30 Best Passive Income Ideas to Build Wealth While You Sleep

These passive income ideas are specifically geared towards ideas you can set up and maintain with the least amount of additional effort.
What is Passive Income?
Unlike traditional part-time jobs, passive income streams require an initial setup, but then minimal time and effort after. This means you can earn money while sleeping or spending time with friends and family.
Benefits of Passive Income
Here are even more great benefits for earning passive income:
Want to save this idea?
Flexible Schedule
Passive income streams allow you to earn money without committing to a specific work schedule (or even being present).
Generate Cash for YEARS
This is especially beneficial for long-term financial stability.
Peace of Mind: Banish Stress
You don’t have to fret about the economy, emergencies, or an unexpected job loss. And because you’re not actively working for the money, it allows you more time to enjoy life.
With passive income, you can also create multiple streams and reduce your dependence on any one of them.
You Play to Your Strengths & Interests
Passive income allows you to explore your creativity and expand on the things you already love.
You Get Ahead of the Game
Pursuing any passive income idea will give you confidence, knowledge, and experience. These translate over into every other area of life. It’s always a win when you can build skills that serve you in other ways in the future too.
The Sky’s the Limit
Passive income streams often have the potential to grow over time. As you continue to build, it can lead to even greater earnings in the future.
Now, let’s check out the list! Write down your favorite 3 passive income ideas as you read.
Low Effort Passive Income Ideas
First, these ideas are practical and proven passive income for beginners. You can use them to generate side income without putting in a lot of effort later.
1. Rent out your car
Rent out your car to people who need it through car-sharing services like Turo or HyreCar. This can work exceptionally well in touristy spots and college towns.
2. Use your car to advertise
Get paid to wrap your car in advertising for a company.
3. Pay Off Debt
*An undervalued form of passive income!
If you have a lot of debt, this is by far the most beneficial way to boost your bottom line.
Paying off your debts early gives you an automatic pay raise. This is passive because once it’s paid off, you get that pay raise forever (without doing a thing).
4. Rent out Your belongings
Rent out tools, cameras, music equipment, bikes, electronics, or anything that has a specialized need.
Pro Tip: Being transparent about the item’s condition with potential renters can lead to better reviews.
5. Rent out your spare room
Rent out your spare room to peers or use Airbnb for a vacation rental platform.
6. Pet-sit
Pet-sit for people who are going out of town through platforms like Rover or Wag.
7. House-sit
House-sit for people going out of town and needing someone to watch their home and plants.
8. Sell Clothes & Items Through FB Marketplace
Rent or sell your clothes through platforms like nuuly.com.
To make selling more passive on FB Marketplace:
- Be clear that the price is firm – no back-and-forth messaging
- Have the buyer come to you or meet at a place you’ll be at anyway
9. Open a high-yield savings account
Invest your money in a high-yield savings account or CD to earn interest on your savings.
10. Rent unused storage space
Rent out unused storage space in your home through services like Neighbor or StoreAtMyHouse.
11. Use a cashback credit card
No, this won’t make you a millionaire. But it’s a truly passive way to earn more on the things you spend on anyway. Why not get a cash bonus?
Online Passive Income Ideas
Next, these passive income streams are great for working from home and on a computer.
Note: As with most passive income ideas, it takes time to build a following, audience, or customers. Consistency is key to building your income!
12. Sell stock photos and videos to stock photo sites
Sell your photos and videos to stock photo sites like Shutterstock, iStock, or Adobe Stock. Earn royalties each time they are downloaded.
13. Get Your Music Out There
If you have a talent for music production, license your compositions for use. Sell your work for use in TV shows, commercials, films, and podcasts.
To get started, upload your music to libraries like AudioJungle.
14. Sell print-on-demand products with your own designs
Create and sell print-on-demand products with your own designs through platforms like Redbubble or Teespring.
What is print-on-demand? It’s a business model where products are produced only when an order is received. This makes your inventory and upfront costs cheaper. Plus, the supplier takes care of much of the orders.
It’s especially great for apparel, accessories, and home decor.
15. Create a Course or Ebook
Create and sell an online course about a topic you’re knowledgeable about on platforms like Udemy, Skillshare, or Teachable.
Or if you have extensive knowledge of a subject, turn it into an e-book! Self-publish with platforms like Amazon Kindle Direct. They make it easy to get your book out there without the need for a traditional publisher.
16. Sell printables and digital products
Create and sell printables or ebooks on platforms like Etsy. The great thing about digital products is that you make it once, and then it’s hands-off. It sends automatically every time someone makes a purchase.
