29 Passive Income Ideas to Build Wealth

What is Passive Income?

Passive income is defined as income received on a regular basis, with little or no effort required to maintain it. That’s not to say that passive income can’t require any work at all – some types of passive income may need occasional touch-ups – but for the most part, once you set up your passive income stream, it will require little to no ongoing work.

There are a few ways to make passive income, but not all of them are created equal. Some methods may take more initial effort than others, but the pay-off can be well worth it in the long run. Here are 29 ways to start building your own passive income streams.

1. Invest in real estate.

One of the most classic ways to make passive income is through investing in real estate. By purchasing a property and renting it out to tenants, you can generate a steady stream of income with relatively little work required on your part. Of course, there is some upkeep involved – you’ll need to screen tenants, handle repairs, and so on – but overall, this can be a very passive way to earn income.

2. Invest in a rental property.

If you’re looking for a more hands-off approach to real estate investing, you might consider investing in a rental property. With this method, you purchase a property and then allow someone else to live there in exchange for rent. This can be a great way to earn income without having to deal with the day-to-day management of a property, and it can also offer the potential for long-term capital appreciation.

3. Invest in a vacation rental property.

Another variation on the rental property theme is to purchase a vacation rental property. This can be a great way to earn income from a property that you might not otherwise use all that often. And, if you purchase a property in a popular vacation destination, you can potentially earn a considerable amount of money from renting it out year-round.

4. Invest in a REIT.

A REIT, or real estate investment trust, is a type of investment that allows you to invest in the ownership of multiple properties without having to purchase them yourself. REITs are often managed by professional firms, which means they can offer a degree of passive income potential.

5. Invest in LendingClub.

LendingClub is a peer-to-peer lending platform that allows individuals to lend money to other individuals in exchange for interest payments. This can be a great way to earn passive income, as you’ll receive regular interest payments on your loans. And, since LendingClub is a platform open to accredited investors only, you can be sure that you’re lending money to individuals with a good credit history.

6. Invest in a high-yield savings account.

If you’re looking for a low-risk way to earn passive income, you might consider investing your money in a high-yield savings account. With this type of account, you’ll earn a small amount of interest on your deposited funds. While the interest payments won’t be life-changing, they can add up over time, and the more money you have deposited in your account, the higher your earnings will be.

7. Invest in a CD.

A CD, or certificate of deposit, is another type of low-risk investment that can offer you the potential to earn passive income. With a CD, you deposit your money into an account for a set period of time, typically between six months and five years. During that time, you’ll earn interest on your deposited funds. When the CD matures, you can either withdraw your money or reinvest it in another CD.

8. Invest in a money market account.

A money market account is similar to a high-yield savings account, but it typically offers slightly higher interest rates. With this type of account, you’ll earn passive income on your deposited funds, and you may also have the ability to write checks or make withdrawals from your account (although there may be limits on how often you can do so).

9. Invest in bonds.

Bonds are debt instruments that offer investors periodic interest payments in exchange for their initial investment. Bonds can be issued by corporations or governments, and they typically have a fixed term of anywhere from five to 30 years. Because of the interest payments they offer, bonds can be a great way to earn passive income.

10. Invest in a bond fund.

If you’re looking for a more hands-off approach to investing in bonds, you might consider investing in a bond fund. With a bond fund, you’ll pool your money with other investors and then let a professional fund manager invest the money in a portfolio of bonds. This can offer you the potential for higher returns than if you were to invest in bonds directly.

11. Invest in dividend-paying stocks.

Dividend-paying stocks are another type of investment that can offer you the potential to earn passive income. These are stocks that pay out periodic dividends to shareholders. And, since the dividend payments are made directly from the company’s earnings, they can offer a relatively stable stream of income.

12. Invest in a mutual fund.

If you’re looking for a more hands-off approach to investing in stocks, you might consider investing in a mutual fund. With a mutual fund, you’ll pool your money with other investors and then let a professional fund manager invest the money in a portfolio of stocks. This can offer you the potential for higher returns than if you were to invest in stocks directly.

13. Invest in real estate.

Investing in real estate can be a great way to earn passive income. And, there are a number of ways to do it, such as investing in rental properties or purchasing property for resale. Whatever approach you take, be sure to do your research first so that you can make informed decisions.

