passive-income-stream-ideas

26 Realistic Passive Income Ideas For Beginners (2025)

Presented byTom Blake Hours Fresh Since

Let's face it: the idea of earning passive income every month is awesome. But, how do you actually go about creating meaningful passive income sources for yourself?

Well, in this post, I'm covering 20+ beginner passive income ideas that you can use to get started.

This post is going to contain a mix of easy, medium, and hard ideas you can use to diversify your monthly income, so there's something in it for everyone!

The Best Beginner Passive Income Ideas For Young Adults

1. Invest In Real Estate

One of the most popular passive income ideas for beginners you can try out is to invest in real estate.

And thanks to real estate investing companies, you don't have to have thousands of dollars to get started. In fact, companies like Arrived let you invest in individual income-generating real estate properties starting with only $100!

Arrived real estate investingArrived is open to U.S. investors, and it lets you buy shares of vacation homes and individual properties. You then earn dividend payments from the income these properties produce.

You can also earn from properties potentially appreciating. And the fact you only need $100 to get started makes it very beginner-friendly.

Plus, Arrived is just the tip of the iceberg when it comes to this income generating asset class. Some other popular companies you can check out include:

  • Cityfunds: A new and exciting way to invest in home equity agreements for passive income with a low $500 minimum requirement. Browse the list of available investment properties today!
  • Ark7: Invest in fractional shares of income-generating properties to diversify your portfolio! Plus, Ark7 has an active trading market to ensure liquidity. This means that investors can sell their shares and benefit from monthly appreciation.
  • Fundrise: Another leading real estate investing platform with a low $10 minimum. Note, this is a Fundrise endorsement and I receive compensation if you sign up with my link.

Ultimately, if you want to get paid to do nothing, parking some cash in shares of income-generating real estate is definitely a popular option many people take.

Learn more about investing with Arrived!

2. Open A High-Yield Savings Account

If you have some idle cash, parking it in a high-yield savings account is a smart move. And you have more choices than ever before to get started!

For example, options like Current let you earn 4% APY on up to $6,000 and get a nice $50 sign up bonus. And we like it since it doesn't charge monthly account fees and also offers cash advances.

Current is also our top recommendation if you're just starting out since it's easy to get the bonus and you're guaranteed to get 4% APY.

👉 Get $50 from Current!

3. Invest In Dividend Stocks & ETFs

This one is truly one of the best passive income ideas for young adults because anyone can start investing in dividend stocks, even without much starting cash.

There are a myriad of companies that pay out dividends to their shareholders, and you can become a shareholder by buying these stocks or mutual funds/ETFs that contain dividend paying companies.

Personally, I invest in several Vanguard funds and other dividend-paying ETFs and stocks, and you can get started with a very low amount as well.

If you want to get started, I recommend checking out Stash, an investing app that makes it easy to start investing with no add-on commission fees¹. And right now, it has a $20 sign up bonus when you sign up and invest at least $5.

You should consider your level of risk tolerance and speak to a financial planner or get professional advice if you're unsure how to begin investing for income.

But, there are tons of low-commission online brokerages out there and free education as well, so be sure to read and educate yourself on this topic!

👉 Start investing with Stash today!

4. Use Passive Income Apps

Passive income apps are another simple way to create micro income streams for yourself, and this idea truly requires almost zero effort on your part!

There are actually numerous apps that pay you for downloading them and selling your data.

Examples of popular passive income apps include:

Nielsen Computer and Mobile Panel review

I used a lot of these apps during my time phone farming in college, and I think it's a great beginner passive income idea since you usually don't have to spend money to get started.

👉 Earn $50+ in free cash from Nielsen! (U.S. only!)

5. Earn Cashback When You Shop

If you want to make money while you shop, then a cashback rewards card is a must have.

Take the Discover Cashback Debit Card as an example. This fee-free debit card lets you earn up to $360 per year in free cash back, all for your everyday spending.

The best part is that this is a debit card, so there's no impact to your credit. You also get other perks, like paychecks up to two days early and a network of 60,000+ fee-free ATMs.

There are plenty of other reward cards on the market. But we like Discover since it doesn't charge fees and is a debit card.

