Make Money32 Legit Passive Income Ideas To Earn Extra Money In 2024

32 Legit Passive Income Ideas To Earn Extra Money In 2024

Are you among those looking for passive income areas to make extra income? If yes, I have shared 32 legit passive income ideas that will help you achieve your dream sooner.

You can take these passive income ideas as a side hustle and work on as many ideas as you want.

However, remember that when you want to make passive income, you will not start making money from the first day. It can take a few months or a year. Even if you buy property, increasing its rate will take some time.

Passive income ideas or side income ideas that I have shared are 100% legitimate; many of them allow you to work from home in your free time and let you earn money while you sleep.

The more effort you put into these side businesses, the more money you will make. Interestingly, you can pick more than one passive income idea.

 

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Passive Income Ideas

What is passive income?

Passive income is when you do not have a boss to lecture you. And you will make money even if you take a holiday and you can work whenever you want.

It is called active income if you are selling your time to work for someone else. For example, working 9 to 5 in a cafe or restaurant and making money hourly is an active income because you are making money when working.

On the other hand, if you rent an extra room, you are earning rental income, and you do not have to work for that as you have to work in a restaurant or cafe.

In the beginning, earning passive income is not easy. You will have to put in some effort, especially if you are already doing a full-time job.

However, if you want to make money as soon as possible, you can do side hustles to make money right now.

As I have said, you can do side hustles if you want to make money right now, but I suggest you save whatever you earn and invest that amount for passive income in the future.

 

32 Legit Passive Income Ideas To Make Money

Here, I have shared how to make passive income ideas to help you retire earlier. And build some wealth.

 

1. Start a dropshipping store

One of the best passive income ideas is dropshipping. You can earn sufficient income monthly and do not need much money to start a dropshipping business.

If you want to start a dropshipping business, you must create an e-commerce store and add profitable products. You do not have to pay in advance or buy a physical inventory.

You will have to find a reliable supplier who will manufacture products for you and fulfill orders. Until the customer pays you, you do not have to pay a single penny to the supplier.

People in the dropshipping business are making $4000 to $ 10000$ on average; many are making more than this.

 

2. Buy dividend-paying stocks

In the stock market, we are in two ways: first, when our stock value grows, and second, when we get a dividend on every stock.

Both are win-win situations for us. I’m also investing in high-dividend stocks and stocks with high chances of growth, such as Alphabet (Google).

I suggest you invest money in both types of stocks, and when you get a dividend, you should reinvest that amount.

 

3. Invest in REITs

If you have saved some amount for the future and are debt-free now, you can buy real estate. Also, many people are in debt and still buy more rental properties, but I don’t suggest this to you.

Buying a rental property is a great passive income; the author of Rich and Poor Dad owns 15000 plus rental properties. Therefore, buying only one property may not be enough for you, but it will greatly help you.

Because you will earn money from rent plus the value of your property will also increase.

I suggest you buy a property near your home where you can visit and keep an eye on it; otherwise, you will have to hire a property management Company to take care of your property.

 

4. Sell designs online

Whether you’re a photographer or an artist who loves making new images, you can start selling your design on Etsy. It’s a famous platform for selling digital art.

You can also create your website and sell images and your heart work. But I do not recommend it because you must promote your website, which will take time.

You can also buy a photo-related or artwork-related website or Etsy account that already makes passive income. To buy an existing website or Etsy account, you can use Flippam.

 

5. Crypto Currency

You can invest in cryptocurrencies. It is growing rapidly. Many people have invested in it, but I am not among them because I am already investing in the stock market for dividend income in the future.

If you’re investing in cryptocurrencies, you must hold it for a long period to see growth because it fluctuates quickly.

Remember, it may be risky for you to invest incorrect currency as a beginner if your verifier is penalized, so you might also be penalized. And many times, you cannot sell cryptocurrencies before the given time.

You should learn more about cryptocurrency before you invest passive income in the future.

 

6. Dividend index funds

You can invest in an index fund for passive income, hold dividend-paying stock for a long time, and keep earning through it.

You do not have to pick or find dividend-paying stock by yourself because the bank or company managing the fund will do everything.

Index funds are better for those who do not have knowledge about the stock market and don’t want to pay much attention to which company has better fundamentals, etc.

