20 Passive Income Ideas to Make More Money

Whether you’re trying to cover your monthly bills or saving up for a major purchase like a new car or boat, a little extra cash could go a long way. But what if you don’t have time for a second job?

The following passive income ideas could help you bring in more money without working around the clock. To find the right fit, consider your needs, skills, time commitments, and the resources you already have available.

What is passive income?

Passive income is a stream of money you can earn without active, ongoing work.¹ That doesn’t mean passive income takes no effort at all. In fact, getting started often takes time and resources. But ideally, passive income sources keep making money even when you’re not actively working on them.

When people refer to “passive income,” they sometimes mean investments like real estate that may grow in value over time. While we’ll discuss some of those traditional approaches, our definition also includes other creative ways to make extra money without a high-intensity grind.

Passive income ideas you could start now

If you’re ready to start earning passive income right away, consider these money-making strategies that typically don’t require much preparation and have minimal start-up costs. Many involve making the most of the resources you already have. Remember to check your local laws and regulations before pursuing any of the ideas mentioned.

Housesitting

Housesitting falls somewhere between a side hustle and a passive income source. Technically, you have to work to earn money as a housesitter by showing up at clients’ homes while they’re away and maintaining household responsibilities (like watering plants or collecting mail). However, housesitters typically have a lot of downtime that frees them up to rest or work on other projects.

Join professional websites like Trusted Housesitters to connect with people looking for this simple service. You may have to go through a background check or provide references to show you’re trustworthy and responsible.

Renting out a room in your house

If you have space in your home, and the option is available, renting out a room could be a great way to make some extra money. To get started, research your state, county or municipality's landlord-tenant laws, or your homeowner association's rules. Next, talk to your insurance company about taking on a roommate. Then, you can list your room for rent on housing search websites and social media pages.

When you start looking for renters, it’s a good idea to do background checks and ask for references to make sure you’re choosing someone trustworthy to live in your home. Also, be sure to have a written rental agreement — it will outline the terms you agreed upon to keep things clear and protect both of you.

Renting out your home while you travel

If you plan to spend some time away from home — whether it’s a summer vacation or visiting family over the holidays — you could rent out your home while you’re gone.

If you live near a popular vacation destination, like a big city or beach town, it could be a great way to make some extra cash.

If local laws and homeowner association rules allow it, you could also sign up for services, like Airbnb or Vrbo, that can help you handle bookings, payments, and communication with guests, so you can relax and enjoy your time away.

Renting out your car

You could also earn passive income with a vehicle you own by renting out your car through a car-sharing service like Turo.

You typically have to provide the company with documentation like valid car insurance, registration and a clean car title.² Your car may have to meet other requirements depending on your state or county.

After you complete the initial steps, you may list your car for rent on the days you don’t need it.

Many car-sharing companies provide insurance and other measures to keep your car safe, but it’s always important to read the fine print before renting out your car.

Advertising on your car to earn passive income on the road

If you drive a lot or have a long commute, you could make passive income by turning your car into an advertisement on wheels.

Certain businesses may pay you to wrap your car in their advertising. That way, their business reaches more eyeballs while you drive around town. Several online platforms connect businesses with individuals who are willing to have their cars wrapped. As always, be sure to read the terms and conditions closely to avoid scams.

Renting out a parking space

Parking spaces are usually in high demand. You may be able to rent out a spot in your driveway or garage to earn some passive income each month. If you live in a major city with limited parking, you could turn that into an opportunity. Think about renting out space monthly or daily where someone could park regularly. On the other hand, if you live near a popular venue or tourist destination, you may want to use an app like SpotHero or ParqEx to rent your space out on an hourly basis.

Other ways to make passive income

If you’re looking for additional ways to generate passive income, these ideas might require more of an upfront investment but can offer a steady income stream with minimal ongoing effort.

