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Passive Income Ideas

Updated July 16, 2025

Make Money While You Sleep: Top Passive Income Ideas


Start earning without trading time for cash. These smart strategies help you stack wealth in the background—so you can focus on living life on your terms.


Passive income won’t make you rich overnight, but it’s a great way to boost your earnings and grow long-term wealth.


Whether it’s through investments, royalties, rental income, or automated revenue streams, passive income brings in money without needing you to clock in every day. It’s not tied to a 9-to-5 and doesn’t demand your full-time focus—giving you more freedom, flexibility, and financial breathing room.



Check out these simple passive income ideas to level up your financial game.


36 passive income ideas

  1. Investment funds
  2. Startup investments
  3. Dividend stocks
  4. Bonds
  5. Buy a website
  6. Buy a local business
  7. High-yield savings accounts
  8. Peer-to-peer lending
  9. Crypto staking
  10. Rental properties
  11. Unused space rentals
  12. Short-term rentals
  13. Roommates
  14. Vending machines
  15. REIT investments
  16. Digital products
  17. Handmade goods
  18. Stock photos
  19. Job boards
  20. Mobile apps
  21. Spreadsheet templates
  22. Shopping rewards
  23. Car rentals
  24. Vehicle ads
  25. Parking space rentals
  26. Dropshipping
  27. Print on demand
  28. Social media influencer
  29. Affiliate marketing
  30. Ebooks
  31. Online courses
  32. Blogging
  33. Digital designs
  34. Royalties
  35. Audiobook narration
  36. YouTube channel


What’s Passive Income, Really?


Passive income is money that keeps flowing in with little ongoing effort. Think of it as income that works for you—even when you're not working.


You can earn it through things like rental properties, dividends, interest from savings, or even leasing out equipment. Another way? Get paid repeatedly for something you already made—like an online course, an eBook, or a YouTube video that brings in affiliate commissions.


Most passive income streams take some upfront work to set up, but once they’re running, they don’t need much of your time to keep earning.


Different Types of Passive Income


Passive income usually falls into four main buckets:


  1. Investment Income

Put your money to work in the financial markets. With things like stocks, bonds, or high-interest savings accounts, you can earn through interest and dividends—no daily effort required.


  1. Real Estate Income

Own property? You can make money by renting it out or even taking on roommates. You can also leverage loans or mortgages to get started, making this a powerful tool for building wealth.


  1. Business Income

Create something once and let it earn for you over time. This could be anything from building an app to running affiliate marketing content that brings in ongoing commissions.


  1. Creative Income

If you’re an artist, writer, or content creator, your work can keep paying you long after it's done. Think royalties, digital downloads, or ad revenue from videos and music.


Investment-based passive income ideas


Want to earn passively by investing your money? Here’s a smart place to start:


1. Investment Funds

Putting your money into investment funds is a solid way to grow wealth over time—without taking on too much risk. Options like mutual funds, index funds, and ETFs (exchange-traded funds) let you team up with other investors to buy a mix of different stocks.


Why’s that helpful? Because spreading your money across lots of companies (called diversification) helps protect you if one stock drops in value.


  1. Index funds (like ones tracking the S&P 500) follow the overall market and give you broad exposure to many companies.
  2. Mutual funds are actively managed by professionals who choose the stocks for you.
  3. ETFs work like regular stocks you can buy and sell on the exchange—but usually with lower fees.


How to Get Started:

To begin, open a brokerage account with a trusted financial institution. Take time to explore different types of funds—learn how they work, what they invest in, and how they've performed over time. Not sure where to start? A financial adviser can help guide you based on your goals.


Potential Earnings:

Historically, the S&P 500—one of the most popular stock market indexes—has delivered an average annual return of around 8.43% over the past 20 years. That’s a solid return for long-term investors!


2. Startup investments


Investing in Startups and Small Businesses

Thanks to online platforms, it’s now easier than ever to invest in up-and-coming businesses—even with a small amount of money. You might be backing the next big thing!

But keep in mind: returns can vary a lot. Some businesses take off, while others may not make any profit at all. Like any investment, there’s a risk—including losing the money you put in.


Before You Invest:

Ask yourself: Do I believe in the product? Do I trust the people running the business? Always do your homework before funding any company.


How to Start:

Platforms like StartEngine, Crowdcube, and Fundable review businesses before they’re listed. But don’t rely on them alone—do your own research too, so you can make a smart choice.


What Can You Earn?

Startup investing is unpredictable. Some may deliver high returns, but many won’t return anything at all—so invest wisely and only what you can afford to lose.


3. Dividend stocks


Earn Passive Income with Dividend Stocks

Dividend stocks are a classic way to bring in passive income. These are shares of companies that share a portion of their profits with investors—usually every quarter. So you earn in two ways: from regular dividend payments and from the potential growth in the stock’s value.


