You don’t have to be wealthy, well-known, or a finance expert to create passive income streams. In fact, there are numerous beginner-friendly ideas available that you can get started on right now.
I’m going to discuss 21 of my favorite passive income ideas absolutely for beginners, so stay tuned.
Contents
- 1 List of 21 Easy Ideas For Passive Income
- 1.1 1. Rent Out What You Have
- 1.2 2. Flip Retail Products
- 1.3 3. Earn Cash Back Online Shopping
- 1.4 4. Rent Out A Room In Your House
- 1.5 5. Write A Blog
- 1.6 6. Write an eBook
- 1.7 7. Create YouTube Content
- 1.8 8. Sell Stock Photos Online
- 1.9 9. Create An Online Course
- 1.10 10. Affiliate Marketing
- 1.11 11. Sell Printables
- 1.12 12. Sell Templates
- 1.13 13. Sell Print-on-demand products
- 1.14 14. Dropshipping
- 1.15 15. High-yield Savings Account
- 1.16 16. Peer-to-peer Lending
- 1.17 17. Money Market Funds
- 1.18 18. Dividends
- 1.19 19. CDs
- 1.20 20. Bonds & Bond Funds
- 1.21 21. Real Estate
- 2 FAQs
- 3 Bottom Line
List of 21 Easy Ideas For Passive Income
Now, let’s start the list with the easiest one – no need for any skill or experience.
1. Rent Out What You Have
There are many things you can rent out, depending on what you are owning. However, below are some great ideas you can consider:
| Stuff for Rent | Platforms | Explanation |
| Clothing (designer bags, dresses) | Rent My Wardrobe | Make money by renting out your stylish clothes & accessories. |
| Baby gear (strollers, cribs, toys) | BabyQuip | Rent baby essentials to traveling families. |
| Furniture | Local realtors, staging companies | Rent to home stagers or temporary renters. |
| Electric scooter, camera, power tools | Fat Llama | Rent out those gadgets and gear that you don’t use often. |
| RV | RVezy, RVshare | Rent your RV to travelers (can make to $1,400/week) |
| Services (dog-walking, drone, tutoring, etc.) | Rentah | Offer unique services or items for rent |
| Parking space | SpotHero | Rent out your unused parking spot to drivers nearby. |
| Storage space | Neighbor | Offer extra storage space at your home or property. |
| Car | Getaround, Turo, HyreCar | If you don’t have a plan to use your car, list it for rent |
| Boat | Get My Boat, Boatsetter | Have a boat not in use? List it for rent |
2. Flip Retail Products
Your task is to buy cheap products from flea markets or thrift stores and then resell them online for a profit. You can sell them on Facebook Marketplace, Amazon, or eBay.
Vintage toys, gadgets, books, furniture, and clothing are among the things you can flip. You can earn up to $100,000/year if you turn your thrifting shopping hobby into a serious business.
3. Earn Cash Back Online Shopping
If you do shopping online often, you can try this. I highly recommend Rakuten. You just need to sign up, shop through their portal, and earn a percentage of your purchase back. You will be paid via PayPal or check.
Other reliable platforms you can use are Swagbucks, MyPoints, & Drop.
Tip: Don’t get an online shopping addiction to chase rewards! Just buy what you truly need.
4. Rent Out A Room In Your House
Have a spare room or a vacation house?
List it on Airbnb to turn it into your monthly passive income.
Airbnb is a well-known website where tourists reserve brief visits, which are often more affordable and comfortable than hotels.
5. Write A Blog
With blogging, you can start with very little money. You create content in the niches you like, and then you can make money through ads, sponsored posts, or affiliate marketing.
It takes time to grow a blog. However, when it gets traffic, the money can run on autopilot. If you need some help with your blogging, get tools and resources here.
6. Write an eBook
You can use free tools like Canva to design a professional-looking eBook. It provides hundreds of ready-made templates and graphics that you can use easily.
Then, you can publish your eBook through Amazon Kindle Direct Publishing or your own website. If you still don’t have one, you can learn how to create a blog here.
7. Create YouTube Content
It takes time and effort upfront to create content, of course. But once your videos are ranked, they can make money for you for years.
You can monetize through ads, affiliate links, sponsorships, and selling your own products. DaVinci Resolve is a free and powerful tool for video editing that I recommend.
