If you’re looking to create more passive income streams, you’ve come to the right place. I honestly believe that passive income is one of the staple ingredients of financial success

To take your personal finance to the next level, and to get on track with achieving your financial goals, you’ve got to create a passive income stream and more than one, ideally.

What Is Passive Income?

What is passive income? Essentially, it’s a way to earn money without having to dedicate all of your energy and time to the job, like getting paid for photos you’ve already taken. Active income, on the other hand, is when you actually dedicate your time and effort to make money (for example, driving for Uber).

Some passive income ideas take a very hands-off approach, requiring some effort at the beginning with the potential to earn residual income in the future.

Others might need some more work on an ongoing basis while still taking a passive approach. Either way, most passive income jobs are suited to those who have a full-time job and are looking for a side hustle as well as those looking to join the gig economy.

While it’s important to play to your strengths to generate as much income as possible, learning new things can also be very profitable.

Take the time to understand what works and be agile enough to meet market demands and stay at the top of your game.

Best Passive Income Ideas

Here are the 55 best passive income ideas you can start working on today to generate passive income:

  1. Open a high-yield savings account
  2. High-yield dividend stocks & funds
  3. Invest with Robo-advisors
  4. Store other people’s stuff
  5. Start blogging
  6. Refinance your student loans
  7. Invest in crowdfunded rental properties
  8. Real Estate Investment Trusts (REITs)
  9. Peer to Peer (P2P) Lending
  10. Invest in private equity funds
  11. Rent your car (or parking space)
  12. Sell your notes
  13. Certificates of Deposit (CDs)
  14. Write a book
  15. Publish an ebook (or a Kindle book)
  16. Create an Alexa Skill
  17. Get paid to watch ads
  18. Invest in royalties
  19. Build an affiliate marketing site
  20. Start your own podcast
  21. Create an online course
  22. Start an e-commerce business
  23. Get a housemate (or two!)
  24. Sell stuff on eBay
  25. Buy an existing business
  26. Start a YouTube Channel
  27. Sell your music
  28. Buy and sell domain names for websites
  29. Create software
  30. Sell stock photos
  31. Manage other people’s social media accounts
  32. Become an Angel Investor
  33. Rent personal items
  34. Invest in small businesses
  35. Become an Airbnb host
  36. Financial Reward Programs
  37. Sell retargeting advertisements
  38. Install apps on your smartphone
  39. Buy a food truck
  40. Invest in vending machines
  41. Lease equipment
  42. Rent out old baby gear
  43. Sell your old clothes
  44. Open a laundromat
  45. Start an Etsy Store
  46. Sell your plasma
  47. Participate in scientific studies
  48. Take part in sleep studies
  49. Raw land flipping
  50. Become a brand ambassador
  51. Become a house sitter
  52. Lose weight
  53. Car-wrap advertising
  54. Create an Audiobook
  55. Purchase bonds

1. Open a high-yield savings account

One of the first things you should do to generate passive income is open a savings account that offers a high rate or a high-yield savings account.

It’s generally considered a low-risk investment because the risk of anything happening to your deposit is very low.

Both traditional brick-and-mortar and online banks offer excellent high-yield savings accounts and sometimes have fantastic bonuses for opening new bank accounts.

2. High-yield dividend stocks & funds

A dividend is a payment from a company’s earnings to its shareholders based on the same company’s earnings.

This payment given to shareholders is determined by the board of directors, usually during the Annual General Meeting (AGM).

By investing in high dividend-paying stocks, you will not only be able to see the value of the stock or fund itself grow, but you’ll also receive dividends for even healthier returns.

3. Invest with Robo-advisors

Investing is often risky, and, as such, you need to have some sort of experience and knowledge of the market, making it inaccessible to most people. This is where Robo-advisors come in.

All you need to do is choose a strategy and the risk vs. reward ratio that you’re comfortable with and let complex algorithms do the work for you, making it an excellent passive income source.

Do keep in mind that this doesn’t remove the risk associated with investing, and you may be asked to deposit a minimum investment amount (though with a lot of Robo-investors, the minimums are definitely easy to meet).

That said, it can be quick and easy to do and manage from your smartphone, so it’s a great passive income stream.

