15 Best Passive Income Ideas for Beginners

Sick and tired of needing to make money only by constantly putting in a lot of hard work, time after time?!

Sorry my friend, but you have to know something: If your only way to generate income is by getting a paycheck from your job, you have a big problem.

Warren Buffet was very clear about this when he said: 

‘’If you don’t make money while you sleep, you will work until the day you die.’’

It’s a painful truth that most people face now, and even worse, when they are retired

I don’t want to work my whole life to bring food to the table…

Passive Income will be the solution to this situation. 

What Is Passive Income?

Passive income is money that is generated without putting forth a lot of work. 

Passive income requires initial investment and effort, but only until your passive income stream generates revenue. 

You may boost your earning potential in a variety of ways. Investing in various financial products, creating a business, or renting out your home are all examples of passive income ideas. 

How Can You Make Passive Income with No Money?

If you have little or no money to start, you’ll have to rely mostly on your own time investment to power you through, at least until you build up a little money. 

That means focusing on passive income sources that take advantage of the following traits:

  • An area where you’re an expert. Here you can build your expertise into a useful product or service for consumers, e.g. design, software coding and others.
  • An upfront work-heavy opportunity. You’ll need an opportunity that requires a time or work investment, such as creating a course, building out an influencer profile or other options.

In effect, you’re substituting your time for your lack of capital until you can get enough capital to expand your set of opportunities.

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So, let’s get started.

The Best Passive Income Ideas for Beginners

1. Start A Blog

This passive income idea is one that I am currently pursuing and making money from. This blog is still pretty new, so I still spend a lot of time working on it, producing content, and marketing posts, but one day I know it will pay the mortgage with minimal effort.

Want to start a blog too? Give this passive income stream a try. Follow my step-by-step tutorial on how to create a money-making blog. 

Seriously, you can start a blog for as little as $3.95 per month, and the returns are fantastic since, with dedication, you can start making a full-time income in less than a year!

2. Sell Photography Online

Do you own a camera? Well, that is all you need to get started on this passive income idea! 

There are hundreds of online stock photo sites that pay to use your photos for distribution. Take the photo, upload it, and make passive income!

Ensure that you license your photos properly and you upload them to a paid stock photography site where you will get paid royalties every time someone downloads one of your photos.

To do that, you might work with an organization such as Getty Images, Shutterstock, or Alamy. 

To get started, you’ll have to be approved by the platform, and then you license your photos to be used by whoever downloads them. 

The platform then pays you every time someone uses your photo.

You’ll need photos that appeal to a specific audience or represent a particular scene, and you’ll need to tease out where the demand is. 

Photos could be shots with models, landscapes, or creative scenarios, or they could capture actual events that might make the news.

Only a few photos may drive all of your revenue, so you have to keep adding photos as you search for that needle in the haystack.

It may require substantial effort to go out and shoot photos, then process them and keep up with the events that may ultimately drive your revenue. 

3. Rent Out Space

This can be as large scale as investing in an apartment building or as small scale as renting out a room in your home, but renting out a space that you own, puts money in your pocket without you having to do a thing! 

If you want to learn more, check out Airbnb, which can link you with persons interested in renting out rooms for a short time. 

Usually, these persons are tourists who are looking for a cheaper option than a hotel but are still willing to pay a pretty penny.

On a larger scale, if you do have the money/capital to invest in bigger buildings, this is a great passive income opportunity to reduce your time spent ‘working’ and increase your revenue stream and wealth. 

Just be sure to draft up a proper contract with your tenants and include a clause that prevents them from calling you for every.little.issue in the building.

4. Invest in Vending Machines

Choosing to invest in a vending machine as a passive income stream is a relatively simple process. 

The hardest part is choosing the perfect spot to maximize your profits. What are you going to sell? Drinks? Snacks? 

Think of a place where people will get really thirsty. Or snacks may do well where there are many little kids around.

Of course, you also need to get all the necessary approvals to place your vending machine where you want it. 

Minimal work will be required to service and restock the machine, but for the most part, a vending machine will be making you money while you sleep.

An ATM machine is similar to a vending machine. This might be another option you’d want to look into. 

Your profits would be from a commission from the fees charged for withdrawal or deposits.

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5. Start a Youtube Channel

YouTube is a reliable source of passive income. Once you get a large following, you can earn money through collaborations with affiliate marketers, get paid for advertisements, get paid by sponsorships, and get monetized by views. 

This has a great income potential, especially if you love creating videos. Your topics can just be something you love to do or talk about.

Are you an expert on travel to Thailand? A maven of Minecraft? A sultan of swing dancing? 

Take your passion for a subject and turn it into a blog or a YouTube channel, using ads or sponsors to generate your income. 