8. Sell Stock Photos Online
If you love photography, turn it into your income. You can sell your photos on Getty Images, iStock, & Shutterstock. When someone downloads them, you will get money.
Lifestyle shots, travel, food, and nature are some popular high-demand photo styles.
9. Create An Online Course
If you’re good at something, you can create an online course about that field. That can be drawing cute cartoons, guitar lessons, or anything.
It takes you some effort at first. But you can sell it many times in the future.
You can start by creating a mini-course to test the waters. Then you list it on Udemy or Thinkific.
10. Affiliate Marketing
One of my favorite methods for generating passive income is affiliate marketing. It’s simple: you use email, social media, YouTube, or blogs to recommend products or services that you love to your audience.
You earn a commission when someone purchases affiliate products through your link. There’s no need to handle customer service or create your products.
11. Sell Printables
All you need to do is design some printable products to sell. Canva and Kittl are 2 super simple tools for beginners with not much design skills.
Great ideas for your printables include chore charts, holiday printables, party decor, coloring pages, budget planners, and more.
12. Sell Templates
Create templates and sell them on platforms like Kittl. It can help you create anything, from logos, posters, stickers, cards, T-shirts, and much more.
You’ll get paid when people use them. Share your Kittl profile link on your socials to promote your job.
13. Sell Print-on-demand products
One simple and risk-free method of earning passive income is through print-on-demand (POD). You don’t have to keep inventory, and it’s hassle-free.
Simply use a tool like Kittl or Canva to make a design, then upload it to a print company like Printful. When a customer purchases your design (coffee cup, tote bag, T-shirt, etc), Printful takes care of the printing, packaging, and delivery.
14. Dropshipping
To do drop shipping, you just need a laptop, Wi-Fi, and an online store. And Shopify is a perfect place for beginners to start (I use it too!). The suppliers will handle everything for you, from packing to delivery.
This is a $300+ billion industry that you should try. You can sell all kinds of trending products like phone cases, pet gear, home décor, and more.
15. High-yield Savings Account
This is a simple and hands-off option. Your money simply sits there and earns interest. It is ideal for keeping money for your future goals or an emergency fund.
Search for accounts with the best rates. Online banks often offer higher returns than traditional ones.
16. Peer-to-peer Lending
You can lend money to individuals or small businesses through platforms like Lending Club and Prosper and receive interest in exchange.
It is riskier than a savings account. However, with the potential returns (5%-6%), it’s worth considering.
17. Money Market Funds
They operate by allocating your funds to short-term, high-yield debt instruments, such as certificates of deposit or government bonds.
It is comparable to a high-yield savings account. However, it often offers greater flexibility and higher rewards.
18. Dividends
You will receive dividend payments when you buy shares of a company, typically quarterly. You will receive more income if you own more shares.
For beginners and those saving for retirement, it’s a low-risk choice. ETFs are a good option if you’re not sure how to choose stocks. They spread your money across different companies, making it safer and easier to manage.
19. CDs
CD (Certificate of Deposit) is an excellent choice if you want secure, consistent profits free from the ups and downs of the stock market.
You make a one-time deposit and commit to leave the money in your account for a set time (6 months to 5 years). In return, you get a fixed interest rate, usually higher than regular savings or money market accounts.
20. Bonds & Bond Funds
You’ll get paid interest over time, or you can sell the bond for a profit later. Returns from bonds are usually lower than stocks. However, they are less risky and great for balancing your investment portfolio.
You can invest in individual bonds or bond funds through mutual funds and ETFs to spread out risk.
21. Real Estate
One traditional method yet effective you can try is through real estate. You can choose to buy a property, lease it, and receive monthly rental payments. Just don’t forget to account for costs like maintenance, insurance, and taxes.
Real estate investment trusts, or REITs, are a hassle-free alternative if you’re not good at managing properties.
FAQs
What Is Passive Income?
Passive income is money you get without actively working for it every day, not like a 9-to-5 job. It can come from investments, rental properties, digital products, or other side hustles.
How Many Sources of Income Should You Have?
There’s no perfect number. You can have as many income streams as you want. However, experts recommend that you have at least 3 income streams to build financial security and reduce risk.
Bottom Line
You can see that there are plenty of methods to earn some extra passive income, even if you’re a beginner. You can start today by selling some old stuff in your house. Other choices may need some skills and time before the money comes, but it’s worth it.