Easy Passive Income Ideas for Therapists in 2022

During the COVID-19 pandemic, some therapies that required close contact with people were put on hold and some therapists had to find alternative ways to make money. Many had to think outside the box for potential therapist passive income strategies.

While savings can be used to pay bills, it is not a sustainable option in the long run. Earning passive income is one of the easiest ways to maintain cash flow, even if your regular work is unstable. Here’s a quick overview of the passive income stream and the best passive income strategies and ideas for therapists.

What is passive income?

Passive income refers to money that comes from a source that does not require direct or active involvement to keep it moving or growing. Unlike a regular active income where you work to earn, a passive income stream flows in without too much time or effort after your initial time or financial investment.

Some passive income ideas require ongoing effort, such as running a YouTube channel, but most good strategies will continue to act as an additional source of income after your work is done. According to the US Bureau of Labor Statistics, the median wage of a psychiatrist is $47,660, so many therapists feel they need additional income.

Passive Income Strategies for Therapists: Types of Passive Income

Many mental health professionals use passive income sources to make ends meet. These often require an upfront investment, but can make a big difference in your finances. Keep reading for some strategies and ideas to get you started.

Rental properties

This is money you earn by renting a house or space. However, there are certain exceptions when defining rental properties as passive income. Check the rules that apply before declaring it as passive income. Renting real estate to a company or partnership can also be classified as active income.

Self-charged interest

Money lent to a pass-through business entity, such as an S corporation or a partnership, can be considered passive income. Own-charged interest income or losses can be treated as passive under the law if the loan has been used only for passive business activities.

Investing in a company

Investing in a business is considered passive income by the IRS. You can invest money, but you cannot be an active participant in the company. This means that you cannot be involved in running, managing or operating the business.

10 Best Passive Income Ideas For Therapists

Having a passive source of income can help increase income per month.

1. Write and sell an ebook

As a professional therapist, you have a lot of experience and knowledge about mental health problems and you have the communication skills needed to become a writer. Writing a book about stories you have encountered and your perspective as a mental health professional will generate a lot of interest.

Turn your expertise into profit and take advantage of the lower publishing costs of an eBook. Publishing online also makes it easier to distribute worldwide for an additional income stream. Many people today are looking for mental health tips, and you may have the expertise to help them.

2. Create online training courses and workshops

At the start of the pandemic, people turned to free online courses and workshops to keep themselves entertained. Create an online psycho-educational course covering various topics on psychology and mental health. Online training and workshops are very helpful for people struggling with issues like burnout, depression and pandemic fatigue.

3. Write a blog

Blogging can be an informal way to share your knowledge as a therapist. As a mental health professional, you can blog about things like self-care tips, depression help, and success stories. Once you get some publicity and your number of followers increases, you will find that online businesses contact you to offer an affiliate marketing partnership.

4. Vlog on YouTube

Start a YouTube to vlog and become a mental health content creator. Share tips on mental health, self-care, and parenting. If your content is fun and unique, people will want to follow you or subscribe to your channel. Once your channel has reached a certain number of subscribers, you’ll be eligible to run ads and earn passive income from YouTube videos.

5. Start a podcast

If you are confident in public speaking, a podcast can be another platform to share your knowledge and stories. As an expert in psychology and mental health, creating digital products like podcasts can help spread knowledge and self-help tips to those interested in your particular niche. Once your podcast is set up, you can monetize it by running ads.

6. Offer online therapy sessions

Communication is now a lot easier with the use of the web and social media apps. Offer your services as a mental health professional by delivering individual sessions online to clients around the world.

Never again will you have to pause your business by moving some of your private practice online. Scheduling weekly online sessions can be an additional source of income, especially when you have to quarantine for a period of time.

7. Create a Psychology App

There are many people who would appreciate waking up to an app that helps them get out of bed in the morning. Ask a tech-savvy friend to help you create an app while you’re delivering the content. Later, when it gets going, you can hire freelancers to run the app for you.

8. Try Public Speaking

A simple alternative income idea for therapists is to become a public speaker for seminars, workshops, conferences and events. Take advantage of the COVID-19 situation by giving lectures to schools and organizations without leaving your home.

9. Create a mental health website

Creating a website is relatively easy these days. Knowing how to use WordPress will help you create a website and fill it with content related to therapy, psychology, and mental health. Depending on the quality, a complete website can sell for a decent amount.

10. Become a design consultant

If you understand technology and love design, use your medical professional background to provide consultancy services to UI/UX designers. A user experience (UX) designer can use your knowledge of human behavior to design better applications and websites.

Other ways to earn extra money as a therapist

  • If you own a house, rent some space. If you have your own property, consider renting out space to other residents or entrepreneurs. You can find a smaller place for yourself or share the property while making extra money renting space.
  • Promote products with affiliate marketing. Affiliate marketers promote products for an online business. Get paid commission by marketing a product to someone else. This can be done by promoting a product in a blog or on social media platforms with an affiliate link. Every time someone uses that link to buy the product, you earn a commission.
  • Buy a high-yield CD or savings account. Online banks offer high-yield certificates of deposit or savings accounts. Investing in a high-yield account will increase the return on your money much more than on a regular savings account.
  • Get paid by monetizing your Instagram account. Many therapists have used Instagram to help people gain followers and more therapy clients by offering a quick coaching program or participating in question and answer sessions. This can increase your private practice income.
  • Design something to help people de-stress. This could be recordings and deep breathing exercises, or any other product you make and sell. Think outside the box and try to come up with ideas that will not only help you make money, but help other people as well.

How to earn passive income for therapists?

Passive income for therapists provides financial security and stability. If you are a therapist dealing with unstable working conditions, you can increase your income per month by using strategies to earn passive income. You can achieve a steady flow of money by applying the latest trends and passive activity ideas with a small amount of upfront work.

Passive Income for Therapists Frequently Asked Questions

Can passive income be taxed?

Passive income from operating activities and rental income are taxable under IRS Publication 925. Profits made from these activities are declared and taxed, as are income from regular or full-time employment.

Why is passive income important?

Passive income is a stable source of income that does not require much time and effort to maintain. Having a passive activity while you have a full-time job can provide you with extra cash flow and a cushion when your regular job becomes unstable. If you want to become a therapist, it can be helpful to learn about alternative sources of income.

Can Passive Income Make You Rich?

While passive income businesses are not quick money programs, they are usually used as an additional source of money in addition to a regular job. It provides an increase in monthly income that can give you more financial security and stability over time.

What is Passive Income Loss?

Passive loss of income occurs when a non-participating investor incurs a financial loss. The taxpayer can offset passive loss of income against passive gains for investment in business activities and real estate rental.

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