Find a popular subject, even a small niche, and become an expert on it. 

At first, you’ll have to build out a suite of content and draw an audience, but it can create a steady income stream over time as you become known for your engaging content.

You can leverage a free (or very low-cost) platform, then use your great content to build a following. 

The more unique your voice or area of interest, the better for you to become “the” person to follow. Then draw sponsors to you.

You’ll have to build out content at the start and then create ongoing content, which can take time. 

And you’ll need to be really passionate about the product since that can help you maintain the motivation to continue, especially at the start as your followers are still finding you.

The real downside here is that you can outlay a bunch of your time and resources with little to show for it, if there’s limited interest in your subject or niche. 

Your area of expertise may be too niche down to really draw a profitable audience, but you won’t be sure of that until you experiment.

6. Crowdfunded Real State

Crowdfunded Real Estate is a great way to invest in Real Estate when you’re not a millionaire. Purchasing a home is freakin’ expensive but crowdfunded real estate gives you a more affordable option.

Utilize companies like Fundrise, Rich Uncles, and Realty Mogul to invest in a whole lot of real estate products for very little.

Your investments are made through Real Estate Investment Trusts (REITs), companies that operate and own income-producing real estate. 

With REITs, you can purchase shares, which the company uses to develop real estate projects, and then you get part of the profits. Because the REIT owns the real estate, you have no landlord duties to worry about.

You can access private real estate deals that may be attractive, and knowledgeable investors have preselected them. 

You can check out the returns on the platforms, so you’ll have some idea of what level of returns you can expect and over what time frame. Real estate investments can also help diversify your portfolio, helping to smooth your returns.

Some platforms invest in equity (stock), while others invest in debt. Generally, the stock offers high returns in exchange for more risk, while debt offers lower returns in exchange for less risk. 

Some platforms require you to be an accredited investor with a certain minimum income or assets. Popular platforms include Fundrise, Yieldstreet, and DiversyFund.

You’re on the hook to make your own investments on many crowdfunding platforms. So while past returns may look good, they’re no predictor of future success. 

And you’ll have to make the judgment call about what to buy. That means you’ll need to read the prospectus for every deal you’re interested in and understand the pros and cons.

7. Write An Ebook

Writing a book is at the top of my passive income ideas list because this is next on my to-do list. 

When you write a book, you do all the work upfront and can make royalties for every book sold for the rest of your life.

Technology today has made this process SO much easier as you can now publish an ebook with the click of a button. 

Amazon and Kindle make it easy to sell also. Of course, you can spend time promoting your book, which is a minimal effort, in my opinion!

Writing an ebook is one of the best passive income opportunities because you write an ebook once and then sell it indefinitely. When someone buys a copy, you’ll get royalties. 

A book royalty means that the publisher pays the author to get the rights to publish their book. You get royalties by calculating the percentage of book sales. 

8. Dividend Stocks

Investing in dividend stocks is a great way to earn passive income! When investing in stock, do your research and choose the right stocks that will earn you enough money. 

You will need to purchase a significant amount of shares if you want to see enough passive income. 

Profits can be issued as cash, more stock shares, or other property. Do proper research and invest in stock shares that offer profits in whatever form you prefer.

You don’t need to know everything about dividend income when you get started. Keep learning, start small and work your way up.

9. Create a Course on Udemy

Education platforms like Udemy allow you to create and sell a course. 

This is an excellent opportunity if you are a subject matter expert who wants to share your knowledge. 

You must develop a curriculum, create the necessary materials, and upload the content for purchasing. 

This idea requires very little upfront investment. 

10. Rent Out Your Space for Ads

Renting out your space for ads is a pretty good idea for a passive income stream. With this passive income idea, you have nothing to do but watch the money roll in. 

Your space can be anything from the sides of your car (vehicle wrapping), a space on your front wall, or putting up a billboard for ad space in your yard if you live in a busy area.

You may be able to earn some extra money by simply driving your car around town. Contact a specialized advertising agency, which will evaluate your driving habits, including where you drive and how many miles. 

If you’re a match with one of their advertisers, the agency will “wrap” your car with the ads at no cost to you. Agencies are looking for newer cars, and drivers should have a clean driving record.

While you have to get out and drive if you’re already putting in the mileage anyway, this is a great way to earn hundreds per month with little or no extra cost. Drivers can be paid by the mile.

If this idea looks interesting, be extra careful to find a legitimate operation to partner with. Many fraudsters set up scams in this space to try and bilk you out of thousands.

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11. Affiliate Marketing

If you already have a blog, chances are you know all about affiliate marketing already. 

Affiliate marketing lets you link to products; once a person purchases through that link, you get a commission. 

