26 Best Passive Income Ideas to Quit Your Day Job

We all dream of earning passive income so we can eventually step away from traditional work.

But maybe you’re not looking to quit your job entirely. Perhaps you’re interested in discovering how to build passive income while still maintaining a full-time position.

It’s about learning to generate revenue without being tied to a traditional job!

After diving into books such as The 4-Hour Workweek and Rich Dad Poor Dad, I realized that there are methods to replace a full-time income without the need for daily work, though I wasn’t sure where to begin.

So, I set out to make passive income a tangible goal.

But is it genuinely feasible to earn money without actively working for it?

This post is all about the best passive income ideas to consider this year.

What Is Passive Income?

To grasp the concept of passive income, it’s helpful to first understand active income.

Active income is what most of us earn by working. We trade our time and effort for money, typically through a daily job. If we’re not working, we’re not earning.

This dependence on constant work for income can be problematic if we face unexpected time off or emergencies while still having bills to cover.

On the other hand, passive income is money you earn without having to work for it on a daily basis.

Once set up, a passive income stream should ideally generate revenue with minimal ongoing effort. However, some passive income sources may require varying degrees of maintenance and involvement.

Not all passive income sources are identical, and the level of time and effort needed can differ from one to another.

Relying solely on office work for income means you’ll always need to show up to earn money.

Passive Income Is Not EASY

Building passive income isn’t straightforward: it demands time and effort to establish. Whether you’re creating a product or investing, initial hard work and motivation are essential!

Yet, with dedication and proper research, you could be making money while enjoying leisure activities like a park stroll or sipping a margarita on the beach.

And it’s gonna be one of those things that you set and forget.

26 Best Passive Income Ideas To Try In This Year

1. Rent Out Your Spare Room

What’s better than earning from the comfort of your home? If you have an extra room, consider renting it out on platforms like Airbnb. If you’re renting, get your landlord’s approval first.

Your earnings will vary based on your location and room quality, but you can profit from otherwise unused space. Some upkeep is required to keep the room in top shape, but in touristy areas, it can provide a substantial side income.

2. Rent Out Your Belongings (Car, Parking Space, or RV)

If renting out properties isn’t feasible for you, consider monetizing other assets. Here’s how:

• Rent Your Car: Use services like HyreCar, Uber, and Getaround to lease your car. The average monthly earnings are around $846.
• Rent a Parking Space: If you have an unused driveway or garage, list it on Craigslist or Neighbor for extra income.
• Rent Your RV: An idle RV can generate up to $23,000 annually on RVshare.
• Rent Anything: Platforms like Fat Llama let you rent out items like cameras and bikes. Some earn up to $4,000 monthly.

There’s a market for temporary rentals, allowing you to profit from items you already own.

3. Start A Blog

Yes, blogging can be profitable! While it demands significant effort initially, with strategic content and traffic generation, it can become a steady income source.

Here’s how blogging can earn you passive income:

1. Blog Value Growth: Start with minimal investment and potentially sell your blog for thousands on sites like Flippa.
2. Affiliate Marketing: Promote products or services through your blog. You earn a commission for each sale made through your links.
3. Ads: Display ads on your blog to earn revenue from page views.

4. Earn $60 a Year with the Nielsen App

Nielsen offers a chance to earn $60 annually for each device you register with their app. The Nielsen Computer and Mobile Panel tracks your online activity anonymously and is completely free to use.

This opportunity is available to residents of the US, Canada, Germany, and Italy.

By installing the Nielsen app on your computers, smartphones, or tablets, you can earn $60 annually for each device.

Payments are made via PayPal or as gift cards from popular retailers like Amazon and Starbucks.

5. Invest in Index Funds and ETFs

If you’re looking for a straightforward, long-term investment strategy without high risks, consider index funds and ETFs. These options allow your money to work for you, providing a way to invest without excessive daily management.

I used to avoid the stock market due to my poor gambling skills, but discovering index investing and ETFs changed my perspective. Last year, my investments yielded a return of over 20%!

You can manage your investments yourself or seek professional help. For those who prefer not to pay high fees or lack confidence in DIY investing, robo-advisors like Wealthsimple are available.

