20+ Realistic Beginner Passive Income Ideas (2024 Guide!) (2024)

I think the idea of making money while you sleep is definitely one of the coolest ideas there is.

Let’s face it: the idea of earning passive income every month is awesome. But, how do you actually go about creating meaningful passive income sources for yourself?

Well, in this post, I’m covering 20+ ways you can start earning passive income today and well into the future.

This post is going to contain a mix of easy, medium, and hard ideas you can use to diversify your monthly income, so there’s something in it for everyone!

The Best Beginner Passive Income Ideas For 2024

If you’re looking for realistic passive income ideas, this guide has you covered:

1. Invest In Real Estate

One of the most popular passive income ideas for beginners you can try out is to invest in real estate.

And thanks to real estate investing companies, you don’t have to have thousands of dollars to get started. In fact, companies like Arrivedlet you invest in individual income-generating real estate properties starting with only $100!

Arrived is open to U.S. investors, and it lets you buy shares of vacation homes and individual properties. You then earn dividend payments from the income these properties produce.

You can also earn from properties potentially appreciating. And the fact you only need $100 to get started makes it very beginner-friendly.

Plus, Arrived is just the tip of the iceberg when it comes to real estate investing platforms. Some other popular companies you can check out include:

• Fundrise: Another leading real estate investing platform with a low $10 minimum. Note, this is a Fundrise endorsem*nt and I receive compensation if you sign up with my link.
• RealtyMogul: Invest in exclusive real estate deals starting with $5,000.
• EquityMultiple: Another leading real estate crowdfunding platform.
• Yieldstreet: A popular platform for investing in real estate, artwork, and other alternative assets.

Ultimately, if you want to get paid to do nothing, parking some cash in shares of income-generating real estate is definitely a popular option many people take.

Learn more about investing with Arrived!

2. Start A Blog

Blogging is not easy money. But this is still one of my favorite passive income ideas for beginners because anyone can start this side hustle and scale it if you’re willing to put in the time and effort.

And, as I explain in my blogging guide and post on the road to a $100/month blog, I believe you can monetize a blog within one year if you put in the time and have a basic understanding of SEO.

I’ve been blogging for a little over 4 years, and now, my blog earns $10,000 to $20,000 per month consistently and $400 a day in ad revenue alone:

My YouTube video covers the exact steps I took to grow my blog. And between Mediavine ads and a number of affiliate programs, I hope to continue scaling This Online World over the next few years to reach new revenue milestones.

I mean, the blog made $22,000 in 2020, but in 2021, This Online World made $92,000. And in 2022, it made a whopping $272,000.

This isn’t passive income yet, butit gets easier every month.

I now outsource my Pinterest marketing, some content writing, and I’m slowly spending less time on things I don’t like and more time doing what I enjoy. Plus, blogging teaches yousomany valuable skills while also having the potential to turn into a passive income stream.

If you use affordable blog hosting like Siteground and learn the basics of SEO, I definitely think you can turn a profit in under a year if you put in some time.

3. Invest In Dividend Stocks & ETFs

This one is truly one of the best passive income ideas for young adults because anyonecan start investing in dividend stocks, even without much starting cash.

There are a myriad of companies that pay out dividends to their shareholders, and you can become a shareholder by buying these stocks or mutual funds/ETFs that contain dividend paying companies.

Personally, I invest in several Vanguard funds and other dividend-paying ETFs and stocks, and you can get started with a very low amount as well.

If you want to get started, I recommend checking out Stash, a zero commission investing app that makes it easy to start investing.

You should consider your level of risk tolerance and speak to a financial planner or get professional advice if you’re unsure how to begin investing for income.

But, there are tons of low-commission online brokerages out there and free education as well, so be sure to read and educate yourself on this topic!

Pro Tip:See what I’m investing in and join a community of like-minded investors on Blossom – a free social investing community in the United States and Canada.

4. Use Passive Income Apps

Passive income apps are another simple way to create micro income streams for yourself, and this idea truly requires almost zero effort on your part!

There are actually numerous apps that pay you for downloading them and selling your data.

