Top 13 Passive Income Ideas to Earn Smart Money

Passive Income Ideas

Passive income ideas are growing among people these days, and thus it is becoming necessary to get involved in the subject both for social and financial reasons. 

But before getting right into details of passive income ideas and strategies, we need to know what passive income is. 

Passive income is the income obtained through rental properties or limited partnerships or any other enterprises in which the income-getting person is not actively involved. 

Passive income, just like active income, is generally taxable, but the internal revenue service or IRS typically treats it differently.

Why should we have to look for passive income?

Passive income has many benefits, but we want to keep it short and concise without missing the essential points. So to explain in brief, passive income is beneficial because it creates security, stability, and independence in your financial life. 

Also, passive income independent of your time and serious effort can significantly impact building your wealth because it makes you financially consistent alongside building stress-free earnings.

What are the best passive income ideas to earn extra bucks?

Now that we have a basic framework of what passive income is and why it’s essential, we will briefly discuss some of the best passive income ideas.

Peer to peer lending

Peer-to-peer lending or P2P lending is the method of obtaining direct loans from individuals by the loan taker without the involvement of a financial institution as a middleman. 

People often think about whether P2P lending is safe enough. It is indeed safe as long as you do not risk enough of your money by lending it to unknown individuals. 

Rather than lending most of your money to one individual, try lending a small amount to many individuals. Many websites have developed P2P as an alternative method of loans since 2004-05. 

It is also worthy of remembering that- don’t make P2P your only source of passive income. Keep alternatives always running as a backup.

Affiliate marketing

The main idea that runs affiliate marketing is to promote or market other persons’ products, generally via an affiliate network, and earn a commission when people buy the product, thanks to your marketing. 

So, it is primarily frame-worked on revenue sharing. For example, suppose you own or produce a product and want to sell it. You can then choose to offer promotion agents a monetary incentive via an affiliate program. 

And on the other hand, if you have no product but want to earn money, then you can promote a valued product produced by other persons and earn an income from it by being an affiliate marketer when people buy it.

There are various affiliate marketing niches available to promote. You can choose from popular affiliate niches like beauty, gaming, real estate, health and fitness, jewellery, and travel.

Generally, it is best to use a website to promote affiliate products, but there are other ways to do affiliate marketing without any website.

Sell ebook

You might be an emerging writer who isn’t finding anyone ready to publish the book. Never mind! Ebooks have transformed books to write or publish books according to their will on various online platforms. 

As publishing ebooks cost way less than publishing printed books, people are often attracted to ebooks for their lesser price tag. You can also bring up your career as a publisher by publishing other writers’ books through digital modes.

Rent out your car

Renting out an owned car is one of the most common passive income practices, which requires almost no activity from your side. 

A person who owns a car but doesn’t use it much can take up these routes by listing their vehicle available for rental on online sites (plenty of such sites for car rental are available). 

People even buy a car nowadays to use it for passive income purposes by renting it out to taxi services.

Create and sell courses

It might be one of the best passive income ideas for you if you enjoy teaching. You can deliver lectures on a subject for students of that subject and earn by selling that course. 

Suppose you are passionate and knowledgeable about Business Statistics. You can now design a course covering different aspects of the issue and list it up on various training websites like Udemy, Alison, etc., and earn money by selling it. 

If you have a car, you can advertise on it by acquiring advertisements from specific channels and earning money through it. 

Advertising car bodies are in high demand by advertisers because of their availability as a movable advertising space.

Sell digital files

Selling digital products created by you is an innovative, easy and effective way of building a brand alongside earning money by doing something for your passion. 

You can either choose to do it through online selling sites or independently. Though it is tough to set up and market, an independent online store can become a great help considering the long-term prospects of selling digital files or downloads.

Rent your space on Airbnb

If you have a house or even an extra room that you are willing to list for rentals, Airbnb is a rewarding way of doing it. 

You need to list your apartment or space on the Airbnb site mentioning specifications of accommodation, location, how much of your apartment you are willing to share, privacy to guests coming, etc. 

You can then start getting responses through the site as guests come into your apartment, stay for their specified time, and leave.

And the best thing about it is that you neither need to take a headache about who is coming and payment etc., as Airbnb presents itself as the middleman.

Dividend stock investment

You can start investing in companies that have an excellent track record of producing regular dividends. Shareholders of dividend yield stocks will get a payment at regular intervals of time. 

Dividends are provided based on the number of stocks you have. Therefore, the more stocks you have, the more bonus you will get.

To get the dividends, you should learn how to invest in stocks. As the income from stocks is related to any activity after the initial investment, this is one of the best passive income methods to make money.


It is yet another simple, popular and effective way of passive income, though it requires much more attention from your side, unlike other ways mentioned previously. 

Suppose you consider your knowledge about any subject or topic as confident and worthy of sharing. 

In that case, you can quickly start blogging by writing and posting articles on a website on those subjects. 

For example, if you are a food lover and often visit restaurants, you can start a blog on your city’s restaurants and start earning through advertisements that appear on your site.

If you spend time on Instagram posting photos and videos and your content is producing engagements, then it can help your earn high passive income. 

The best thing about Instagram is that you can create fan pages for almost all things you love like travel, beauty, fashion, home decor or pets.

For this, you have to grow your follower base as the more follower you have, the more money you can make. Also, you have to be consistent with the content you are posting on Instagram. In this way, people with more likely to engage with your content.

Think about the creative ideas to grow your fan base and to get more engagements. Apart from that, don’t forget to add your email address in your Instagram bio so people will able to reach you for a sponsored post inquiry. 

Sell your photos

If you love photography, you can make money by taking photos. You can sell them to stock image sites and magazines. All this can be started with a great camera. 

Even nowadays, you can use your smartphone to take great quality photos and sell them to make passive income. 

With little knowledge of CPA and your business, many photographers are earning five figures as a side income.

Start YouTube channel

Today, YouTube is one of the most popular passive income streams among youngsters. You can earn money from sponsored post and the youtube partner program through ads. 

To become successful on youtube, you must have to create videos for a long time consistently at regular intervals. Also, make sure your channel is stick with one niche or topic. In this way, people will consider you as an authority in your niche and 

If you already have a youtube channel, read some guides on how to make money on youtube. Also be creative to choose different ways to monetize your video content.


There you go with all the details you need to start passive income. You can indeed consider passive income as an early retirement plan. They also act as an additional income plan to with your existing properties without much involvement from your side. Consider a few passive income streams from the above, and you are good to go. 


Please enter your comment!
Please enter your name here