4. Store other people’s stuff

People tend to accumulate stuff that they don’t use or need on a day-to-day basis. This is why storage units enjoy such immense popularity.

If you have extra space, from an empty closet to a garage, you can rent out the space for people who would rather pay less money to store their things while still having them close by thanks to apps like Neighbor.

5. Start blogging

Love writing? Then blogging could become your ideal passive income stream. Blogs enjoy immense popularity all around the world, with 77% of all internet users reading blogs every day.

Setting up your own blog is easier than ever, thanks to applications like WordPress that make setting up and managing your own blog super easy.

Bloggers can monetize traffic by including ads or subscribing to an affiliate program or drop-shipping program.

6. Refinance your student loans

Student loans can be a considerable financial burden. This is why many people choose to refinance their student loans with a private lender who is able to either lower the monthly payments or save you a chunk of money.

To qualify, you will need a healthy credit score and have a steady income. Having a co-signer can help you get better rates if you do not qualify straight away.

7. Invest in crowdfunded rental properties

Real estate investing is seen as one of the less risky ways to invest your money, with this type of investment usually reserved for the mega-wealthy, as it uses crowdfunding. This investment is easily and readily available to the masses.

Reduced volatility and risk also make it worth looking into if you’re looking for passive income ideas that can generate healthy returns with little to no effort on your part. Fundrise is a good company to check out if you’re interested in real estate investing.

8. Real Estate Investment Trusts (REITs)

REITs, short for Real Estate Investment Trusts, operate on the same principles as mutual funds.

They offer the opportunity to invest in income-generating properties without the need to buy the property itself.

Most REITs are traded on the stock market. This makes them very liquid, which means they’re easy to sell and take home the profit.

9. Peer to Peer (P2P) Lending

Peer to Peer lending, also known as P2P lending, allows you to lend money to people who don’t want to go to the bank to borrow the money. Typically, your investment will go in a pool managed by a lending club that lends out the money to different individuals.

The risk this type of lending offers is determined by the selection criteria in place but can offer a steady stream of income by way of interest earned on the money lent.

10. Invest in private equity funds

Private Equity Funds are funds that invest in capital that isn’t listed on the public exchange. They typically require a substantial investment amount and work better over the long-term rather than the short-term.

Either way, you can expect substantial returns. Payable fees include management fees and a percentage of any generated profit.

11. Rent your car (or parking space)

The renting market is a fairly new concept that has been picking up ever since it was introduced. By taking away the cost of ownership, people who need something for a short period of time tend to rent instead of buying.

Things like cars and parking spaces are constantly being rented, allowing you to make income with little time and investment.

The best service to rent your car is Turo and to make money with your parking space check out SpotHero.

12. Sell your notes

If you’re a keen note-taker and have great class notes, you can easily sell them online to students following the same course as you.

You set the price and can even offer discounts on bundles to increase your sales.

With many people across the world studying the same subjects, you can even sell internationally.

13. Certificates of Deposit (CDs)

CDs (Certificates of Deposit) are one of the most secure investments available on the market. They are usually available at banks, but a number of other financial institutions offer them as well.

You deposit a lump sum for a predetermined amount of time and enjoy higher interest rates. Rates of return are usually calculated using APY (Annual Percentage Yield), which means that you will be able to earn interest on the interest earned.

14. Write a book

Publishing a book can be one of the most rewarding experiences. A lot of work needs to go at the beginning of the process, but once it’s published, you can expect to receive royalties as sales go up.

Being a published author also carries a lot of weight with it and can open doors to many other opportunities, including other passive income endeavors. I consistently earn over $100,000 a year from my Financial Freedom book royalties.

15. Publish an ebook (or a Kindle book)

If you’ve ever dreamt of publishing a book, e-books can be a less stressful way of getting your words into the hands of millions of reads all around the world.

One of the main benefits is that you can self-publish your work and avoid the red tape and rejections that many publishing houses are known for.

Or you can create a Kindle book with Kindle Create – Amazon’s free interior formatting tool, you can easily format books and see how they’ll actually look when read by your readers!

16. Create an Alexa Skill

Amazon’s Alexa uses skills to be able to accomplish tasks. The good news is that there is an entire marketplace that allows you to upload any skills you create for Alexa users to download.