Get started with Discover!

6. Get Paid To Play Games

Making money playing video games might sound like a pipe dream, but there's actually a variety of websites and apps that pay you to play games!

Now, this isn't a passive income idea if you don't enjoy playing video games and never play them whatsoever. But, if you're currently spending a few hours per week gaming on your computer or smartphone, you might be missing out on some passive income.

Some platforms that pay you with cash or free gift cards for playing games include:

I also made a video covering even more ways to play games to win real money. And if you have an iPhone, you can check out my guide on the best iPhone games that pay money for some alternatives to the options above.

These apps and websites won't make you rich, but again, if you already spend time gaming, you might as well earn some rewards for your effort!

👉 Start earning with Freecash!

7. Fixed-Income Investments

Like the name suggests, these investments are designed to generate a fixed amount of income. This makes them a more reliable option for anyone looking to generate monthly or annual income.

Examples of fixed-income investments include:

  • CDs (you can find certificates of deposit with Consumers Credit Union paying 4.25% APY right now!
  • Bonds
  • Treasury bills
  • High-yield savings accounts (again, my favorite is Current)
  • Money market accounts
  • Preferred stocks

The downside to this passive income side hustle is that returns are generally lower than some alternative ideas because of safety.

However, if you want a simple solution to earn some passive income without much work, fixed-income investments are worth considering.

👉 Find high-paying CDs with Consumers Credit Union!

8. Start A Blog

Blogging is not easy money. But this is still one of my favorite passive income ideas for beginners because anyone can start this side hustle and scale it if you're willing to put in the time and effort.

And, as I explain in my blogging guide and post on the road to a $100/month blog, I believe you can monetize a blog within one year if you put in the time and have a basic understanding of SEO.

I've been blogging for a little over 4 years, and now, my blog earns $10,000 to $20,000 per month consistently and $400 a day in ad revenue alone:

My YouTube video covers the exact steps I took to grow my blog. And between Mediavine ads and a number of affiliate programs, I hope to continue scaling WebMonkey over the next few years to reach new revenue milestones.

I mean, the blog made $22,000 in 2020, but in 2021, WebMonkey made $92,000. And in 2022, it made a whopping $272,000.

This isn't passive income yet, but it gets easier every month.

I now outsource my Pinterest marketing, some content writing, and I'm slowly spending less time on things I don't like and more time doing what I enjoy. Plus, blogging teaches you so many valuable skills while also having the potential to turn into a passive income stream.

If you use affordable blog hosting like Hostinger and learn the basics of SEO, I definitely think you can turn a profit in under a year if you put in some time.

9. Print On Demand (POD)

I created my own POD store when I was in college and sold absolutely horrendous mugs by dropshipping POD products on Etsy.

Ultimately, I only made 2 sales, and my POD manufacturer refused to create my merchandise because I blatantly infringed upon multiple trademarks, but hey, these things are just details.

The point is, if I could initiate sales by selling literal garbage on the internet, the barrier to entry really isn't that high.

Etsy-Instagram-Marketing
Yup, this is what I made.

Take some time, create a few neat or funny graphics, and design some merchandise on a POD service like Printify or Printful.

Then, connect your store to an online marketplace like Etsy, Redbubble, Society6, or other similar marketplaces. My post on Etsy passive income also explains how this entire process works.

Take a few minutes out of your day every now and again to post an image on Instagram and spam-follow some people, and you will invariably drive traffic to your storefront.

This is probably one of my favorite passive income ideas since ecommerce isn't going anywhere, so if you know how to design products, definitely consider Etsy dropshipping.

Sign up with Printify today and start selling print on demand products!

Extra Reading – How To Open An Etsy Sticker Shop.

10. Use Reward Apps & Programs

Companies are willing to pay for your loyalty. And, thanks to a variety of reward apps, you can now make this process mostly hands off.

