Want to make money while you sleep? Here’s how to potentially earn $1,000+ monthly through passive income:
- Create and sell digital products (e-books, courses, templates)
- Start a blog or YouTube channel
- Invest in dividend-paying stocks
- Sell stock photos
- Explore print-on-demand
- Start a vending machine business
- Launch a car rental business
- Invest in real estate (house hacking, syndications, crowdfunding, REITs)
- Try index fund investing
- Invest in Real Estate Investment Trusts (REITs)
- Join real estate syndications
- Consider Business Development Companies (BDCs)
- Scale up rental properties
Key takeaways:
- Start with what you have (time, money, skills)
- Pick a strategy that fits your resources
- Do thorough research before investing
- Start small and grow over time
- Diversify your income streams
- Track your progress and adjust as needed
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What Is Passive Income?
Passive income is money that flows into your bank account with minimal ongoing effort. It’s not about getting rich quick, but about building income streams that give you more freedom and flexibility over time.
At its core, passive income comes from assets or ventures that don’t need constant attention. It’s putting your money to work for you, instead of the other way around.
Robert Kiyosaki, author of "Rich Dad Poor Dad", says:
"The key to financial freedom and great wealth is a person’s ability to convert earned income into passive income and/or portfolio income."
But let’s be clear: most passive income isn’t truly "passive" from day one. It often needs upfront investment of time, money, or both. For example:
- Rental properties need buying, fixing up, and maintaining
- Online courses must be created and marketed
- Dividend stocks require research and initial capital
The good news? Once you’ve done the initial work, the income can become more passive over time.
According to the U.S. Census Bureau, people earn about $4,200 per year on average from passive income. But with the right strategies, you could potentially earn more.
Starting out? Here’s what to expect:
1. Initial effort
Be ready to put in serious hours or dollars upfront.
2. Patience
Most passive income streams take time to build. Don’t expect overnight success.
3. Ongoing management
Even "passive" income usually needs some oversight.
4. Diversification
It’s smart to develop multiple streams of passive income to spread your risk.
Don’t forget about taxes. The IRS treats passive income differently from active income, often at a lower rate. Long-term capital gains and qualified dividends are typically taxed between 0% and 20%, usually lower than active income rates.
But tax laws can be tricky. Sabrina Parys, Taxes Editor, says:
"It’s important to consult with a tax professional to understand your specific tax liabilities and potential strategies for optimizing your returns."
Passive income isn’t about replacing your day job overnight. It’s about gradually building wealth and creating more financial options. Start small, be consistent, and keep learning. With time and effort, you could be earning $1,000 or more each month in passive income.
Next, we’ll explore specific passive income ideas you can start today, from low-investment options to bigger ventures. Whether you want to boost your current income or build long-term wealth, there’s likely a passive income strategy that fits your goals and resources.
Start With Little Money
Don’t have much cash but want to earn passive income? No sweat. There are plenty of ways to get started without breaking the bank. Let’s dive into some practical options that could help you build a steady income stream over time.
Create and Sell Digital Products
One of the easiest ways to generate passive income is by creating and selling digital products. Think ebooks, online courses, templates, or even photos. The best part? You create them once and can sell them over and over without worrying about inventory or shipping.
Take Diamond Lee, for example. This author and creator made almost $20,000 in less than two months when she launched her first ebook. Her advice?
"You’ll never run out of business if you focus on serving others before serving yourself."
Here’s how to get started:
- Create your product: Use free tools like ChatGPT for drafting content and Google Docs for editing.
- Host your product: Try platforms like Carrd (free) or Thinkific (free plan available) to create a landing page or host your digital product.
- Market your offering: Use social media platforms to promote your product at no cost.
Start a Blog or YouTube Channel
Creating a blog or YouTube channel can lead to passive income through ad revenue. Sure, it takes work upfront, but your content keeps earning money long after you’ve published it.
Gillian Perkins, an author and online business expert, puts it this way:
"While you’ll need to put in work upfront to create content, the great thing about creating a blog or YouTube channel is that your content is evergreen."
To boost your chances of success:
- Pick a niche you’re passionate about and know well
- Create top-notch, valuable content regularly
- Learn SEO to make your content more visible
- Try different ways to make money, like affiliate marketing, sponsored content, and selling digital products
Invest in Dividend-Paying Stocks
Even with a small amount of money, you can start investing in dividend-paying stocks. Many brokers now offer fractional shares, so you can invest with as little as $1.
Here’s a cool example: If you had invested $100 annually in Apple stock over the past 10 years and reinvested dividends, your investment would be worth $4,848 today – that’s a 385% return!