You just link to the product and leave it there for it to make money for you in a set-it-and-forget-it kind of way.

The great thing about affiliate marketing is that you do not NEED a blog or website to make money from it. 

You can sign up for affiliate programs and use sites like Pinterest to promote the product, or some programs let you use links on social media once you disclose that it’s an affiliate.

12. Create an App

Creating an app could be a way to make that upfront investment of time and reap the reward over the long haul. 

Your app might be a game or one that helps mobile users perform some hard-to-do function. Once your app is public, users download it, and you can generate income.

An app has a huge upside, if you can design something that catches the fancy of your audience. You’ll have to consider how best to generate sales from your app. For example, you might run in-app ads or have users pay a nominal fee for downloading the app.

If your app gains popularity or you receive feedback, you’ll likely need to add incremental features to keep the app relevant and popular.

The most considerable risk here is probably that you use your time unprofitably. If you commit little or no money to the project (or money that you would have spent anyway, for example, on hardware), you have little financial downside here. 

However, it’s a crowded market, and genuinely successful apps must offer users a compelling value or experience.

You’ll also want to ensure that if your app collects any data, it complies with privacy laws, which differ across the globe. 

The popularity of apps can be short-lived, too, meaning your cash flow could dry up a lot faster than you expect.

13. Invest in Index-Funds

Investing in index funds allows you to contribute your money, sit back and relax, and watch your wealth grow. 

It’s a great passive income idea as all of the work (mainly research) is done upfront. Here are the three simple steps to get you started.

  • Decide where you’re going to buy
  • Pick an index
  • Check the cost

An index fund holding will keep track of a particular financial market; for example, the S&P’s 500 Index Fund includes its purview of the current 500 best companies worldwide. 

With them, your portfolio is diversified among 500 companies, making it incredibly easy to earn stable returns if you have this on your list of passive income ideas.

Index funds are less volatile and have consistent profit rates that don’t go higher or lower than the market average.

14. High-Yield Savings Accounts

If you’re not interested in stocks or lack time to do things like study stock markets and commit to a ton of follow-up, then opening a high-yield savings account might be a better option for you.

By owning a bank account with a high interest rate, you can spawn this passive income without doing anything. 

Except for the initial signing up and needing to maintain a minimum deposit, there’s no work at all that needs to be done here.

The only disadvantage of this income stream is that you can’t exactly turn the earnings you would make into a fast or wealthy lifestyle. 

But, you can still make a decent amount of money after some time. 

Just putting your money in your bank account with a high-interest rate can provide you its own benefits when you need money in a pinch. 

With the high savings account rates, you allow the money sitting in your bank account to multiply aggressively and form a nest egg of reserves that will help in your future monetary commitments.

While many national banks average about 0.10% interest rate, CIT Bank provides you the opportunity to open an account at a 0.5% interest rate, with just a $100 minimum balance. 

You may not see a big difference at first, but when you sum up the amount potentially saved after five years, it can add up and stand out as one of your better investments.

15. Peer-To-Peer Lending

Peer-to-peer (P2P) lending allows an individual to take loans from others using a company that typically acts as a middle man, to ensure the lending process.

If you have big bucks stashed away, you can give out loans at a reasonable interest rate to anyone as a lender, and using P2P lending will simply collect you extra money on what you already have.

When someone borrows your money, the company you’re working with will take care of the terms, rates, and transactions on your behalf. 

That way, you can make your investment in Peer-to-Peer Lending sites and not have to worry about doing all the paperwork yourself.

Using an autopilot strategy, you can invest as much or as little as you like to be distributed to vetted borrowers, depending on your financial goals. You aren’t required to even set your portfolio if you don’t want to.

There are companies like LendingClub where you can pick an individual plan or go with the autopilot strategy to make your investment with them. 

You can sign up to LendingClub, lend your money to many borrowers at a time, and start making a passive income fast.

16.  Outsource Your Business

I know, I know…

I promised 15 ideas, but since you read everything, I owe you an additional one as a gift for your interest.

Passive income means getting paid for doing the bare minimum, right? 

Well, that means that you can choose to pursue ANY business opportunity and just outsource and pay for all the ‘help.’ Freelancing? 

Pay someone to do the work and keep the profits. Catering? Pay for the items and sell at a profit. 

Start a cleaning business and pay others to do the work. Keep the profits. Got it? How’s that for a passive income idea?!

Getting other people to do the job should be your final goal with any type of business that you may be interested in building. If you refuse to do this, you are not building; you just got a new job disguised as a business.

Wrapping It Up

Now you don’t have excuses to start scaping the rat race by start building some nice passive income streams that will allow you to make sweet money, even when you are taking a nap.

If you are interested in knowing the best online business model for you, don’t forget to click this button below.

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