Examples of popular passive income apps include:

• – Earn cash and free gift cards by sharing your data with the Nielsen panel! (U.S. only.)
• Mobile Performance Meter – Earn around $0.10 to $0.30 per day.
• MobileXpression – Earn credits which are redeemable for a variety of free gift cards!
• Honeygain – An easy way to make money selling internet bandwidth to other people.
• Pogo: This app lets you get free PayPal cash for sharing your purchasing data.
• Panel App – Earn around $1 per month for sharing your opinions and location.
• S’more – Earn $0.10 per day just for unlocking your phone!
• Cash Magnet – Turn a spare phone into an autosurfing device that browses the web and earn up to $15 per month!

I used a lot of these apps during my time phone farming in college, and I think it’s a great beginner passive income idea since you usually don’t have to spend money to get started.

5. Fixed-Income Investments

Another passive income idea beginners can explore is to use fixed-income investments.

Like the name suggests, these investments are designed to generate a fixed amount of income. This makes them a more reliable option for anyone looking to generate monthly or annual income.

Examples of fixed-income investments include:

• Bonds (you can earn 7% APY right now with Worthy Bonds!)
• High-yield savings accounts (my favorite is Current since it pays 4% APY and has a $50 sign up bonus)
• CDs
• Money market accounts
• Preferred stocks

The downside to this passive income side hustle is that returns are generally lower than some alternative ideas because of safety.

However, if you want a simple solution to earnsomepassive income without much work, fixed-income investments are worth considering.

Pro Tip:You can use Raisin to find the highest-paying savings accounts, money market accounts, and CDs if you live in the United States. You get promotional rates, and it only takes $1 to fund an account!

6. Print On Demand (POD)

I created my own POD store when I was in college and sold absolutely horrendous mugs by dropshipping POD products on Etsy.

Ultimately, I only made 2 sales, and my POD manufacturer refused to create my merchandise because I blatantly infringed upon multiple trademarks, but hey, these things are just details.

The point is, if I could initiate sales by selling literal garbage on the internet, the barrier to entry really isn’t that high.

Take some time, create a few neat or funny graphics, and design some merchandise on a POD service like Printify or Printful.

Then, connect your store to an online marketplace like Etsy, Redbubble, Society6, or other similar marketplaces. My post on Etsy passive income also explains how this entire process works.

Take a few minutes out of your day every now and again to post an image on Instagram and spam-follow some people, and you will invariably drive traffic to your storefront.

Even if 1-2% of people convert, you’ll make a sale every hundred visitors. That’s not too hard to drive from Instagram.

This is probably one of my favorite passive income ideas since ecommerce isn’t going anywhere, so if you know how to design products, definitely consider Etsy dropshipping.

Sign up with Printify today and start selling print on demand products!

Extra Reading – How To Open An Etsy Sticker Shop.

7. Domain Money

Do you want a hand managing your financesandan awesome way to earn 6% APY? If the answer to both these questions is yes, you can check out Domain Money.

Domain Money is a new U.S. platform that pairs you with a dedicated CFP to help you with your investments. And right now, it also pays an impressive 6% APY on cash deposits.

A 6% APY is immensely competitive and a nice way to earn passive income. Plus, the real selling point is that you can work with your advisor to build a custom investing plan that works for you and your goals.

This plan includes unlimited calls, texts, and video sessions if you need advice. And you can even get help with other areas of your finances, like tax filing.

Domain Money has a 30-day free trial and doesn’t charge asset management fees either. After your trial, it starts at $79 a month.

Sign up for Domain Money!

8. Rent Out Storage Space

If you have excess space on your property, you can actually turn that space into an income stream with Neighbor.

Neighbor is essentially the Airbnb of storage space for people living in the United States. It lets you rent out extra space to people in your city, and you earn monthly passive income in return.

Examples of spaces you can rent out with Neighbor include:

• Attics
• Backyards
• Basem*nts
• Boat spaces
• Driveways
• Garages
• Parking spots
• Sheds

As a host, you set your monthly pricing. You also set rules for when people can access their stuff, so people don’t drop by without warning.

Neighbor also provides insurance, and you get paid every month with PayPal cash. Depending on your space, you could easily make $50 to $200 a month in passive income without much effort.