Investing in dividend investing funds is not risky because highly professional financial experts already manage them.

Another benefit of dividend ETFs is that they diversify your money. Let’s say Netflix stock costs $50, Amazon stock costs $100, and Amazon stock costs $150, and you want to buy all these three stocks, so you will need $300. But what if you do not have $300? Then, you can still buy these stocks within $100 through Index funds.

 

7. Money market funds

For passive income, you can invest in a money market fund and earn up to 4% interest rates. Most money market funds invest in low-risk securities for a short-term period, like government debt, bonds, etc.

Sometimes, you may not even have to pay income tax on that income, but it is only in a few situations.

 

8. Rent out your spare room

Do you have an extra room? If yes, then here is the opportunity to make passive income.

You can list your extra room on websites like Roomster, SpareRoom, and Airbnb. Whoever will like your room after seeing its pictures will contact you.

If somebody likes your room and wants to stay there, you can agree according to your state’s rules and regulations. You can also collect some of their personal information.

 

9. Create an online product

You can create an online product, though there are many products you can create online and sell and earn passive income.

For example, you can create digital art and sell it on Etsy, create eBooks, and sell on websites like Amazon Kindle, SmashWords, Draft2Digital, etc.

 

10. Lend money to peers

Another best passive income idea is to lend money to needy people and earn high interest; that’s what banks do.

Peer-to-peer lending means you have to give loans to those who cannot take loans from banks, any personal loan app, or any other finance companies.

Although it is your choice how much interest you want to take, between 5% and 12% is a good interest, and also, it is higher than your savings account.

Some of the best peer-to-peer websites are LendingClub and LendingPoint, and you can start working with them.

 

11. Store people’s stuff

Many people have a lot of stuff but do not have space for it. Also, they do not want to sell their stuff. Therefore, they look for extra space in a garage or your backyard. You only have to ensure their items are safe so you can make passive income if you have a space.

Store At My House, Neighbor, and iStoreit are some of the best websites. Through these websites, you can use your extra space to make extra income without doing anything.

And if you have a barn, garage, or carport space to store vehicles, boats, campers, and other high-dollar toys, people will pay more to keep them safe and weatherproof. Set it (safely) and forget it—talk about passive income!

How much money you will earn from this depends on how expensive things you are storing and what kind of area you are providing.

If you are providing a backyard, you will get less money. On the other hand, if you are providing a garage or basement, you will get more money.

 

12. Run an affiliate marketing business

Affiliate marketing is another good passive income idea. People are making thousands of dollars monthly from affiliate marketing. You do not need to create a product or talk to the manufacturer; you have to talk about when you want to start dropshipping.

All you have to do is promote other products on social media platforms like Instagram, Facebook, etc.

You can also use a website or YouTube channel if you have remote products. You will make a commission whenever someone buys a product using your affiliate link.

Clickbank, Shareasale, Commission Junction, and Amazon Associates are some of the most famous platforms for picking up products for affiliate marketing. (I have also used Amazon affiliates, but currently not using)

 

13. Self-publish

If you know imagination, you can start writing stories, books on historical personalities, or anything else. You can sell your physical book copies to Amazon if you just want to make passive income. You can also sell short stories and books on platform platforms like Amazon Kindle, SmashWords, Draft2Digital, etc.

Many people are selling ebooks and earning passive income monthly without working.

 

14. Become a blogger

Blogging is another proven way to earn passive income by working part-time. In the future, you will not have to work full-time.

You can start writing blogs on any topic, whether about fitness, Yoga, History, gardening, technology, travel, food, gaming, or anything else.

Once you have created a blog, you can earn money by displaying ads, promoting affiliate products, selling your product, etc.

I know many people who started blogging as a part-time job but have left their full-time jobs and are focusing only on blogging and publishing only one or two articles a week. You only need a domain name, hosting, and a beautiful theme.

 

15. Sell templates

It is so related to passive income you only have to create beautiful templates using Microsoft Excel, Notion, etc. Then, later, you can sell your templates on digital art-selling websites like Etsy.

 

16. Place Ads On Your Vehicle

Another passive income idea is to show advertisements on your car, and you do not have to change anything in your daily activities; you can use your car as you usually do.

