Learning how to make passive income can significantly change your life by helping to make more money and diversify your income.
I remember feeling stuck in my first job. I was making an entry-level salary and I felt like I was working so hard without having much to show for it.
The cost of living was increasing while my income stayed the same. At the time, I was reading the book, Rich Dad, Poor Dad by Robert Kiyosaki, which completely changed my mindset about money.
This taught me the benefits of earning passive income and inspired me to find ways to diversify my own income.
Warren Buffett once said, “If you don’t find a way to make money while you sleep, you will work until you die”.
That quote really stuck with me because I wanted to continue earning an income while being able to focus on other goals of mine, like traveling and spending time with loved ones.
Building multiple streams of income is also a good idea in today’s economy because it can reduce risk and lead to personal growth and satisfaction.
For example, learning about investment opportunities or starting a side business can build your skillset and increase your marketability. This is great for young adults.
You never want to put your eggs in one basket, such as getting all your income from one source. You never know when something might happen, which is why having a few different sources of income is the key to protecting yourself.

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Table of Contents
1. Blogging
Are you an expert on a topic? Do you enjoy sharing stories with others? Do have an opinion on something? Can others learn from your experience to improve their own life?
You can turn your passion for writing into a money-making blog. Earn passive income through display ads, affiliate income, selling digital products, or partnering with brands.
Blogging is not a get-rich-quick thing.
First, you’ll have to figure out what you want to write about (even if it’s a small niche), decide how you want to make money blogging, and finally set up your blog (you can do this with the click of a button).
But once you create a steady income, you can scale your blog to replace your full-time income. I went from making $0 to $20,000+ per month from blogging.
Ready to get started? Follow my easy step-by-step guide here.
2. Sell printables on Etsy
Printables are one of the best digital products to sell online to earn passive income.
You just need to create the printable product once, then list it for sale on Etsy, and sell it over and over again.
You don’t need to have any graphic design skills. Simply use an online program like Kittl or Canva to create your printable product.
Below are some of the bestselling printables on Etsy right now:
- Chore and reward charts
- Christmas and holiday printables
- Party printables
- Teaching materials and flash cards
- Coloring pages for adults and kids
- Cleaning checklists
- Meal planners
- Budget planners
- Wedding printables
- Stickers
You can grab this free e-book that’ll help you get started in learning how to make and sell printables on Etsy.
Read Next: How to make money selling printables on Etsy
3. Sell templates on Kittl
Kittl is an easy-to-use design platform which allows you to create professional looking templates (even if you have no graphic design experience).
You can use the platform to create premium templates and earn passive income whenever someone uses your template.
Simply share your Kittl profile link in the bio on your social media or send it directly to your fans.
Some of the most popular templates to make include:
- Logos
- Posters
- Cards
- Labels
- T-Shirts
- Stickers
- Social Media
- Bags
- Flyers
Read Next: 20 items you can start selling on Etsy this weekend
4. Sell print-on-demand products with Printful
Print-on-demand (POD) can be a great way to make passive income online without the risk of losing money.
The industry is expected to grow 25.8% annually over the next several years, so now can be a great time to jump into this low-cost, side hustle opportunity.
To get started, you’ll need to create a digital design (Kittl is a great site for this) and choose a print provider (such as Printful) that’ll take care of the entire process for you.
This means that designs will be digitally printed on-demand.
When a customer makes a purchase – such as buying your design on a t-shirt or coffee mug – everything that happens after the sale, including the digital printing, order fulfillment, shipping, and delivery will be handled by your print supplier.
It’s pretty awesome because Printful will automatically print, pack, and ship the products to your customers, so you don’t have to worry about the technical aspects of running an online store.
5. Flip retail products
You can make passive income by buying products at thrift stores or flea markets and reselling them online for a profit.
The most popular websites to resell items on include Facebook Marketplace, eBay, and Amazon.
My friends Rob and Melissa started reselling items from thrift stores as a hobby. Now they earn over $100,000 a year from their resale business.
There’s a wide range of products you can resell, such as vintage clothing, furniture, electronics, kids stuff, books, jewelry, and appliances.
Check out this free workshop that’ll show you 3 insider secrets to help you maximize your profits when it comes to flipping items.
Read Next: 23 best products to flip for profit
6. Earn cash back when shopping online with Rakuten
Cash back reward sites, such as Rakuten, allow you to earn passive income while you shop online.
To get started, you’ll need to sign up for Rakuten using your email address, then click the link to the store you want to shop at through their online shopping portal.
The more you shop, the bigger your cash back balance will grow. You’ll get paid via check or PayPal.
Join today and you’ll get an extra 10% cash back on purchases made in your first 7 days.
Word of caution: Make sure to not exceed your monthly shopping budget in attempt to earn more cash back. Only shop when you actually need to buy something.
Other popular cash back sites include Swagbucks, MyPoints, and Drop.