Want to get started? Try micro-investing apps like Acorns or Robinhood. These platforms let you invest small amounts regularly, helping you build a diverse portfolio over time.
Sell Stock Photos
If you’re into photography, selling stock photos can be a low-cost way to generate passive income. Platforms like Shutterstock and Adobe Stock let you upload your images and earn royalties when they’re downloaded.
The market’s competitive, but if you consistently upload high-quality, in-demand images, you can build a steady income stream. Focus on unique perspectives, trending topics, and top-notch shots to stand out.
Explore Print-on-Demand
Print-on-demand services let you sell custom-designed products without holding inventory. You create designs for t-shirts, mugs, phone cases, and more, and the platform handles production and shipping when a sale is made.
Platforms like Printful or Redbubble let you start for free. Your main investment? Time spent creating designs and marketing your products.
Mid-Range Investment Ideas
Want to boost your passive income? Let’s look at some mid-range investments that could net you $1,000+ monthly. These need more upfront cash but can pay off big time.
Vending Machine Business
Vending machines can be a gold mine. You’ll need $500 to $5,000 per machine, but you could make $500 to $2,000 monthly from each one.
Adam Hill, who runs Hill Vending, says:
"You need to link up with an education platform like UpFlip. You’ll be running your business by making mistakes if you don’t."
Adam’s company now pulls in over $58,000 monthly, aiming for $2,000 per location. His secret? Good spots, great service, and smart pricing.
To make the most money:
- Pick busy places like offices, malls, and gyms
- Stock popular stuff and keep it full
- Take cards and mobile payments
- Check your prices and products often
Car Rental Business
Car rentals are big business – the U.S. market alone is worth $57.5 billion a year. It costs more to start, but you can make serious cash.
Ronnie Danelian started Legends Car & Van Rentals with just $10,000:
"We were selling leads for car rental businesses but were having difficulty tracking the closing rate. We felt like we were losing a lot of money, so we decided to start providing the car rentals ourselves."
Now he makes over $175,000 monthly renting fancy cars in L.A.
To start your own car rental biz:
1. Pick your niche (fancy cars, cheap cars, or adventure vans)
2. Make a solid plan
3. Get your first cars (start small, grow big)
4. Set up online booking
5. Give amazing service
The average car rental business makes about $17 million yearly with a 6.7% profit margin. That’s about $1.14 million profit each year!
Real Estate Investments
Real estate is still a great way to make passive income. You can start with as little as $10,000.
Try these:
- House Hacking: Buy a small multi-family place, live in one part, rent out the rest. Covers your housing costs and makes you money.
- Real Estate Syndications: Team up with other investors for big commercial deals. You could make 12% to 50% or more each year.
- Real Estate Crowdfunding: Use sites like Fundrise to invest in apartments and houses with just $10.
- REITs: These are companies that own and run money-making real estate. Easy to buy and sell.
In 2021, real estate made an average of 16.83% return. Not bad for a mid-range investment!
Index Fund Investing
Want something easier? Try index funds. They give you a piece of the whole market with lower fees than other funds.
Robert Johnson, a finance professor, shares:
"In his 2014 letter to Berkshire Hathaway shareholders, Warren Buffett said that when he passes away, the instructions for the trustee for his wife will be to put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund."
Some good ones:
- SPDR Portfolio S&P 500 ETF (SPLG) – only 0.02% fees
- Vanguard 500 Index Fund Admiral Shares (VFIAX) – 0.04% fees
- Invesco QQQ Trust (QQQ) for tech stocks
In the last 10 years, Nasdaq-100 index ETFs beat the S&P 500, making 394% compared to the S&P 500’s 188%.
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Big Investment Options
Want to boost your passive income? Let’s look at some big investment options that could potentially bring in $1,000+ monthly. These need more money upfront but could pay off big time.
Real Estate Investment Trusts (REITs)
REITs let you invest in real estate without managing properties. They have to give 90% of their taxable income to shareholders, making them great for passive income.
Some high-yield REITs to check out:
- AGNC Investment Corp: 14.10% yield
- ARMOUR Residential REIT: 14.10% yield
- Orchid Island Capital: 17.65% yield
Matthew DiLallo from The Motley Fool says:
"Real estate investing is a great way to generate passive income."
Putting $10,000 in each of these REITs could get you about $400 a month. That’s a big step towards $1,000+ monthly.
Real Estate Syndications
Want to invest in specific properties without the hassle? Real estate syndications let you be a limited partner in commercial real estate projects.
CrowdStreet and EquityMultiple make it easy to join these deals. Most need at least $10,000 to start, but the returns can be big.