14. Invest in a REIT.

If you’re looking for a more hands-off approach to investing in real estate, you might consider investing in a REIT. A REIT, or real estate investment trust, is a type of investment vehicle that allows you to invest in the real estate market without actually owning or managing property. With a REIT, you’ll pool your money with other investors and then let a professional management team handle the day-to-day operations.

15. Invest in peer-to-peer lending.

Peer-to-peer lending is a type of investment that allows you to lend money directly to individuals or businesses. And, with peer-to-peer lending, you can typically earn interest on your loaned funds. This can offer you the potential to earn passive income on your investments.

16. Invest in a business.

Investing in a business can be a great way to earn passive income. And, there are a number of ways to do it, such as investing in a franchise or purchasing a stake in an existing business. Whatever approach you take, be sure to do your research first so that you can make informed decisions.

17. Invest in a business partnership.

If you’re looking for a more hands-off approach to investing in a business, you might consider investing in a business partnership. With a business partnership, you’ll pool your money with other investors and then let the partners handle the day-to-day operations. This can offer you the potential to earn passive income on your investment.

18. Invest in a royalty program.

Royalties are payments made to someone in exchange for the use of their property, such as their land, patents, or copyrights. And, you can earn royalties by investing in a royalty program. With a royalty program, you’ll provide capital to a business in exchange for the right to receive a portion of the business’s sales or revenues. This can offer you the potential to earn passive income on your investment.

19. Invest in a crowdfunded real estate project.

Crowdfunded real estate investing is a type of investment that allows you to pool your money with other investors to finance the purchase or development of the property. And, since you’re investing alongside other investors, you can typically get in on these types of investments for a relatively low cost. This can offer you the potential to earn passive income on your investment.

20. Invest in a crowdfunded business.

Crowdfunded investing is a type of investment that allows you to pool your money with other investors to finance the start-up or expansion of a business. And, since you’re investing alongside other investors, you can typically get in on these types of investments for a relatively low cost. This can offer you the potential to earn passive income on your investment.

21. Invest in an online business.

Investing in an online business can be a great way to earn passive income. And, there are a number of ways to do it, such as investing in an e-commerce business or purchasing a website for resale. Whatever approach you take, be sure to do your research first so that you can make informed decisions.

22. Invest in a subscription business.

A subscription business is a type of business that allows customers to pay a recurring fee in exchange for access to the business’s products or services. And, you can invest in a subscription business by purchasing a stake in the business or providing capital for the business to grow. This can offer you the potential to earn passive income on your investment.

23. Invest in a software as a service (SaaS) business.

A SaaS business is a type of business that provides customers with access to software that they can use to perform a specific task or tasks. And, you can invest in a SaaS business by purchasing a stake in the business or providing capital for the business to grow. This can offer you the potential to earn passive income on your investment.

24. Invest in an app.

Investing in an app can be a great way to earn passive income. And, there are a number of ways to do it, such as investing in an app development company or purchasing a stake in an existing app. Whatever approach you take, be sure to do your research first so that you can make informed decisions.

25. Invest in a blog.

Investing in a blog can be a great way to earn passive income. And, there are a number of ways to do it, such as investing in a blogging platform or purchasing a stake in an existing blog. Whatever approach you take, be sure to do your research first so that you can make informed decisions.

26. Invest in a YouTube channel.

Investing in a YouTube channel can be a great way to earn passive income. And, there are a number of ways to do it, such as investing in the production of videos or purchasing a stake in an existing YouTube channel. Whatever approach you take, be sure to do your research first so that you can make informed decisions.

27. Invest in a podcast.

Investing in a podcast can be a great way to earn passive income. And, there are a number of ways to do it, such as investing in the production of podcasts or purchasing a stake in an existing podcast. Whatever approach you take, be sure to do your research first so that you can make informed decisions.

28. Invest in a course.

Investing in a course can be a great way to earn passive income. And, there are a number of ways to do it, such as investing in the production of a course or purchasing a stake in an existing course. Whatever approach you take, be sure to do your research first so that you can make informed decisions.

29. Invest in a product.

Investing in a product can be a great way to earn passive income. And, there are a number of ways to do it, such as investing in the production of a product or purchasing a stake in an existing product. Whatever approach you take, be sure to do your research first so that you can make informed decisions.

These are just a few of the many ways that you can earn passive income. So, be sure to do your research and explore all of your options before making any decisions. And, remember, there is no right or wrong way to earn passive income. It’s all about finding what works best for you and your situation.