You can monetize the skills you create in different ways, including selling premium content or products and services, depending on the skill you develop.

17. Get paid to watch ads

Thanks to the internet, you can now make money watching ads. This kind of work is usually offered by market research companies who get commissioned to get valuable feedback on advertising materials and concepts.

There are many apps that offer this kind of work, usually including other forms of income opportunities such as filling in surveys.

18. Invest in royalties

Royalties are one of the ways people are able to generate passive income over time.

Some royalty holders would rather have the money in their hands now, so they sell their royalties to people who want to earn more money over a longer period of time.

Take the time to do your research and see for how long you’ll be able to collect royalties as these do not last forever.

19. Build an affiliate marketing site

Through affiliate marketing, you can sell products and services such as digital products of other companies while getting a commission on each sale that you manage to bring through to the company.

By building a niche site, you can target consumers in an easier and more effective manner. Some affiliate marketing programs also offer residual income on each purchase the customer you bring makes.

20. Start your own podcast

Podcasts can be a very effective marketing tool or a way to share different ideas and content – especially if you’re knowledgeable or passionate about a subject!

Starting a podcast can not only help you reach out to people who share your passions but bring in money through advertising or asking for sponsorships and donations. Other ways to monetize a podcast include paid memberships and selling premium episodes.

21. Create an online course

Websites like Udemy and Teachable allow people like you and me to create and upload courses on different subjects. You can set the length of the course and the fees, giving you the freedom to create the course as you see fit.

While there is a lot of work to be done in the beginning, you will get to enjoy residual income as students keep signing up for your course.

22. Start an e-commerce business

Starting an e-commerce business is easier than you think with many online resources available that can give you the help and direction you need to succeed.

Decide on the type of business you need, and if you’re going to hold your own stock, make sure you have the space required. Take the time to work on your business plan, as this will offer you the direction you need to get to where you want to be.

23. Get a housemate (or two!)

If you have a big enough apartment or house, you can sublease it to other people and generate monthly cash flow through the rent.

Make sure you put a contract in place and check with your existing contract to make sure you’re not in breach. You might also want to consider getting renters insurance to avoid liability.

24. Sell stuff on eBay

Yes, you can make passive income on eBay. As an online marketplace where anyone can sell new or used products, it’s a fantastic platform for creating an additional source of income.

What can you sell on eBay? From stuff you have lying around at home to products that are actually very popular and in high demand (Google trends can help you find out what they are) – you can sell pretty much anything on eBay.

Yep, you will need to invest some time to get started – but after that, you can just use drop-shipping if you want to avoid having to ship products yourself.

25. Buy an existing business

If setting up a new business seems like too big of a task, you might want to consider purchasing an existing business.

So keep in mind that the skills needed to manage an existing business are different than what you would need to get a business off the ground. Either way, it can provide a faster route to success.

26. Start a YouTube Channel

YouTube is the second most visited website in the whole world, with some 2 billion active users per month.

Starting your own YoutTube channel can not only be fun but very financially rewarding, with the highest-paid YouTuber of 2020 making $29.5 million.

Take the time to understand your audience and set time aside to connect with them to help your channel grow.

27. Sell your music

Platforms like Youtube and Facebook have made video one of the most effective forms of marketing and outreach.

Background music and intro jingles still play an important part, with stock music being one of the most cost-effective ways video makers can spice up their video.

If you’re able to create versatile tracks, you’ll be glad to know there is a market for it with opportunities to make residual income.

28. Buy and sell domain names for websites

The right domain name can fetch good money. This is why there are many who flip domain names for a profit.

Domain names and bought from what is known as a registrar with high-value domain names sold in auctions. Compare similar domain names to evaluate the price, helping you make sure you can turn a nice profit for your efforts.

If you’re interested in buying and selling domain names check out GoDaddy Auctions and Sedo for some of the best domain listings.

29. Create software

Software is used to do just about anything – from messaging friends and family to analyzing the stock market to watching cat videos.

This means that there will always be a market to sell software. Learning programming is now also easier than ever before, thanks to free and paid courses available online.

30. Sell stock photos

If you’re good with a camera, taking photos and selling them on websites like Shutterstock or Getty images can earn extra cash through royalties.

