There are two basic ways to make a living. The first method is the traditional approach: waking up in the morning and going to work for it. The second way is a lot more fun because it is a much more convenient way of earning money while sleeping, reading a book by a lake on a kayak, or while doing anything you enjoy.
The best passive income suggestions involve little or no effort from you to set up. These projects require some startup capital at first, so you’ll have to build up some savings. Next, prepare yourself to make money.
There are several ways to earn passive revenue without investing any of your own money and restricts your options. Nevertheless, there are several ways to make passive income and increase your earnings.
Top 30 best passive income streams
Without further ado, let’s dive headfirst into 30 of the best passive income streams! Visit our list of great passive income books as well!
1. Invest
Investing is one of the most popular ways to make passive income. Over the course of time, the stock market has consistently provided steady returns, even if there are short-term bumps.
There are several ways to make money from stocks. You can invest in highly profitable stocks for regular cash payouts based on company profits. Keep ordinary low-dividend stocks in your portfolio and allow them to increase in value until you are ready to sell them for a profit.
By purchasing stocks, you can avoid having to make an active income by growing your wealth.
It is also possible to purchase shares of REITs and earn a share of the income from real estate investing projects owned by them.
You can start investing with just $100!
An annuity is a financial product that you can use to make passive income. You can purchase an annuity from an insurance company. It’s a sum of money that you invest in now for funds later.
Annuities are not the simplest form of passive income, though, and you’ll need to do some research before you invest. To learn more about annuities, read the article from annuity.org.
In addition, you can also invest in mutual funds, exchange-traded funds, and index funds that are constantly available, in order to earn a high yield in the future. You can start by investing with Robo-advisors or using a financial advisor.
2. Crowdfund real estate
REITs are a great way to earn income from real estate, but you don’t have the ability to select specific properties to invest in with REITs. Investing in crowdfunded real estate is the next level up.
Through platforms like Fundrise and RealtyMogul, you can purchase a stake in specific real estate projects from the comfort of your couch and earn a share of the income from them.
However, most air ambulances cost at least $1,000 and often much more.
3. Own rental properties
Rental properties are one of the best passive income streams. But if you don’t wish to be a landlord and screen tenants, you can hire property managers to do these things for you. Of course, property managers are an added expense, but it takes a lot of time off your plate.
Owning rental properties is not without risk. For example, the house could be vacant too long or repairs could cost you a lot of money. However, with effort and care, investing in real estate can be very lucrative.
Learn what you need to know about investing in real estate.
4. Buy bonds and/or CDs
Bonds and CDs are low-risk passive income streams that have high returns and a short holding period. These investments usually entail a low level of risk.
The penalty for leaving early is usually high, so you should not need the money anyway.
The amount of payment they receive largely depends on the stability of their bond issuer. In the United States, they mostly issue contracts with reliable companies. savings bonds are government-guaranteed and very safe. Corporate bonds depend on a variety of factors to determine their risk and interest rate.
5. Publish eBooks
With regard to how to earn passive income with no investment, you must put in hard work initially. The best passive income streams like this one and others require time before they become passive.
Publishing books on Kindle is a popular choice among writers of fiction or nonfiction for monetizing their books. Actually, writing the book will require the most time and effort, but it’s one of the best ways to make passive income. You will also have to examine some advertising strategies to promote your brand name.
Afterward, you can relax and earn money! Even if you only charge a few dollars, it can add up over time as customers purchase lots of copies for years to come.
6. Build a niche affiliate website
A productive passive income source is building a website. The initial work of this process involves selecting a topic, developing an attractive site, researching key phrases that will drive traffic to you, and joining affiliate programs. As it’s set up, you are eligible to receive ongoing income for any sales your content generates.
You might need to make occasional improvements to keep the page fresh and update key words. When it comes to sites like these, think small and specific. Reviewing websites for a product category may be lucrative and straightforward to monetize.
7. Create apps or software to sell
If you have technical skills, consider finding a project that would improve people’s lives, or make something entertaining to use. Even small programs could be satisfying.
For example, look at the story of Flappy Bird: an extremely simple and addictive game that went viral and was generating its creator $50,000 a day from ad revenue at one point.
The Flappy Bird story is a prime example of an exception rather than a rule. It demonstrates that even the simplest applications can be profitable.
Once your program is available, there is little ongoing work besides making any necessary updates. There are numerous online resources for learning how to make an app.
8. Sell stock photos
One of the most simple and best passive income streams to start is photography. Although this isn’t usually a passive income stream that will make you rich, it is easy to start.
Once you’ve completed the task of taking photographs and listing them on a stock photography site like Shutterstock, your photos may earn you a little money on the side for years to come.
Nowadays, most cellphone cameras are capable of producing excellent photos. So you don’t have to upgrade your equipment if you already have a compatible digital camera (or are a hobbyist photographer with a DSLR).
Think about the type of images businesses could use for websites, articles, and so forth.