EquityMultiple explains:
"Passive real estate investing allows certain investors in a project to remain uninvolved in day-to-day property management while still receiving cash flow and/or capitalizing on the appreciation."
Business Development Companies (BDCs)
BDCs are another way to get high-yield passive income. They invest in small and medium-sized businesses and often pay big dividends. Here are two to look at:
- Oxford Square Capital Corp: 14.43% dividend yield
- Prospect Capital Corp: 13.74% dividend yield
Rental Properties at Scale
Scaling up rental properties can really boost your passive income. First National Realty Partners (FNRP) has managed over $2 billion in assets across more than 60 properties, showing what’s possible with large-scale real estate investing.
Think about this: A $100,000 property could bring in about $1,000 a month in rent. After expenses, you might make around $6,000 a year. Now imagine doing that with multiple properties or bigger commercial spaces.
Mix It Up
The key to successful big investments? Don’t put all your eggs in one basket. Mix REITs, syndications, BDCs, and direct property investments to balance risk and reward.
How to Get Started
Want to make $1,000+ in passive income each month? Here’s how to kick things off:
1. Take Stock of What You’ve Got
First, figure out what you’re working with:
- How much time can you spare?
- What’s your starting budget?
- What are you good at?
Maybe you’re an Excel pro. If so, selling digital templates could be your thing.
2. Pick Your Passive Income Path
Based on what you’ve got, choose a strategy that fits. Here are some options:
Low Cost (Up to $100)
- High-yield savings account
- Digital product sales
- Blogging or YouTube
Medium Cost ($100-$1,000)
- Dividend stocks
- Print-on-demand
- Affiliate marketing
High Cost ($1,000+)
- REITs
- Rental properties
- Business development companies
3. Do Your Homework
Once you’ve picked a strategy, dig deep. Looking at dividend stocks? Check out companies that consistently pay dividends. Prospect Capital Corp, with its 13.74% yield, might be worth a look.
Make a solid plan:
- Set clear goals
- Create a timeline
- List what you need
- Think about risks and how to handle them
4. Start Small, Then Grow
Don’t bite off more than you can chew. Test the waters first. For example:
"If you put $1,000 in a savings account yielding 5%, you would have $1,050 at the end of a year, which is your starting principal of $1,000 plus passive income of $50 interest on your principal."
This small step can teach you a lot.
5. Keep an Eye on Things
Passive income isn’t "set and forget." You need to watch it. Track your income and expenses. Use this info to decide when to scale up or change course.
6. Mix It Up Over Time
As you learn and earn more, spread your bets. This cuts your risk and can boost your earnings. You might start with a high-yield savings account, add some dividend stocks later, and maybe get into real estate down the line.
7. Never Stop Learning
The passive income world keeps changing. Stay in the loop about new chances and changes in your field. If you’re into real estate, keep tabs on market trends and new investment platforms.
Building big passive income takes time and work. As Mario Solis, author at ILLUMINATION, says:
"The key to generating passive income is to choose a stream that aligns with your interests and skills."
Stay patient and keep your eyes on the prize. With the right plan and steady effort, you can build a passive income stream that gets you closer to financial freedom.
Track Your Progress
Want to hit $1,000+ in monthly passive income? You need to keep tabs on your progress. Here’s how to do it:
Measure Your Results
First things first: Get all your income sources in one place. You can use fancy financial tools or a simple spreadsheet. The key is to log every penny as it comes in.
Take the Life Planner app, for example. It has an Income Tracker that lets you sort your different income streams. This makes it a breeze to see how each one is doing.
Here’s a pro tip: Open a separate bank account just for your passive income. It keeps things tidy and makes tax time way easier.
Spread Your Risk
Don’t put all your eggs in one basket. Try out different passive income methods:
- Real estate: Fundrise lets you invest with as little as $10. They’ve seen returns from 7.31% to over 22.99%.
- Digital products: Sell on Creative Market. Focus on top-notch, niche stuff to make the most money.
- Cashback apps: Check out Fluz. You earn cashback on your purchases AND your referrals’ purchases. It can add up fast.
Reinvest Your Earnings
Want to see your passive income grow? Reinvest it. Here’s how:
1. Dividend Reinvestment
Many platforms let you automatically reinvest dividends. Fundrise does this if you don’t need the cash right away.
2. Scale What Works
Figure out which passive income streams are making you the most money. Then, put more into those. If your Creative Market products are flying off the digital shelves, make more like them.
3. Try New Things
Use some of your earnings to test new passive income ideas. It’s a low-risk way to find your next big money-maker.