9. Invest In Artwork

Historically, artwork investing has only been available to the very wealthy. However, this is changing thanks to the rise of fractional investing platforms.

For example, companies like Masterworks let you invest in shares of fine art from famous artists like Banksy, Monet, and Warhol. You can then earn passive income over time from shares appreciating.

Artwork is a popular alternative asset class, and it’s how some people diversify their portfolios and get some downside protection from the general market.

I also like that Masterworks lets you buy and sell shares on its secondary marketplace. And it generally holds pieces for 3 to 10 years before trying to sell them and distribute profits.

10. Start A YouTube Channel

Another beginner passive income idea you can try is tostart making money on YouTube.

I was curious about how long it would take to reach this point, so I decided to start my own YouTube channel. After about a year on YouTube, my channel now generates $400 to $600 in autopilot income every month!

Now, YouTube isn’t passive at the start, but like blogging, as you start outsourcing things like editing and uploading once you begin generating revenue.

Plus, YouTube isn’t going anywhere anytime soon. I think this fact alone makes this a great passive income idea that’s worth considering.

You don’t have to spend a fortune to get started on YouTube either. In fact, if you have a decent smartphone, you can start there!

Here’s the gear I started my channel with:

• Sony A6000: Approximately $500.
• Audio-Technica Microphone: Approximately $80.
• Joby GorillaPod Tripod: Approximately $25.

In other words, I spent under $1,000 to start my channel (before upgrading my camera down the line), and the channel is now on track to make around $6,000 per year in passive income!

11. Rent Out Assets

Thanks to the rise of the sharing economy, another beginner passive income stream you can try is to rent things out for money.

People do this all the time by renting out things like a spare room on Airbnb. However, there aretonsof other things you can rent out to generate passive income, including:

• A car with Getaround, Turo, or your truck with Fetch
• Your RV with RVShare
• Expensive equipment like cameras, drones, used tools, and equipment with a marketplace like Fat Llama
• Baby gear and toys with BabyQuip
• A parking spot with Spot Hero

Of course, you need some starting assets for some of these micro income streams. But options like renting out storage space or a parking space are great no-cost side hustles you can try.

12. Invest In Small Businesses

Another one of my favorite ways to make passive income for beginners in 2023 is to help fund small businesses.

Creating your own online or brick and mortar business is great. But, you can actually earn passive income and potentially double your money by funding other entrepreneurs.

For example, companies like Mainvestlet you invest in U.S. businesses starting with just $100. It’s basicallya marketplace of small businesses across the country that need money from investors to expand.

For example, one Mainvest business I found is a father-daughter hot dog stand operating out of Chicago. The business currently has over $24,000 in funding from 77 investors.

It also pays out a 1.5x investment multiple. This means you can get 1.5x your money back, upon which time the business finally stops owing you money.

Mainvest opportunities can pay out 2x or more, and the platform aims for 10-25% target returns for investors.

One perk of Mainvest is that it also has very strict vetting requirements, and only 5% or so of businesses that apply to the platform actually get approved.

Mainvest also includes all SEC filings and business information to help you with your due diligence.

Of course, funding small businesses carries some risk since businesses can go bankrupt or generate less revenue than anticipated. However, Mainvest provides quarterly repayments and doesn’t charge investor fees, and the vetting process helps reduce risk.

The bottom line is that this is a great passive income idea for beginners because of the $100 funding requirement. Plus, you can feel good that you’re helping small business owners succeed!

13. Invest In Alternative Assets

Another one of the best beginner passive income ideas is to invest in alternative assets.

If you’re already investing in things like stocks and ETFs, you can consider further diversification by investing in other asset classes. Some of the most popular alternative assets include:

• Artwork
• Gold, silver and other precious metals
• Niche collectibles like Pokemon cards, sign sports gear, Beanie Babies, antiques, comic books, and similar items
• Farmland
• Fine wine (you can use a platform like Vint to begin investing with just $25)
• Private equity and venture capital
• Sports cards, especially baseball cards and basketball cards that are in mint condition

Again, this isn’t a risk-free beginner passive income idea. So, always do your own due diligence and research. And speak to a financial professional if you have specific questions about your unique situation.