Buying a vending machine

In 2023, vending machines generated over $8.6 billion in revenue in the United States. You may only need to spend a few thousand dollars buying and stocking your first machine to get in on the profits. If you place your vending machines in strategic areas with a lot of foot traffic, like shopping centers or laundromats, the machines may become a passive income source.³

Keep in mind, vending machines do require a bit of leg work to maintain. You’ll need to purchase items and restock each machine regularly to keep income flowing. This could also get more challenging if you have multiple vending machines to manage at once.

Buying a billboard

Billboards are unusual passive income tools. While a billboard in a prime location may cost a lot upfront, maintenance costs are often minimal. Even in our increasingly online age, plenty of businesses, organizations and political campaigns are willing to spend thousands of dollars a week to display their advertising alongside a busy highway or near a popular shopping center. If you own a billboard, you can generate income by leasing it to advertisers.

Buying storage units

Self-storage units are often more affordable than more traditional business purchases, but they still require a significant investment. Plus, the storage industry has historically been resilient to economic changes. The demand for storage stays constant, operating costs are low and lease agreements are flexible.⁴ As long as people have more stuff than space, storage units could provide a steady passive income stream.

Creative ways to earn income

Whether you’re an artist or a bookworm, you could make passive income by leveraging your skills and interests. The following income generating ideas allow you to monetize your existing abilities or hobbies with very little effort.

Becoming a notary

If you have strong administrative and communication skills, you could use them by becoming a notary. Typically commissioned or licensed by your state's Department of State, notaries administer oaths and affirmations, take affidavits and depositions and certify documents such as deeds, mortgages and powers of attorney, and more. The state government licenses notaries to certify important documents, like deeds or loans.

Each state has requirements for notaries — typically, you have to complete training and pass an exam. Notarizing documents is a fairly easy activity, and you may charge up to the state’s cap on notary fees.⁵

Offering print-on-demand products

If you’re an artist or a designer, you could turn your existing products into an income source by uploading them to a print-on-demand platform, like RedBubble.

Customers could purchase items like posters, t-shirts, mugs and hats featuring your design. The print-on-demand platform handles production and shipping, and you receive a portion of each sale.

Recording audiobooks

You may be able to earn income by narrating audiobooks. Once you break into the industry and record a few audiobooks, you could begin earning royalties each time someone buys the audiobook.

Most audiobook publishers require auditions for new narrators. You may want to listen to a few books, practice your narration technique, and identify a niche before you get started. Investing in a quality audio set-up could help, too.

Selling stock photos

Whether you’re a professional photographer or a hobbyist, you may earn passive income by selling stock photos. You could submit photos to websites like Shutterstock and earn a commission each time someone buys one. Browse the website to determine what types of photos may be in high demand.

Monetizing your content

You could make money from content you create through an affiliate marketing partnership. Affiliate marketing is an advertising strategy by which you earn a commission for marketing a company’s products. If you have a successful blog, YouTube channel or social media account, you may be able to make passive income by linking to a company’s product.

Each time someone purchases through your affiliate link, you could earn a commission. Typically, affiliate marketing is most successful when you work with a brand that aligns with the content you produce. For example, you could work with a cookware company if you have a recipe blog.

Make your passive income work for you

Your passive income ventures may not be able to replace your other income sources. But they could help you earn some extra cash to help you make ends meet, supplement your savings, boost your retirement fund or even splurge on a vacation.

Finding the right passive income idea could be a game-changer, and there’s something for everyone. The best option should line up with your interests, priorities and budget. While some options offer quick money, you shouldn’t rush; a thorough, thoughtful approach may set you on the path to passive income success.

Sources:

1. https://smartasset.com/retirement/passive-income
   
2. https://help.turo.com/en_us/listing-a-vehicle-us-ryVXrEeVq
   
3. https://www.nerdwallet.com/article/small-business/how-to-start-a-vending-machine-business
   
4. https://www.census.gov/library/stories/2024/01/self-storage-industry.html
   
5. https://www.nationalnotary.org/knowledge-center/about-notaries/what-is-a-notary-public
   

This article was updated since 2022. Andrea Hoyt and Kim Gallagher contributed to this article.