How to Make Passive Income: 29 Passive Income Ideas For 2024

By: Team Stash• Reviewed by: Heather Comella
Published: Mar 08, 2024
• Updated: Sep 05, 2024

In this article:

1. 29 passive income ideas
2. Pros and cons of passive income
3. FAQs about how to make passive income

Passive income is different from active income in that you can generate it without active, daily participation.

It could be money you make by owning an apartment and collecting rent from your tenants. It could also be earnings or dividends from your investments in the stock market. Or it could even include royalties you make from selling a book or acting in a commercial.

With countless passive income ideas to consider, we’ve rounded up 29 of the lowest-effort, highest-impact ways to make passive income.

29 passive income ideas

1. Open a high-yield savings account

Upfront time commitment: 45 minutes
If you’re looking for a set-it-and-forget-it approach, a high yield savings account (HYSA) is one of the simplest ways to make passive income that doesn’t require a ton of money upfront. With this type of account, your earnings come from the interest they generate.

2. Invest in certificates of deposit (CDs)

Upfront time commitment: 1–2 hours
A simple path to passive income investing as a beginner is to invest in certificates of deposit (CDs).

3. Invest in dividend stocks

Upfront time commitment: 2 hours
A dividend is the portion of profits that a company regularly pays out to investors—often quarterly.
There are thousands of companies that pay dividends to their shareholders.

4. Invest in index funds

Upfront time commitment: 1 hour
For passive income investments that carry less risk, consider index funds.

5. Invest with a robo-advisor

Upfront time commitment: 30 minutes
New investors can benefit greatly from investing with a robo-advisor.

6. Invest in bonds

Upfront time commitment: 45 minutes
Bonds can offer low-maintenance sources of income, often for very little risk depending on the type of bond you choose.

7. Invest in rental properties

Upfront time commitment: Ongoing
Investing in rental properties is one of many the ways to make passive income.

8. Invest in REITs

Upfront time commitment: 3–4 hours; ongoing
If you want a more hands-off approach to capitalizing on real estate, consider real estate investment trusts (REITs).

9. Invest in royalties

Upfront time commitment: 1 day; ongoing
Investing in royalties means earning returns for the ongoing use or ownership of a type of asset.

10. Build an app

Upfront time commitment: 3–6 months depending on experience; ongoing maintenance
If you have existing programming experience or an idea for an app, building an app is another way to make passive income.

11. Create and sell software

Upfront time commitment: 2–6 months
If you have a background in programming, you can monetize your skills by creating and selling software.

12. Own a vending machine business

Upfront time commitment: 1 month; ongoing
Owning a vending machine business is a low-maintenance way to create passive income streams without needing specialized skills.

13. Own an ATM machine

Upfront time commitment: 1 month; ongoing
ATMs generate revenue through the fees charged to customers who use your ATM.

14. Dropshipping

Upfront time commitment: 1 month; ongoing
Dropshipping is an online business model that doesn’t require store owners to manage an inventory.

15. Affiliate marketing

Upfront time commitment: 3–6 months to build an audience
Affiliate marketing involves earning commissions by promoting someone else’s product or service.

16. Sell digital designs online

Upfront time commitment: Ongoing
If you have graphic design skills, create alternative income streams by selling designs.

17. Publish ebooks

Upfront time commitment: 6 months
Writing and self-publishing ebooks can be a lucrative passive income stream.

18. Start a blog

Upfront time commitment: Ongoing
Online content creation has become a popular way to make passive income.

19. Start a YouTube channel

Upfront time commitment: 3–6 months to start building an audience; ongoing
Becoming a successful content creator on YouTube can generate a sizable passive income.

20. Create an online course

Upfront time commitment: 3–6 months
Creating and selling online courses can be a lucrative form of passive income.

21. Sell stock photos

Upfront time commitment: 2 hours; ongoing
If you like photography, consider using your photos as a passive income source.

22. Create and sell resume templates

Upfront time commitment: 2 hours
Creating and selling resume templates could be a fantastic passive income opportunity.

23. Voice Act for Real-World Narrations

Upfront time commitment: +2 hours; ongoing
Voice acting can be a rewarding passive income option for those with a memorable voice.

24. Rent your car

Upfront time commitment: 30 minutes
Renting out your car can earn passive income.

25. Rent your parking space

Upfront time commitment: 20 minutes
Renting out a parking space you don’t use can be an easy passive income idea.

26. Rent your bike

Upfront time commitment: 30 minutes
Creating a passive income is possible with a bicycle by renting it out.

27. Rent out your room

Upfront time commitment: 2 hours; ongoing
Consider renting out a single spare room or other underutilized space.

28. Advertise on your car

Upfront time commitment: Varies
Consider getting paid to put advertisements on your car.

29. Open a cash-back rewards card

Upfront time commitment: 30–45 minutes
Cash-back rewards programs offer a percentage of cash back on qualifying purchases.

Pros and cons of passive income

FAQs about how to make passive income

How can I make passive income with little money?

A low-cost, hands-off way to make passive income is by investing in index funds.

How many income streams should I have?

There’s no right or wrong answer—the number of income streams you should have depends on your personal goals.

How can a beginner earn passive income?

One of the best beginner passive income ideas may be investing in index funds or ETFs.