14. Use Reward Apps & Programs

Companies are willing to pay for your loyalty. And, thanks to a variety of reward apps, you can now make this process mostly hands off.

Generally, to use these apps, you have to connect a credit or debit card to the app to track your spending. When you shop from sponsored stores, you earn shopping rewards automatically.

Some popular apps and websites you can use to automatically earn shopping rewards and save money include:

• Capital One Shopping– Apply coupon codes online and earn shopping rewards for shopping at specific partners, which are redeemable for free gift cards!
• Rakuten – Install their browser extension to earn cashback when shopping online. Read our Rakuten review to learn more!
• Drop – Use the Drop app to earn cashback for buying special offers and buying from brands that you already support.
• Fetch Rewards – Scan receipts and earn free gift cards for buying groceries and everyday essentials.
• Honey Extension – Automatically apply coupon codes and earn cashback in the form of Honey Gold for shopping at specific merchants.
• Lolli Extension – Earn bitcoin for shopping at hundreds of popular online retailers.
• Dosh – Earn cashback for shopping at thousands of retailers after installing the app.

None of these apps or shopping extensions will make you rich. But, if you want a low-effort passive income idea, these ones are worth considering.

If you’re an online shopper, I suggest sticking withCapital One Shopping and Rakuten. But if you mostly want to earn rewards for in-store shopping or through your mobile phone, apps like Fetch Rewards and Drop are your best options.

Note: Capital One Shopping compensates us when you sign up with the provided links.

15. Invest With A Robo-Advisor

One great passive income idea for beginners is to invest money with a robo-advisor.

Robo-advisors are similar to traditional financial planners expect they use algorithms to pick investments that match your goals and risk tolerance.

The advantage of robo-advisors is that they’re completely hands-off and many are very low fee as well.

Bettermentis the perfect example, and this leading robo-advisor has a $0 minimum account requirement, making it very beginner-friendly.

When you sign-up for Betterment, you answer a questionnaire about your investing goals and risk tolerance. From there, Betterment helps you invest in a variety of largely ETF-based portfolios.

Portfolios include strategies with globally diverse companies, socially-responsible investing, tech and growth focus, and more.

And the best part is that Betterment starts at just 0.25% in annual management fees; far cheaper than going with a financial planner. Plus, Betterment uses strategies like automatic portfolio rebalancing and tax-loss harvesting to keep you on track and maximize returns.

The bottom line is this is a very beginner-friendly passive income idea, and you don’t need much money to start!

16. Earn Passive Income With Crypto

Another beginner passive income idea you can explore is to deposit cryptocurrencies or stablecoins with Nexo.

This is actually something I’ve wanted to try for a very long time, especially because crypto interest accounts are paying way more than high-interest savings accounts right now.

Anyway, to test out Nexo, I bought $500 worth of Cardano (ADA) with Coinbase and moved it over to Nexo. Currently, I’m earning around 6% APY with my ADA, and Nexo pays out interest daily which is cool.

I can earn up to 8% APY if I lock-in my Cardano for a fixed-term contract of one month. You also earn more if you get paid with Nexo Tokens rather than in-kind.

Overall, Nexo makes it very easy to buy crypto on its platform and to begin earning daily interest.

I think I’m going to add some ETH, SOL, and Chainlink to Nexo to see how much I earn in the coming months, so I’m definitely excited to try out this passive income idea.

You can try out Nexo as well and get $10 in free BTC when you fund your account with at least $100 in crypto as well. Just remember to be an informed investor and to do your due diligence and read as much as possible!

17. Get Paid To Get In Shape

I’ve written a post on apps that pay you for working out, and while this isn’t passive in the sense that you make money while sleeping, it’s easy to add to your routine if you’re already active.

These apps are fairly simple. They either pay you for your data or pay you for betting on yourself to reach a certain fitness goal.