How to Get Started:

Look for well-established companies with a strong track record of paying dividends consistently. Once you’ve done your research, open a brokerage account and start buying shares.


What Can You Earn?

Dividend income depends on the industry. For example, oil and lumber companies often pay around 4.92%, while tech companies average closer to 3.2%.


4. Bonds


Build Steady Income with Bonds

Bonds are a reliable way to earn passive income. When you buy a bond, you're lending money to the government or a company—and they pay you interest in return. Bonds are usually less risky than stocks and can give you a steady flow of income over time.


How to Get Started:

Look into different types of bonds, like municipal (issued by local governments) or corporate (issued by companies). You can buy them through a brokerage account.


What Can You Earn?

Returns from bonds usually range between 2% and 5% per year, depending on the type and risk level.


5. Buy a website


Buy a Website That’s Already Making Money

Did you know you can buy websites that are already earning income? Many sites bring in money through ads, affiliate links, memberships, or product sales—and the best part is, the hard work of building traffic is already done.


Buying an existing site is like stepping into a ready-made business. Once the deal is done, the seller usually helps you transition smoothly so you can keep things running without a hitch.


How to Get Started:

Check out platforms like Flippa and BizBuySell to browse available websites and see what they cost. When you find one you like, be ready to negotiate the price and terms of the sale.


What Can You Earn?

Profits vary, but websites typically sell for 2–3 times their yearly income. So if a site earns $10,000 a year, you might pay $20K–$30K—meaning you could earn your money back in just a few years.


6. Buy a local business


Invest in Local Businesses for Passive Income

If you’re into entrepreneurship but prefer a low-maintenance role, buying a stake in a local business—like a café, laundromat, or ad agency—can be a great way to earn passive income. Once you own part of it, you get a share of the profits without dealing with day-to-day operations.

Depending on the business, you might also pitch in with your skills if you want to be more involved.


How to Get Started:

Look for local businesses up for sale in your area and dig deep into their finances and market potential before making a decision.


What Can You Earn?

Your income depends on how much of the business you own, its expenses and debts, and how profitable it is overall.


Interest-based passive income ideas


Passive Income Ideas That Earn Interest on What You Own


7. High-Yield Savings Accounts

These accounts pay higher interest than regular savings. Just deposit your money, and it grows automatically over time. Some offer more than 4% APY. Although returns aren’t huge compared to other investments, it’s a safe, beginner-friendly way to build wealth.

How to Start: Check local banks for their current rates and look for first-time customer deals.

What You Can Earn: For example, $10,000 at 4% interest would earn you $400 in a year.


8. Peer-to-Peer Lending

Got extra cash? Lend it to individuals or small businesses through P2P platforms like LendingClub or Prosper. You earn interest on the loans, typically around 5–10%, depending on borrower risk.

How to Start: Sign up on P2P lending websites that match lenders and borrowers.

What You Can Earn: Returns usually range from 5% to 10% annually.


9. Crypto Staking

Stake your cryptocurrency to help maintain its blockchain network. This means locking up your coins for a while to validate transactions, and in return, you earn staking rewards.

How to Start: Pick a staking-friendly crypto, set up a digital wallet, and join a staking platform.

What You Can Earn: Returns typically range from 3% to 10% per year.


Property-Based Passive Income Ideas


10. Rental Properties

Invest in real estate by buying properties to rent out. You can leverage mortgages and benefit from property value appreciation. Managing tenants can be active work, so hiring property

managers helps keep it passive.

How to Start: Learn your local real estate laws and find investment properties.

What You Can Earn: In 2024, U.S. landlords earned on average $60,107 per year, but this

varies by location and property type.


11. Renting Out Unused Space

Have extra space like a garage or basement? Rent it out as storage for cars, boats, or inventory. The storage rental market is growing fast, making this a solid income source.

How to Start: Use local classifieds or platforms like Neighbor or Peerspace to list your space.

What You Can Earn: Depending on demand and location, you could make hundreds of dollars per month.


12. Short-Term Rentals

Don’t have a lot of cash to buy property? No problem! If you have a spare room or are leaving your place empty for a while, you can rent it out on platforms like Airbnb. Travelers often prefer Airbnb because it’s more affordable and convenient than hotels, so demand is high.

Renting one room is a great start, but owning multiple properties to rent out short-term can bring in even more income—just be ready to handle some upfront work like furnishing or fixing up the space.

How to Start: Check local short-term rental prices to see what you could charge per night.

What You Can Earn: Hosting on Airbnb can bring in anywhere from a few hundred to thousands of dollars a month. On average, U.S. hosts make about $14,000 a year.


