26 Ways to Make Passive Income in 2024: Unlock Financial Freedom | Looka

Passive income. It’s that elusive financial dream where money flows in while you’re off living your life. Whether you’re building your business, traveling, working your ‘real job,’ or just relaxing at home, the money magically appears in your account. Sign me up, right?
But while it sounds simple, finding the right passive income strategy for your goals takes careful planning. The good news is that here are many ways to make passive income work for you with a bit of upfront effort.
In this beefy blog post, we’ll explore a whopping 33 passive income ideas and strategies for generating income over time. From investing in dividend stocks to starting an online store, we’ll walk you through the best opportunities to build multiple income streams.
- Real estate-based passive income ideas 🏡
- Business and e-commerce-based passive income ideas 🛒
- Online content creation and digital media ideas 🧑💻
- Affiliate marketing and referral programs 🛍️
- AI and digital technology-based passive income ideas 🤖
- Stock market investments 💵
- Crypto and alternative investments 💰
- Passive income from rentals 🛠️
- More FAQs
But first: What is passive income? 🧐
Before we dive into all the exciting passive income opportunities, let’s break down what passive income is:
Some ideas promise to pay big but require a sizable upfront investment. For example, you can’t make money off renting out property if you don’t own it. However, other ideas have lower barriers to entry and will still offer a steady stream once they are up and running.
Only some ideas will be right for you, but you only need to find one right idea to get going!
Why it’s so great to generate passive income
The benefits are already implied, but before you take on any business idea, it’s useful to be clear on the pros, cons, and work involved. Let’s look at some of the massive motivators for passive income:
- Cash flow: If you’re living month-to-month and afraid of that proverbial ‘rainy day,’ passive income can help you get into positive cash flow so you can start to get ahead instead of constantly struggling to keep up.
- A financial safety net: There’s no such thing as “job security: these days. Having another source of income will provide a safety net if you lose your job or primary income source. In general, diversifying your income sources is a smart financial move in uncertain times.
- Time! One way to make more money is to work more hours. But time is finite, and you won’t have any more to give at a certain point. Passive income isn’t effortless, but it is less effort. That means that, over time, it will demand less of your time. And that’s time back in your pocket to do whatever you love.
- Financial freedom: Real financial freedom is something most of us can only dream of. Imagine being mortgage and debt-free? A passive income won’t get you there overnight, but it can help you start down that path.
Stay savvy: If it sounds too good to be true, it probably is…
The potential for scams in passive income is real, especially with online opportunities. Some fall prey to “too good to be true” schemes that promise high returns with little risk.
Here are some common types of scams and how they typically operate:
- Ponzi schemes: These schemes promise high returns on investments with little risk. They pay returns to earlier investors using capital from newer investors rather than from legitimate business profits.
- Fake investment opportunities: Scammers often create fake websites or social media profiles to promote non-existent investment opportunities, such as cryptocurrency schemes, real estate investments, or “guaranteed” stock picks.
- Phishing scams: Scammers may use phishing emails or messages to impersonate legitimate businesses to steal personal information or financial details.
- Advance fee fraud: In this scam, scammers ask individuals to pay an upfront fee to receive a promised payout, which never materializes. This can occur in various contexts, including lottery scams or inheritance claims.
Keep your smarts about you and do your due diligence as you proceed. And don’t bite off more than you can chew: If you don’t have sufficient experience or knowledge, consider opting for something simpler.
Now, let’s dive into 26 ways to make passive income.
Real estate-related passive income ideas 🏡
1. Rental properties
Rental properties are a classic way to generate passive income. You can earn consistent monthly income from tenants by purchasing a residential or commercial property and turning it into a rental property.
If buying an entire property feels like a big step, consider renting out a spare room in your home, or renting out your space when you’re away. Platforms like Airbnb or Vrbo make it easier to connect with short-term renters, giving you flexibility and the potential to earn extra cash with minimal effort.
2. REITs and Real Estate Crowdfunding
Real Estate Investment Trusts (REITs) and real estate crowdfunding offer a way to invest in real estate without the responsibility of managing physical property. It’s like buying stock in real estate.
Real estate crowdfunding, on the other hand, lets you pool money with other investors to fund real estate projects. It’s often more accessible, with lower investment minimums, and gives you exposure to a variety of properties. Both options provide passive income while allowing you to diversify your investment portfolio.
3. Unused Space
If you have unused space, turning it into a passive income opportunity can be surprisingly simple. For example, renting out parking spaces, especially in busy urban areas or near events, can bring in extra cash with minimal effort. Whether it’s a driveway, garage, or parking spot, this can be a great way to monetize something you’re not using.
Similarly, if you have extra storage space like a basement, attic, or even a shed, you can rent it out to people looking for affordable options to store their belongings.
Business and e-commerce-based passive income ideas 🛒
4. Dropshipping
Dropshipping is a popular way to run an online store without the hassle of managing inventory. With automated dropshipping, you act as a middleman between the customer and the supplier.
Although not fully passive, it has significantly less hands-on operation time than a traditional inventory-based business. Keep in mind that this venture has a steep learning curve and needs your time and attention in the beginning.