Think of stock images people might want to use on their websites and marketing collateral, ensuring pictures are clear and vivid enough that people will want to use them to improve their content.

31. Manage other people’s social media accounts

Many companies and brands are looking to outsource the management of their social media accounts to freelancers and contractors.

To turn it into a passive income, look for automation tools so that you’ll be able to schedule content and posts in advance without having to stick to strict schedules.

You can use freelancer platforms to market your services and find new clients.

32. Become an Angel Investor

Angel investors invest in businesses early on in the process, taking on financial risk for a possible reward down the line. Angel investors lend money to entrepreneurs in exchange for equity.

This is done in the hopes that the business’ value will go up in the future. You can also use Angel Investors platforms to find interesting businesses that you would like to invest in.

33. Rent personal items

With many people needing things such as cameras, clothes, and sporting equipment for a short period of time, there is a thriving rental market for personal items.

You can find sites and platforms like SyleLend (for renting clothes) dedicated to the rental of specific types of items. You get to set your own rate and availability, helping you make sure you’re happy with the deal.

34. Invest in small businesses

Because small businesses are typically very sensitive to cash flow, outside investment in inventory can help them flourish.

When investing in small business inventory, make sure that there is no excess accumulation of dead inventory as these can tie up your investment.

Having knowledge of the market can also help you make the right investment, so always do your homework before investing any money.

35. Become an Airbnb host

Hosting people through Airbnb can bring in some serious cash with little to no effort. Listing your spare room, apartment, house (or even campervan!) is easy and quick. The amount of money (or rental income) that you’ll be able to make will largely depend on your property as well as the demand.

You can set whatever rate you feel comfortable with – of course, it’s worth doing some research to find out what other hosts in your area are charging. Airbnb will take a commission of 3% on the booking for their services.

36. Financial Reward Programs

Financial reward programs allow you to make money simply for using a company’s services. One such example is cashback with many banks, financial institutions, and even coupon sites like Swagbucks offering such programs.

Brand loyalty programs can also be financially rewarding with no input required from your end other than the day-to-day purchases you would normally do.

37. Sell retargeting advertisements

Retargeting adverts are a special kind of adverts that are aimed towards people who have previously shown interest in a particular kind of product.

This means that these people are more likely to buy, making retargeting advertisements worth quite a bit of money. You can generate retargets and then sell them to brands and companies looking for customers and convert ads to sales.

38. Install apps on your smartphone

Many market research companies pay people to install and test apps on their phones, gathering feedback that is ultimately redirected to the app developer.

This helps them improve how the app works and iron out any inconsistencies and bugs before releasing it to the general market. Do make sure that you regularly backup your phone to ensure you do not lose any data should something go wrong.

39. Buy a food truck

Food trucks can make a considerable amount of money with the right product and the right location. One of the benefits food trucks have is that they can move, helping you find the right location at the right time.

Make sure you check for any permits required and abide by food and safety regulations at all times to avoid getting shut down.

40. Invest in vending machines

Vending machines come in all shapes and sizes, selling anything from sodas to electronics to toiletries. The initial costs can be relatively low, and the profit margin can be very healthy.

One of the most important things to focus on is the placement of the machines, as this could make the difference between success and failure.

41. Lease equipment

Many companies, big and small, as well as individuals, look to lease equipment instead of buying it. This is especially true when undertaking certain small jobs or jobs that require specialized equipment not required by other projects.

Purchasing and leasing such equipment can earn you passive income from the lease payments with very little overheads.

42. Rent out old baby gear

Babies tend to grow out of things very fast, so it might not make financial sense to purchase absolutely everything a baby needs.

Families who are traveling might also look to rent certain gear to avoid having to pack everything. Sites like BabyQuip make it easy to rent out your things with their membership also including insurance cover.

43. Sell your old clothes

Most of us have more clothes than we need. This makes selling them a great idea to make some money without too much work. Check out sites like RealReal and Poshmark.

As concern for the environment continues to grow, the circular economy continues to grow with more and more people buying used items instead of shelling out more money for new clothes.

44. Open a laundromat

People need clothes – but they also will always need to wash their clothes! Since not all homes have washers (especially student homes), opening a laundromat might make sense.