Some popular apps and websites you can use to automatically earn shopping rewards and save money include:

  • Capital One Shopping – Apply available coupon codes online and earn shopping rewards for shopping at specific partners.
  • Bridge Money – Earn PayPal cash whenever you shop with a linked card.
  • Rakuten – Install their browser extension to earn cashback when shopping online.
  • Drop – Use the Drop app to earn cashback for buying special offers and buying from brands that you already support.
  • Fetch Rewards – Scan receipts and earn free gift cards for buying groceries and everyday essentials.
  • Honey Extension – Automatically apply coupon codes and earn cashback in the form of Honey Gold for shopping at specific merchants.
  • Lolli Extension – Earn bitcoin for shopping at hundreds of popular online retailers.
  • Dosh – Earn cashback for shopping at thousands of retailers after installing the app.

None of these apps or shopping extensions will make you rich. But, if you want a low-effort passive income idea, these ones are worth considering.

If you're an online shopper, I suggest sticking with Capital One Shopping and Rakuten. But if you mostly want to earn rewards for in-store shopping or through your mobile phone, apps like Fetch Rewards and Drop are your best options.

Note: Capital One Shopping compensates us when you sign up with the provided links.

11. Rent Out Storage Space

If you have excess space on your property, you can actually turn that space into an income stream with Neighbor.

Neighbor is essentially the Airbnb of storage space for people living in the United States. It lets you rent out extra space to people in your city, and you earn monthly passive income in return.

Become-Neighbor-Host

Examples of spaces you can rent out with Neighbor include:

  • Attics
  • Backyards
  • Basements
  • Boat spaces
  • Driveways
  • Garages
  • Parking spots
  • Sheds

As a host, you set your monthly pricing. You also set rules for when people can access their stuff, so people don't drop by without warning.

Neighbor also provides insurance, and you get paid every month with PayPal cash. Depending on your space, you could easily make $50 to $200 a month in passive income without much effort.

👉 The Best Boring Business Ideas.

12. Invest In Artwork

Historically, artwork investing has only been available to the very wealthy. However, this is changing thanks to the rise of fractional investing platforms.

For example, companies like Masterworks let you invest in shares of fine art from famous artists like Banksy, Monet, and Warhol. You can then earn passive income over time from shares appreciating.

Masterworks investing

Artwork is a popular alternative asset class, and it's how some people diversify their portfolios and get some downside protection from the general market.

I also like that Masterworks lets you buy and sell shares on its secondary marketplace. And it generally holds pieces for 3 to 10 years before trying to sell them and distribute profits.

13. Start A YouTube Channel

Another beginner passive income idea you can try is to start making money on YouTube.

I was curious about how long it would take to reach this point, so I decided to start my own YouTube channel. After about a year on YouTube, my channel now generates $400 to $600 in autopilot income every month!

Monthly-YouTube-Earnings

Now, YouTube isn't passive at the start, but like blogging, as you start outsourcing things like editing and uploading once you begin generating revenue.

Plus, YouTube isn't going anywhere anytime soon. I think this fact alone makes this a great passive income idea that's worth considering.

You don't have to spend a fortune to get started on YouTube either. In fact, if you have a decent smartphone, you can start there!

Here's the gear I started my channel with:

In other words, I spent under $1,000 to start my channel (before upgrading my camera down the line), and the channel is now on track to make around $6,000 per year in passive income!

14. Rent Out Assets

Thanks to the rise of the sharing economy, another beginner passive income stream you can try is to rent things out for money.

People do this all the time by renting out things like a spare room on Airbnb. However, there are tons of other things you can rent out to generate passive income, including:

Airbnb-host-earnings

Of course, you need some starting assets for some of these micro income streams. But options like renting out storage space or a parking space are great no-cost side hustles you can try.

15. Invest In Alternative Assets

If you're already investing in things like stocks and ETFs, you can consider further diversification by investing in other asset classes. Some of the most popular alternative assets include:

  • Artwork
  • Gold, silver and other precious metals
  • Niche collectibles like Pokemon cards, sign sports gear, Beanie Babies, antiques, comic books, and similar items
  • Farmland
  • Fine wine (you can use a platform like Vint to begin investing with just $25)
  • Private equity and venture capital
  • Sports cards, especially baseball cards and basketball cards that are in mint condition

Again, this isn't a risk-free beginner passive income idea. So, always do your own due diligence and research. And speak to a financial professional if you have specific questions about your unique situation.

