Making money is the most common goal for people in our society. In times of economic uncertainty, it becomes harder to find ways to make passive income and build wealth over time. Here are 19 smart strategies that will help you create a financial freedom lifestyle today!.

“The Beginner’s Guide to Passive Income” is a blog post that outlines 19 different ways to start making passive income. Read more in detail here: beginner passive income.

Who wouldn’t like to earn a little additional cash while playing with their kids or watching a game? Earning passive money allows you to do just that. 

Those who have achieved financial freedom will tell you that diversifying your income streams from several sources is essential. The only issue is that the majority of ‘passive’ income ideas you’ll come across are everything but passive. You won’t want to take on a second job that you don’t have time for since you’re already overworked.

Passive income is earned through activities that require no (or little) effort. The majority of passive income concepts need a significant amount of effort on your part. Isn’t it effectively eliminating the passive in passive income? The most effective passive income concepts are just that: passive.

To develop a passive income stream, the fact is that you’ll need to invest in an asset that generates passive income for you. Unless you make money the old-fashioned way (by inheriting it) or are ready to put out some work.

The good news is that you won’t have to spend any further money. If you already own something that you aren’t utilizing, you may use it as an investment. We’ll go through how it works in a minute.

For the time being, let’s look at some passive income ideas if you’re ready to invest and make your money work for you rather than losing value in a bank account. Some of the top passive income options may surprise you.

Find a Qualified Financial Advisor (SPONSORED)

1. Finding a competent financial counselor is not difficult. In only 5 minutes, SmartAsset’s free service connects you with up to three fiduciary financial experts in your neighborhood.

2. SmartAsset has thoroughly vetted each adviser and holds them to a fiduciary standard of acting in your best interests. Get started today if you’re ready to be matched with local experts who can help you reach your financial objectives. is the source of this image.

Ideas for really passive income


Portra is the source of this image.

1. Investing in real estate in a passive manner


If you ask any landlord, they’ll tell you that replacing a washing machine after a long day of work is the last thing on their mind.

There are, however, a slew of organizations that allow you to invest in commercial and residential real estate projects without having to do any of the legwork yourself. It’s typically preferable to have your own real estate agent choose the houses.

DiversyFund is one such example. It’s a private REIT (real estate investment trust) that enables you to participate in professional real estate projects for as little as $500 in a passive manner. DiversyFund, for example, makes money only if the investors earn money since they invest and manage the projects themselves.

DiversyFund is also distinct in terms of how they invest. DiversyFund invests in lower-risk multifamily housing rather than attempting to be all things to all people. They comb the nation for houses that meet their unique requirements, using technology and experience. They’re seeking for properties that have a good occupancy rate and a strong cash flow but might need some TLC. We’re not talking about a whole makeover. Bathrooms and kitchens may be updated. Maybe all they need is a new coat of paint.

Because they perform all of the work themselves, they can do it for a fraction of the price of many of their rivals. When leases expire, they may raise rents, increasing cash flow and increasing the value of the buildings. The majority of holding durations are in the five-year range. Their desired returns for their properties are about 7%.

When your incentives are in sync, you have the highest chance of winning. is the source of this image.

2. & 3. Open a high-interest savings account


If you’re terrified of investing, chances are you have a sizable sum of money stashed away in a checking or savings account. It’s always a good idea to save money.

Unfortunately, the banks’ brick-and-mortar banks, which the majority of people use, do not respect them and scarcely pay any interest. The largest banks, such as Wells Fargo, Chase, Bank of America, and others, pay roughly 0.08 percent interest on average. That implies you’ll earn very little money (like $200 per year) even if you have hundreds of thousands of dollars with them.

That’s why keeping your money in a high-interest savings account is a WIN-WIN situation.

You won’t have to go to the bank to get started since the greatest high-interest banks are only available online. The finest thing is that they pay over 1.50 percent interest each year as of this writing (May 2020). That implies instead of earning $200 per year with a megabank, you’ll make $3,000 per year from your several hundred thousand dollars.

Even if you don’t have a lot of cash on hand, you’ll still earn a lot more money than you would with a traditional checking or savings account. VARO Money is one among my favorites. They routinely pay greater interest rates than nearly all local and national banks.

Make prudent investments with your money.

While having a high-interest savings account is a great way to earn money without having to work, it pales in contrast to investing.

While earning 1.50% on your savings is about as good as it gets, you can make much higher returns in the stock market. The S&P500 had an annual return of over 28% in 2019.