You can make hundreds of dollars a month. You do not need an expensive car; you only have to place ads on your car.

Wrapify and Carvertise are the best places to list your car to get paid to advertise your car.

If you want to advertise your car, you can create an account on Carvertise or Wrapify. There, you will get paid to show advertisements on your car.

 

17. Sell stock photos online

This is another passive income idea to start selling pictures. You need good photography skills, a camera, and passion to capture beautiful moments. The more rare a picture you capture, the more expensive it will be sold.

You do not even have a camera; you can start it with a smartphone. Nowadays, smartphones have excellent cameras.

You can send pictures on one platform or sell the same picture on various platforms. You can even make up to $100 per photo, depending on how much you sell a picture. Some of the best websites to sell photos are Shutterstock, Adobe Stocks, Fotolia, etc.

 

18. Create an app.

You need to have some skills to develop an application for Android or IOS; you can also hire a freelancer to develop an app.

People are making passive income from their Android apps and games. You can also create a game or an application for Android or IOS.

 

19. Become a social media influencer

Can you believe many social media influencers make over a million dollars a month?

I suggest you become a social media influencer. You can work in any category like lifestyle, fashion, fitness, etc., and even cover sports, world affairs, or anything you like, even Marvel or DC. I have seen all types of social media influence I have mentioned.

Once people start engaging on your social media platform, you have a lot of followers. Then, congratulations, you are ready to generate passive income by selling your merchandise, promoting affiliate products, and collaborating with other influencers or businesses.

 

20. Cashback Apps

Especially after the pandemic, we have become fond of online shopping.

If you are among those people, it is better to use cashback apps for shopping; you will save a lot of money while shopping.

You can get cashback on almost everything, whether it’s food, clothes, groceries, or anything else. You can use apps like Swagbucks, Ebates, etc, to earn extra cash whenever you shop for something.

 

21. Buy and sell websites

Buying or selling websites or applications is another passive income Idea. A lot of people are making good income using this method. They buy a website at a low price, make it good, and sell it for higher prices.

Some of the best websites where you can sell and buy websites, applications, and other online businesses are Flippa, BizBuySell, etc.

You can also buy online businesses with traffic; the owner makes money. Buying an existing business is a better choice if you want to make passive income in the long term.

 

22. Start a YouTube channel

Another way to make passive income online is to start a YouTube channel. People are making over $10,000 easily only from their vlogging channels.

And this is a minimum subscriber of 500k to 1 million. It also depends on how you monetize the YouTube channel. If you also sell some products, you will make extra money.

You can create a YouTube channel related to cooking, unboxing gadgets, explaining about cars and bikes, teaching a subject or a language, etc.

You can earn money from YouTube by displaying ads on your videos, promoting other YouTube channels, reviewing products, selling affiliate products, etc.

However, keep in mind that it takes time to grow a YouTube channel. You must be patient until you get enough subscribers and approval from Google AdSense.

 

23. Sell Digital Products on Pinterest

You must have heard about Pinterest because whenever we see pictures on Google, most of them are driven by Pinterest.

But have you ever thought that you can make money from Pinterest? Well, Pinterest does not pay you directly but allows you to drive traffic to your website or product page.

Therefore, you can start selling on Pinterest. You can promote your affiliate product, whether online courses, ebooks, or anything else.

Pinterest can help you earn passive income monthly without working every day, so you can make money while you sleep.

 

24. Invest in businesses

Why don’t you start investing in businesses? Websites like Mainvest allow you to invest even $100, and you don’t have to pay investor fees.

Mainvest is a platform for Main Street businesses and local investors. They’re raising money in the local area. You can earn from 10% to 25%, and Mainvest will take care of your investment.

It is a great way to earn passive income even if you don’t have a huge capital because you can start with $100.

 

25. Rent Your Car

Almost everyone has a car nowadays, so if you also have a car that you are not using too much or have an extra car, why don’t you give it on rent and start making passive income?

Some people passively make over $12,000 per year by renting their car to others. Websites like Turo, Getaround, or Zipcar may help you to get clients.

 

26. Teach online courses

If you have expertise in anything, you can guide other people to make and sell a course, which is a great way to make passive income.