Do some research before going ahead, as this will help you find out how likely you are to succeed. Pay extra attention to overheads and make sure your financial projections are as strong as possible to determine the kind of income that you’ll be able to make.

45. Start an Etsy Store

Etsy is known all around the world for handmade and vintage items. This means that by setting up an Etsy shop, you can reach a truly global audience.

If you’re good at making things, selling them on Etsy can help you reach some healthy profit margins.

46. Sell your plasma

Plasma is found within human blood and is rich in proteins, enzymes, and antibodies. It is a very useful component in a number of therapies treating people with autoimmune diseases, blood clotting disorders, and even people suffering from burns. As there is no alternative to plasma, donating it can not only make you money but also saves lives.

47. Participate in scientific studies

Scientific studies come in all shapes and sizes – from helping medical students do research for their studies to drug trials.

While some studies work with volunteers, others are more than happy to pay people to ensure their participation and commitment to study guidelines and requirements. Some studies may last no longer than one session, while others may take months or even longer than that.

48. Take part in sleep studies

Participating in research – especially sleep studies – is the ultimate form of passive income, as you will be literally making money while you sleep!

Different studies will have different requirements and durations, such as NASA’s study, which requires people that have astronauts’ traits to lie in bed for two whole months! While it might sound easy.

49. Raw land flipping

Raw land flipping involves buying unwanted raw land on the cheap then selling (flipping) it for a profit. You can also flip it as an owner-financed sale, helping you generate monthly income with the initial investment covered in the first few months.

You will need to spend some time and energy in finding the right land, but once you do, you’ll be able to enjoy passive income without the problems usually associated with real estate investments.

50. Become a brand ambassador

Brand ambassadors are people who represent a particular brand for some form of remuneration. As an ambassador, you will need to embody the spirit and values of the brand, making sure it is seen in a positive light among the target audience.

Brand ambassadors come in all shapes and sizes – from social media influencers to in-store promotion attendants to industry leaders.

51. Become a house sitter

House sitting is one of the most passive forms of income around as all you need to do is stay in someone’s house, usually why they are gone.

Depending on the agreed work, you might have to look after pets, water the plants, or maintain some upkeep, but these can differ from one job to the next.

My favorite site for finding house-sitting gigs is House Sitters America.

52. Lose weight

Losing excess weight is not only healthy for our well-being but can also prove to be a passive source of income as we embark on this journey. You can place bets on how much weight you will lose, get cashback on related purchases, and even make money just by walking.

The important thing is to look at weight loss as a journey rather than a destination, and you’ll get to where you want to be with some extra money in your pocket.

Check out the app HealthyWage, to make money losing weight.

53. Car-wrap advertising

Vehicles are considered to be depreciating assets since they lose value very quickly. But, there are many different ways they can earn you passive income with them. One of the ways you can do this is by having adverts wrapped around your car.

This market is known to have quite a few scams and cases of fraud. Make sure that you proceed with caution if you decide to go down this path.

Check out Carvertise to learn more about making money wrapping your car.

54. Create an Audiobook

With people being busier than ever before, audiobooks are becoming the main source of information gathering for many. You can create your own audiobook or lend your voice to an author against payment.

Clarity and coherence are very important here, but even so, you can make a reasonable sum of money just by reading books out loud.

55. Purchase bonds

Bonds are a type of investment usually issued by companies, governments, and municipalities looking to raise cash for a project.

Bonds have a specific maturity date, and generally, you will not be able to take out money before the agreed date.

You can expect to receive payment every quarter, but this can vary from one bond to the next. Bonds are considered to be a secure form of investment.

Which Passive Income Ideas are Best For You?

Having multiple streams of income is always a good idea.

We’re living in a strange world right now, and having multiple income streams can provide some security and stability.

If you were at risk of losing your job or running low on clients as a freelancer, at least you’d know you have your online businesses, side hustles, investments, or even hobbies that were bringing in extra cash. Ask any financial advisor, and they’ll nod in agreement.

Plus, coming up with new business ideas can be fun and rewarding – especially if you keep reminding yourself why you’re doing it.

To gain more freedom, to live a better life, to provide for your family? Whatever it might be, creating multiple passive income streams is definitely the way to go.