Are you looking for a side hustle to generate passive income?
Passive income is essential if you want to retire early and reach financial freedom. Just imagine being able to do whatever you want whenever you want to – it's entirely possible if you can generate enough passive income.
In this post, I'll explore what passive side hustles are, some of the best passive side hustles, passive income ideas to make more money, and how much money you can make from passive income. Let's get started!
What is a Passive Side Hustle?
First, it's essential to understand what a passive side hustle is. While passive income has a positive reputation and promises making money doing nothing – it's not always like that.
For any passive income stream, you will need to either have a large lump sum of money to get started, or you will need to put in some hard work until your income stream is self-sustaining.
Creating passive income will take some time or money to get started before it becomes genuinely passive.
22 Best Passive Side Hustles
Below are some of my favorite passive side hustles to earn money each month. If you want to make extra cash and create a passive income stream, consider some of these ideas.
Start a Profitable Blog
Starting a blog is one of my favorite passive side hustles that requires virtually no initial investment to get started.
With this side hustle, you'll need to spend time creating new content and growing your readership before you can make money – but once you have a portfolio of content, your side hustle will become more passive.
To start a blog, you'll need a domain name, hosting for your website, and content to share with the world.
But before purchasing your domain name, you'll want to determine what content you want to produce. This could be anything. There are many types of blogs that make money on just about every topic.
Next, you can purchase your domain name from NameCheap for as little as $10 annually.
After securing your domain name, you can purchase hosting to store your website files and launch your blog. I recommend using SiteGround because they offer top-rated customer service and have fast servers.
Finally, you can install WordPress and start creating content for your blog.
After you've launched your blog, you'll need to promote it to gain viewership so you can begin to make money from your site. There are a few main traffic courses I recommend, including SEO, social media traffic, and email traffic.
Once your blog starts to grow, you can make money from it through a few main methods. Between display advertising, affiliate marketing, and blog sponsorships – there are plenty of income streams for blog owners to make more money.
Blogging can take a massive upfront time investment, but it's one of my favorite passive income ideas because of the income potential. Your income as a blogger will grow exponentially as you continue to publish new pieces, and your affiliate income can rise drastically.
Sell Stock Photos
Selling stock photos is a fun side hustle that can be very lucrative for many photographers.
With this passive side hustle, you can earn passive income for every photo you sell. Even if it's just a few dollars at a time, this income can become substantial over time.
There are many online places to sell photos to make passive income, including Shutterstock.
While you might be thinking you need a costly camera and equipment – this isn't always the case. Sometimes you can get away with a simple smartphone camera if you have the right skills.
If you love photography, why not get paid to take pictures!?
Sell Digital Products to Make Passive Income
Digital products can be a great way to earn passive income if you have an online platform to promote your products.
Many bloggers and content creators will sell digital products as an additional income stream.
While some passive income ideas require money to start – digital products don't need much. If you have some basic design skills, you can create digital products that you can sell online.
These products can range from ebooks to calculators and checklists.
If you don't already have an audience you can promote your products to, you might consider working with affiliates to have them promote your products for you. While this will cut into your profits, it can make your job easier and allow you to scale rapidly.
Start a Podcast
Podcasting is a great side hustle to create a passive income stream if you have the voice and knowledge to grow it.
Podcasting is just like other forms of content creation except in purely audio format.
Before starting a podcast, you'll need to decide what topics to talk about and the format of your show. This can be almost anything ranging from finances to sports.
One of my favorite things about this passive income idea is the meager cost to get started. You can start a podcast for less than $100, making it accessible to almost anyone looking to create passive income each month.
Once you've decided the topic of your podcast – it's time to start preparing a show schedule and the topics for each recording. If your podcast is interview-style, you'll need to book guests to appear on your show.
After recording your shows, you'll need to promote your podcast to gain listeners. This can be difficult but is also essential if you want to monetize your show.
Once you've gained listeners, it's time to make money from your podcast. This can be done primarily through show sponsors and affiliate marketing.
Start a YouTube Channel
Growing a YouTube channel can be one of the best passive income ideas if you have the skills to create high-quality videos and knowledge of growing social media accounts.
The ad money you can make from a successful YouTube channel can amount to over six figures for some YouTubers.
Like any other form of content creation, you'll need to determine a topic you want your channel to be about to become successful. Next, you'll want to do keyword research to get an understanding of what people are searching for.
To make money from YouTube, you can qualify for YouTube's advertising platform once you reach a certain threshold of views, subscribers, and hours of video viewed. You can also use affiliate marketing to promote products and earn a small commission on any sales you make.
Creating a YouTube channel is the perfect passive side hustle for anyone who has some time and loves a certain topic.
