37 Best Passive Income Ideas [Earn $1000+ Per Month]

Best Passive Income Ideas

Disclosure: This post may receive compensation from partners listed through affiliate partnerships, at no cost to you. This doesn’t influence our ratings, and the opinions are our own. Learn more here.

Warren Buffett famously once said:

“If you don't find a way to make money while you sleep, you will work until you die.”

No one wants to work their entire life, right?

That’s why it’s essential to build passive income streams.

And in this article, I’m going to show you the 37 best passive income ideas.

I discovered these passive income ideas from:

  • Interviewing 453+ millionaires
  • Investing my own time and money
  • Spending 11 years studying finance
  • Working in wealth management for 7+ years
  • Talking to my 300,000+ social media followers
  • Running my personal finance blog for 4+ years

Let’s dive in!

In this article

How Much Passive Income Could You Earn?

How much you earn from passive assets is completely up to you.

Below are some factors that go into determining how much you can earn:

  • Your effort 
  • Your patience
  • Your consistency 
  • Your initial monetary investment
  • Your time spent setting up this passive asset

In reality, you can make as much or as little from your passive income sources.

Start building multiple streams of income early to reap the benefits later.

Best Passive Income Ideas 2024

Earning passive income is essential to fill in the gaps that your regular 9 to 5 job can’t seem to manage.

With that said, here are the best passive income ideas in 2024:

1. Invest in Rental Homes

MMW Rating
Rental Home Investing



Upfront Investment

$100 minimum

Time Commitment



Earn passive income on a quarterly basis


Your money is locked up for long periods of time

Best Resource

With record-high inflation, volatile stock market activity, and soaring real estate values, it might make sense to start investing in rental homes. 

Here’s why:

  • You’re investing for the long term
  • You’re building a passive income stream
  • You’re investing in an appreciating asset
  • You’re protected against stock market volatility

Assuming you don’t mind having your money locked up for 5 to 7 years, then you may want to start investing in rental homes with Arrived Homes 👇

Arrived Homes offers properties across the United States, ranging from Colorado to the Carolinas.

With Arrived Homes, you can invest in rental real estate with just $100, and you don’t have to manage the property (or tenants!) yourself.

A downside to Arrived Homes, in my opinion, is the fees.

You’re charged a minimum of 1% annually of your assets under management, plus possibly other fees as well (like a property management fee). 

However, if you’re asking me whether I want to buy and manage my own property versus investing in Arrived Homes for as little as $100 to have someone else manage everything for me – I’d do Arrived Homes any day. 

Recommended Reading: Arrived Homes Review

2. Invest in a Private REIT

MMW Rating
Investing in Private REITs



Upfront Investment

Minimal to High (depends on you)

Time Commitment



Earn passive income by investing in a private REIT. The REIT manages the properties and the tenants for you. REITs are also used to diversify investment portfolios


High fees, long lock-up periods, and sometimes the private REIT structure is a little confusing

Best Resource

Here’s your chance to earn passive income and not deal with renters. 

For those of you who love:

  • Real estate
  • Collecting passive income

…But if you hate dealing with tenants in any capacity, then you should consider becoming a REIT investor. 

So, what’s a REIT?

You can invest your money in a passive asset like a REIT (kind of like in the stock market), and the REIT takes care of collecting the rent, dealing with tenants, maintaining the properties, etc.

All you do is collect a portion of the rent that the REIT generates.

If you need to withdraw your money early, you may be charged penalties and additional fees, so REITs are generally good investments for long-term investors. 

Below is a list of the pros and cons of REIT investments:

Pros Cons

Easy to purchase

Money is typically tied up 

Source of passive income

Typically high management fees

Protection against inflation

Risks are typically property specific

Good portfolio diversification

Real estate prices are subject to fluctuation

Could outperform market returns

Cannot deduct real estate depreciation against your income

REITs could be particularly attractive because they often serve as a hedge (aka protection) against stock market volatility (like recessions).

Take a look at the chart below:

graph of annual return of private real estate vs stocks

Source: Funrise

While the average annual return of private real estate companies also decreased during recessions, like the Great Recession in 2008, the value didn’t drop quite as much as with stocks (as illustrated above). 

So, if you want one of the best passive income opportunities, you might want to consider REITs. 

A REIT could invest in many different housing sectors, including:

REITs are awesome secondary income ideas because you earn passive income without really moving a finger. 

There are 2 types of REITs:

  • Publicly traded
  • Privately traded

The difference between the two is that typically publicly traded REITs are available to anyone on the stock market, while privately traded REITs often have their own, typically more complex (and sometimes more lucrative) structures.

One of the leading real estate investment platforms is known as Fundrise.

Real estate investing is often exclusive to the high-roller world.

The cool part about Fundrise is that you don’t have to be ultra-wealthy to partake in real estate investing. 

With Fundrise:

  • Anyone can invest
  • You only need $10 to start investing
  • You can make money, especially in the long run

Investing in a private REIT like Fundrise will give you the best of both worlds: 

  • Relatively low risk 
  • Relatively above-average return

Take a look at this chart:

graph of risk adjusted return potential of bonds vs private real estate vs publicly traded reits vs stocks

Source: Fundrise

This chart shows how Fundrise (a private REIT) compares in terms of volatility (the amount of risk you take) and returns (how much you earn on your investment).

The diagram illustrates that:

  • Private real estate is typically less risky than stocks
  • Private real estate could have higher returns than stocks

Does this mean you should jump head-over-heels into private REIT deals?

Probably not. 

Make sure you do your research first before you commit financially.

Recommended Reading: Fundrise Review

3. Invest in the Stock Market

MMW Rating
Stock Market Investing



Upfront Investment


Time Commitment



You can make a lot of money in the long term with little to no work


You could lose money if you stock pick or if you sell during a recession

Best Resource

Out of all the passive income strategies, investing in the stock market is a must. 

Here’s why:

  • It’s a long-term game
  • If you’re young, time will be on your side
  • It works if you keep investing consistently
  • You don’t have to put a lot of work into investing

Especially if you are young, you should start investing today.

That’s why I would recommend investing consistently, over a very long period of time – like a few decades. 

As an example, here’s how you could start investing:

  • Automatically invest 2x a month
  • Automatically invest in a predetermined investment fund
  • Invest a few $100 with each auto transaction (assuming you can afford to do so)

This investing strategy is also known as dollar cost averaging (aka DCA).

Because the DCA strategy is automatic, it removes the human emotion from investing. 

And trust me, you don’t want to be emotional when it comes to investing. 

Often we act on our emotions than on logic (like being scared during a stock market crash and selling your stocks instead of buying more stocks because they’re technically “on sale”). 

How do you make money through investing?

There are several ways your investments can be passive assets:

  • You earn interest from your bonds (more conservative)
  • You earn dividends from your stocks (more aggressive)
  • Your stocks and/or bonds appreciate in value over time

In all reality, your interest and dividends are true passive income types. 

You make money through capital appreciation (aka a stock you bought for $100 a few years ago is now worth $1,000 today) only when you sell your stocks and/or bonds. 

There are many different types of investment vehicles you can use, including:

  • ETFs
  • Bonds
  • Stocks
  • Index funds
  • Mutual funds

Personally speaking, I’m a huge believer in index funds – specifically in the S&P 500 index fund.

The good news is that if you’re not 100% comfortable with investing, then consider taking a look at some of the best investing apps like M1 Finance.

M1 Finance, which essentially is a robo-advisor, offers pre-constructed “pies” that give you a preset investment allocation so you don’t have to do any of the research or thinking.