Investing entails some risk. Understanding a basic concept is necessary for investing. There is a link between risk and profit. Here’s what I’m talking about. The bigger the projected return on an investment, the higher the risk. Higher returns are associated with greater volatility. That is why, while investing in hazardous assets, we must have a long-term view. To be successful, you must invest money in the market and keep the cash for the long term. Market timing, stock selection, and aggressive trading are all losing tactics.

Sure, some individuals are fortunate enough to estimate correctly. And they’re constantly in the news. However, if you stick with them for a long time, you’ll see that they don’t always keep up their previous performance. The best technique is to invest in market-tracking funds and keep them for a long time.

Many individuals are confident in their ability to invest on their own. However, this is not the case for the majority of people. If you don’t want to invest on your own or want assistance, look for a skilled financial counselor. is the source of this image.

4. Invest in stocks that pay out dividends.


Dividends are earnings distributed to stockholders. Some corporations pay dividends on a consistent basis, making them a reliable source of revenue.

Investors that choose dividend-producing companies will brag about how their investment is not only paying out dividends but also possibly rising in value. Keep in mind that stocks with large dividends might still be risky. They, like any other stock, might lose value. The price decreases have historically been smaller than the entire stock market. However, you should never buy in any company, whether it pays a big dividend or not, assuming it is risk-free.

Dividend stocks are comparable to other securities in that they are best purchased and held for a lengthy period of time.

Dividend checks are also used by some individuals to cover their normal bills. Depending on your spending, you may need to acquire a substantial number of shares! Dividend stocks are worth considering if you have some spare income to invest and are aware of the risks involved.

GaudiLab / istockphoto / GaudiLab / istockphoto / istockphoto / istockphoto / ist

5. Use a lending club to get passive revenue.


Consider Lending Club’s peer-to-peer lending platform if you’re seeking for another option to generate passive income. By investing in several kinds of loans, Lending Club helps investors to diversify their holdings. Your investment’s return and risk exposure will be determined by the sort of loans you chose (remember, risk and return are related).

You just need to spend as little as $25 in a single loan to get started. Your contribution is pooled with that of other investors to cover the whole loan amount. Others may wish to spend more, but many people settle at $25 to limit their risk. You may lower your chance of default by investing a little sum in a variety of loans.

Following your first investment, you will begin to earn passive income from the borrower’s installments. You will get interest payments every month as the borrower continues to pay off the debt. You’ll still get a return on your investment even if you don’t intend on reinvesting your passive income back into the platform. Keep in mind that interest rates are subject to change and are decided by a variety of criteria, including the borrower’s creditworthiness and the loan amount.

You’re effectively the lender since this is a peer-to-peer lending network. This implies you must collect both the principal and the interest. You have the option of cashing out or reinvesting your money in your Lending Club accounts.

Mediasagax / Wikimedia Commons / Mediasagax

Ideas for semi-passive income

Depositphotos_154365706_s-2019 is the source of this image.

6, 7 & 8. Put your real estate to work


Real estate ownership is an excellent method to generate revenue from your house.

A long-time reader recently wrote me to tell me that she had just gotten her first passive income cheque in the mail and was overjoyed. She was a single mother with two kids, the youngest of whom had just started college.

She’d always wanted to open a bed and breakfast, but she’d never had the time. When she became an empty nester and discovered she had two spare bedrooms, she realized she could rent them out.

She was able to rent out her rooms for $50 a night each after registering up with Airbnb and jumping through the hoops. She claimed she’s thinking about downsizing and renting out the whole house since it’s in a high-demand Fort Worth neighborhood. She claims she is generating enough money to employ a neighbor to clean up after her, making it as hands-off as possible.

Not bad!

An additional bedroom may be rented. 

In keeping with the real estate theme, there’s a good possibility you have an additional room in your house that is seldom utilized.

Consider putting it up for rent to supplement your income. Perhaps you despise the idea of having a visitor in your house more than the prospect of a few hundred dollars in additional money. If that describes you, this probably isn’t for you, but for others who don’t mind company, it may be a no-brainer.

A few hundred dollars more each month equates to many thousand dollars additional per year. If you do this for a few years, you’ll be able to retire a few years sooner.

Simply ensure that you both sign a formal leasing agreement to ensure that everyone is on the same page.

Tiny house owners may rent out additional land.

Right now, there’s a small house boom sweeping the nation. That means making small-home-related goods or catering to tiny-home aficionados is a great idea.

The only issue is that you may have no prior experience with small houses.