Related: How to Earn $300 Fast
17. Sell design templates
If you love graphic design, sell your logo designs, business card templates, branding resources, fonts, and website themes.
When I started writing, I bought a set of design templates. It was money well spent for me (saved SO MUCH time!). And the designer only had to make the templates once, but sold hundreds.
18. Narrate an audiobook
Narrate an audiobook for a royalty share through platforms like ACX.
Related: Creative Hobbies That Make Money
Unique Passive Income Ideas
19. Rent your parking space
If you have a side job, internship, or you live in a hard-to-reach spot, rent out your parking space to others. Use word of mouth or go through parking space rental platforms like SpotHero.
20. Use cashback and coupon apps
Cashback and coupon apps can help you earn money back on purchases in stores and online. Try Ibotta.
21. Create and sell tutoring videos online
Who says you have to tutor in person?
If you know of a particular topic or course that students need help with, record a series of videos. They’ll be grateful for betting understanding. And you’ll make continual money off of something you only have to make once.
22. Try Network/Multi-Level Marketing
Multi-level marketing can be both lucrative and passive.
Companies such as:
- Young Living Oils
- Mary Kay
- Pampered Chef
- AdvoCare
are all multi-level marketing companies. But you can find many other opportunities near you as well. To make this passive, you build a team underneath you that sells. Once you have your own large team, you earn commissions from their sales without much work.
23. Sell your Artwork, Handmade Items, or T-shirts With Clever Sayings
If you love doing art or making crafts as a hobby, sell them on the side! While this one is less passive, if you enjoy doing these things anyway, there’s not much extra commitment.
Use these top money-making craft ideas to turn a profit.
24. Sell Extra Produce From Your Garden
If you have a green thumb, and you know you’ve got more than you’ll eat, sell to friends, neighbors, and family.
Related: Best Ways to Make $300 Fast
25. Participate in medical studies
Participate in medical studies and get paid for your time and participation. Often, these don’t include much of your time as you live your life.
26. Utilize the Membership Model
The membership model is the reason that Netflix, Apple, and Disney make so much money! When someone only has to pay $9 a month for a service, it seems like no big deal.
If you have a product or service, you can also take advantage of this passive income model.
Higher Risk Passive Income Ideas
It’s never too early to start building your investment portfolio. But be aware: these investments come with risks like borrower default and plummeting market prices. But they also have potentially higher rewards. Educate yourself and make informed decisions.
27. Invest in businesses
Invest your money in businesses through creative crowdfunding platforms like Kickstarter. Or go into peer-to-peer lending through Prosper or LendingClub. You’ll be helping someone open their dream business while earning passive income on the interest of the loans.
Related: Investing Checklist for Beginners
28. Invest for Dividends
Invest your money in the stock market to earn dividends and capital gains. Low-cost mutual funds and ETFs are a great way to start, as they offer a diversified portfolio of stocks to invest in.
What are dividends? They are payments made by a company to its shareholders, typically from its profits. They are usually given out in the form of cash or additional shares of stock.
29. Invest in REIT or Real Estate
Invest your money in REITs to earn dividends from real estate investments. Or, if you have access to enough cash, invest in a rental property.
Get creative: buy a duplex, then live on one side and rent the other side out.
30. Try MicroInvesting
With micro-investing, you invest small amounts of money over time instead of one large investment. And micro-investing apps like Stash, Robinhood, and Acorns make this very low effort.
Related: Investing For Beginners: How To
Get Into Robo-Investing
Robo investing is great because the investing platform does all the work for you. It allocates your money according to your needs and preferences.
You can participate in rob-investing through your bank or by signing up with an investment app.
Cons With Passive Income Ideas
Despite the many amazing benefits, there are also challenges for beginners. It’s best to go into your venture knowing what may come up.
You have to put in the work first: While these income streams are passive over time, many require a significant amount of time upfront.
You risk failure: Not every passive income stream will be an amazing fit. Some investments may lose money or never make a large income.
It’s not completely hands-off: Passive income should not require constant work. But many streams still require maintenance, adjustments, or updates.
These are workable obstacles for sure. But it’s critical to make a plan ahead of time and choose a passive income stream that works for you.
What’s Next?
Next, join the Wealthy Woman Community for free! You’ll get inspiration and learning straight to your inbox. Plus, you’ll have access to the free resource library full of goodies.
Looking for active income ideas too? Check out these great articles: