Passive Income Ideas 2021
Check out this list of passive income ideas for 2021. All of the items on the list make it possible to make money by only maintaining after you create the passive income stream.
Who doesn’t like extra money?
I know I do. I love extra money. Extra money makes life easier. Extra money takes away my anxiety.
With passive income streams, though, it is going to take a little bit of work at first. But eventually, they can make you money without much work at all. If you are willing to put the work in right away, then you can reap the rewards later by essentially doing almost nothing at all (except maintaining).
I decided to take all of my personal experiences, as well as my research, and create a HUGE list of the different passive income streams you can use to immediately start building real wealth!
Some of the items on this list require money upfront, while others don’t. Either way, every item on this list is proven and has worked for many others (some including myself) to create passive income.
What is Passive Income?
Before we get started, let’s talk about what passive income is. Basically, passive income is money that you earn that doesn’t really require to you do much work to continue making it. Now, it doesn’t mean take away the work that is required to get there, though.
For example, you could create an online course. Then, you can market it and update its content to keep the money flowing. The active part was creating it. It becomes passive when you only have to maintain it to make money from it.
I am sure you have heard the phrase: “make money while you sleep”. Well, that is exactly what draws people to passive income stream ideas. Who wouldn’t want to make more money while they sleep?
The fact is, if you are constantly just trading time for money, then there will always be a maximum amount of money you can realistically make. Earning potential is technically unlimited with passive income. It just requires the upfront work to do it.
Active Income vs. Passive Income
All income carries weight. However, with active income, you have to keep working to continue earning. If you quit, you lose that income. Time literally equals money with active income.
Passive income doesn’t require that same continuous time commitment. Once you set it up, you can maintain it with less time, but continue to make the same or more than you did at first (depending on the income stream).
Just remember passive income requires a good amount of work upfront. But if it were that easy, everyone would just do it and no one would be working.
How Much Passive Income Can I Earn?
That is entirely up to you. Keep in mind, though, this is not a get-rich-quick-scheme. If someone tells you that you can magically make a boatload of money overnight or in a couple of weeks, run because they are probably lying (99 percent of the time).
It is going to take some hours and effort (even sometimes a good bit of capital) to create a passive income source. Now, it all depends on what passive income stream you start with, but it is possible to invest as little as $100 (or no money) to get started and then reinvest profits as you begin making money to grow your passive income stream.
#1: Create a Blog or YouTube Channel
Maybe you are an expert in something? Or passionate about something enough to research and write about it frequently.
Well, you can take your passion for a subject and turn it into a blog or YouTube Channel. One of my recent passive income projects (that I am still working on) I have done just that. I created the blog Ravens Rundown and even have a YouTube channel that I am building for it.
I am passionate about the Baltimore Ravens, so I thought why not potentially add some side income while writing about them occasionally. I do it anyway on Facebook.
There are many different platforms to use to start a blog. If you want to go the free route, you can use WordPress or Wix. There are paid options as well. You would need to purchase a domain and get a hosting plan.
I recommend using NameCheap for both of these to start. That is what I use and I have had no complaints. I love the quick responses I get from their customer service team. Plus, they constantly have sales on their domains and their hosting plans. The link I provided gives you a month free of hosting and domains that are 95% off.
YouTube itself is free to use, but if you want to make money then you’d have to join the YouTube Partner Program. This requires that you have at least 1,000 subscribers and 4,000 valid public watch hours in the last 12 months from when you apply.
#2: Start a Dropshipping Store
Dropshipping is actually one of the most profitable forms of passive income, but it does require some learning and upfront work for sure. You have to do the research to be able to find what products are trending and then you are able to sell them online to customers all around the world.
Dropshipping does give you the most control over your earnings, though, out of all the passive income ideas because you choose the price you are going to charge per item. You can sign up for Shopify and get started today!
#3: Create a Course
Creating an online course is a great passive income source to get started in because there has been a massive growth in sales for course creators lately. You can choose to sell a course through your own website or choose a platform like Udemy.
You do have more control over how much you charge for the course on your own website, but the audience that Udemy already has may make it easier to sell through their platform. If you have a course idea, why not give it a go?
#4: Start Investing in Stocks or Cryptocurrencies
Right now, cryptocurrencies are hot. If you put $1,000 in Dogecoin at the beginning of this year, you’d have enough to buy a Tesla for sure. Investing in stocks can be hard and risky, but there is a huge potential to make money. Plus, there are ways to minimize the risk. Unless you want to be aggressive.
I suggest getting started on a user-friendly platform for beginners, such as Robinhood or Webull. Either service is great to use to learn, plus Webull even offers a paper trading option. That means you can practice trading with fake money to get the hang of it.
If you want to learn more about how to build real wealth through stocks and cryptocurrencies, subscribe to our We Know Dough newsletter through the link or at the bottom of the page. You can also use a service like Coinbase to get started with Crypto.
#5: Sell Stock Photos Online
If you are a photographer or you just have access to an extensive portfolio, you can monetize your photos through the internet. A site like Dreamstime.com is perfect for this. You sell the rights to your photography to businesses or brands that may want to use them.
If you decided to create a Shopify store, you can also sell digital products on there, which includes photography.
#6: Amazon FBA
Amazon has become a great source of passive income for many people these days. If you already have something to sell online, you can use Amazon’s platform. This process is called Fulfillment by Amazon.
Basically, this platform is kind of like eBay. You have something to sell and need to find buyers. But you don’t have to worry about a thing because Amazon stores your entire inventory at their warehouses and does all of the shipping. You can choose to fulfill your own orders if you would like to though.
#7: High-Yield Dividend Stocks & Funds
You have to look into these to find them. Most dividend-paying stocks pay about 1.5–3.5%. However, there are some that pay more into the 6% to 8% range. Just take the time to learn and find these.
Now, dividend yields aren’t guaranteed because companies do have bad quarters.
#8: Start Selling Information Products
One very popular strategy for creating a passive income stream is to sell an information product. This can be many things, including but not limited to an ebook, audiobook, etc. You can distribute courses on sites like Udemy, SkillShare, and Coursera.
If you choose to make a blog, this is a great option to monetize your blog. Some people even take all of their current blog posts and combine them into a book to sell.
#9: Rental Income
Investing in rental properties makes for one of the best ways to earn passive income. It obviously takes money upfront or at least the ability to finance a property.
You need to figure out how much you want to make on the investment, the property’s total costs and expenses, and your financial risk in owning the property. If you do choose to go this route, Airbnb is a great way to find tenants.
#10: Buy & Run a Sober Living Home
This is something I am thinking of getting into eventually. It does take some capital, though. But this is a way to make a business out of helping people.
There is a bit to it, like inspections and making sure your house qualifies, but essentially you buy a property. You turn this property into a sober living home that can house a certain number of people.
I have seen Sober Living Homes that have say 3 bedrooms (good size bedrooms) and 2 bathrooms that house 10 people. If each person is paying like 500 to 600 (which is common) in rent per month, you could make a decent amount of money.
Plus, at the end of the day, you are helping people recover from addiction and become productive members of society again. It’s a win-win.
#11: Affiliate Marketing
This is another type of monetization you can have for your blog. Basically, you as the publisher send traffic to other companies (the advertiser). And then you pocket a share of the revenue they make from the sale.
This works better if you are selling something related to your blog niche or email list niche. This can work for a blog, podcast, YouTube Channel, mailing list, or whatever else. If you have an audience, this is truly passive income.
#12: Buy & Resell Retail Products
You can take advantage of online platforms, like eBay, Amazon, Craigslist, and Facebook Marketplace, to flip retail products.
Basically, you look for items that you know you can buy cheap and resell for a profit. How much you make is entirely up to you. This does take some work, but really it’s not much at all. It’s the finding that is the biggest part of the work, but once you list it, it’s pretty passive. You can also buy broken or free items to fix up and resell too.
#13: Create a Mobile App
This could potentially require a decent amount upfront to invest, but you can definitely reap rewards over time. Depending on what kind of app you create, you can charge per download or you can have in-app ads.
Some apps also have items within the app that they upsell. It really all depends on your niche and which route you choose to go.
Some Other Ways to Make Passive Income:
Advertise on Your Car (or yourself)
Build Your Own Website to Offer a Service
Flip Websites or Sell Domain Name
Start a Podcast
Rent Out Your Car (or parking space)
Become an Angel Investor
Invest Your Money in a Food Truck
What if I Don’t Have Money to Invest in a Business?
There are options that don’t require money upfront or you could try using a service like Lyft or Uber to make extra money to invest. Some of the options don’t require much upfront.
Writing on Medium is also an option to build some passive income. If you subscribe to We Know Dough using the link provided or below, we do go over different tips and tricks to help you build your following on Medium.
Bonus Passive Income Idea:
Disclosure: There are affiliate links within this article! I may make a small commission if you sign up using the link(s), however, you will pay no more (sometimes less) than you would otherwise!