13. Roommates

If short-term rentals aren’t an option, renting out a spare room to a roommate can help cover your living expenses. Just set clear rules about bills and shared costs to avoid surprises. Plus, having a roommate can add some company to your life.

How to Start: Advertise on rental sites or local classifieds and interview candidates to find the right fit.

What You Can Earn: Depending on your area, renting a room can bring in anywhere from $500 to over $1,500 per month.


14. Vending Machines

Those snack and drink machines around town? Their owners make semi-passive income from your cravings! Running vending machines takes upfront money and effort—you’ll need to buy or rent machines, find good spots, and restock regularly.

How to Start: Check sites like Craigslist, eBay, or BizBuySell to see prices for vending machines and figure out your budget.

What You Can Earn: Your profits depend on machine costs, location, and how often you restock and maintain them.


15. REIT Investments

Don’t have enough cash to buy a whole building? No worries! Real Estate Investment Trusts (REITs) let you pool money with other investors to own parts of real estate projects. With as little as $500, you can start earning rental income from properties managed by the REIT.

How to Start: Pick a trusted REIT platform like Fundrise and research before investing.

What You Can Earn: REITs typically pay dividends between 4% and 10%. For example, a $10,000 investment could earn you $400 to $1,000 a year.


Product creation passive income ideas


Create Products That Keep Earning for You


16. Digital Products

Digital products—like ebooks, templates, printables, and PDFs—are perfect for passive income. You create them once, then sell them over and over without extra work. No inventory or shipping needed, so your profit margins stay high. Many creators scale their income by selling packs or kits professionals can use.

How to Start: Use apps or platforms that deliver your digital products automatically to customers.

What You Can Earn: Some sellers on marketplaces like Whop make over $2,000 a month.


17. Handmade Goods

If you’re crafty, selling handmade products online can turn a hobby into real income. From pottery to clothing, there are tons of marketplaces like Etsy, Amazon, and Faire where you can sell your creations. Building your own online store can save fees and help you create a brand, making it easier to grow sales over time.

How to Start: Check out popular handmade products on top selling sites to see what works. What You Can Earn: Etsy’s average active seller makes around $45,000 a year in sales.


18. Stock Photos

While photography often means getting paid for your time at shoots, you can also make passive income by selling your photos online. Stock photo websites like Shutterstock and Pexels pay for high-quality images and videos that people can license.


Boost Your Passive Income with These Creative and Marketing Ideas


Photography + Digital Products

If you run a photography business on Shopify, you can add extra income by selling digital prints or print-on-demand gear like shirts and hats.

  1. How to start: Learn stock photo requirements and pick your photo niche.
  2. What you can earn: Photographer Peter Orsel made about 5¢ per stock photo file each month in his first year.


19. Job Boards

Build a niche job board website where employers pay to post jobs and get access to candidates. It takes work upfront to build traffic, but once established, it can become mostly passive.

  1. How to start: Check existing job boards for ideas like ProBlogger or Construction Jobs.
  2. What you can earn: Money comes from fees employers pay to post listings or access candidates.


20. Mobile Apps

Anyone can make an app with no-code tools like Appy Pie or Bubble. Monetize with ads, subscriptions, or pay-to-download models.

  1. How to start: Pick your app idea and monetization method; use no-code platforms.
  2. What you can earn: Income varies widely; free apps can earn through ads and in-app purchases.


21. Spreadsheet Templates

If you’re good with Excel or Google Sheets, create templates for budgeting, tracking, or business use, then sell them online.

  1. How to start: Connect a digital download app to your Shopify store.
  2. What you can earn: Etsy seller Emily McDermott made over $200,000 in under two years selling templates.


22. Shopping Rewards

Earn cashback by shopping online through sites like Swagbucks, MyPoints, or Rakuten. Just shop as usual and rack up rewards.

  1. How to start: Sign up on cashback sites.
  2. What you can earn: Hundreds of dollars yearly, with some users making over $1,000.


Car-Related Passive Income


23. Car Rentals

Rent your car on platforms like Turo when you’re not using it. Great for earning money without driving.

  1. How to start: Check if your car qualifies on Turo.
  2. What you can earn: Several hundred dollars monthly, depending on your car and location.


24. Vehicle Ads

Get paid to wrap your car with advertisements. Just drive normally while earning money.

  1. How to start: Join platforms like Carvertise or Wrapify.
  2. What you can earn: Up to $450 per month depending on miles driven and ad size.


25. Parking Space Rentals

Rent out your unused parking spot on sites like Spacer or Craigslist for steady passive income.

  1. How to start: List your space on parking marketplaces.
  2. What you can earn: In busy cities, parking spots can bring $300+ monthly.


