividend yields.

MP2 is known for its higher dividends compared to regular Pag-IBIG savings and can be withdrawn annually or at maturity after 5 years, with a very low minimum investment requirement. On the other hand, PERA allows for a diversified investment portfolio with contributions that can be converted into a pension or lump sum at retirement age, offering a secure way to save for the future.

Visit the Pag-IBIG Fund website or nearest branch to enroll in the program, while head to a bank or financial institution to set up a PERA account. Both programs require you to fill out forms and provide necessary identification. It's a fairly straightforward process.

Franchise a business

Investing in a franchise of a successful brand, especially in the food and beverage industry, can provide a steady income with the right location and management.

It’s best to partner with a well-known brand to reduce the risk compared to starting a business from scratch. To begin, you need to research to choose a franchise that aligns with market demands and your interests. Capital requirements vary, so selecting a franchise that fits your budget is crucial.

Some of the best franchises to consider within reasonable budget include Potato Corner, Master Siomai, Siomai King, and Zagu, with franchise fees ranging from P25,000 to P650,000.

Peer-to-peer lending

Try investing in loans to individuals or businesses through platforms like LendPH and BlendPH and earn interest on repayments​​.

Peer-to-peer lending connects investors with borrowers through platforms like Blend.ph, offering an alternative to traditional bank loans. You can start with as little as P5,000, choosing loans to fund based on criteria like loan term or credit score, potentially earning high returns. That's more flexibility with less capital for you.

Still, there are risks. Borrowers might fail to repay the loan, which could result in a loss of principal and interest earnings.

Sell stock photo licenses

If you have a talent for photography, sell your images on stock photo websites like Shutterstock, Getty Images, or iStock​​. Yes, anyone can!

This involves capturing unique images that appeal to a wide audience, then offering them on platforms like Shutterstock, Getty Images, or iStock. This requires a good quality camera, a creative eye for photography, and skills in photo editing.

Being specific in your niche selection, such as focusing on items, experiences, and locations specific to the Philippines, allows you to tap into a market where there is less competition compared to more saturated categories. That way, you have a higher chance of standing out to potential buyers. Over time, this can lead to increased visibility, more downloads, and ultimately, higher earnings from your stock photography portfolio.

Blogging and vlogging

Monetize your passion by creating content on platforms like YouTube, earning through affiliate marketing, sponsorships, and ad revenue​​. This option is a bit more challenging to penetrate, but the effort will pay off for the most dedicated.

To start blogging and vlogging for passive income, create content about topics you're passionate about or have expertise in. For blogging, you'll need a website platform like WordPress; for vlogging, a YouTube channel.

Focus on quality content, SEO strategies, and consistent posting to build an audience. There are plenty of online courses that can guide you through this. We won’t lie: It takes a lot of work in the beginning, but it becomes passive when content starts to pour in revenue, which is achieved after creating a substantial amount of evergreen content that brings in readers or viewers over time.

Affiliate marketing with local brands

Partner with local online retailers or brands to earn commissions on sales made through your referral. In the Philippines, some popular companies offering affiliate programs where anyone can join include Lazada, Shopee, Zalora, Involve Asia, ClickBank, Commission Junction, and Amazon Associates.

This involves promoting products or services through your online platforms, like blogs or social media, and earning a commission for every sale. Start by choosing brands that align with your interest then reach out to these brands or sign up for their affiliate programs. You can start simple by selling to friends and family!

For a bigger reach, use engaging content to promote the products then track your referrals through the brand’s affiliate platform.

Rental income

Leasing out properties through platforms like Lamudi, MyProperty, or Airbnb can provide a steady income stream, but requires maintenance and management effort​​.

Generating rental income involves leasing properties to tenants, which can include residential units, commercial spaces, or vacation rentals. You don't have to already own another property to make this happen—start small! This can work with extra rooms in your house.

At all times, ensure the property is well-maintained and respond promptly to tenant needs. Initial investment and continuous management are key, but this can lead to a consistent and profitable income stream with everything set up.

Dividend investing

Invest in stocks of well-established Philippine companies that pay regular dividends, providing a steady income stream. Don’t be intimidated—it’s actually a lot simpler than you think.

Dividend investing involves purchasing stocks of companies that regularly distribute a portion of their earnings to shareholders. You can research and pick stocks for dividend investing through platforms like the Philippine Stock Exchange (PSE) website, financial news outlets like Bloomberg, CNBC Philippines, BusinessWorld, and brokerage firm tools like COL Financial, First Metro Securities, and BPI Trade.

To start, focus on companies with a potential for steady growth. Look for a high dividend yield, but also consider the company's financial health and industry stability. Once you're good with research, opening a brokerage account to buy then monitor the performance of your stocks. You may also diversify your portfolio across different sectors to lessen the risk.

Car or motorcycle renting

Take advantage of peer-to-peer sharing platforms like Book2wheel, Thrifty, PhilippineRentaCar, and VPI Cars to rent out your vehicle—just make sure you meet legal and safety requirements. Key requirements include owning a well-maintained vehicle and securing comprehensive insurance. Then set a competitive rental price based on market research.

When someone is interested in renting your car, they'll submit a booking request through the platform of your choice. You are in charge of arranging a time and place for the renter to pick up the car. Make sure to inspect the car together as the renter should return it to you in the same condition at the end of the rental period.

This is a fairly straightforward way to earn extra income, but it requires careful attention to legal requirements, safety, and customer service to get good reviews.

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