37 Best Passive Income Ideas [Earn $1000+ Per Month] (2024)

“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.

Let’s dive in!

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.

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:

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.

Pro Tip:I like Arrived Homes because you can earn a return through appreciating real estate prices and passive income from the tenants.

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

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?

REIT Definition:A REIT (aka real estate investment trust) is a company that owns multiple properties that produce passive income.

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.

Pro Tip:Remember that REITs are often illiquid, which means your money can be tied up for 5 or more years.

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:

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:

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:

• Hotels
• Health care
• Retail centers
• Nursing homes
• Office buildings
• Apartment buildings

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 investingis 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:

Source:Fundrise

This chart shows how Fundrise (a private REIT) compares in terms ofvolatility(the amount of risk you take) andreturns(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

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 shouldstart investing today.

Pro Tip:Keep in mind that the amount of money you make while investing depends on the amount of money you invest.

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).

Dollar Cost Averaging Definition:Dollar cost averaging (aka DCA) is when you make multiple, smaller investments of equal amounts (like $100) over a specific period of time (like 40 years) into a specific investment (like the S&P 500).

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 astock market crashand 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 earninterestfrom your bonds (more conservative)
• You earndividendsfrom your stocks (more aggressive)
• Your stocks and/or bondsappreciatein 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 inindex funds – specifically in the S&P 500 index fund.

Index Funds Definition:An index fund is a basket of stocks and/or bonds (could be 100’s or 1,000’s) that are designed to mimic the performance of a particular stock market index. Index funds are often much cheaper than individual stocks because they are passively managed.

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:

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:

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.

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

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

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

Peer-to-Peer Lending Definition:Peer-to-peer lending (aka P2P), is where people looking to invest, pool their money together. This money is then used as a loan for people who are looking to borrow money.

In simple terms:

You loan out your money (as little as $10) and you collect an interest rateon top ofgetting 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

Pro Tip:Just remember that P2P investments are not always roses and butterflies. There is some risk involved with this type of investing. The main risk is the people who borrow your money can default on paying back your loan (aka you won’t get your initial investment back).

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.

If you love social media and enjoy connecting with people, thenmaking money on Twittermight 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.

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.

Note:You can make money on Twitter even if you have “just” 100 or 1,000 followers.

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.

Flipping Definition:Flipping is when you buy an item, improve it, and sell it for a profit.

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 likeTrash2Cash.

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

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

And much more.

Pro Tip:While there is a lot of money to be made flipping products, it’s important to note that you do need to have some level of familiarity with your niche.

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!

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 outTrash2Cash.

Back in school, I was taught that tobe 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!

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.

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.

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:

Pro Tip:After you purchase a home from Roofstock, I would still recommend hiring a property management company (and Roofstock typically offers you some recommendations) to help you manage your rental property.

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

You could be earning over $10,000per 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:

• Advertisem*nts
• Selling services
• Selling products
• Affiliate marketing
• Sponsored content

But… beware.

Caution:If your goal is to make a lot of money by blogging, you may have to wait a very, very long time. Blogging requires a very big time commitment initially, and it often takes years for your hard work to pay off.

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 withHostGator (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.

Pro Tip:If you want to earn unlimited passive income – especially for the long term – then blogging could be your calling (just like it was for me).

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.

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

Here’s a quick Acorns overview:

Round-Up Feature Definition:Round-Up is a feature that tracks your expenses when you link your outside accounts (like your checking account or credit card) with Acorns. The Round-Up feature rounds up every expense you make to the nearest dollar. After the rounded-up expenses total $5, Acorns automatically pulls in $5 into your Acorns account and invests it for you.

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 $50,000per 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 likeTeachable, you will have to put in some upfront work (and probably money).

Pro Tip:If you want to be successful in creating and selling your own courses as passive assets, you’ll need to differentiate yourself from the rest of the competition.

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.

Pro Tip:Your course’s success or failure not only depends on its content but also on how effectively you promote 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.

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 onlinehigh-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 yournet worth.

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

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 topay off your credit cardor other debt
• Paid toward other items or purchases

Pro Tip:While cash back programs are definitely a great way to earn passive income, don’t be mislead and start spending more than you normally would have without the cash back program.

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

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.

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 withHostGator
• 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!

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 likea 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.

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 likeCanva
• 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.

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 withUdemy
• Use an app development program
• Hire an app developer fromFiverr
• 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.

Pro Tip:Your app will generate passive income once it’s submitted, approved, and available for the public to download.

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.

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.

Pro Tip:Typically, you are paid by the mile. However, you will likely have to get out and drive a little extra to fulfill the terms of your contract, if necessary.

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

I’m for it.

Caution:Make sure to do your proper research into which marketing agency you will partner with before releasing your personal information. There are many scams in the car advertising industry.

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.

Pro Tip:You can even choose to rent out your unused home space for several days, weeks, or months. You don’t have to rent out your place for a long-term contract.

Chances are, you’ll probably make more money renting out your home over the short termandyou’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.

Note:Make sure to take some time to carefully vet your potential tenants before they stay at your place.

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 likeAirbnb.

Pro Tip:Never, ever forget to sign a contract with your tenant to protect both yourself as well as your tenant.

Believe it or not,paying off debtmight 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?

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

Why?

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:

Pro Tip:If you want to get rid of high-interest debt, like credit card debt, you don’t just pay the minimum on your credit card. You want to go above and beyond the minimum to crush that debt.

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.

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.

Pro Tip:There is so much space that goes unused in offices, shopping malls, car dealerships, etc. that could be used for vending machines.

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.

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.

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!

Pro Tip:While you can make a lot of money selling your eBooks, you should realize that there is some serious upfront time commitment involved with writing an eBook.

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.

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.

Pro Tip:Remember that to make money selling your eBook, you also need to promote your eBook to an audience.

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.

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.

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.

Pro Tip:Typically speaking, you’ll want to consider refinancing your mortgage rate if you qualify for an interest rate that’s 0.50% (or more), less than your current interest rate.

Pro Tip:Typically, you’ll get the best refinance rates if you use an online lender versus a lender that still has a brick-and-mortar store.

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.

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.

Pro Tip:While you might have to show your RV some TLC before you rent it out on RVshare, the money that you can earn could certainly be worth the small, upfront investment you make.

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.

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.

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

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:

Pro Tip:To increase the chances of renting out your space, you should also put some time and effort into writing your personal bio on Neighbor.

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.

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:

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.

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.

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.

Accredited Investor Definition:You are an accredited investor if you’re worth $1 million (excluding your primary residence) or if you earn at least $200,000 per year.

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.

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.

Note:Both accredited investors and non-accredited investors can have access to different investment options on Yieldstreet.

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.

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.

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.

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

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.

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

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.

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.

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.

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 likeSwagbucksandMyPoints
2. Use extensions that automatically apply discounts likeCapital One Shopping
3. Apply for credit card programs with rewards like theM1 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.

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 withRobinhood
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 likeSeeking Alpha.

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

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 likeWorthy 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.

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 useKrakenfor 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.

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 likeShopifyor 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.

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 likeRaisin
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.

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 likeRaisin
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.

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.

Pro Tip:While the average millionaire does have 7 income streams, you shouldn’t feel overwhelmed in thinking that you also have to adopt exactly 7 income streams. Start small and build up your income streams over time.

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.

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.

Pro Tip:Remember that when you earn money from passive side hustles, you should set aside a portion of that income to pay your taxes at the end of the year.

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 theiremergency savings fundto help them pay for their taxes.

Ouch.

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:

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 onlinetax 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:

• SEP IRA
• 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.

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 tomake 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.