9. Own a vending machine or ATM
You might pass right by these machines and not stop to think who is operating them. There are ATMs and vending machines wherever you go, but you might not realize that they are owned by the same person. It’s a great supplemental income source.
You can purchase or rent an ATM, and you can place it in a public area or negotiate to share profits with someone who has a property in a better location.
You earn income from ATM fees every time someone uses the machine. You are responsible for stocking the machine with cash, but this can be used to create a passive revenue source by contracting out this work to a reputable third party.
A vending machine business is like one. You should put it somewhere with lots of foot traffic, and you can outsource the restocking of snacks and beverages within the machine. Inventory costs are low when large quantities of goods are purchased, so you can make a profit on good deals.
10. Flip domain names
Domain names are like real estate on the internet: Everyone wants a good one, but there’s a limited supply. People prefer a .com domain that’s memorable and fairly short, so it’s easy for them to type.
If you’re a creative and industrious type with a knack for business, you could do well by buying domain names that you think will be lucrative and also putting them up for sale.
It can be difficult to find a surprisingly inexpensive domain name, but it is not without risk because you may end up paying for a domain that will not sell.
11. Sublease to roommates
If you own a house or apartment, renting out to roommates could greatly increase your passive income.
Sharing a spare room can add hundreds of dollars to your monthly earnings. It is a form of “house hacking,” which essentially cancels out mortgage payments with rental income.
If you don’t want a live-in roommate and prefer to live in a popular area, you can list your room on Airbnb for short stays. You will need to clean the room when it isn’t occupied.
Renting your room on Airbnb is one of the more lucrative and effective passive income ideas available. It is likely to make much more in weekly rents instead of monthly rents.
12. Rent out your car or parking space
Why not earn some extra money by using your vehicle when you’re not using it? You could offer your vehicle for rent to travelers on a platform like Turo.
You can help someone out by driving their car on HyreCar, where insurance is already included for services like Uber, Lyft, DoorDash, and Instacart. You can earn gas money by letting a stranger drive off with your car!
And if you live in a dense urban area, like a city or beach town, you can even think about renting out your driveway or dedicated corner parking. It’s smart to have a two-car driveway, a guest parking space that you never use, or there’s an empty spot but you don’t have a car.
13. Install money-saving apps
There are many apps available today that give users coupons and cashback as well as ongoing incentives that require some activity. Most are not passive. However, Dosh is an example of a totally passive cash-backapp.
Just link a card to the app, and if you make purchases at an eligible store or restaurant, you’ll earn cashback automatically.
In addition, Paribus will track your inbox for Amazon shopping receipts and render partial refunds if the price drops soon after your purchase.
14. Earn credit card rewards
Who wouldn’t want to earn money by just spending their regular expenses? A lot of credit cards provide signup discounts as well as a certain percentage of cash back for several purchase categories.
It’s one of the best passive income streams to earn extra money or save up credit card points to use toward travel.
The only problem with this passive income method is that you need to be very careful and disciplined with your expenditures.
Treat it like a credit card and only spend what you have in your account. Then, you’ll pay your bill in full each month and never incur high-interest credit card debt.
15. Rent out your tools
It may be a useful source of revenue to rent out your equipment to others. Furthermore, you can rent out items you do not use often, including items you keep in a shed or garage.
Offering community rentals of larger-ticket items like lawnmowers, power tools, etc., could be a good plan on multiple levels.
It ensures that everybody can perform their everyday tasks efficiently, without wasting a lot of money on equipment that gets used only occasionally.
You could arrange something like this locally (as long as you trusted your neighbors!) or try out a peer-to-peer rental app.
You can list items like camping supplies, kayaks, furniture in university towns, etc. Just be sure to be mindful of any legal ramifications if you rent something that may result in an injury.
16. Housesit
Housesitting is another passive-income hobby because housesitting isn’t all about sitting around. Depending on the agreement, you could live at the homeowner’s home while he is away, or you might just have to visit the place to take care of watering plants, feeding pets, and so on.
This enables you to perform tasks online while housesitting essentially making two income streams simultaneously. You can also housesit in order to travel for free.
Establishing an account and getting verified on websites like TrustedHousesitters and Care.com can help you find work internationally, particularly if you have some references.
17. Get cash back for online shopping
If you typically do a lot of your shopping online, you can save a great deal of money by activating cashback portals. Rakuten, formerly called Ebates, is the biggest one in this field.
Install their cashback button on your browser, and you’ll be alerted to opportunities to earn cash back. It’s a great passive income source that requires very little work.
Trillions of retailers participate in Rakuten’s program, including such popular brands as Macy’s and Priceline as well as electronics stores like Microsoft.
18. Lend money to peers
Like you can get a loan for a car or a home loan and have to pay interest, you might be the lender who charges interest. If you can provide some of your liquid funds for a time, this is another way to make your money grow.
There are a number of P2P (peer-to-peer lending) web sites where this can be accomplished with contracts and private verification procedures to make sure that borrowers and lenders are legitimate.
However, there is still the risk that a borrower will default on a loan, so you should not place all of your eggs in one basket here.