4. Invest in Fine Art

MMW Rating
Fine Art Investing



Upfront Investment

Minimal to high (depends on your situation)

Time Commitment



Investing in art typically has outperformed the stock market, it’s a great way to diversify your portfolio, and you can earn some serious money if the artwork sells for a profit


Your money is often locked up for 3 to 10 years, you pay high fees, and the art world is typically unregulated

Best Resource

One of my favorite passive income ideas is investing in fine art.

Typically, the art world is exclusively available to the high roller, glitz, and glam world. You don’t often associate fine art with the average Joe.

That’s where the fine art investing platform, Masterworks, is the disrupter.

Masterworks is a fine art investing platform where:

  • You can diversify your investment portfolio
  • You can invest in fine art in just $20 increments
  • You can invest in fine art ranging from $1 million to $30+ million

The reason why I’m a fan of investing in fine art as a passive asset is because artwork is often considered a hedge (aka protection) against the lowering interest rates.

Here’s what I mean:

graph of contemporary art vs. real interest rates (2000-2020)

The fine art index (the green line) continues going up (meaning more money in your pocket), while the red line (interest rates) keeps going down.

Artwork can also be a great method to protect your overall net worth against the ups and downs of the stock market, as illustrated by this correlation chart below:

graph of comtemporary art correlation factor 1995-2020

The correlation on this chart shows that when the stock market goes down (which is portrayed by the S&P 500 Total Return bar), the contemporary art market does not go down.

Now, you can earn some serious money investing in art as well – on average, you could earn around 14% per year, while the stock market typically returns between 7% to 10% per year.

graph of contemporary art annualized performance 1995-2020

While investing in art does sound like a great option, I do want you to consider the cons as well.

Remember that investing in art is risky:

  • The fees are typically high
  • The artworld is unregulated
  • The fees can be confusing for new investors
  • Your money is tied up for a long time (3 to 10 years)

As I always say, make sure you do your research before you commit your money. 

Recommended Reading: Masterworks Review

5. Peer-to-Peer Lending

MMW Rating
P2P Lending


5/10 (your money is locked up)

Upfront Investment

As little as $10

Time Commitment



You can start investing for as little as $10, earn passive income, and after a certain time period, you can get your original investment back as well


It’s a bit risky, your returns are not guaranteed, your money can be locked up for a while, and fees could be a bit expensive as well

Best Resource

Have you ever dreamed of being the bank, instead of owing the bank?

Now you can, with peer-to-peer lending.

In simple terms: 

You loan out your money (as little as $10) and you collect an interest rate on top of getting your initial investment back. 

Think of P2P like this:

  • You’re the bank
  • You give out micro-loans to borrowers
  • You collect interest payments each month 

Talk about one of the best passive income ideas!

If P2P lending sounds like something you would be interested in, then consider checking out Groundfloor.

GroundFloor is a real estate P2P platform that gives you (the investor) the ability to fund “micro” loans (for as small as $10) to home flippers. 

Your loans would be:

  • High-yield
  • Short term
  • As small as $10

The people who would borrow from you (aka the home flippers), would use your money to:

  • Buy a fixer-upper home
  • Fix up the home
  • Rent it out
  • Sell it

There are different types of loans you could take out:

Loan Type Risk Return

Grade A


Low = ~5%

Grade G

Very High

Very High = ~26%

As you can see, the higher the risk, the higher the return.

Passive income generated from P2P platforms can be very lucrative, but it can also be a bit risky.

Just make sure you do your research first – before you commit your resources financially.

6. Affiliate Marketing on Twitter

MMW Rating
Twitter Affiliate Marketing



Upfront Investment


Time Commitment

Medium to high


You make money connecting with cool people while using social media


Twitter can be time-consuming

Best Resource

If you love social media and enjoy connecting with people, then making money on Twitter might sound like one of the best passive income ideas to you. 

Believe me, you can earn $1,000’s per month on Twitter.

I’ve done it myself – and I’m going to give you the tools so that you can do it, too.

Twitter is a very popular platform, receiving over 2 billion queries daily – and the more people that use the platform, the more opportunity there is for you to earn passive income.

twitter receives more than 2 billion search queries per day

Source: Kinsta

I’m going to show you the strategies that I used to make between $1,000 to $2,000 per month on Twitter consistently.

Here are the steps you can take:

  • Design an aesthetically appealing Twitter profile
  • Create consistent content that adds value
  • Engage with your audience
  • Build relationships
  • Start monetizing

First, I focused on growing my Twitter audience by adding value to their lives with every tweet I made. 

To grow my audience, I followed the strategies in this guide: X Mastery.

This guide transformed my Twitter growth from losing followers on a daily basis (I’m not kidding) to gaining more than 100,000 followers in 1 year.

You don’t need to build your social media audience to 100,000 followers as I did.

How much money you make on Twitter depends on the quality of your audience – and not the quantity.

Once I had built my audience, it was time to monetize my account.

That’s where I used the methods taught in the X Mastery course to earn an extra $100 to $500+ per week.

The only other investment you can make is the upfront time commitment to grow and engage with your audience.

7. Become a Flipper

MMW Rating
Flipping Items



Upfront Investment

Medium to high

Time Commitment

Medium to high


You can make money on things that most people are too lazy to look for and upgrade themselves


You’ll likely need some upfront cash to flip the products, and you’ll also need to invest time to determine where to find your products for flipping

Best Resource

If you love buying and selling new or used items for a profit, then you may want to consider becoming a flipper.

But beware…

Many beginner flippers make the mistake of doing instead of learning first.

To minimize your losses, it’s important to first learn the art of flipping from trusted resources like Trash2Cash.

Here are a few examples of things that you can flip:

  • Cars
  • Tools
  • Houses
  • Domains
  • Furniture
  • Equipment

And much more.

You’ll want to understand the market prices of each product you sell so that you can accurately identify and purchase underpriced products and sell them at a profitable price point. 

What am I suggesting here?


Research your industry with caution and care so that you can come out a winner.

If you’re ready to start your flipping journey and want to avoid all the beginner mistakes then consider checking out Trash2Cash.

8. Become a Freelance Writer

MMW Rating
Freelance Writing



Upfront Investment


Time Commitment

Medium to high


You can make $1,000’s per month just by writing with minimal to no upfront investment


It may take some time to find a writing gig, and you may have to refine your writing style

Back in school, I was taught that to be successful, you’ll need to work in an office, work for a boss, and have a 9 to 5 job. 

In today’s world, those teachings are outdated (in my humble opinion).

Thanks to technology, you can build multiple sources of income, right from the comfort of your home. 

In fact, 31% of freelance writers earn $75,000+ a year!

31% of freelance writers earn $75,000+ a year

Here’s how you can make money writing:

  1. Find your niche
  2. Practice writing daily
  3. Ask for writing advice
  4. Promote yourself to customers

When I think of freelance writing (and earning more than the average office job pays), I’m definitely on board. 

In fact, 60% of freelancers earn more than when they had an employer.

60 percent of freelancers earn more than when they had an employer

There are a lot of awesome perks that come with freelancing, including:

  • Improved performance
  • Better work opportunities
  • Improved work-life balance

While writing itself isn’t exactly passive income, you could be earning royalties or other forms of income generated directly from the articles you write, for years to come. 

9. Become a Landlord

MMW Rating



Upfront Investment

Very high

Time Commitment

Medium to high


Earn passive income by charging rent – and have your tenants pay off your mortgage at the same time


You’re 100% responsible for maintenance, repairs, dealing with the tenants, etc. If you haven’t vetted your tenants properly, then they could make your time as a landlord a nightmare

Best Resource

Becoming a landlord and earning money on the side is one of the best – and arguably most popular – passive income ideas. 