Some popular fitness apps are:

• Oppizi – This gig app pays up to $25 per hour for walking and delivering flyers in your neighborhood.
• HealthyWage – Bet on yourself to lose weight and earn cash.
• DietBet – Another way to bet on yourself to get in shape like HealthyWage.
• Sweatcoin – A data collection app that pays you for walking.
• StepBet – Another way to bet on yourself to reach a certain number of weekly steps.
• CashWalk – Another way to get cash and gift cards for walking.
• Miles – A fun way to get paid to ride your bike, walk, fly, drive, and travel.

These apps won’t make you rich. However, if you’re making the effort to stay active, you might as well earn some passive income in the process!

Extra Reading – The 10 Best Apps Like Sweatcoin.

18. Get Paid To Play Games

Making money playing video games might sound like a pipe dream, but there’s actually a variety of websites and apps that pay you to play games!

Now, thisisn’ta passive income idea if you don’t enjoy playing video games and never play them whatsoever. But, if you’re currently spending a few hours per week gaming on your computer or smartphone, you might be missing out on some passive income.

Some platforms that pay you with cash or free gift cards for playing games include:

• Cash Giraffe – My favorite cash gaming app for Android games.
• Mistplay – This is the leading mobile gaming rewards platform for Android that lets you earn free gift cards. Read our Mistplay app review for all the details.
• Rewarded Play – This site like Gamehag lets you earn rewards for playing PC video games.
• JustPlay – Another popular app like Mistplay that lets you earn free gift cards.
• Gamehag – Earn free gift cards, cash, and Steam codes for playing video games on your PC!
• Coin Pop – Another mobile gaming app for Android.
• App Flame – Like Coin Pop and Mistplay, App Flame lets you earn gift cards for playing mobile games.
• GG2U– Another popular gaming app like JustPlay where you can also make money by answering surveys.

I also made a video covering even more ways to play games to win real money. And if you have an iPhone, you can check out my guide on the best iPhone games that pay money for some alternatives to the options above.

These apps and websites won’t make you rich, but again, if you already spend time gaming, you might as well earn some rewards for your effort!

19. Start A Vending Machine Business

One more popular passive income idea for beginners that people have been exploring more these days is starting a vending machine business.

You only need about $700 to $2,000 to buy a vending machine depending on the make and model plus its condition. From there, you can stock your machine with wholesale goods and likely earn a 40% to 60% margin or higher on the food and snacks you sell.

The video above from CNBC’s Make It series shares how one entrepreneur was able to turn his vending machine business into a $300,000+ a year business that runs itself.

The main tip shared in the video is to never buy a vending machine without having a location lined up first. And, of course, high-traffic areas like malls, college campuses, and airports or bus terminals are perfect candidates.

With enough vending machines, you can make some serious side cash. And you can even hire help to keep the machines stocked so that it becomes a low-maintenance business.

20. Get Paid To Use Less Energy

If you want to cut down on expenses and also earn money for your efforts, I have great news.

Plenty of energy companies are willing to pay you to use less energy when demand is high. This is because it’s in their interest to reduce expensive strains on the energy grid and to then pass some savings onto you.

If this sounds up your alley, you can enter your details on User Linker to find qualifying energy companies paying people to use less energy. And, you can feel good that you’re being less wasteful!

21. Watch Videos For Money

GPT websites are ‘get paid to’ websites that reward users for completing tasks like answering surveys, downloading mobile apps, or watching ads and videos.

I don’t use GPT websites for anything that isn’t passive, but I occasionally run video portals on an old laptop to make money overnight.

Some of my favorite platforms that let you watch videos to earn some beermoney include:

• Swagbucks: A leading gpt site that pays you to watch videos, install apps, shop online, and complete surveys for money.
• Grindabuck: One GPT site I’ve had the most success with.
• InboxDollars: A U.S. rewards website that also has a nice $5 sign up bonus.
• Cointiply: This gpt site lets you watch videos and complete various microtasks to earn.
• MyPoints: A popular website like Swagbucks that also has video rewards.

To date, I’ve earned $100+ from using Grindabuck, and plenty more from Swagbucks over the years.

This isn’t a very high-paying side hustle, but again, it’s free passive income.

22. Sell Courses

If you have a particularly valuable skill, another beginner passive income idea you can try is selling online courses and eBooks.

