Easy Passive Income Ideas for Lawyers in 2022

Not all lawyers are top earners, but they have the potential to earn more through passive income. According to ZipRecruiter, attorneys in the United States earn an average annual income of $80,743. Whether you’re experienced or just graduated and looking to earn extra money, read on for ideas.

This article takes a closer look at ideas that can generate passive income for lawyers. It also explains what passive income is and what types of passive income there are. If you’re willing to put in the time and effort, you can pursue one of the passive income streams in this guide.

What is passive income?

Passive income is the ability to make money with little to no participation. It is a hands-off approach to making money that can be fixed or progressive. Passive income is considered fixed when it is a one-time earning agreement and progressive when it is ongoing or lasts for an extended period of time. As a lawyer, having steady cash flow from passive income can help offset your slower months.

Passive Income Strategies for Lawyers: Types of Passive Income

As a lawyer, there are several ways to earn passive income in addition to the active income you get from your law career. Some of the most common passive activities and strategies are financial investments, rental income and affiliate marketing.

Financial investments

With the right financial management skills, you can earn monthly to annual dividends on your capital. Lawyers can earn passive income by investing cash in stocks, mutual funds, bonds or futures contracts. These financial assets require very little active participation and can be liquidated at any time. You may want to seek help from financial advisors on the best financial investments.

Rental income

This is one of the most popular passive income strategies in the United States. You can generate rental income by buying and renting real estate. It is also possible to generate rental income on properties that you do not own if you have the correct lease agreement. You just need to find a real estate investment model that works for you.

Affiliate Marketing

Affiliate marketing can pass as active or passive income, depending on the route you choose. In any case, it concerns the promotion of goods and services that belong to another person or company. Affiliate marketers typically get a commission for every successful conversion that comes from affiliate links.

10 Best Passive Income Ideas For Lawyers

There are so many ways to achieve financial freedom outside of your law practice or law firm.

Earning passive income as an afterthought can potentially bring you freedom through entrepreneurship. You are essentially a business owner making alternative investments to earn additional income. Making extra money outside of your regular job may require a change of mindset. Below are some passive income ideas for lawyers to consider.

1. Write a law book

As a lawyer you have first-hand insight into the law and you can take advantage of that by writing a book. Nowadays you can earn an extra income with a book outside of publishing houses. You can sell your book on Amazon, AbeBooks.com, eBay, and BookScouter.

2. Investing in real estate

If you have a good credit score, you can work as a real estate professional to earn money. There are options that don’t require a hands-on approach. These include rental properties, real estate mutual funds, real estate investment groups, house flipping and online real estate platforms. You can also take real estate courses.

3. Invest in mutual funds

A mutual fund combines funds from a few investors. They then invest this money in stocks and bonds. Investors buy shares in the fund, which means that each investor co-owns the fund’s portfolio. The income generated from the portfolio is divided among each investor.

In the US, the most common types of mutual funds are money market funds, bond funds, and private equity funds.

Create a passive income blog with quality content. Blogging requires some attention as you need to update it regularly to grow your audience. With the right audience, you can eventually monetize your blog and only update it a few times a week. Blogging also helps you generate leads to build your customer base.

Today, video blogs are getting more engagement than written blogs. You can make videos with free legal tips on platforms that pay creators. Tiktok and YouTube are currently leading the way and are great platforms to build a customer base. Popular creators with large audiences benefit from business recommendations trying to reach a larger audience.

6. Podcasting

Podcasting is another way to earn an extra income while educating people at the same time. You have expertise that others do not have and that others would benefit from. A podcast is an audio series that is streamed digitally. The more listeners you get, the higher your earning potential.

7. Borrow sleeping money

Use money saved in your bank account by lending it with interest through peer-to-peer lending. While it can be an effective strategy, it comes with significant risks. There are several P2P lending platforms that allow you to safely lend money to others and get paid with interest. These include LendingClub, Fundly, and Upstart.

8. Rent out your car

You can earn extra money with your car if you rent it out during office hours. This is another income from passive activities with low participation. Make sure to rent your car through a reliable platform like Turo to minimize the risk of losing your car. Turo has been around for 11 years and has built up a reliable reputation.

9. Sell an online course

Write short legal courses with educational content and sell them online to make money. The only time you spend on this project is the time it takes to write the course. Skillshare, Podia, Thinkific, Udemy, and Teachable are some great places to sell online courses for passive income.

10. Join Affiliate Marketing

Affiliate marketing does not require you to write a book or sell your own products and services. All you need to do is promote another company’s products or services using affiliate links. This earns you a commission when a sale is made. You don’t have to limit yourself to the law in the affiliate niche. Affiliate marketers earn an average of $154,700 per year, according to ZipRecruiter. This is much higher than what layers average.

Other ways to earn extra money as a lawyer

  • Share driving. If you don’t like renting out your car, you can sign up as a driver on a ride-sharing app. Rideshare side gigs with companies like Uber and Lyft are among the top crowds that pay well. You have full control over the hours so it doesn’t get in the way of your full-time job.
  • Online tutoring. You can tutor high school and college students online. You can find tutoring on platforms such as Studypool, TutorMe and Tutor.com. Choose from a wide variety of topics available on these platforms.
  • Independent writing. You can start freelance writing part-time to earn extra money when you’re not working. Find freelance writing jobs on sites like Upwork, Toptal, and FlexJobs.
  • Writing a thesis. Thesis writing is a form of freelance writing that involves creating projects for graduate students. It usually takes quite a bit of time, but you have the opportunity to work around your schedule, especially if you work online. Thesis writers usually get paid significantly more than other freelance writers.
  • Sell ​​everything you don’t use. You don’t need a professional qualification or fancy business model to sell things you no longer use. You can use platforms like Craigslist, Facebook Marketplace or OfferUp.

How to Earn Passive Income for Lawyers

There are many opportunities for lawyers to earn passive income online or offline. You can blog, make videos, or look for alternative investments such as real estate or mutual funds, especially if you need additional sources of income that won’t take up too much of your time.

Passive Income for Lawyers FAQ

What are the most popular myths surrounding money?

Some of the most popular myths about money are based on the belief that you need a college degree to earn a comfortable income. Other myths revolve around the idea that nine-to-five jobs are the only stable path to financial prosperity.

How can you make a million dollars in passive income?

One of the most reliable ways to make a million dollars in passive income is by investing in quality real estate assets. This is a capital-intensive form of passive income, which means that you need a lot of money. However, it can guarantee six figures or more a year if you follow the right business plan.

How can lawyers earn extra money?

Lawyers can earn extra money by entering the online legal marketplace and providing remote services to clients interested in legal matters. Some great online platforms for lawyers to make extra money are LawTrades, UpCounsel, and Hire an Esquire. You can also join Montage Legal Group and FlexLegal.

What is the safest investment with the highest return?

The safest investments with good returns are government bonds, money market accounts and inflation-protected securities. Other safe investments include corporate bonds, high-yield savings accounts, and S&P 500 funds. Weigh the risk and reward before investing in a financial market.

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