Regular Review and Adjustment
Set aside time each month to look at how your passive income is doing. The Life Planner app has a Financial Reports feature that can help with this.
This monthly check-in lets you:
- See which methods are working best
- Fix or ditch the ones that aren’t pulling their weight
- Set new goals and plans
As the folks at Avidian Wealth Solutions put it:
"In order to effectively manage multiple income streams it is essential that you track all of your sources of income."
Next Steps
You’ve explored passive income ideas. Now, let’s get you started on building that $1,000+ monthly passive income.
Choose Your Path
Pick a strategy that fits your skills and resources:
- Tech-savvy? Create digital products or start a YouTube channel.
- Have some cash? Look into dividend stocks or REITs.
- Got a spare room? Try Airbnb.
Start Small, Then Grow
Begin modestly:
- Put $100 in a high-yield savings account. At 4%, you’ll earn $4 a year. It’s tiny, but it’s a start.
- Make one e-book or template and list it on Creative Market.
- Record a single YouTube video about something you love.
As you see results, ramp up your efforts.
Keep Learning
Stay on top of your chosen strategy:
- Follow experts on social media
- Read up on your niche
- Join webinars or workshops
For example, if you’re into dividend investing, study Warren Buffett. His tip to invest in low-cost S&P 500 index funds is a solid starting point.
Mix It Up
Don’t rely on just one income stream. As you progress, try to develop multiple sources. This helps spread risk and boost your earnings.
Try combining:
- Dividend stocks with a high-yield savings account
- Digital products with affiliate marketing
- REITs with room rentals
Streamline Your Process
Use tech to make your passive income efforts easier:
- Set up automatic dividend reinvestment for stocks
- Use tools to schedule social media posts for your products
- Get a property management system for rentals
Keep Tabs and Adjust
Regularly check on your income streams:
- Track your earnings with a spreadsheet or app
- Figure out what’s working best
- Be ready to change course if needed
Grow Your Earnings
At first, consider putting your passive income back into your ventures:
- Use dividends to buy more shares
- Invest digital product earnings into making new ones or marketing
- Put rental income towards improving properties or buying new ones
Stick With It
Building big passive income takes time. As Tiffany Grant, a Financial Literacy Evangelist, says:
"All passive income projects involve some form of time, energy, or financial commitment on the onset."
Keep at it, even if progress seems slow at first.
Get Expert Help
Think about working with a financial advisor. They can give you tailored advice based on your situation and goals.
FAQs
What is the best passive income in 2024?
Want to make money while you sleep? Here are some top passive income ideas for 2024:
1. Dividend stocks
Buy shares in companies that pay regular dividends. Open a free online brokerage account and start investing with minimal fees.
2. Real estate crowdfunding
Platforms like Fundrise let you invest in real estate for as little as $10. They’ve seen returns of about 8-9% per year.
3. Digital products
Create and sell e-books, online courses, or templates. One blogger raked in $272,000 in 2022 from their blog alone.
4. Affiliate marketing
Promote other companies’ stuff and earn a cut of the sales. Use a blog, YouTube channel, or social media to get the word out.
5. Rent out your stuff
Got a spare room? List it on Airbnb. Have a car sitting idle? Put it on Turo. The average Turo car owner makes $10,516 a year.
How do I start a passive income with no money?
Starting a passive income stream with zero cash is tough, but not impossible. Try these:
1. Create a course
Share what you know on platforms like Udemy or Teachable. Greg Jeffries made $30,000 in one year just from his courses.
2. Write an e-book
Publish on Amazon Kindle Direct Publishing with almost no upfront costs.
3. Start a YouTube channel
Make videos about your interests or skills. Some YouTubers earn thousands in ad revenue each month. Roberto Blake made $2,400.36 in January 2020 from video ads alone.
4. Sell stock photos
Got a decent camera or smartphone? Sell your shots on Shutterstock or iStockphoto.
5. Affiliate marketing
Promote products you use and love through a blog or social media.
What is the easiest form of passive income?
The easiest passive income streams usually need some work upfront but can pay off long-term:
1. High-yield savings accounts
Low-risk option with modest returns. Some accounts offer up to 4-5% APY.
2. Cashback apps
Use apps like Fluz to earn cashback on your purchases and your friends’ purchases too.
3. Rent out a parking space
Got an unused parking spot in a busy area? Easy money right there.
4. Dividend ETFs
Invest in exchange-traded funds that focus on dividend-paying stocks. Less homework than picking individual stocks.
5. Print-on-demand
Create designs and sell them on platforms like Redbubble or Printful. They handle the production and shipping for you.