7. Start an online store with Shopify
Dropshipping is a low-cost way to earn passive income online. And the best part is – you can work from anywhere. You just need a computer and internet connection.
To get started, you’ll need to set up an online store, where customers can buy products.
Shopify is an easy-to-use option for beginners. I personally use Shopify and love it!
Each time your store makes a sale, it’ll forward the order to your dropshipping supplier who will handle the shipping and delivery to the customer.
Dropshipping generates over $300 billion in ecommerce sales every year.
Some dropshipping trending products that you can sell include phone accessories, pet supplies, apparel and footwear, Christmas décor, coffee pods, air fryers, diapers and baby bottles, and car accessories.
8. Affiliate marketing
Affiliate marketing involves recommending a product or service to your audience.
You can build an audience through an online blog, YouTube, email newsletter, or on social media.
This can be a great way to make passive income because you’ll earn a commission whenever someone makes a purchase through your referral link.
You don’t have to worry about creating your own products (which can take tons of time), and you don’t need to sell anything.
You just have to recommend products or services to your audience, just like you would recommend a product to a friend or family member.
My friend Michelle, from Making Sense of Cents, earns over $50,000 a month from affiliate marketing. Of course, you won’t make millions of dollars overnight.
It takes time to gain trust with your audience. But once you have a steady stream of income coming in, affiliate marketing can be very rewarding.
9. Rent out a room in your home with Airbnb
Do you have an extra room in your apartment or house? Do you have a cottage or vacation home that you seldom use? Or maybe you’re going on a 2-week vacation and don’t want to leave your house empty?
You can earn passive income by listing it for a short-term rental on Airbnb.
You’ve probably heard of Airbnb before or used it yourself when booking a vacation. The platform connects homeowners with people who are looking for their next trip.
Many people choose Airbnb instead of a hotel because it can be a cheaper and more convenient option.
To get started, check out what similar rental listings are going for in your area.
10. Create an online course with Thinkific
If you’re knowledgeable about a certain topic, you can create an online course to generate passive income.
People are selling courses about anything and everything. Some popular ideas include:
- How to draw cute cartoon characters
- Javascript for beginners
- A brief introduction to accounting
- Excel for beginners
- How to potty train your toddler
- Guitar lessons for beginners
- How to train a puppy
- Wedding photography for beginners
- Prenatal yoga
It takes time to create an online course, but once it’s done, you can sell it over and over again.
The best way to start is to create a mini-course with a few hours of content to see if there is a demand for it. You can sell your course on sites like Thinkific or Udemy.
11. Sell stock photos online
Bloggers, companies, and media agencies are always looking for stock photos to use on their website, news stories, and advertising.
If you’re good at taking photos, you can earn passive income by selling stock photography online.
Popular sites to sell your photos include Getty Images, iStock, and Shutterstock.
Trending stock photography categories include:
- Everyday activities (shopping, working, etc.)
- Lifestyle photos
- Photos with negative space (blank space where text can be overlaid)
- Flat lay desks and home office inspiration
- Cultural diversity (interracial couples, same-sex couples, different ethnicities)
- Nature
- Travel
- Food
12. Create content for YouTube
It’s not too late to start your own YouTube channel.
Similar to starting a blog or becoming a social media influencer, it requires your time and a lot of upfront work in the beginning.
But once your videos start ranking in the YouTube search results, the income potential of your YouTube channel can be high.
You can make money from YouTube through affiliate marketing, advertising, sponsorships, or selling your own products.
You can start recording videos with your phone as a low-cost option. But if you want your videos to look top-notch, I recommend investing in a good camera.
I use this camera to make all my YouTube videos. It’s budget-friendly and popular with vloggers.
I also use DaVinci Resolve to edit my videos. It’s the best free video editor available today.
13. High-yield savings account
You can earn passive income by putting your savings into a high-yield savings account.
This can be a good spot to grow your emergency fund because it offers a higher interest rate than a traditional savings account.
When you deposit money into your high-yield savings account, you’ll earn interest over time without any additional effort.
It’s a good idea to shop around and find a high-yield savings account that offers the best interest rate. You may find that online banks offer a better interest rate than traditional banks.
14. Write an eBook
Writing, publishing, and selling an eBook can be a great way to make passive income.
You can use a free online program like Canva to make a professional-quality eBook. They have different templates, layouts, photos, and illustrations you can use to make it look amazing.
Then you can easily download and publish your eBook on either your own website or on Amazon (Kindle Direct Publishing). These are the most popular places to self-publish your eBook.
If you don’t have a website and would like to start one, here’s a step-by-step guide on how to start a blog and earn an income from it.
15. Rent out your stuff
Renting out your spare room is not the only way to make extra money. Below are some other things you can rent out to generate passive income.
Parking space – If you have a parking space that you’re not using, you can list it for rent on marketplaces like SpotHero.
Storage space – If you have extra space on your property or in your home, you can make money by storing other people’s vehicles or belongings. Neighbor helps you connect with people who need storage space.