And, believe it or not, I’ve dabbled in being a landlord, too.

I loved the thought of earning passive income while having my tenant help pay off my mortgage – it sounded like the best of both worlds – but there are some precautions you want to take before you jump head-first into becoming a landlord. 

Being a landlord is not always sexy:

  • You take on a lot of liability
  • It’s a hassle to work with unwilling tenants
  • It takes a lot of time to screen your tenants
  • Tenant communication could be somewhat difficult
  • If your tenants have an issue, then you’re responsible to fix it
  • If you’re an introvert (like me), it gets pretty hard to ask tenants for rent

You also have to ask yourself: How much work are you willing to put into becoming a landlord?

If you…

  • Don’t want to interact with tenants
  • Want to start earning passive income 
  • Don’t want to vet, interview, and sign-up tenants
  • Have a chunk of cash ready for a home down payment

…Then stop what you’re doing and check out the Roofstock 👇

Roofstock is the app that lets you buy a rental home WITH the tenants already in the home. 

This is cool because you earn passive income the second you purchase the home

This means Roofstock does all the work for you:

  • Roofstock vets the tenants
  • Roofstock already has a property management company in place
  • Roofstock prepared the home to make it livable for the current tenants

Here are some of the Roofstock properties, scattered across the United States:

Roofstock Properties

For each home listing, you’ll notice that Roofstock listed important statistics, including the gross yield (the amount of income you can expect to earn before expenses).

As far as income generating assets go, real estate investing could be a great option to build wealth and diversify your portfolio.

10. Start a Blog

MMW Rating



Upfront Investment


Time Commitment

Very high


You can earn a lot of money ($10,000+ per month) by simply working in your pajamas, from home


It takes a very, very long time to start earning money on a blog. We’re talking years

Best Resource

One of the best passive income ideas – hands down – is starting a blog

You could be earning over $10,000 per month “just” by being a blogger, working in your pajamas, from home. 

Everything is possible in the modern world.

You can blog about anything:

  • Cars
  • Dogs
  • Food
  • Fashion
  • Finance
  • Gardening

The list goes on.

Here are several ways to make money from blogging:

  • Advertisements
  • Selling services
  • Selling products
  • Affiliate marketing
  • Sponsored content

But… beware.

Blogging could be right for you, if:

  • You enjoy writing
  • You love creating content
  • You have a long-term mindset
  • You are passionate about a subject
  • You are OK working on the technical things

If you’re still in it, to win it – then you should consider starting your blog today.

I thought about starting my blog back in 2016 – and just never did anything about it. I wish I had (I started my blog in 2020). Imagine where I would have been if I had started The Millennial Money Woman earlier. 

Better late than never, right?

You can start building your website with HostGator (I use them as well!).

I love HostGator because I’m (honestly) technically challenged, and they have a 24/7 support service crew.

I’m not kidding when I say that I think their tech support team probably knew me by my first name at one point, because I needed their help so many times.

Your success – or your failure – really depends on how much time, energy, and commitment you dedicate to your blog.

However, looking back, blogging is 100% worth the effort.

11. Micro-Invest

MMW Rating



Upfront Investment


Time Commitment



You can make a lot of money in the long term with little to no work


You could lose money if you stock pick or if you sell during a recession

Best Resource

Are you ready to start investing but you aren’t able to invest several $100 or several $1,000 each month – yet?

That’s ok.

The micro-investing app Acorns could be the perfect passive income idea for you.

The Acorns investing app will benefit you if:

  • You struggle to save money
  • You can’t afford to invest $100’s 
  • You get stressed even thinking about investing
  • You want the program to do the investing for you

Sound like you?

Then consider downloading the Acorns app (it’s free to download) and start your investing journey with as little as $5. 

Here’s a quick Acorns overview:


Minimum Investment


Minimum to Open an Account


Automatic Investing?


Account Fees

$1, $3, or $5/month

Here’s my favorite Acorns feature: The Round-Up feature, where you can invest your spare change.

The reason why I like investment apps like Acorns is that it’s automatic and it helps you build long-term wealth a few dollars at a time.

12. Create and Sell a Course

MMW Rating
Creating and Selling Courses



Upfront Investment


Time Commitment



You can make a lot of money when your work is done for a long time to come


You’ll have to put in a lot of time (and often money, too) upfront

Best Resource

One of the best passive income ideas is to create and sell your own course.

In fact, I had a good friend of mine who built her own course and started earning over $50,000 per month!

Here’s how you make passive income by selling a course:

  • Know what you’re good at
  • Build your own course
  • Promote your course

If you decide to build a course through top platforms like Teachable, you will have to put in some upfront work (and probably money).

This could mean several things like:

  • Finding a unique niche
  • Incorporating a “freemium model”
  • Co-hosting your course with an industry celebrity

…The ideas here are endless. 

The point is that if you want to make long-term money by selling your own course, you’ll need to build something detailed, informative, and different. 

Below are some example categories for courses:

  • Investing
  • Side hustles
  • Programming
  • Cell phone repair
  • Affiliating marketing
  • Search engine optimization

Not only do you want to put time, energy, and effort into creating your course but it’s equally – if not more – important to dedicate your time, energy, and effort into promoting your course.

The easiest and most cost-effective way to promote your course is likely through your social media platforms and/or your email list.

Remember that to consistently generate passive income, you may have to update your course – or you might even have to build a new course.

13. Open a High-Yield Savings Account

MMW Rating
High-Yield Savings Account



Upfront Investment


Time Commitment



You can earn more interest – up to 10x the national average – with an online high yield savings account


This passive income vehicle should only be used for your emergency savings fund because you earn more in the stock market, real estate, etc.

Best Resource

I have a trick to get you a bigger bang for your buck. 

And that trick is one of the easiest passive income ideas: Open an online high-yield savings account.

Here’s why high-yield savings accounts are better than regular savings accounts:

  • FDIC insured
  • Liquid accounts
  • Super-easy to open
  • Nationwide availability
  • Up to 10x national average interest rates
  • More cash in your pocket because of the higher interest rates

With a high-yield savings account, you earn passive income on your emergency fund cash – without even moving a finger!

Over time, the passive income you generate can make a pretty significant difference in your net worth.

Consider opening a high-yield savings account now with Raisin (it’s free).

14. Collect Cash Back Rewards

MMW Rating
Cash Back Rewards



Upfront Investment


Time Commitment



Earn a little extra money every time you shop at a partner store with cash back programs


Not all of your favorite stores might be listed as a partner program with the cash back apps

Best Resource

Cash back rewards programs are likely also a little out-of-the-box when it comes to the best passive income ideas, but these programs certainly do the trick. 

Here’s how cash back programs work:

You earn money by running your expenses through credit cards or other cash back rewards programs. 

Every time you spend money, you earn points (typically 1 point = 1 cent). The amount of points that you earn depends on the type of cash back program you’re involved in. 

Some programs will give you 2% to 4% of the total purchase price in points (so if you bought something for $100, you get 200 points, aka $2).

You could spend money on:

  • Hotels
  • Airfare
  • Groceries

As you spend money, you earn your points.

These points, in turn, could be:

  • Converted into cash and sent to your checking account
  • Used to pay off your credit card or other debt
  • Paid toward other items or purchases

If you think that you might succumb to this – spending more to earn more cash back rewards – then I wouldn’t sign up to cash back programs.