Rent Out Your Space to Earn Passive Income
Want to start earning passive income from home? Renting out space in your garage is an excellent method to make residual income without a massive initial investment.
There are many spaces you can rent including:
- Garage space
- Closet space
- Basement space
- Parking space
- And more
By using sites like Neighbor.com, you can rent out your space and start making money without doing anything.
How much can you make?
It will depend on the type, size, and condition of your space, but it's possible to make an extra $500 a month with this passive side hustle.
Earn Passive Income Advertising on Your Car
If you own a vehicle, why not get paid to drive it?
By using platforms like Sticker, you can get paid to advertise on your car to make passive income with minimal effort.
If you're looking for a side hustle you can start with no money, this is for you!
How much money can you make? It varies depending on your market and the number of miles you drive, but it's possible to make over $50 per month in extra income with this passive side hustle.
Sell Online Courses
Selling an online course can be a significant revenue stream for your finances if you have an audience to sell to.
By creating an online course, you can build your passive income and start making money while you sleep.
When compared to other passive income streams – selling an online course can be more profitable and require less money upfront to get started.
Creating an online course is more about planning and content than it is anything else. Ensuring that your course flows correctly and the content is valuable is the most vital part of selling online courses.
This means you should take the time to plan out your course and get feedback from others in your target market before releasing it to the masses.
Some course creators have made millions selling courses online, so it's undoubtedly a viable passive income stream if you have the right set of skills.
Looking to make money online? Check out these digital side hustles!
Start a Vending Machine Side Hustle
This method will require a small upfront investment to generate income – but it's an excellent way to earn money passively with little work to maintain.
By purchasing vending machines and placing them in high-volume areas, you can start generating income in no time.
You can purchase a vending machine for a few thousand dollars, but it can quickly produce a few hundred dollars of income each month.
I would consider this side hustle as semi-passive income because you'll need to check on your vending machine to ensure they are stocked and ready.
Invest in Small Businesses
If you want to stop trading time for money and escape the rat race, investing is critical.
You probably know about the stock market and real estate, but there are other methods to invest like investing in small businesses.
This is an example of a passive income side hustle because you won't have to do anything to make money. Instead, you'll invest money into small companies across the country and let them grow.
Publish a Book for Passive Income
Publishing a book is a fantastic way to generate passive income for your finances.
The best part about publishing a book compared to other passive income ideas is the initial cost to get started.
You don't need any special software or knowledge to self-publish a book because it can be done via self-publishing to save money.
Now, publishing a book isn't as simple as it sounds.
There's still a significant amount of work that needs to be done upfront before you can self-publish. However, once your book is published, it can bring in passive income automatically each month on each sale.
Rent Out Your Car
If you have an additional car, consider renting it out to earn passive income.
By using GetAround or Turo, you can rent your car to complete strangers and make easy passive income with very little effort.
The amount of income you'll make with this side hustle will depend on how often you can rent your car, but it's a good way to generate consistent cash flow.
Become a Social Media Influencer
Growing your social media accounts is a great passive income idea for those in the younger generation.
By growing an audience on Facebook, Twitter, Instagram, or Snapchat, you can start making money from your social media posts with very little effort.
Companies are willing to pay influencers seeking high volumes of followers to advertise their products, so you'll need a decent amount of followers before you can start making good money.
As your followers begin to grow, your advertising revenue will increase exponentially.
Check out this post on how to make money with Snapchat for more info!
Download Passive Income Apps
There are many passive income apps you can download to start making money in your free time.
If you're already spending a lot of time on your phone, why not make some money while you're at it?
Some apps will require more work than others – but many of them are worth a try. Check out my complete list of passive income apps here!
Invest in the Stock Market
Investing in the stock market isn't necessarily a side hustle, but it is one of the best passive income ideas to make extra money.
There are many options when you invest money in the stock market. Between index funds, mutual funds, dividend stocks, and other individual stocks – it can be difficult to decide where to put your money.
I recommend investing in dividend-paying stocks in addition to mutual funds or index funds to make passive income.
If you aren't sure where to start, I recommend opening an online brokerage account like Acorns to invest your money in the market. As a bonus, you'll get $10 completely free to invest using the link below.
Start a Dropshipping Business
This passive income side hustle idea can be a great way to make money online.
A dropshipping business involves setting up an online store and then partnering with suppliers who ship products directly to your customers. When a you receive an order from a customer, the supplier will ship the product directly to the customer so you don't have to worry about storing, packaging or shipping the product.
There are many benefits to running a dropshipping business including no inventory risk, no need to invest in product upfront, low overhead costs and the ability to start quickly and scale quickly.