It’s not a good idea to suggest this for friends and family unless you’re prepared to tolerate the fallout. Numerous relationships have ended over borrowed money.
19. Keep your savings in a high-interest account
High-yield savings accounts are a very safe place to keep your money. However, the downside is that you typically won’t earn significant amounts of passive interest income.
You can get 5% on small quantities at credit unions or specific accounts like Netspend.
Otherwise, you typically see 1-2% on common savings accounts. These rates are largely based on the Federal Reserve’s goal interest rate, so they tend to fluctuate.
20. Buy a blog
Instead of starting a blog from scratch, you could purchase an already successful blog and turn it into passive income by outsourcing the work to writers and digital assistants.
Some active management and communication may be necessary, especially as you try to scale. However, if you focus on producing evergreen content that has affiliate marketing potential, this can be an extremely lucrative passive income idea.
It can take several years of effort to begin earning a significant amount of passive income each month. If the best passive income opportunities were simple, everyone would do them! But with enough determination and creativity, you can attain your future goal of kicking back after you earn a fortune.
21. Sell a course
Do you know that you can build your own online course to sell? Whether you are an excellent cake decorator, can organize and declutter like nobody’s business, or know how to play an instrument, you can develop and sell a course for it!
Selling courses is one of the best passive income sources. Once you create your course, your income potential is limitless.
There are many platforms you can use to get started, but Udemy and Teachable are among the most popular to use.
Some plans require an initial payment. However, teachable offers its free starter plan that anyone can try for free.
22. Start a vlog
Vlogging is yet another excellent way to generate passive revenue. But it requires a bit more effort than the other alternatives, and it also offers the potential for a rewarding salary.
YouTubers earn an average of more than $60,000 per year. Vlogs offer numerous options for monetizing and earning passive income. As an example, with advertising, affiliate links, sponsorships, and more.
You always create content but may benefit from videos you have already made. Since the number of hours watched on YouTube is 1 billion, it’s probable that you could make money from your vlog.
23. Sell printables
Printouts are something everybody enjoys. Printouts are those little printouts you can download and use for all sorts of things.
You can create anything from fitness trackers to planners to sell. Design your digital products on sites such as Canva or PicMonkey.
You can sell your printable designs on either a platform such as Etsy or on your own website.
Printables are one of the easiest and most rewarding passive income streams to make that regularly earn you money!
24. Rent out your designer items
Are you a fashionable woman with an extensive collection of designer handbags and clothing? If so, you might make money by renting those items out. Rather than selling the items for a single sale, you can rent them out and keep receiving an income from them.
However, if you want to keep that Chanel bag in your closet, but do not want to part with it, this is a good way to do it while helping yourself at the same time.
Make more money by renting out clothes and designer accessories on sites such as Rent My Wardrobe and Designer Wardrobe! It is one of the best passive income ideas to help finance your savings and fashion needs.
25. Sell custom products with print on demand
Thanks to print-on-demand services, you can set up your own store and never even have to stock inventory. Whether you prefer to sell your coffee mugs, shirts, or notebooks, sites such as Printify and Printful will help you.
You make your design and publish it to any product or service you want to sell in your store. Voila, you’re now earning money.
There are a number of options in which to sync your print-on-demand products, such as Etsy, Shopify, Printify, or your own website. You could make hundreds of dollars per month, making it one of the best passive income streams to start with.
26. Rent out storage space
Do you need some additional cash and have some unused space in your basement or garage? You could rent this space out to other individuals to store their items.
Your unused space can even help pay your mortgage or at the very least part of it! Visit Neighbor.com to learn how to get started.
27. License some music
Are you interested in music? If you enjoy spending hours creating new music, it can be an earnings opportunity as well.
Licensing your music can make you some money. You can allow other people to use your tunes in exchange for royalties or commission.
28. Advertise using your vehicle
You can even earn money by simply driving around town or to and from work. You can advertise your services by placing an advertisement on your car.
Getting your car wrapped is an easy way to make passive income because it does not require much maintenance once it is done.
However, it’s vital to work with a reputable firm because there are a large number of scams related to automobile advertising.
29. Sleep studies or surveys
This allows you to make far more money while you sleep. You can often earn extra cash by participating in medical sleep studies.
Each study has its own guidelines for participants. Read this article to learn more about this program.
30. Open a laundromat
Having another business option is a source of income that also requires an investment. You will likely need to purchase supplies or rent or buy a facility, neither of which is free, when starting a laundromat.
Laundrymats allow you to make money without exerting much effort. If you do not want to exert much energy, you can outsource work to a laundromat. It is thus a good way to earn a little side money while you’re doing the other things you do.
Make more money with the best passive income ideas!
There are so many ways to earn passive income that are simple and profitable. You can start with one and add more so you can earn more income.
Remember that many of these suggestions will require more work than others, so choose the suggestions that best suit your needs and your schedule and go from there. You can also find additional ways to make money passively, and how to budget the money you earn!