15. Affiliate Marketing for Bloggers

MMW Rating
Blogger Affiliate Marketing



Upfront Investment

Minimal to medium

Time Commitment

Very high


You can literally earn $1,000’s in your sleep


It might take a lot of time and effort to see a successful affiliate marketing campaign

Best Resource

Affiliate marketing is a multi-billion dollar industry and you don’t have to be a genius to have a piece of the pie.

In fact, 80% of brands have affiliate programs, so you could become an affiliate partner for virtually any type of product or service, including industries such as:

  • Food
  • Travel
  • Fashion
  • Finance 
  • Education
80% of brands have affiliate programs

Especially with COVID, staying indoors, and the push to work-from-home, more and more people are utilizing the internet to make purchases.

Currently, 16% of online orders come from the affiliate marketing industry – and that number is expected to continue increasing.

16% of online orders come from the affiliate marketing industry

How do you actually make money through affiliate marketing? 

Here are some basic steps to start earning passive income:

  • Find your niche
  • Build a website with HostGator
  • Consider building a social media following
  • Add value to your audience with well-crafted content
  • Market your affiliate products through your platforms

Promoting your affiliate products on your blog can be pretty effective because about 65% of affiliate marketers generate traffic just by blogging!

65% of affiliate marketers generate traffic by blogging

Being a successful affiliate marketer comes down to your level of consistency.

Affiliate marketing is passive income – with a twist.

That’s because you typically don’t make a lot of money right away. In fact, it often takes years of hard work (and $0) before you start seeing passive income generated. 

That’s because:

  • It takes time to build an audience
  • It takes time to build trust with your audience
  • It takes time to be recognized as an influencer in your niche

When I first started my affiliate marketing journey, I had no idea what I was doing. 

That’s when I found out about one of the most effective affiliate marketing platforms – Making Sense of Affiliate Marketing, and bought this course myself.

If you’re new to affiliate marketing like I was, this course is perfect for those who are not yet comfortable in this area. 

After a few weeks of implementing the tips from the Making Sense of Affiliate Marketing course, I already saw more passive income from my blog!! (Ok, so we’re talking between $25 to $50 more – but when you’re starting affiliate marketing, that amount seems like a lot!).

So, if you’re patient, consistent, and willing to put in the hard work upfront, then yes, affiliate marketing can be one of the best passive side hustles in the long run.

16. Become a Digital Designer

MMW Rating
Digital Designing



Upfront Investment


Time Commitment



Make money/royalties by selling your digital artwork on major platforms


You might spend a lot of time designing your artwork for little to no profit – if your work isn’t popular

Best Resource for Beginners

Have you ever dreamed of becoming a digital designer – and selling your products online for money?

Then you’ll love this passive income idea.

If you have a gift for:

  • Working with technology
  • Creating unique art
  • Designing

…Then you might want to consider selling your digital designs on major platforms like Etsy or Fiverr. 

One of my favorite digital design platforms for beginners is Canva.

I use Canva to design this website and all of my social media profiles as well. 

It’s easy to use, intuitive, and you can make some pretty cool artwork with the tools that the website offers. 

Here’s a way to start making money by selling digital designs:

  • Consider downloading design programs like Canva
  • Open an account on platforms like Etsy or Fiverr
  • Begin creating several digital designs on Canva
  • Upload your digital creations

Once you have created and uploaded your digital design to Etsy (for example), you can start promoting your creations and products through social media, a blog, or you could even partner with a promoter.

Selling your digital designs is a great passive income idea because there is virtually no limit to the amount of money you can start earning.

17. Become an App Developer

MMW Rating
App Developing



Upfront Investment


Time Commitment



You make passive income for years to come through the sale of just 1 app


You have to be skilled with technology, coding, and you have to put in a lot of time upfront

What’s cool about becoming an app developer is that you can create an app for just about anything.

Some popular app options include:

  • App for kids
  • Gaming apps
  • Trading apps
  • Traveling apps
  • Educational apps

There’s more good news when it comes to developing your own apps: A savvy technique that has worked in the past is using old apps, making them better, and then selling the improved app for money. 

If you’re completely new to developing apps (like me), there are a couple of different options you can pursue to build your first app.

Here are some ways to create an app:

  • Learn how to code with Udemy
  • Use an app development program
  • Hire an app developer from Fiverr
  • Partner up with someone who’s a programmer 
  • Hire an app development consulting company 

Since I don’t live in Silicon Valley and probably won’t find a technical partner any time soon, I would probably rely on app-building software programs first.

Some popular app building programs include:

  • AppyPie
  • Appery.io
  • AppSheet
  • Zoho Creator
  • Bizness Apps

While there is a very large time investment – and likely some sort of a financial investment – upfront, your app can generate passive income once it’s complete.

It’s up to you to decide how to make money from your app.

You could make passive income by:

  • Using in-app adds
  • Charging an upfront fee
  • Using the “freemium” structure
  • Charging a monthly subscription fee
  • Incorporating affiliate links within the app

Just keep in mind that you’ll likely need to continue updating your app to keep up with the changing times. 

18. Get Paid to Advertise on your Car

MMW Rating
Advertising on your Car



Upfront Investment


Time Commitment



It might take some time to find a willing advertiser and it’s not always fun to drive around town during peak traffic hours


You may want to be diligent in selecting your tenants so that you won’t have any trouble once they live in your place

Do you travel by car? A lot?

Then, another one of the easiest passive income ideas is advertising on your car.

Here’s the short version of starting your car advertising career:

  • Contact an agency 
  • Agency evaluates your driving routes
  • You’re paired with brands that match your driving routines

To make passive income while advertising on your car, you’ll probably have to contact an advertising agency that first analyzes your typical driving patterns. 

Once the agency has a better understanding of your routes, you will likely be provided with customized advice on how to increase your chances of successful advertising.

The companies will give you their logos to apply to your car for free. 

Imagine earning passive income while driving to work or driving to get the groceries.

I’m for it.

I would take the time to read through reviews, and possibly even interview past drivers to confirm whether the agency was, in fact, legit.

19. Rent out your Home for the Short Term

MMW Rating
Renting out your Home



Upfront Investment


Time Commitment



You can earn passive income without having to do much upfront work


You may want to be diligent in selecting your tenants so that you won’t have any trouble once they live in your place

If you want to make extra money without virtually doing anything, then renting out your home is one of the best passive income ideas.

We had an extra room in our home, so we decided to rent that out for the short term.

We earned extra money each month, used that passive income to pay off the mortgage, and we had an awesome tenant who paid on time.

Here is when you may want to rent out your home:

  • You have a spare room
  • You want to use up empty space
  • You want to generate passive income
  • You want to reduce the cost of monthly rent

If that sounds like you, then renting out your home as a passive asset could be a great secondary source of income.

Chances are, you’ll probably make more money renting out your home over the short term and you’ll probably feel more comfortable than having someone live at your house for several months (or even years) at a time. 

Renting out your home is one of the easiest passive income ideas.

Some things to be aware of, before your tenants move in, include:

  • Smoker Status
  • Do they have kids?
  • Do they have pets?
  • Do they have a car?
  • Do they need parking?
  • How cold/hot do they like the temperature?

Believe it or not, I once had one roommate who preferred the temperature to be around 80°F. I’m someone who prefers temperatures about 10°F less…

To generate passive income, you’ll likely want to consider registering your property on websites like Airbnb.

Verbal agreements typically do not hold up, in a court of law (we’re talking worst-case scenario here).

20. Pay off Debt

MMW Rating
Paying off Debt


2/10 (you have to make payments on time)

Upfront Investment


Time Commitment



Pay off high-interest debt so you save money (and stress) in the long-term


Paying off debt (or consolidating debt) won’t fix any underlying problems like overspending

Believe it or not, paying off debt might be one of the best passive income ideas because you’re effectively freeing up your cash flow to invest in passive assets once your debt is paid off.