The good news is that if you own other property, you don’t necessarily need to construct a product to sell it.

Many individuals are opting to live in small spaces and adopt a minimalist lifestyle. For many of these folks, the main drawback is deciding where to put their little house. If they want to save money by living in a little house, it’s unlikely that they’ll spend hundreds of thousands of dollars on a lot.

This gives you the ability to rent out space on your property if you own any. You’ll want to make sure you’re not breaking any rules or ordinances in your city, town, or wherever you’re going.

Receiving a few hundred dollars in exchange for allowing someone to build a small house on property you don’t use and don’t want to sell may provide you with a steady source of income. is the source of this image.

9. Make a vehicle rental.


Turo and GetAround, for example, are making it simpler than ever to rent out your automobile while you aren’t using it. And, let’s face it, if you live in a location where Lyft and Uber are available, you may not even need your vehicle on a regular basis.

You should bear in mind that renting out your car may result in more wear and tear on your vehicle, which may result in higher maintenance costs, but customers have stated it’s well worth it for the passive income checks in the mail.

If you have a second car that you never use, or if you’ve started biking to work and no longer require a car on a daily basis, this may be the ideal method to finally start producing some passive money. is the source of this image.

10. Tell your friends about the fantastic items you’re already using.


Companies like (previously eBates) provide referral programs where you may earn money for each person you suggest. If you have a large number of friends or followers on social media, this might be a simple method to make money.

All you have to do is click the join now option at the top of the webpage to create an account. Once your account is set up, go to your account settings and click the refer and earn button to acquire a referral code to share to your friends.

It’s really easy to locate additional apps that are similar to this one. Almost every firm that distributes food or other things has a service like this. is the source of this image.

11. Make use of affiliate marketing.


I built a website from the ground up. It had not been an easy task (unless you know what you are doing and have done it before). Why not take over an existing site that is already producing money from affiliates if you don’t want to start and construct your own?

Affiliate marketing is a kind of marketing in which you get compensated for recommending new clients to a company. For example, if you run a pricing comparison site like, you may make money by introducing users to current companies.

This form of investment may be considered really passive if it is already producing income with little or no activity on your part. Keep in mind that if a site is profitable, it will not be inexpensive to purchase. You’re paying for the income the site creates if it’s profitable. You don’t have to invent the wheel, however. is the source of this image.

12. Create a display ad-based website.


Making money online may be done in a variety of ways. Digital items are available on a variety of websites. Others depend on ad revenue as their major means of generating passive income.

You’ve probably seen a lot of commercials on major websites like ESPN, The Weather Channel, Google, and others if you’ve spent any time on them. You either have a powerful adblocker or you’ve learned to ignore advertising if you don’t recall seeing them. Nice!

As you may expect, the fact that these sites have adverts on show is due to the fact that they are well compensated for doing so. The key to making money this way is to have a large number of visitors on your website. The number of people that visit your website and the amount of money you earn have a significant relationship. It is simple enough to comprehend.

If you have a buddy who has an old website that they seldom use, it can be worth your time to buy it if it has traffic. It’s easy to add adverts to a website, and you might start making money right away. is the source of this image.

Side hustles that aren’t active


isockphoto is the source of this image.

13 & 14. Learn to flip products on eBay


There’s a good chance you know more about a product than anybody else. It could be game consoles or cell phones for some, or makeup, shoes, or handbags for others. Learn how to sell it, as well as other items, on eBay. At initially, the learning curve may be a bit steep. Once you’ve mastered it, you’ll be able to generate more cash on a regular basis.

To get you started, here’s a guide to selling on eBay.

Find a market with a large number of customers and vendors.

The wonderful thing about eBay is how many buyers and sellers there are. All you have to do is look for chances to acquire items for less than they are worth and then resell them. is the source of this image.

15. Put your clothes in the washing machine


You may need to generate money rapidly if you don’t have any money to invest. If you have a washing machine and dryer, you can probably get started right away. Do you think I’m crazy? Perhaps it is. Allow me to explain.

Several organizations market themselves as Uber for Laundry, and they are rather straightforward. You join up, collect clothing from individuals in your neighborhood, and wash it. You’ll get compensated after you deliver their laundry.

That’s all there is to it.

If you’re feeling very resourceful, you could always gather many different loads and take them to a laundromat to wash them all at once. However, use caution to ensure that you know what to do with all of the money you’ll earn. I strongly advise you to put money into it! is the source of this image.