16. Affiliate Marketing

Affiliate marketing involves promoting products and services for other businesses. When you make a sale, you earn commission. And this is a business model I've scaled to over $50,000 a month with different websites and via YouTube.

Just take a look at some of this monthly affiliate income from blogging:

Impact-Radius-Earnings

The advantage of affiliate marketing is that you don't need to spend time or resources building your own product(s) and brand. If you can funnel traffic effectively, this can be an incredibly high-margin passive income method too.

17. Invest With A Robo-Advisor

Robo-advisors are similar to traditional financial planners expect they use algorithms to pick investments that match your goals and risk tolerance.

The advantage of robo-advisors is that they're completely hands-off and many are very low fee as well.

Betterment is the perfect example, and this leading robo-advisor has a $0 minimum account requirement, making it very beginner-friendly. When you sign-up for Betterment, you answer a questionnaire about your investing goals and risk tolerance. From there, Betterment helps you invest in a variety of largely ETF-based portfolios.

Portfolios include strategies with globally diverse companies, socially-responsible investing, tech and growth focus, and more.

Extra Reading – How To Double Money In 24 Hours.

18. Earn Passive Income With Crypto

Another beginner passive income idea you can explore is to deposit cryptocurrencies or stablecoins with Nexo.

This is actually something I've wanted to try for a very long time, especially because crypto interest accounts are paying way more than high-interest savings accounts right now.

Anyway, to test out Nexo, I bought $500 worth of Cardano (ADA) with Coinbase and moved it over to Nexo. Currently, I'm earning around 6% APY with my ADA, and Nexo pays out interest daily which is cool.

Nexo-earn-interest

I can earn up to 8% APY if I lock-in my Cardano for a fixed-term contract of one month. You also earn more if you get paid with Nexo Tokens rather than in-kind.

Overall, Nexo makes it very easy to buy crypto on its platform and to begin earning daily interest.

I think I'm going to add some ETH, SOL, and Chainlink to Nexo to see how much I earn in the coming months, so I'm definitely excited to try out this passive income idea.

You can try out Nexo as well and get $10 in free BTC when you fund your account with at least $100 in crypto as well. Just remember to be an informed investor and to do your due diligence and read as much as possible!

19. Get Paid To Get In Shape

I've written a post on apps that pay you for working out, and this is a great idea to add to your routine if you're already active.

These apps are fairly simple. They either pay you for your data or pay you for betting on yourself to reach a certain fitness goal.

Some popular fitness apps are:

  • Oppizi – This gig app pays up to $25 per hour for walking and delivering flyers in your neighborhood.
  • HealthyWage – Bet on yourself to lose weight and earn cash.
  • DietBet – Another way to bet on yourself to get in shape like HealthyWage.
  • Sweatcoin – A data collection app that pays you for walking.
  • StepBet – Another way to bet on yourself to reach a certain number of weekly steps.
  • CashWalk – Another way to get cash and gift cards for walking.
  • Miles – A fun way to get paid to ride your bike, walk, fly, drive, and travel.

CashWalk app

These apps won't make you rich. However, if you're making the effort to stay active, you might as well earn some passive income in the process!

Extra Reading – The 10 Best Apps Like Sweatcoin.

20. Start A Vending Machine Business

One more popular passive income idea for beginners that people have been exploring more these days is starting a vending machine business.

You only need about $700 to $2,000 to buy a vending machine depending on the make and model plus its condition. From there, you can stock your machine with wholesale goods and likely earn a 40% to 60% margin or higher on the food and snacks you sell.

The video above from CNBC's Make It series shares how one entrepreneur was able to turn his vending machine business into a $300,000+ a year business that runs itself.

The main tip shared in the video is to never buy a vending machine without having a location lined up first. And, of course, high-traffic areas like malls, college campuses, and airports or bus terminals are perfect candidates.

With enough vending machines, you can make some serious side cash. And you can even hire help to keep the machines stocked so that it becomes a low-maintenance business.

👉 How To Get Rich With No Money.

21. Get Paid To Use Less Energy

If you want to cut down on expenses and also earn money for your efforts, I have great news.