Dropshipping is a very competitive industry because of the benefits outlined above.
To be successful, you'll need to do diligent market research to:
- Find a niche and stick to it
- Identify high quality manufacturers
- Market your business successfully
Selling your products through an online store and having them shipped via dropshipping is a great passive income side hustle for many people.
Want to learn more? Check out the video below!
Invest in Real Estate
Just like the stock market can be a good way to make passive income, real estate is another great investment to generate residual income.
There are many forms of real estate investing to grow your money, but my favorites are crowdfunded real estate and owning rental properties.
With crowdfunded real estate, you can invest with a smaller initial investment, but your returns might be slightly less. Using an online platform like Fundrise can be a good way to generate passive income with very little effort. With Fundrise, you can invest in both commercial properties and residential real estate without having a large lump sum of cash.
If you're looking to maximize your earnings, purchasing rental properties is the way to go. This will become less passive because it can require much more work than with other methods, but you can make more money.
One of the major benefits of rental properties is the variety of ways they make money. Between rental income, appreciation, mortgage pay down, and tax incentives – owning real estate has many advantages.
If you want to own real estate but want less work, you can choose to invest in crowdfunded real estate or a real estate investment trust. Another option is to hire a property manager for your rental properties to complete the work for you. This can cut into your profits, however.
Real estate is one of my top passive income ideas if you want to make money without working while owning a tangible investment.
Invest in Real Estate Debt
Did you know there are other ways to invest in real estate outside of owning property directly?
By using a platform like Groundfloor you can invest in short term real estate debt to make money.
In essence, you'll be loaning money to other real estate investors to complete their next project.
For example, if a house flipper needs $10,000 to finish the flip, you can loan them money and earn interest.
The amount you can make will vary but with Groundfloor you can earn around 10% on your money.
Invest in Commercial Real Estate
Commercial real estate is another option to make passive income through real estate.
Between office buildings, retail space, or apartment complexes – there are plenty of options to grow your cash.
Earn Passive Income with a High Yield Savings Account
Just like other forms of investing, I wouldn't technically consider storing your money in a high yield savings account a side hustle, but it is a simple way to make passive income.
You might be wondering the difference between a traditional savings account and a high yield savings account, and it's actually pretty simple – the high yield account will pay more interest on your money.
Compared to other savings accounts – these accounts can pay ten times as much in interest which is free money, so why not take it?
My favorite high-interest savings account is through CIT Bank. It's completely free and a great way to earn money on your savings. Register with the link below to get started!
Open a Money Market Account
Money market accounts are very similar to savings accounts, except they have more restrictions. They will pay similar interest rates but will usually come with terms, so you'll be forced to keep your money in the account or face early withdrawal penalties.
Invest in Alternative Investments
Alternative investments can be a great way to increase your passive income and diversify your portfolio.
For example, investing in art with Masterworks can help you to make money while also diversifying your portfolio to maximize your returns.
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Semi Passive Side Hustles
Not all side hustles are completely passive. Below are some semi-passive side hustles to make more money.
Refinancing debt is not a “side hustle,” but it can be free money that you might be missing out on. Between student loan debt, your mortgage, and credit card debt – there are plenty of debts you can refinance to save money each month without doing much of anything.
Use Truebill to Cut Expenses
Saving money can be challenging, but Truebill helps to have your bills automatically negotiated for you, leaving you with more spending money at the end of the month.
Many personal finance experts rave about Truebill and its' ability to save customers money and find subscriptions that can be canceled.
Register for Truebill with the link below!
Start a Small Business
Small businesses can be a great way to make money if you have a little cash and a strong work ethic to make something happen.
There are many benefits of starting a business, including the ability to make your own schedule, unlimited income potential, and you'll have no boss to report to.
There are many small businesses you can start, but my favorites tend to be low cost and have sound business fundamentals with consistent cash flow.
For example, starting a pressure washing company can cost less than a few thousand dollars, and you can easily recoup that investment in just one month of work.
How Much Money Can You Make from Passive Income?
One of my favorite things about passive income is the amount of money you can make. When compared to active income, your earning potential is much higher because you don't have to work for it actively.
Depending on the number of income streams you have, it's possible to make over six figures, seven figures, and even eight figures in passive income annually.
Final Thoughts on the Best Passive Side Hustles
There are many passive side hustles you can start to generate passive income each month and build your residual income.
Between starting a vending machine business, investing in dividend stocks, and earning passive income selling an online course – there are plenty of options suited for anyone.
Growing passive income streams likely won't be passive at first. You'll need to put in a significant amount of work upfront before you build a steady stream of passive income.
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