6. Invest in the Stock Market

Investing in stocks means buying shares of companies like Home Depot, which pay dividends to shareholders. While stock trading involves risks, it also offers significant potential for returns, often surpassing traditional savings accounts.

For instance, a $10,000 investment in Tesla (TSLA) in 2016 would be worth over $121,000 by 2020—a 12x growth!

Utilize apps like Robinhood or Stash to invest in stocks and earn through capital gains or dividends.

7. Try Peer-to-Peer Lending

Peer-to-peer (P2P) lending is a popular way to earn passive income by matching borrowers with investors online.

Platforms such as Lending Club and Prosper offer returns between 6-10%, much higher than traditional savings accounts.

Here’s how it works:

If a borrower requests $10,000, you can choose to lend any amount, from $25 to the full sum. By investing less than the full amount, you share the risk with other lenders who collectively fund the loan.

8. Explore Crowdfunded Real Estate

Real estate investing typically requires substantial capital, but crowdfunded real estate allows you to invest without buying entire properties.

This method offers returns of 7-10%, similar to P2P lending, with the added security of real estate backing.

PeerStreet allows investments starting at $1,000. Create an account to explore real estate deals and investment opportunities.

9. Invest in REITs (Real Estate Investment Trusts)

REITs provide a way to invest in real estate without owning physical properties. Approximately 87 million Americans invest in REITs, which include commercial real estate like office buildings, apartments, and shopping centers.

REITs are traded like stocks and can be purchased through ETFs. Check out this list of popular REIT ETFs in the U.S. for options.

10. Invest in Rental Properties

If you’re open to being a landlord, investing in rental properties can generate passive income. Although managing tenants and properties requires some effort, you can hire property management services to handle day-to-day tasks.

Just remember, don’t announce vacations publicly—trust me, it’s important!

11. Open a High-Yield Savings Account

While not a path to wealth, a high-yield savings account is a good place to park emergency funds or savings.

Traditional banks offer low rates, but online banks like CIT Bank offer higher returns, such as 1.55%—much better than the 0.01% from traditional banks.

Your account with CIT Bank is FDIC-insured, ensuring your deposit is safe.

12. Place Ads on Your Car

One of the more unique passive income ideas is earning money by wrapping ads on your car.

Companies like Carvertise pay around $100 per month for displaying advertisements. Sign up, get approved, and start earning passive income while driving.

13. Generate Passive Income with YouTube

Creating a successful YouTube channel isn’t an easy feat. It requires producing a substantial amount of content before you see significant earnings.

However, with the right niche and valuable content, you can attract organic traffic from YouTube and Google.

Start by identifying a niche you’re passionate about.

For example, beauty enthusiasts have thrived by sharing skincare tips on YouTube, while gamers have engaged audiences by streaming games like Fortnite and League of Legends and offering how-to guides.

Once you build an audience and gain subscribers, you can monetize through ads and affiliate links, making YouTube a potential passive income source, especially for students.

14. License Your Photos

If you have a knack for capturing stunning photos and receive compliments on your work, consider licensing your photos online.

Upload your best shots to platforms like Adobe Stock, Etsy, Freepik, and Shutterstock. Each time someone downloads your images, you’ll earn money, with earnings varying by license type and usage.

Common stock photography subjects include:

• Travel, landscapes, and outdoor scenes
• Business environments such as laptops and offices
• Family moments like parents and children
• Household settings including kitchens and living areas
• Animals, both pets and wildlife
• Vehicles like cars and boats
• Sports events and activities

15. License Your Music

Musicians can also earn passive income by licensing their music for use in online videos and other media. By selling music licenses repeatedly, you can generate ongoing revenue.
Platforms to consider for selling your music include:

• Premium Beat
• Epidemic Sound

16. Develop an App

If you have the skills to create software, developing an app could be highly lucrative. Publish your app on platforms like the iOS App Store or Google Play Store.

A successful app with a unique idea could potentially earn substantial profits.

Look for gaps in the market or existing apps with poor user experiences to find opportunities.