Plenty of energy companies are willing to pay you to use less energy when demand is high. This is because it's in their interest to reduce expensive strains on the energy grid and to then pass some savings onto you.

Save money on energy

If this sounds up your alley, you can enter your details on User Linker to find qualifying energy companies paying people to use less energy. And, you can feel good that you're being less wasteful!

22. Watch Videos For Money

GPT websites are ‘get paid to' websites that reward users for completing tasks like answering surveys, downloading mobile apps, or watching ads and videos.

I don't use GPT websites for anything that isn't passive, but I occasionally run video portals on an old laptop to make money overnight.

Some of my favorite platforms that let you watch videos to earn some beermoney include:

Swagbucks sign up

To date, I've earned $100+ from using these kinds of sites. This isn't a very high-paying side hustle, but again, it's free passive income.

👉 How To Get Paid To Watch Netflix.

23. Sell Courses

If you have a particularly valuable skill, another beginner passive income idea you can try is selling online courses and eBooks.

I actually started testing this idea in 2023. I launched an eBook about making money with freelance writing, and I promote the book from my blog and YouTube channel.

Freelance Writing For Freedom

This eBook now makes $200 to $300 per month in passive income. And it was completely free to write the book, and I just used Canva to package everything.

You can do the exact same thing. Creating valuable content and marketing it on a platform like a blog, social media, Medium, or YouTube is something anyone can try out.

And you can also try selling on course marketplaces, like Udemy or SkillShare, if you don't want to build out your own platform.

Extra Reading – Passive Income Vs Active Income.

24. License Videos

If you have ever captured crazy, hilarious, or endearing videos before on your cell phone, GoPro, or dash cam, you might be able to make money by licensing your videos.

News agencies or media outlets are always on the lookout for viral video opportunities or high quality content, and they are willing to pay for it.

Newsflare and Rumble are two popular websites where you can sell your videos to make money.

Newsflare

When one of your videos sells, you earn 50% of the total sale. How much you earn per video sale depends on a variety of factors, including:

  • The media outlet that's buying your video.
  • How the video will be used.
  • The time-frame the video will be licensed for.

Newsflare states that videos typically earn between $25-$100, but videos can earn more if they are licensed by large companies for a considerable amount of time.

Ultimately, if you have some potentially viral video content, you might be able to earn some passive income by licensing the video every few months!

25. Make Money With Mobile Apps

If you know how to program, you can always try launching a mobile app. Between in-app advertisements and potential subscription fees, there are plenty of ways to monetize an app if you can get downloads and active users.

26. Peer To Peer Lending

Peer to peer lending, or P2P lending, involves lending money to people and acting as the bank. You earn interest on your loan just as a bank would, which can turn into a nice source of passive income.

The risk here is that if people default on their loan, you're generally out of pocket. But you can use P2P lending platforms like Prosper or Funding Circle to find investment opportunities.

Extra Reading – How To Turn 10K Into 20K Quickly.

Final Thoughts

At the end of the day, you can keep researching the best passive income ideas for beginners until you're blue in the face.

The hardest part is really deciding where and when to start, but don't overthink the process! It doesn't matter if you start by investing $10 or you launch your first blog; generating passive income is a process that takes time and dedication, but it doesn't have to be rocket science.

Pick an idea or two to put your money to work, put in the initial effort, and then nurture your new income sources over the coming months and years.

If you're looking for other money-making ideas, I suggest checking out:

Investment advisory services offered by Stash Investments LLC, an SEC registered investment adviser. Investing involves risk and investments may lose value. Holdings and performance are hypothetical. Nothing in this material should be construed as an offer, recommendation, or solicitation to buy or sell any security. All investments are subject to risk and may lose value. This information is for educational purposes only and should not be construed as tax, investment, or legal advice.

1 Ancillary fees charged by Stash and/or its custodian are not included in the subscription fee.

Tom is a full-time blogger and freelance writer with a passion for side hustling, passive income, and making money online. His work has appeared on dozens of personal finance websites like Money Crashers, The College Investor, Forbes, and more.

Tom also founded the blog This Online World - a finance site dedicated to helping people make money online - in 2018. After 6 years, that site merged with WebMonkey, with the goal of helping even more people earn their first dollar of online income.

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