Marketing-Based Passive Income


26. Dropshipping

Run an online store where suppliers ship products directly to customers—no inventory needed.

  1. How to start: Use Shopify to launch your store.
  2. What you can earn: Average dropshippers make about $41,000 annually.


27. Print on Demand

Sell custom designs on shirts, posters, and more without handling inventory or shipping.

  1. How to start: Partner with print-on-demand services and create designs.
  2. What you can earn: Sellers often earn between $1,500 and $10,000 a month.


28. Social Media Influencer

Build a community around your passion (comics, sports, etc.) and monetize with brand deals, merch, and affiliate sales.

  1. How to start: Use tools like Shopify Collabs to find brands.
  2. What you can earn: Roughly $100 per 10,000 followers.


29. Affiliate Marketing

Recommend products and earn commissions on sales made through your links. Low-risk and scalable.

  1. How to start: Join affiliate programs like Shopify’s affiliate program.
  2. What you can earn: Shopify affiliates average $58 per paid signup.


Passive Income for Creatives


30. Ebooks

Write and sell ebooks on topics you know. After the initial work, sales continue generating income.

  1. How to start: Write, edit, and publish your ebook online.
  2. What you can earn: Some authors earn a few dollars daily.


31. Online Courses

Create and sell pre-recorded courses in your area of expertise. Upfront work, ongoing sales.

  1. How to start: Launch a mini-course to test interest; use platforms like Teachable.
  2. What you can earn: Average courses bring in about $3,000, with top creators earning more.


32. Blogging

Build a blog, grow an audience, and monetize with affiliate links, sponsored posts, products, or ads.

  1. How to start: Pick a niche and create quality content consistently.
  2. What you can earn: Established blogs can make $30,000+ monthly.


33. Digital Designs

Sell digital designs like website themes, logos, templates, or fonts on marketplaces such as 99designs, ThemeForest, or Creative Market. These platforms connect you with buyers already looking for design resources.

  1. How to start: If you’re new to design, try user-friendly tools like Canva.
  2. What you can earn: Top sellers on Creative Market can earn six-figure incomes annually.


34. Royalties

Inventors can earn passive income by licensing their creations. This may include patents, trademarks, or creative works. While it can be challenging to get started, royalties provide ongoing payments as your invention sells.

  1. How to start: Check patent databases to make sure your idea is unique.
  2. What you can earn: Royalties vary—books pay about 7.5%–12.5%, music up to 25%, and patents usually lower percentages.


35. Audiobook Narration

Narrate audiobooks and earn royalties from your recordings. It requires learning narration techniques, auditioning, and editing, but can become a passive revenue stream.

  1. How to start: Use platforms like ACX or Audible to get started and find gigs.
  2. What you can earn: Narrators earn between $10 and $500 per finished hour, depending on experience.


36. YouTube Channel

Start a YouTube channel to build an audience and earn passive income through ads, sponsorships, affiliate sales, and branded content. It takes effort upfront but offers great long-term potential.

  1. How to start: Create videos and learn how to optimize content for monetization.
  2. What you can earn: On average, creators make 1¢ to 3¢ per ad view; earnings rise with engagement.


How to Choose the Right Passive Income Idea for You


  1. Assess your skills: Match ideas to your strengths—photography skills? Try selling stock photos.
  2. Assess your resources: More capital means more passive income options; starting with no money means investing time and skills first.
  3. Set financial goals: Are you covering hobby costs or aiming for full income replacement?
  4. Consider time commitments: Some ideas require hours to launch (YouTube), others minutes (high-yield savings).
  5. Start small: Focus on one stream before expanding.
  6. Monitor and adjust: Track results and shift focus to the most profitable streams.


Passive Income Ideas to Start Without Money


Perfect for beginners who want to use skills and time instead of cash:

  1. Dropshipping
  2. Print on demand
  3. Digital products
  4. Digital designs
  5. Online courses
  6. Blogging
  7. Affiliate marketing
  8. Stock photos
  9. Social media influencing
  10. Job board creation
  11. Mobile app development
  12. Royalties
  13. Audiobook narration
  14. Spreadsheet templates


Passive Income Ideas to Start With Money


Require some upfront investment but can offer bigger returns:

  1. Rental properties
  2. Stock market investments
  3. Renting spare rooms
  4. Car rentals
  5. Peer-to-peer lending
  6. Buying and selling websites
  7. YouTube channels
  8. REITs (Real Estate Investment Trusts)
  9. Startup investments
  10. Renting unused space
  11. Vending machines
  12. High-yield savings accounts
  13. Renting parking spaces


Find the Right Passive Income for You


Time is limited, so focus on efficient ways to grow your money. Building diverse passive income streams can give you the freedom to enjoy life—whether that’s a vacation, new gear, or financial security.


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