17. Buy and Sell Domain Names

Domain flipping involves purchasing inexpensive domain names that may become valuable to businesses later. Although success often involves some luck, strategic domain investments can be profitable.

For example, Elon Musk purchased “tesla.com” for over $11 million. Diversify beyond .com domains to increase your chances of finding valuable names. Start with a budget of $10-$100 and focus on effective sales strategies.

18. Rent Out Your Clothes

Instead of selling clothes, consider renting them out if you have high-quality items you rarely wear. Websites and apps like:

• ByRotation
• RentMyWardrobe

allow you to rent out clothes, accessories, and bags. Ensure to read the terms and consider insurance options for damage or loss.

19. Earn from Ad Placements

For beginners, Google AdSense is a straightforward way to earn from ads. It connects creators with relevant ads to post on websites, blogs, or YouTube channels. You’ll earn money based on clicks or impressions.

Although not entirely passive, once you have a dedicated audience, the income can become more self-sustaining.

20. Explore Affiliate Marketing

Affiliate marketing can be one of the best ways to earn passive income.

By promoting products through affiliate links on your website or social media, you earn a commission on sales generated through your links.

For instance, I promote books like Rich Dad Poor Dad, which has greatly influenced me. Amazon Associates is a free program to get started with affiliate marketing.

21. Pay Off Debt

While not a conventional passive income idea, reducing debt is crucial for financial health. High-interest debts, such as credit card balances and student loans, can drain your resources.

By paying off debt faster, you free up money that can be redirected into investments, boosting your potential for passive income. Learn more about debt repayment strategies.

22. Share Your Internet Connection

With the Honeygain app, you can earn money by sharing your internet connection. Honeygain pays $1 for every 5 GB of traffic processed through your connection.

Honeygain helps companies with market research, ad-fraud prevention, and more. It’s a truly passive way to earn income with minimal effort.

23. Create an Online Course

Designing an online course can be a significant effort initially, but it has the potential to generate income continuously.

The bulk of the work is upfront, with ongoing maintenance to keep the course current and assist students.

Many people successfully earn a living from online courses by creating various formats like videos, e-books, checklists, and audio files.

Offering courses at different price points can also enhance your sales potential.

Consider using platforms like:

• Skillshare
• Teachable
• Udemy

24. Sell Printables Automatically

Digital printables are a fantastic passive income option. Create printable products like checklists, gift tags, and planners to sell on platforms such as Etsy.

Once you design a digital file, you can sell it repeatedly without additional effort. Printables that people commonly seek include:

• Grocery shopping checklists
• Gift tags
• Candy bar wrappers
• Printable wall art quotes
• Patterns
• Planners
• Coloring sheets
• Stickers

You can use platforms like CafePress and Etsy to sell these items.

25. Launch a Vending Machine Business

Vending machines are a classic passive income source. While they require some maintenance, such as inventory management, the machines essentially function as your employees.

Place machines in high-traffic areas and collect earnings periodically. By dedicating one day a week to restocking and cash collection, you can minimize the time spent managing this business.

26. Earn from Daily Tasks

Although not entirely passive, you can earn money from everyday activities like online shopping, web browsing, watching videos, and taking surveys.

Market research platforms like Swagbucks and LifePoints offer rewards for these activities, including gift cards and PayPal cash.

This method can provide some passive income if you already engage in these tasks regularly.

Ready to Choose Your Passive Income Strategy?

The hardest part is deciding where to start. Don’t overthink it!

Whether you begin with a $10 investment or launch a blog, you might need to invest time initially. But if you commit, the rewards will be worth it!

It’s common for some to doubt passive income, but it’s achievable.

Understanding passive income could save you from working harder than necessary for the rest of your life. The choice is yours.

Final Thoughts

The passive income ideas listed here can help you earn $1,000 a month or more. You can choose one or several to start earning.

If executed well, these strategies can provide long-term income, allowing you to focus more on what you love and less on earning money.

Which of these passive income ideas interests you? Share your thoughts in the comments!

This post was all about the best passive income ideas to become your own boss. Don’t forget to pin it and follow me on Pinterest. Enjoy the rest of your day! 😊