Passive income is all the rage, and for good reason.
What is passive income?
Passive income describes income that is generated without continuing work. It takes effort to get the ball rolling, but then the income continues without much effort.
Sounds amazing, right?
What’s the catch?
You need either effort or money to begin generating passive income. To set up affiliate advertising (one form of passive income) you’ll need a blog or online platform. Creating that platform takes effort.
Developing a digital product is a great way to generate passive income. However, that product must first be created and marketed before a single dollar ever reaches your bank account. That process takes time and effort.
Dividend or mutual fund investing is a great way to create passive income, but you’ll need a startup fund to open the account and pick up steam.
Still interested? Here are some more ideas for generating passive income.
And now, the list of 21 oh so clever passive income ideas…
1. 5 Ways to Get Paid Multiple Times for the Same Work from Michael Hyatt
Consider your personal strengths when contemplating passive income building. Michael shares some tips for how to determine the best avenue for you to pursue.
2. 20 Passive Income Ideas to Build Real Wealth at The College Investor
I love Alexa’s idea of taking and selling stock photos! If only I had a few more hours in the day…
3. Top 10 Effective Online Passive Income Ideas [Infographic] via PiFormula & Visualstan
Who doesn’t love a good infographic? Clear and simple ways to earn passive income.
4. How to Generate Passive Income from Lifehack
This article includes a less-considered tactic: selling music on iTunes. I’ve heard some pretty bad music that still managed to earn a buck. Own a computer? Maybe you could create the next Gummy Bear song. I apologize for this in advance.
5. Beginner’s Guide To Earning Passive Income at Making Sense of Cents
Michelle gives some great tips, including this little tidbit about rental real estate:
Some consider rental real estate passive, while others do not. If the rental property is in good shape and you have good renters, then there is probably very little work that needs to be done in order to continually bring in an income. This is considered especially passive if you outsource the property management duties and home maintenance tasks.
6. How 5 Location-Independent Bloggers Afford to Travel from Nomad Wallet
This article includes interest from savings accounts as a revenue stream. Hey! Whadya know, I’m already investing passively! 😉
7. Income Investing for Beginners – a 10 Part Guide to Successful Income Investing via About.com
Check out slide six for information on how to go about choosing a dividend-producing stock as a form of income investment.
8. Passive Income Ideas That Work at Money Crush
Have an amazing idea for an iPhone app? If you’ve got a stellar idea (really stellar, it’s a tough arena) then you might be able to produce a passive income through creating and selling an app.
9. How to Create Passive Income On Etsy (+ Free Download!) from Paper & Oats
Kelsey shares how to earn passive income by producing downloadable paper goods on easy.
10. How Passive Income Allows You To Work Smarter, Not Harder via Elle & Company Design
This designer and blogger provides a library of printables in exchange for a monthly fee. Do you have a talent or product that would lend itself to a subscription service?
11. Travel With Passive Income: Is It Really Possible? also from Nomad Wallet
Deia discusses the process of creating passive income from assets. This is a great reason to become debt free. You can’t begin generating income from assets until you have assets. Your own. Not Bank of America’s, or Wells Fargo’s assets.
12. How to Earn Extra (& Passive) Income with your Handmade Business Website from Staci Ann Lowry
Staci Ann explains how she makes extra income on her business website that is devoted to selling handmade ornaments.
13. 9 Ways To Generate Passive Income Efficiently at Lifehack
Joel Runyon shares some unique ways to generate passive income. Do any of you know if mining bitcoin is still a viable gig?
14. Passive Income Business Ideas from Hypersapien
Tips for a few nontraditional sources of relatively passive income, including owning a laundrymat.
15. MLP008: Get Creative with Passive Income and Expand Your Audience w/ Rob Cubbon via Mad Lemmings
This episode of the Mad Lemmings podcast includes a great explanation of passive income, including some ideas for success.
16. 5 Surprising Items to Rent for Extra Cash at Creative Savings
Did you know that you can rent out your tools, spare room, or even your unused car for extra cash?
17. Want Passive Income? Publish A Book On Kindle from The Work at Home Wife
Angie lays out the basics of publishing an ebook.
18. It’s All About Creating Income via Thousandaire
Kate lays out ideas for generating more income, including some ideas for creating passive income.
19. 5 Ways to Earn Passive Income from Bankrate.com
This article includes the usual suspects like dividend income and rental income (not so passive!), but also takes a look at peer to peer lending and affiliate marketing.
20. How To Build Passive Income For Financial Independence at Financial Samurai
The Financial Samurai lays out his passive income sources. An incredibly helpful, real-life peek at how one man is creating more income.
21. Smart Passive Income
The Mac Daddy of passive income, Pat Flynn, shows us all everyday how he wins at creating passive income.
Finding a source of passive income isn’t like stumbling on a gold nugget while out for a walk. It takes effort to get a business started, or a book written, or to scrape together enough money to begin investing.
Even with the initial difficulty, once you get the ball rolling, passive income streams are a wise way to diversify your income.
Have you ever heard of this type of income? What are your favorite ideas for creating passive income?
*FYI, the links on this page may contain an affiliate kickback (if you buy at these great prices I’ll get a small cut at no cost to you). Thank you for helping support Loving Littles!
This article was shared at the Weekend Wind Down & these fine websites.
Holy moly, what an awesome list of resources! So adding these to my weekend reading 🙂 Thanks for sharing Janeen! Have a great weekend!
Thanks Christina, it was a lot of fun to put together. It’s interesting to see how people differ on their view of passive income. I loved the idea of renting out unused bikes/tools, or perhaps coming up with a new resource for iTunes or Etsy. Get’s my brain juices flowing just thinking about the possibilities!
Oh, the gummy bear song…Ha! I actually started thinking about blogging because of an interview I saw with Pat Flynn. At the time, I had no idea who he was and that he was so popular online!
Pat Flynn is inspirational! I love that he shares so much about his family and that he’s open about his daily routine.
Great list, Janeen. Thanks for including my article in it! 🙂
You’re welcome. That was a really interesting article. I love hearing about all of the different ways that people creatively make money!