5. Print-on-demand
Print-on-demand is a fantastic passive income option for creative entrepreneurs. If you have an artistic (or opportunistic) eye, you can design custom products—like T-shirts, mugs, phone cases, or even home décor—and sell them through platforms such as Printful or Redbubble.
This allows you to focus on creating unique designs while the platform handles the logistics. With little upfront cost and endless design possibilities, print-on-demand can become a flexible and fun source of passive income.
6. Flip retail products
Flipping retail products, or retail arbitrage, is a straightforward way to make passive income by buying items at a lower price and selling them for a profit. You can scout for deals at discount stores, clearance sales, or even online, then resell the items on platforms like Amazon, Facebook Marketplace, Etsy, or eBay.
This model takes advantage of price differences across markets, and with the right products, you can see impressive returns. While it requires some upfront effort to find the deals, once your listings are live, the selling process can become relatively hands-off, especially with fulfillment services like Amazon FBA (Fulfillment by Amazon).
7. Create an e-commerce store
Creating an e-commerce store allows you to sell a variety of products, and the possibilities are endless. If you enjoy crafting or making handmade goods, platforms like Etsy make it easy to showcase your creations to a global audience. Whether it’s jewelry, artwork, or custom items, selling handmade products online can turn your hobby into a reliable source of income.
Alternatively, you can sell digital products like e-books, design templates, or software. Platforms such as Shopify or Gumroad allow you to set up a store and sell digital downloads.
Like this nifty poster PDF on Etsy! The product itself is digital, so there’s no inventory to manage.

Source: GrafikaPrintCo on Etsy
Online content creation and digital media ideas 🧑💻
8. Blogging
Blogging can be a rewarding way to earn some passive income, especially if you’re passionate about a particular topic. By creating engaging and valuable content, you can attract a dedicated audience and monetize your blog through various channels.
Additionally, affiliate marketing enables you to earn commissions by promoting products or services relevant to your audience. You can also collaborate with brands for sponsored content, where companies pay you to write about their offerings.
Check out our guide on how to monetize your blog!
Note: While it may take time to build an audience and refine your strategies, once your blog gains traction, it can become a steady source of passive income.
9. YouTube channel
In the same vein as blogging, starting a YouTube channel can be a fun and lucrative way to earn passive income while sharing your passions and expertise. By creating engaging videos on topics you love, you can attract viewers and build a loyal audience.
Once your channel meets the requirements for monetization (1K followers and 4,000 hours of watch time), you can earn ad revenue from Google AdSense as ads are displayed on your videos. Well-aligned sponsorship opportunities with brands can also help you earn income through partnerships.
For example, look at the channel Merve Study Corner. It’s a bunch of videos about studying together with over 1 million subscribers. Talk about low effort with a high reward!

Source: Merve Study Corner on YouTube
Like blogging, growing a YouTube channel takes time and effort, the potential for ongoing income makes it an appealing venture.
10. Digital courses
Creating and selling digital products and online courses is a fantastic way to leverage your expertise and create passive income. If you know a specific area, you can design an online course and host it on platforms like Udemy or Teachable. This allows you to reach learners globally, offering them valuable insights while you earn income each time someone enrolls.
Look at Coming Up Roses, this creative strategist created courses on helping other marketers generate more sales and effective marketing campaigns. She earns from worksheets and courses in her sleep!
11. Stock photos and digital media
Selling stock photos and digital media can be a rewarding way to generate passive income, especially if you have a knack for photography or audio production. By uploading your photos to stock photography sites like Shutterstock or Adobe Stock, you can earn money each time someone downloads your images.
These days there are more bespoke platforms like 500PX and Death to Stock for more unique imagery. And of course, you can even create AI-generated stock imagery to sell online.

Source: Death to Stock website
This allows you to capitalize on your creativity while providing businesses and individuals with high-quality visuals.
12. License your music or content
Licensing your music or digital content is an excellent way to earn passive income while showcasing your creative talents. By licensing your music for use in commercials, films, or YouTube videos, you can generate revenue each time your work is used.
Similarly, if you have a portfolio of photos, illustrations, or design work, you can license these assets to businesses for their marketing materials, websites, or promotional content.
Affiliate marketing and referral programs 🛍️
13. Affiliate marketing
Affiliate marketing is a popular way to earn passive income by promoting products and services you believe in. By sharing affiliate links through your blog, social media, or website, you can passively earn commissions on sales generated from your referrals.
Think about it, don’t you trust a brand more when a creator your trust recommends it? The best part is that you don’t need to create or manage the products yourself; instead, you simply focus on crafting compelling content that encourages your audience to make purchases through your links.
14. Shopping rewards
Shopping rewards through cashback programs and apps offer a simple yet effective way to earn passive income on your everyday purchases.
To maximize your earnings, simply sign up for these programs, browse available offers, and make purchases as usual. The cashback is typically credited to your account, allowing you to accumulate earnings without any extra effort.
These rewards can add up, turning your regular shopping into a source of passive income!