In the course, you can provide videos, documents, etc. You can earn money when someone purchases your course, but remember, it should benefit buyers.

Some of the best websites to sell courses are Udemy, Teachable, or Thinkific. Besides this, many more websites allow you to sell your course.

 

27. Record audiobooks

People love listening to audiobooks; many are recording books in their voices. You can do this too. If your voice is good, you can even in the form of royalties.

To successfully make income from audiobooks, there are a few things you need to master first. These include learning:

You must remember some of the most important things to become a successful audiobook narrator. You should know how to do an audition, narration technique, and editing skills are required (You can also hire freelancers)

 

28. Rent Your Stuff

Did you know that if you have useful stuff, you can make a passive income by renting furniture, chainsaws, etc? Many people are looking for people who want to rent their stuff.

It is quite similar to what we have discussed above about renting a car, but here you can rent anything else you want. Some of the best platforms to rent your staff are PeerRenters, Craigslist, and Rentomojo.

 

29. Invest in vending machines

You can invest in vending machines to make money passively. Many people are doing this business in my area. You can sell snacks, soda, etc through a vending machine.

The best thing about selling products through a vending machine is that you don’t have to trade your time to make money.

You can buy a vending machine from a website like eBay or Craigslist and buy as many as you want. But remember that you should have an area to install those vending machines.

 

30. Create a job board

You can create a job board connecting job seekers and employers.

Job seekers will find suitable jobs, and employers will find good employees for their businesses.

You can keep the Platform free for everyone, but you can charge employers to promote their job vacancies.

If you do not know how to build a job board, you can hire a freelancer from Fiverr. He will do everything for you. I suggest you learn more about it.

 

31. Rent a Storage Space

If you have extra room or space in your garage or basement, you can also earn passive income through it.

Some of the best websites to rent extra space are JustPark, Stashbee, etc. JustPark is especially used for parking.

 

32. Selling T-Shirts Online

If you can design creatively, you can start printing your design on t-shirts. You can print quotes, sayings, etc on the T-shirt in the form of art.

So, if you want to sell print-on-demand t-shirts, you can sign up on websites like Teespring, Teemill, and Printify. I suggest Printify.

 

How Is Passive Income Taxed?

Well! How your passive income will be taxed depends on many factors. Like your business, how much you’re earning, etc.

Passive income is also taxed as your regular income whether you are renting a car or your home,

However, as we have discussed about index funds, they will be taxed differently. You will pay capital gain taxes there, depending on how long you hold your money.

Filling out an income tax return can be complicated, especially if you are working on multiple passive income ideas and making money from them. I suggest you hire an income tax professional.

 

What passive income is not

Passive income is not that income for which you have to trade your time. In passive income, you don’t have to be actively involved to earn money, so if you’re actively involved somewhere to make money, don’t consider it a passive income. In simple words, when you are making money while sleeping, it is called passive income.

 

How can I make $1,000 a month in passive income?

To make $1000 monthly, you can diversify your money in a high-paying dividend stock, peer-to-peer lending, rental property, or buy a car and give it on rent. Using these methods, you can earn an extra $1000 a month.

 

Can I make a passive income with no money?

Yes, making passive income with no money is possible, but you must start trading your time initially and putting in effort. If you have a car, you can show advertisements on your car.

 

How do you passively make $2,000 a month?

If you want to make $2000 a month, you can start dropshipping, create a YouTube channel or a blog, or if you have extra space in the parking, an extra room, or even a car, you can give them on rent. If you want, you can also invest in vending machines.

 

How do I minimize my taxes on passive income?

If you want to lower your income legally, you can show the IRA where you have invested your money to grow your business and show your expenses, like how much you have paid to other employees if someone is working under you.

 

Conclusion

So, this is the list of 32 legit passive income ideas. Now you know how to make money while sleeping. I have mentioned many businesses that do not require huge capital in the beginning.

Abraham, the founder of Knowledgeneed, is here to make personal finance straightforward for you. On my site, I help you discover the best ways to make, save, and invest money – all geared towards achieving financial freedom. Explore the world of financial simplicity with me, and let's embark on a journey towards a more secure and prosperous future together.

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