I actually started testing this idea in 2023. I launched an eBook about making money with freelance writing, and I promote the book from my blog and YouTube channel.

This eBook now makes $200 to $300 per month in passive income. And it was completely free to write the book, and I just used Canva to package everything.

You can do the exact same thing. Creating valuable content and marketing it on a platform like a blog, social media, Medium, or YouTube is something anyone can try out.

And you can also try selling on course marketplaces, like Udemy or SkillShare, if you don’t want to build out your own platform.

Extra Reading – Passive Income Vs Active Income.

23. License Videos

If you have ever captured crazy, hilarious, or endearing videos before on your cell phone, GoPro, or dash cam, you might be able to make money by licensing your videos.

News agencies or media outlets are always on the lookout for viral video opportunities or high quality content, and they are willing to pay for it.

Newsflare and Rumbleare two popular websites where you can sell your videos to make money.

When one of your videos sells, you earn 50% of the total sale. How much you earn per video sale depends on a variety of factors, including:

• The media outlet that’s buying your video.
• How the video will be used.
• The time-frame the video will be licensed for.

Newsflare states that videos typically earn between $25-$100, but videos can earn more if they are licensed by large companies for a considerable amount of time.

Ultimately, if you have some potentially viral video content, you might be able to earn some passive income by licensing the video every few months!

Frequently Asked Questions

What Passive Income Idea For Beginners Is Best?

Deciding on the best passive income idea really depends on a few factors, including: your income goals, life stage, and starting capital.

For example, I think some great passive income ideas for students and young adults include things like starting a blog or YouTube channel since you don’t need a lot of capital and you also learn a ton of new skills.

In contrast, if you’re older, keeping things simple by investing with platforms likeFundriseorM1makes sense since you have money to put to work.

Ultimately, there’s nothing wrong with creating several passive income streams, but make sure you get one off the ground before turning to a bunch of other ideas!

What Is The Easiest Way To Make Passive Income?

I think the easiest way to generate passive income is to invest your money. You can invest in real estate or dividend paying stocks with just $10 (or even less) with so many platforms, and this is a concrete way to start creating passive income.

Granted, you won’t make much with just a few hundred bucks in your investment account, but this is how you start building good habits!

Passive income apps are also straightforward, so I recommend these two categories if you’re looking for something nice and easy.

How Can I Make $1,000 A Month In Passive Income?

To make $1,000 in passive income every month, you have a few options.

The first would be to invest in dividend paying stocks, but this likely requires a few hundred thousand dollars in your portfolio to generate $1,000 in monthly dividends.

Alternatively, you can try making money online with something like your own blog or YouTube channel.

I really like these ideas if you have less starting capital, especially since you can scale both businesses to way more than $1,000 per month in passive income.

Again, after five years of blogging, This Online World earns $30,000 to $50,000 per month between display ads and affiliate income.

Granted, scaling these businesses takes time, but if you don’t have hundreds of thousands of dollars to invest, I think these are your best options.

I also have a video on my YouTube channel where I break down how to make money with affiliate marketing and turn a blog into a realistic passive income stream.

This guide covers everything you need to know about starting your own blog and growing your traffic to begin earning income from affiliate marketing.

Plus, you can even sell your blog down the line to cash out big.

And, even if you can’t scale to make $1,000 in monthly passive income, the skills you learn from either business can help you land a higher-paying job, which is a win in itself!

Start blogging today with SiteGround and earn passive income!

Extra Reading – How To Turn 10K Into 20K Quickly.

Final Thoughts

At the end of the day, you can keep researching the best passive income ideas for beginners until you’re blue in the face.

The hardest part is really deciding where and when to start, but don’t overthink the process!

It doesn’t matter if you start by investing $10 or you launch your first blog; generating passive income is a process that takes time and dedication, but it doesn’t have to be rocket science.

Pick an idea or two to put your money to work, put in the initial effort, and then nurture your new income sources over the coming months and years.

If you stick with it, your future self will thank you for the effort. Best of luck in creating passive income for yourself!

If you’re looking for other money-making ideas, I suggest checking out:

• 70+ Side Hustle Ideas To Make Money.
• How To Make $2,000 Fast – The Best Methods.