16. Work as a tutor


Getting into elite colleges and programs is as difficult as it has always been. It’s just as difficult to get a high-demand job. This indicates that there are a large number of individuals seeking for instructors.

And, with all of the modern technology at your disposal, you can simply instruct children in China and earn money while sitting on your sofa in Texas.

For online tutoring opportunities, look into businesses like VIPKid.

Working outside your usual job time allows you to earn much more than minimum pay. This sort of job is ideal for people looking to supplement their income.

Maria Symchych-Navrotska / istockphoto contributed to this image.

Residual income examples


You may believe we’re arguing over semantics or splitting hairs, yet there is a distinction to be made between passive and residual income. Many people who write about it don’t distinguish between the two. Here are a handful of Webster definitions:

  • the discrepancy between observational data and formula-based computations, or between the mean of multiple observations and any one of them
  • a material or commodity that has been left over
  • after an original showing, a payment (as to an actor or writer) for each repeat (as of a TV show)

The greatest example of how I think of residual revenue is the payout to an actor for repeats.

SARINYAPINNGAM / istockphoto contributed to this image.

Royalties are number seventeen.


Assume you’ve written a book. Perhaps it’s an eBook, or perhaps it’s a classic paper book. The publisher gives you a price in advance for your work. Any extra money you earn (net the publisher’s portion) is residual income after they collect that charge from sales. You’ve already completed the task by authoring the book. Residual money will be used to fund future sales.

Getty Images is the source of this image.

18. Sales of goods


Let’s pretend you’re a widget salesman. You specified a price for the widget. Ongoing servicing is included in the purchase price. The buyer pays a monthly (or other) charge to have the widget serviced by your firm. The firm gets the funds, the service department handles ongoing service, and you earn a portion of the service contract’s ongoing charge – residual income.

In the insurance industry, salesmen are paid a commission up front for the first product sale. It might be life insurance, property and liability insurance, or health insurance that is being sold. As long as the individual continues to pay the premiums, the salesperson obtains a residual income from the first sale after the initial commission is paid. The client services staff, not the selling agent, is normally in charge of providing service. is the source of this image.

MLM marketing is number 19 on the list.


MLM stands for multi-level marketing, for those who are unfamiliar with the term. Below, I’ll describe how it works.

Allow me to clarify before you lash out at me for included this in the article. I’m not advocating MLM sales or claiming that it’s a viable business model. MLM marketing, on the other hand, is built on residual revenue.

Participants in MLM schemes are urged to sell the company’s goods. They are compensated for their efforts. Recruiting people to sell such things under your account is where the large money (or at least touted) is made. You urge those people to recruit others, and you encourage those at the next level to do the same. The plan is to create a multibillion-dollar sales empire. Sorry. The snark got the best of me.

The residual income comes from the money made on those in the “line” below the person at the top of the food chain. They don’t perform the selling; instead, they profit on the sales of people behind them.

Residual income isn’t the same as passive income in the classic sense, despite similarities in many aspects. is the source of this image.

Last but not least


Remember that creating really passive income involves imagination as well as some initial setup effort. If you’re already a busy person, this is even more true for you. You can make some additional money if you take the time to study something you believe you’d be excellent at. Perhaps a substantial sum of money.

I hope at least one of these suggestions appeals to you enough to give it a go. Don’t listen to the pessimistic naysayers or the thumping commentators (credit to Brian Wesbury for that one). Make sure you finish your assignment. Find out all you need to know. Also, give it a go. Because you’ll be generating money while everyone else is busting their backs, you could become the talk of the town.

This post was syndicated by and first published on is the source of this image.

MediaFeed has more.


Zinkevych/istockphoto contributed to this image.



Dinich, Michael

Dinich, Michael is a personal finance expert, podcaster, YouTuber, and journalist. Michael is the founder of Your Money Geek, a rapidly growing personal finance and pop culture website.

The “passive income books” is a list of 19 ways that people can make passive income right now. The book includes advice on how to start, what it takes and the benefits.

  • how to generate passive income with no initial funds
  • passive income ideas 2022
  • passive income ideas for students
  • passive income ideas: 101 passive income ideas under $1000
  • passive income ideas reddit
You May Also Like

27 ways to make money online this month

For people who have a lot of time to spare and a…

The Role Of The Swiss National Bank (SNB)

The Swiss National Bank (SNB) is one of the largest and most…

Rents are rising fastest in these 20 cities

With rental rates increasing, the number of people experiencing homelessness is on…

A Letter to My Future Self: Will I Be Happy?

Imagine you have a chance to travel back in time and share…