Rent out your car – If you don’t use your vehicle frequently, you can make money by renting it out and apps like Getaround, Turo, or HyreCar.
Rent out your stuff – If you have items that you’re not using, such as an electric scooter, camera, or power tools, you can make money by listing them for rent on Fat Llama.
Rent out your RV – If you have an RV that you’re not using, you can list it for rent on RVezy or RVshare. Depending on what type of RV you have, you can make an average of $1,400 a week in passive income.
Rent out your boat – If you have a boat that you don’t use often or want to recoup some of the costs of maintaining a boat, you can make money by renting it on sites like Get My Boat and Boatsetter.
Rent out your furniture – You can make money by renting out your furniture to realtors who are staging a home, or people who need furniture for a temporary living situation.
Rent out your services – Use the Rentah app to make money by renting out just about anything, such as your dog-walking services, your Halloween costume, your services as a foreign language tutor, your drone, your ice cream maker, and so on.
Rent out your clothing – If you have a closet full of clothes that you don’t wear, such as designer bags, shoes, and dresses – you can make money by renting them out the Rent My Wadrobe App.
Rent out your baby gear – If you have baby items that you’re not using anymore such as strollers, cribs, toys, and car seats – you can earn money by renting them out on Babyquip.
This helps many families who are traveling and don’t want the hassle of packing their own baby gear.
16. Peer-to-peer lending
If you have extra money to spare, you can earn passive income by lending it to borrowers and small businesses through a peer-to-peer loan service, such as Lending Club or Prosper.
You’ll make money from the interest payments made on the loans.
Peer-to-peer lending is risker than putting your cash into a high-interest savings account, but many people choose this method because you can earn a 5% to 6% return on these loans.
17. Dividends
Investing in dividend stocks can be a good way to earn passive income. As a shareholder, you’ll receive regular payments from the company.
Most companies will pay out dividends quarterly, and the more shares you own, the more dividends you’ll receive.
This is usually a low-risk investment option, which can be great for young adults or those who are nearing retirement.
The riskiest part is choosing the right stock. But if you don’t have time to evaluate and understand the company’s financial statements, consider going with exchange-traded funds (ETFs). This can help diversify your holdings.
18. Money market funds
Money market funds are mutual funds that invest in short-term debt securities. This is a low-risk way to earn passive income.
Similar to a high-yield savings account, money market funds can be a good place to store cash temporarily before investing it elsewhere or using it to make a large purchase (such as a house down payment).
19. CDs
A certificate of deposit is a type of savings account that pays you a fixed interest rate on your money held for an agreed period of time.
This means that you’ll make one initial deposit that will stay in your account until its maturity date, which can be as little as six months or up to five years.
This has become a popular option for those who want to earn more than most high-yield savings accounts or money market accounts will pay, but without taking on the risk of the stock market.
20. Bonds and bond funds
You can make passive income on bonds through interest payments or by selling a bond for more than you paid.
Bonds are considered a safer investment than stocks, but that means you’ll usually earn a lower return on your investment.
Due to their lower volatility, it’s a good idea to invest a portion of your portfolio in bonds.
You can buy bonds on their own or as part of a bond fund, such as a mutual fund or ETF that has invested in several different bonds.
21. Real estate and REITs
A popular way for beginners to make passive income is to buy a property and earn rental income.
If you have the money available, you can purchase an apartment, condo, house, land, or commercial real estate.
When there’s a healthy market for renters, this can provide a steady stream of cash for you. But it’s important to note the risks and stressors that come with maintaining rental properties.
When buying an investment property, location should always be your first consideration. This can help determine your ability to make a profit.
You’ll also want to make sure that your rental income will cover all the expenses, such as the tax, insurance, and mortgage payment of the property.
My husband and I own a house and a condo. We rent out the condo as a source of passive income, but paying two mortgages is a lot of debt to carry. We plan to sell the condo in the next few years.
If you want to earn an income from real estate, but don’t want to deal with the hassle of buying and managing properties yourself, REITs (real estate investment trusts) can be a good option.
Instead, you’ll buy a share in companies that own commercial real estate, such as apartment buildings, office spaces, or hotels. In return, you’ll receive regular dividends.
Realty Mogul is a good option to start investing in REITs.
Frequently Asked Questions
What is passive income?
Passive income is money that you receive without working a traditional job. It usually doesn’t require much time or effort to maintain.
For example, earning income from an Airbnb rental property is passive income.
Money that you receive in exchange for a service performed, such as contract work, or a 9-5 job is not passive income. Instead, this is considered active income.
Passive income usually requires some upfront investment of your money or time (or both), but once you build a steady stream of income, it can pay off for years to come.
How many streams of income should you have?
The short answer is that you can have as many streams of income as you want. Finding the right number for you will depend on your goals and how much time and money you currently have to invest.
The average millionaire has seven streams of income. But if your budget it tight, or you don’t have a lot of time to create multiple passive income streams, then I recommend focusing on just one or two in the beginning.