Did you know 80% of Americans are in debt?

80 percent of americans are in debt

If you have high-interest debt and don’t pay it off, your dreams of earning passive income may be crushed.


Because most of your money may either be tied up in debt or is likely going toward paying off your debt.

There are 2 types of debt:

Bad Debt Smart Debt

High-interest debt (typically 10% interest or more)

Low-interest debt

Often used to buy depreciating assets (like cars or things you buy with credit cards)

Often used to buy appreciating assets (like business loans, mortgages, student loans, etc.)

In this case, we’re talking about bad debt.

Getting rid of debt should be a goal of yours that’s high on the priority list.

21. Invest in your Business

MMW Rating
Investing in your Business



Upfront Investment


Time Commitment

Very high


You can build a passive income stream and protect your family financially for a very long time


There is a lot of hard work, time, stress, energy, etc. required to build a business – and success still is never guaranteed

Do you ever dream of building your business empire?

If you said yes, then I would say with almost certainty that the best passive income idea, in this case, is to invest in your own business.

It’s not a surprise that the majority of millionaires are business owners.

In fact, 66% of millionaires are business owners.

66% of millionaires own their own business

Source: Thomas J. Stanley, The Millionaire Next Door

So, if you want to maximize your chances to build long-term wealth and generate passive income for years to come, then you should consider building and investing in your own business. 

Below are some tips to help you build a successful business:

  • Find a niche
  • Do your research
  • Learn from a mentor
  • Develop a unique brand
  • Prepare to make sacrifices
  • Build a strategic business plan
  • Understand your business’s financials
  • Learn how to acquire and retain customers

Of course, these are just some basic tips on how to build a successful business. 

There is so much more that goes into creating a sustainable and profitable business, and to dive deep into these details, you’ll probably want to explore the online learning platform, Udemy.

Udemy offers an entire MBA packaged in 1 course, authored by an award-winning business school professor.

To join this course, there are no requirements aside from bringing a positive attitude.

When you invest in yourself and your business, there are no limits on the amount of passive income that you can earn.

22. Invest in Vending Machines

MMW Rating
Investing in Vending Machines



Upfront Investment


Time Commitment



Make money by investing in and collecting from vending machines


To make a lot of passive income with vending machines, you’ll have to likely invest in a lot of vending machines

What I like about investing in vending machines is that this passive income idea is very low-key, and doesn’t require much maintenance, other than refilling the vending machines and collecting the cash you earn.

I have a very good friend of mine who runs a vending machine business (he owns 100’s of vending machines), and he makes more than $10,000 a month.

Popular places to stash your vending machines include:

  • Gyms
  • Shopping malls
  • Any waiting room
  • University campuses

My friend pays for the cost of the vending machine, the cost of the electricity to run the vending machine, and the cost to refill the vending machines.

Otherwise, he collects his passive income.

23. Write an eBook

MMW Rating
Writing eBooks



Upfront Investment


Time Commitment

Very high upfront


You earn passive income on eBooks for the rest of your life


You may have to update your content regularly or write new eBooks down the road to keep selling

Best Resource

Believe it or not, anyone can become a self-published author in today’s world.

Selling eBooks is another great passive income opportunity to earn money long after you’ve finished writing your book.

In fact, 21% of book purchases in 2021 were eBooks alone – and that number seemingly just keeps climbing.

21% of book purchases in 2021 were ebooks alone

I should note that this percent does not include eBook sales for educational and other technical use.

Here’s why writing eBooks works:

  • It’s easy
  • It’s cheap
  • You can make serious money

I actually just self-published my own eBook, How to Get Rich from Nothing, using the publishing platform known as Gumroad. 

After releasing my eBook, I earned over $2,000 in just the first week!

Personally speaking, I probably spent over 100 hours writing, editing, promoting, and marketing my eBook. 

However, now, I have a passive income source for the rest of my life!

Here’s what you need to start a successful eBook writing career:

  • Internet
  • Some time
  • A computer
  • An awesome idea
  • A passion for writing

…And you should be good to go.

As you can see, writing eBooks requires minimal financial investment. 

If you’re eager to write and earn money from your eBook but aren’t quite sure how to start, then consider checking out the guide How to Create & Sell eBooks for a Living.

This guide was created by one of my friends, and he’s been the shining example of how to make a career from writing eBooks.

The success – or failure – of your eBook really depends on how well you’ve promoted it.

I used my social media accounts and email list to promote my eBook and because I have such an engaged and incredible audience, my eBook was a success!

Without my audience, my eBook would have probably have been a flop.

24. Rent out your Car

MMW Rating
Renting out your Car



Upfront Investment


Time Commitment



Earn passive income by renting out your car


You place the well being of your car in the hands of strangers and you might be held liable in the case of an accident

Did you know that 58% of American households own 2 or more cars?

58% of American households own 2 or more cars

Cars bring you from Point A to Point B.

However, with the pandemic raging on, and many folks still working from home, you might not be using your car as often as you used to, pre-pandemic times.

If you have bought your car, and it’s sitting around idly right now, you could be earning passive income between $30 to $80+ per day on renting out your car using the car rental app, HyreCar.

If you decide to rent out your car using HyreCar, you can earn up to $2,000+ per month in passive income just by renting out your car.

Keep in mind, however, that things might get tricky with insurance if there is a car crash, so I would highly encourage you to make sure you read through both your insurance policy and HyreCar’s insurance policies.

25. Refinance your Mortgage

MMW Rating
Mortgage Refinancing



Upfront Investment


Time Commitment

Minimal to Medium


You free up your cash flow to help you save, invest, and pay off debt


You might be charged refinance closing fees and it could take a few months to complete your refinance

Believe it or not, refinancing your mortgage can free up your cash flow and potentially save you $1,000’s, if not $10,000’s of dollars in the span of 3 decades.

In fact, I refinanced my mortgage back in 2020, when mortgage rates dropped fairly low.

Otherwise, a refinance might not make sense, because with a refinance you typically do have to pay closing costs (which can range from $1,000 to $5,000+).

That’s because brick-and-mortar lenders have higher costs (like air conditioning, rent, etc.), so they typically charge slightly higher interest rates than strictly online lenders.

Before you jump into refinancing your mortgage, I would first check which rate you could qualify for.

If you do refinance, then the money you save should be used for:

  • Paying off debt
  • Investing in yourself
  • Investing in the stock market

Even if you save $50 a month on a refinance, think about how much money you could be saving in the long run.

Money Saved

1 Month


1 Year


10 Years


30 Years


I would love to have an extra $18,000 to build my long-term wealth!

26. Rent out your RV

MMW Rating
Renting out your RV



Upfront Investment

$0 - If you already own an RV

Time Commitment



- Earn passive income by renting out your RV

- Receive up to $1 million for insurance protection purposes

- Earn $10,000’s extra per year in passive income


- You increase your risk of liability exposure

- Your RV might be returned damaged

- Mileage and wear & tear increase as you rent out your RV

Best Resource

Did you know that one of the best passive income ideas is earning money by renting out your RV?

In fact, you can earn up to $40,000 of passive income per year, thanks to RVshare 👇

Think about it: Do you have an old camper van or RV sitting out in your yard, costing you money?

If you do, then seriously consider RVshare.

Thanks to RVshare, you can now rent out your RV for a few $100s per day, if you’re not using it and start earning passive income.

It gets better: You can virtually list any type of RV on RVshare.

RVshare Top RV Picks

Listing your RV on RVshare is 100% free.

Only when you book your RV does RV Share take a fee from your cut:

  • 25% of the rental rate
  • 25% of additional “for profit” charges

According to the website, you can earn up to $60,000 per year if you have a Class A Motor Home.

$60,000 - The average amount you could earn for renting out your RV

While not everyone has a Class A Motor Home for rent, you can still earn up to $22,000 per year in passive income if you rent out a smaller, travel trailer, for example.

RVshare RV Types

If you haven’t thought of earning passive income from your trailer or RV yet, then I’d say it might be time to check out RVshare.

27. Rent out your Unused Space

MMW Rating
Renting out Unused Space



Upfront Investment

None – as long as you already have some sort of storage space

Time Commitment



- Earn passive income by renting out unused storage space

- Protection for the host (you)

- Protection against damage and theft for renters


- You must pay service fees each month you earn money

- You must go through a verification process as a host

Take a look around your home and note any empty storage places.

These places could include:

  • Old barns
  • Basemeent
  • Unused space
  • An empty closet
  • An empty dresser
  • An empty driveway

Now, what would you do if I told you that you could rent out that empty storage space and earn passive income every month with it?

Things that people might store could include:

  • Cars
  • College items 
  • Gardening tools
Neighbor Types of Storage

So for example, if you live in Miami, FL (like I do), then you could likely earn between $100 to $400+ per month in passive income just by renting out your old storage space.

Check out some of the offerings in the Miami area on Neighbor:

Neighbor Storage in Miami Florida

Once you list the storage space that you’re looking to sell, make sure to take at minimum 6 high quality and high resolution photos of your space to promote on your Neighbor.com profile.

Similar to RV Share, with Neighbor you don’t actually get charged until you start receiving payments – or even a reservation for your storage.

Below are some of the fees you can expect:

  • 4.9% service fee charge
  • $0.30 charge per month

What I really like about Neighbor.com is that the app doesn’t fail to build in safety measures for both the host and the renters.

Neighbor Safety Measures

As you can see from the screenshot above, there are plenty of safety measures put in place to ensure the protection of both parties.

My top safety favorites include:

Neighbor Safety Features

$1 Million Host Guarantee

In case your renter tries to sue you, you’re protected up to $1 million in liability coverage

$25,000 Renter Guarantee

If renter’s items are broken, damaged, etc. then any qualified claims are protected for up to $25,000

The neat thing is that you don’t have to pay extra for these safety features.

They’re simply built-in.

So, if you have extra space and are looking for ways to earn extra money, then one of the best passive income ideas you should consider is renting out your space.

28. Invest in Farmland

MMW Rating
Investing in Farmland



Upfront Investment


Time Commitment

5 to 10 years


Make passive income by investing in farmland without actually doing the work


Depending on the deal, fees could be pretty expensive, complex, and your money may be locked up for some period of time before you see returns

Best Resource

Thanks to modern technology, you can now invest in farmland, earn passive income, and not have to move a finger.

In fact, the average value of farmland in America has increased by about 6% each year.

6 percent is the average annual increase in farmland value

With the real estate crowdfunding platform FarmTogether, more people are given the chance to invest in real estate – specifically in farmland – without having to do the hard work that comes with farming.

I should note that FarmTogether is only available to accredited investors.

While there are some restrictions to earn passive income if you invest in farmland, FarmTogether does make farm investing accessible to more people.

In fact, the average farmland returns yield around 10% per year.

10% is the average farmland return per year

So, if you want to earn passive income, investing in farmland through crowdfunding platforms might be an appropriate next step for you.

29. Invest in Alternative Investments

MMW Rating
Investing in Alternative Investments



Account Minimum


Time Commitment



- Ability for individuals to invest in private structured credit deals

- Access to real estate, commercial, fine art, legal and marine investments

- Investments backed by assets, which may provide some protection in event of default


- Highly illiquid

- Limited offerings are available

- Most investments only open to accredited investors

Best Resource

Have you ever wanted to invest in high income generating assets, but didn’t know where to start?

Enter, Yieldstreet 👇

Yieldstreet is an alternative investment platform where you can invest in some of the best alternative investments that generate:

  • Passive income
  • High yielding opportunities

The cool thing about Yieldstreet is that the platform provides many different investments for you – not just 1 option.

In general, Yieldstreet focuses on investing in real estate deals including:

  • Hotels
  • Student housing
  • Industrial complexes

In addition to real estate investing, Yieldstreet offers its investors the following high yield investment options:

  • Fine art
  • Supply chain
  • Thematic funds
  • Tankers or ships
  • Real estate debt
  • Structured notes
  • Lawsuits settlements

And that’s what I like about Yieldstreet – there isn’t just a one-investment-fits-all type of situation.

Yieldstreet Asset Classes

Depending on the type of asset class you decide to invest in, you might see investment minimums ranging between $500 to $15,000.

In other words, Yieldstreet is a little more exclusive than other alternative investment platforms.

Yieldstreet boasts of potential returns ranging between 8% to 20% – which is considerably higher than the 7% to 10% returns that you would typically see if you stayed invested in the S&P 500 over the past few decades.

8% to 20% - the potential returns for Yieldstreet

If you’re curious as to how the potential Yiedstreet returns could impact your portfolio, Yieldstreet does offer a passive income calculator for you to test out different scenarios.

Yieldstreet Passive Income Simulator

As you can see from the calculation above, even at its most conservative (8% rate of return), you’d see over $22,000 in interest payments over the term of your investment.

While some investments might be strictly reserved for accredited investors, non-accredited investors can still obtain access to invest in certain fund projects on Yieldstreet like the Yieldstreet Prism Fund.

Yieldstreet Asset Allocation

This fund is for non-accredited investors (for those people who earn less than $200k per year, as a rule-of-thumb).

The Prism Fund also invests in alternative assets including some of the options listed below.

Yieldstreet Prism Fund Assets

These alternative investments typically have a low correlation with the stock market and generally earn more in returns (as long as you keep the asset as a long-term investment) than stocks.

So, if you’re ever looking for an out-of-the-box, passive income idea, Yieldstreet could be a great next option.

Recommended Reading: Yieldstreet Review

30. Share Your Internet Connection

MMW Rating
Sharing Your Internet Connection



Upfront Investment

Minimal (you just need access to internet)

Time Commitment



- Earn passive income

- Low payout threshold

- Can be used outside of the US


- Sharing your internet might slow your connection down

- Won't make you rich 

Best Resource

If you have access to an internet connection and love earning passive income…

Then you should consider using pawns.app 👇

Pawns.app is a legit company that makes it easy for you to earn money by simply sharing your unused internet bandwidth.

You can join and earn money passively from virtually any country.

Keep in mind that you’ll want to make sure you have a strong internet connection.

IPRoyal Maximize Earnings

The 3 most important things that you’ll need to maximize your earnings potential:

  • Unique IP address
  • Strong internet connection
  • A good IP address location

If you live in either the US or European countries, you’ll probably have the most desirable locations.

Here’s how you earn money with IPRoyal:

  1. Download & install the IPRoyal app (works for both Mac and Windows)
  2. Let the app run in the background while you continue with your daily life
IPRoyal How it Works

The IPRoyal app securely shares your internet connection with its clients.

Any of your unused bandwidth is sold, and you earn money.

So what happens with your unused bandwidth?

There are so many companies out there that need to access IP addresses from all over the world to test and market ads, social media campaigns, etc.

If you live in a desirable location, then companies may want to use your bandwidth to test new campaigns.

IPRoyal What Your Internet is Used for

The screenshot above goes into a little more detail about the many additional things your bandwidth could be used for.

And here’s the best part:

You can actually earn passive income with pawns.app.

In fact, you can earn anywhere from $5 to $140+ per month – but the average monthly earnings are about $43.

IPRoyal How Much You Can Earn

Of course, the more you allow the pawns.app to use your bandwidth, the more money you earn.

The payout threshold is also very low – pawns.app will pay you once you have $1 USD in your account.

You can either be paid via PayPal or via Payoneer and the funds should typically transfer within a day.

31. Shopping Online

Flexibility: 10/10
Profit potential: 1/10
Time commitment: 2/10
Upfront investment: 1/10

Shopping online can be a simple way to earn passive income through rewards and discount programs.

With online shopping apps, you earn passive income by receiving a percentage of your purchase back as cash or rewards.

Online shopping apps can provide you with:

  • Low upfront costs
  • Access to exclusive discounts and deals
  • Minimal effort required to earn rewards

Some potential drawbacks are:

  • Temptation to overspend to earn rewards
  • Requires consistent use for significant earnings
  • Lower earning potential compared to other investments

How to start earning passive income from online shopping:

  1. Sign up for apps like Swagbucks and MyPoints
  2. Use extensions that automatically apply discounts like Capital One Shopping
  3. Apply for credit card programs with rewards like the M1 Owner’s Rewards Card
  4. Receive cash back or points for your purchases and redeem them for cash, gift cards, or other rewards

Online shopping can be an easy way to earn passive income with minimal time and effort, making it a great addition to your financial strategy.

32. Investing in Dividend Stocks

Flexibility: 10/10
Profit potential: 5/10
Time commitment: 3/10
Upfront investment: 5/10

Dividend stocks are one of the best types of passive income.

With dividend stocks, you earn passive income from regular payouts from profitable companies.

Dividend stocks can provide you with:

  • Tax advantages
  • Capital appreciation
  • Protection against inflation
  • A reliable source of passive income

Some potential drawbacks are:

  • Stock price fluctuation
  • Companies may reduce or cut dividends
  • Dividend investing requires ongoing research and monitoring of your investments

How to invest in dividend stocks:

  1. Open an investment account with Robinhood
  2. Find dividend-paying stocks
  3. Research your dividend stocks
  4. Decide how many shares to buy
  5. Diversify your portfolio
  6. Monitor and reinvest dividends

Investing in dividend stocks can be a lucrative way to earn passive income.

Start by researching stocks using top-rated platforms like Seeking Alpha.

And remember to stay informed and adapt your strategy to achieve long-term financial success.

33. Investing in Bonds

Flexibility: 9/10
Profit potential: 3/10
Time commitment: 3/10
Upfront investment: 3/10
Best platform: Worthy Bonds

Bonds are a reliable source of passive income.

Especially for conservative investors seeking steady returns with lower risk.

With bonds, you earn passive income through regular interest payments from governments or corporations.

Bonds can provide you with:

  • Lower risk
  • Portfolio diversification
  • Consistent passive income

Some potential drawbacks are:

  • Bond prices can fall if interest rates rise
  • Bond returns may not keep pace with inflation
  • If the issuer defaults, you may lose your investment

How to earn passive income from bonds:

  1. Choose a platform that offers bonds like Worthy Bonds
  2. Decide on the type of bonds that match your risk tolerance and investment timeline (e.g., government bonds, corporate bonds, municipal bonds)
  3. Evaluate the creditworthiness of bond issuers using rating agencies like Moody’s or Standard & Poor’s
  4. Buy bonds through your brokerage, either individually or via bond funds or ETFs
  5. Spread your investments across different issuers and maturities to minimize risk
  6. Keep track of interest payments and any changes in the credit rating of bond issuers

Investing in bonds can be a secure way to build a passive income stream.

Begin by opening an investment account with a reputable brokerage and researching bond issuers using trusted sources.

Remember to diversify your holdings and stay informed about market conditions to maintain and grow your passive income over time.

34. Staking Crypto

Flexibility: 10/10
Profit potential: 5/10
Time commitment: 3/10
Upfront investment: 3/10
Best platform: Kraken

Staking crypto is an innovative way to earn passive income by participating in the validation of transactions on a blockchain network.

With staking crypto, you earn passive income by holding and locking up your cryptocurrency in a staking wallet.

Staking crypto can provide you with:

  • Lower entry barriers
  • High returns (1% to 18%+ APY)
  • Compounding returns over time

Some potential drawbacks are:

  • Security risks
  • High volatility
  • Lock-up periods
  • Technical knowledge

How to earn passive income from staking crypto:

  1. Select a reputable platform that supports staking (I use Kraken for its ease of use and security features)
  2. Decide which cryptocurrency you want to stake
    Create a wallet that supports staking
  3. Move your cryptocurrency to your staking wallet
  4. Follow the platform’s instructions to begin staking your crypto and earning rewards
  5. Keep track of your staking rewards and market conditions

Staking crypto can be a lucrative way to earn passive income.

But it can also be extremely risky.

So make sure you do your research and beware of scams.

35. Dropshipping

Flexibility: 10/10
Profit potential: 5/10
Time commitment: 9/10
Upfront investment: 5/10
Best platform: Shopify

Dropshipping is a popular way to make money by selling products online without holding any inventory.

You earn passive income by setting up an online store and partnering with suppliers who handle inventory and shipping.

With dropshipping you can:

  • Start with a minimal investment
  • Offer a diverse range of products without worrying about storage
  • Run your dropshipping business from anywhere with an internet connection
  • Scale your business by adding more products and suppliers without the hassle of inventory management

Some potential drawbacks are:

  • Supplier issues
  • Lower margins
  • High competition
  • Customer service challenges

How to earn passive income from dropshipping:

  1. Choose a profitable niche with a demand for products and relatively low competition
  2. Use platforms like AliExpress, Oberlo, or SaleHoo to find reputable suppliers
  3. Create an e-commerce website using platforms like Shopify or WooCommerce
  4. Import products from your suppliers to your online store
  5. Use digital marketing strategies like social media advertising, SEO, and email marketing to attract customers
  6. Handle customer orders, inquiries, and returns

Dropshipping can be a great way to earn passive income while allowing you to work from anywhere.

36. Money Market Account

Flexibility: 9/10
Profit potential: 4/10
Time commitment: 1/10
Upfront investment: 6/10
Best platform: Raisin

Money market accounts are a secure way to earn passive income with higher interest rates compared to traditional savings accounts.

With a money market account, you earn passive income through interest on your deposited funds, while enjoying features of both savings and checking accounts.

Money market accounts can provide you with:

  • Low risk
  • FDIC insurance
  • Easy access to funds
  • Higher interest rates

Some potential drawbacks are:

  • Limited transactions
  • Higher minimum balances
  • Lower returns compared to other investments

How to earn passive income from a money market account:

  1. Look for money market accounts with the highest interest rates and lowest fees from services like Raisin
  2. Open your money market account
  3. Fund your account
  4. Monitor your earnings

Money market accounts can be a low-risk investment option that can provide a stable source of passive income while keeping your funds easily accessible.

37. Certificate of Deposit (CD)

Flexibility: 3/10
Profit potential: 4/10
Time commitment: 1/10
Upfront investment: 6/10
Best platform: Raisin

Certificates of Deposit (CDs) are a reliable way to earn passive income with fixed interest rates over a specific period.

With a CD, you deposit a fixed amount of money for a predetermined term, earning passive income through interest without the risk of market fluctuations.

CDs can provide you with:

  • FDIC insurance
  • Predictable income
  • Guaranteed returns
  • Higher interest rates compared to savings accounts

Some potential drawbacks are:

  • Early withdrawal penalties
  • Less flexibility with accessing funds
  • Fixed interest rates that might not keep up with inflation

How to earn passive income with a CD:

  1. Compare CDs from top-rated services like Raisin
  2. Choose a CD with terms and rates that align with your financial goals
  3. Open your CD account
  4. Deposit the required amount into your CD account
  5. Keep track of your CD maturity date and interest earnings

CDs can be a low-risk investment option that offers a predictable and stable source of passive income, suitable for those willing to lock their funds for a specific term.

How Many Passive Income Streams Should You Have?

While there is no “magic number,” it should be noted that the average millionaire has built roughly 7 income streams.

The average millionaire has 7 income streams

Millionaires don’t just rely on 1 income stream (aka your 9 to 5). 

Especially in the modern COVID-19 world, it’s more important than ever to start looking for secondary income ideas because you are not guaranteed your primary 9 to 5 job.

Below is a list of 7 common passive assets from millionaires:

  • Dividends from stocks
  • Income from their business
  • Rent from rental real estate
  • Income from a regular paycheck
  • Interest from savings, CDs, bonds, etc.
  • Capital gains from appreciated stocks and other assets
  • Royalty payments from selling the right to use something they’ve created

Take another look at these multiple streams of income. 

This is diversification at its finest.

There is no rush.

However, as you start building your passive income streams, I would make sure that each source of income helps you optimize your time and does not cost you too much effort.

There may be some income streams that are better suited for you than others.

You just have to pick and choose your passive assets.

How to Minimize Your Taxes on Passive Income

Passive income opportunities also come with a challenge: Taxes. 

Planning for taxes is, of course, a high-class problem, because we are now assuming that these multiple streams of income ideas are making you money.

A lot of folks that I’ve worked with in the past have failed to set aside a “tax bucket” and simply spent (or invested) every penny they earned from their passive income. 

And when tax time rolled around… these folks had to dip into their emergency savings fund to help them pay for their taxes.


However – there is a trick to minimize the taxes you owe if you commit to any of these secondary income ideas.

Here’s how you can save money on taxes:

  • Set up a business
  • Invest in qualified dividends
  • Invest in retirement accounts
  • Invest in 1231 real estate deals
  • Invest in tax-advantaged accounts

Now, if those tips sounded like gobbledygook (aka another language), then keep reading, because I’m breaking this jargon into plain English for you below:

Finance Jargon What it Means

Set up a Business

- Register with the IRS

- Receive your business tax ID number

- Depending on your business structure (i.e., S Corporation vs. LLC for example), you could deduct your business expenses against your business income

- With most business structures, you also typically add a layer of protection against liability

Invest in Qualified Dividends

- You invest in company stocks that are based in the U.S. or have ties to the U.S.

- You hold the shares for 60 to 90 days (depending on the stock type)

- With qualified dividends, you pay capital gains tax rates (which is lower than ordinary income tax rates, which are applied to non-qualified dividends)

Invest in Retirement Accounts

- Retirement accounts are tax-deferred, which means that unless you withdraw money from your retirement accounts, you won’t have to pay taxes on any passive income

- Accounts include: 401(k)’s, 403(b)’s, SEP IRA’s, etc.

Invest in 1231 Real Estate Deals

- Deduct your real estate expenses (including insurance, maintenance, etc.) against any income you earn

- You must hold your property for more than 12 months

Invest in Tax-Advantaged Accounts

- Tax-advantaged accounts are typically tax-deferred, which means that unless you withdraw money from your account, you won’t have to pay taxes on any passive income

- Accounts include: IRAs, Roth IRAs, 529 Plans, Health Savings Accounts, Charitable Gifting Strategies and Vehicles, etc.

While these tax minimization tips often work well for passive income strategies, I do suggest consulting your CPA, accountant, or review your personal situation in your online tax software.

If you are considering opening your own business and putting your real estate investments into your LLC (for example), then you could also open the following tax-advantaged retirement accounts:

  • Roth IRA
  • Solo 401(k)
  • Traditional IRA

With SEP IRAs, you could stash up to $58,000 in 2021 on a tax-advantaged basis, while with a Solo 401(k), you could stash up to $58,000 if you’re under age 50 and up to $64,500 if you’re age 50 or older.

If you plan ahead, you could make a lot of money with these passive income ideas and you could also save a lot of money by minimizing your taxes.

In this case, make sure you consult your CPA.


These passive income ideas can help you make $1000 or more a month:

  • Invest in fine art
  • Invest in farmland
  • Invest in real estate
  • Flip new or used items
  • Start a WordPress blog
  • Invest in cryptocurrency
  • Start a YouTube channel
  • Create and sell an ebook
  • Invest in the stock market
  • Become an affiliate marketer

No! I’m busting this myth right now. Passive assets take time, effort, and sometimes require an upfront investment to start earning multiple streams of income. 

However, if you are consistently putting in hard work, then there is a high chance that your passive income streams can build up over time – to a point where you could even consider replacing your regular 9 to 5 job!

Here’s an example of when you’ll need to put in the upfront work: If you want to make money on Twitter, you probably won’t be successful if you just open a Twitter account and start affiliate marketing to 0 followers. 

To become successful and build a passive income stream on Twitter, you’ll probably need to:

  • Add value 
  • Find a niche
  • Build up your audience
  • Network with bigger accounts
  • Develop a great Twitter profile

Once you put in the hard work up front, you’ll probably find it a lot easier to make passive income down the road.

Yes, it really does! Passive income sources are how the rich build their long-term wealth. Passive sources of income help you optimize your time because you can virtually make money in your sleep. You still have to put in some upfront work, however, to build your passive income streams. Over time, as your passive income builds, you could even consider replacing your 9 to 5 job with your passive income!

The best passive income ideas to build long-term wealth include:

  • Invest in fine art
  • Invest in farmland
  • Invest in real estate
  • Advertise on your car
  • Sell your stock photos
  • Flip new or used items
  • Start a WordPress blog
  • Invest in cryptocurrency
  • Start a YouTube channel
  • Create and sell an ebook
  • Invest in the stock market
  • Become an affiliate marketer
  • Get a high-yield savings account

A beginner can earn passive income using several of the following strategies:

  • Flip websites
  • Sell your stock photos
  • Invest in the stock market
  • Writing and selling an ebook
  • Affiliate marketing on Twitter
  • Design and sell digital templates

Closing Thoughts

Passive income can help you increase your monthly income and fill in the gaps where your 9 to 5 job can’t keep up. In fact, these best passive income ideas could even help you replace your 9 to 5 job.

All you have to do is:

  • Be patient
  • Put in the work
  • Stay consistent with your efforts

The good news is that passive income typically doesn’t require too much work – so building a passive income stream should be a great way to make extra money

Whether you’re looking to make money by investing in art or whether you’re wondering how to write your next ebook, there is an opportunity for you to start building passive income.

The best news is that you can start these passive income ideas with little money upfront.

Now, all you have to do is get started!

Your bank accounts will thank me later.

Join 30,000+ People That Get My Weekly Tips via Email

Every Saturday morning, you’ll get 1 actionable tip to help you save more money, increase your income, and multiply your wealth 👇

No spam. Just the highest quality tips on the web.

Join 30,000+ others and get access to exclusive tips, strategies, and resources that I don’t share anywhere else 👇

fiona smith the millennial money woman

Unlock the Secrets to Financial Freedom

Join 30,000+ others and get access to exclusive tips, strategies and resources that I don’t share anywhere else 👇

You can unsubscribe at any time.