3 Passive Income Strategies for Traveling Retirees

Retirement is a beautiful time to travel. You have no work deadlines, no emails pinging at all hours, no alarm clock waiting to interrupt your slumber. You can truly relax and immerse yourself in new places and experiences.

But life on the road (or the tarmac, or the rails) can get expensive. So you may be wondering how to keep your travel fund full while exploring the world.

One option to consider? Passive income.

Passive income is any money you bring in that requires little work to earn. You may have to put in some effort upfront or do a bit of maintenance along the way, but your passive income shouldn’t take up a ton of your time or energy.

If you have a 401(k) or other investments, you may already be earning passive income in the form of dividends or interest from your stocks or bonds. That’s a great start. But there are other ways to bring in cash while you travel.

1. Rent out an asset you’re leaving behind

If you’re spending weeks or months in another country, you’ll be leaving assets behind that could be making you money.

“That could be a car that you’re leaving,” said Elaine King, a Certified Financial Planner. “You’re not going to use it for three to six months,” so you may as well make some money on it. 

A peer-to-peer car-sharing service like Turo or Getaround can get your car in front of potential renters. But note that you may need to have someone available to handle pickup and dropoff while you’re out of town — consider asking a friend or family member, or hiring someone to manage those details.

Renting out your home is another passive income opportunity. Airbnb and VRBO are well-established vacation rental sites, while HomeToGo is a new option on the market. You’ll need someone available to answer guest questions, greet guests (if you don’t have a keypad lock or want to offer more personal service), and clean your home between bookings.

You could also rent out your bike on Splinster, your motorcycle on Riders Share, or your grandbaby’s extra gear on BabyQuip. Think creatively and there’s probably a peer-to-peer rental market for your stuff.

2. Sell a course online or earn royalties 

If you reached a high level in your career, you’re almost surely an expert in something that someone else wants to learn. Why not monetize that knowledge by writing an e-book or creating a course you can sell online? Yes, this passive income strategy requires more effort up front, but it needs little to no maintenance over time.