AI and digital technology-based passive income ideas 🤖
15. Create mobile apps
Creating mobile apps is an exciting avenue for generating passive income, especially if you have programming skills or a great app idea (and app logo!). By developing an app that makes people’s lives easier or more fun, you can sell it on platforms like the Apple App Store or Google Play.
Alternatively, you can offer the app for free while monetizing it through in-app purchases, subscriptions, or ads.
Once the app is launched, it can continue to earn revenue with little ongoing effort, as long as it remains relevant and well-maintained. Regular updates and engaging content can help keep users coming back Whether you create a game, utility tool, or lifestyle app, the possibilities are vast in the mobile market.
16. Create AI-backed tools
Creating AI-backed tools is a cutting-edge way to generate passive income, especially as the demand for innovative technology continues to grow. By developing AI-based solutions or services, you can address specific needs in various industries, such as marketing, customer service, or data analysis.
Once you create a valuable tool, you can offer it as a subscription service, providing users with ongoing access to your solution while generating recurring revenue.
Stock market investments 💵
PSA: You don’t need to be a finance guru to start investing and you don’t need a lot of money! Seriously! These passive income strategies revolve around long-term investment with compounding interest. Think retirement or 5-10 years down the road!
17. Earn dividends from stocks
Investing in dividend stocks is a tried-and-true method for generating passive income. When you purchase shares in companies that pay dividends, you receive regular payouts, typically every quarter, as a reward for holding their stock.
You can easily set up a free investing account with any bank or use Wealthsimple to start investing your money in low-risk, slow-growing funds. Keep in mind this is a long-term game though!
TIP: If this sounds like gibberish to you, I recommend the book I Will Teach You to Be Rich by Ramit Sethi. I promise it will inspire and educate you to make the right moves financially. It helped me a lot!
18. Bonds and bond funds
Investing in bonds and bond funds is a reliable way to earn passive income with low risk. When you purchase a bond, you’re essentially lending money to a government or corporation in exchange for regular interest payments, known as coupon payments.
At the end of the bond’s term, you receive your initial investment back. This predictable income stream can be a great addition to your portfolio, especially for those seeking stability.
19. Money market funds
Money market funds are mutual funds that invest in lower-risk securities. They’re a great option for those seeking low-risk passive income from short-term investments. These funds invest in highly liquid, short-term instruments such as treasury bills, commercial paper, and certificates of deposit.
Because of their conservative investment approach, money market funds aim to maintain a stable net asset value, providing investors with a safer place to park their cash.
Keep an eye out for fees (Management expense ratios) though! Choose ones that have a low ratio to keep most of your earnings.
20. High-yield savings accounts
Seems obvious right? But believe it or not, people don’t take full advantage of these. High-yield savings accounts offer a safe and accessible way to earn interest on your savings. It’s free money! Unlike traditional savings accounts, which often provide minimal interest, high-yield savings accounts offer significantly higher rates, allowing your money to grow more effectively over time.
These accounts are typically offered by online banks or credit unions, which have lower overhead costs and can pass those savings on to you through better interest rates. One of the main advantages of high-yield savings accounts is their liquidity; you can easily access your funds when needed while still earning interest.
21. Invest in index funds
Investing in index funds is a smart strategy for those looking to achieve long-term growth with minimal fees. Index funds are designed to track the performance of a specific market index, such as the S&P 500 or the Total Stock Market Index. By investing in a diverse array of stocks that make up the index, you gain broad exposure to the market without the need for extensive research or management.
One of the key benefits of index funds is their low expense ratios, which means you keep more of your returns.
Crypto and alternative investments 💰
22. Crypto staking
Crypto staking is an innovative way to earn passive income by participating in blockchain networks. When you stake your cryptocurrency, you lock it up to support the operations of a blockchain, such as validating transactions and securing the network. In return for this commitment, you earn rewards in the form of additional cryptocurrency, often at attractive interest rates.
This process not only allows you to earn while holding your assets but also contributes to the overall health and security of the network. Many staking platforms make it easy to participate, providing user-friendly interfaces and automated processes. However, it’s essential to understand the risks involved, as the value of your staked assets can fluctuate.
23. Peer-to-peer lending
Peer-to-peer (P2P) lending is a unique way to earn passive income by loaning money directly to individuals or small businesses through online platforms like LendingClub or Prosper. In this model, you act as the lender, providing funds to borrowers who seek loans for various purposes, such as consolidating debt or financing a project. In return for your investment, you receive interest payments on the loan, which can yield higher returns compared to traditional savings accounts or fixed-income investments.
24. Annuities
Annuities are financial products designed to provide a steady income stream, making them a popular choice for retirement planning. By purchasing an annuity, you essentially enter into a contract with an insurance company, which agrees to make fixed or variable payments to you over a specified period or for the rest of your life. This can provide peace of mind during retirement, as you can rely on a consistent income to cover living expenses.
While annuities can be beneficial for long-term income security, it’s essential to consider factors like fees, investment options, and withdrawal restrictions.
Passive income from rentals 🛠️
25. Rent out your car
Renting out your car is a convenient way to generate passive income from an asset that might otherwise sit idle. Platforms like Turo allow car owners to list their vehicles for rent, making it easy to connect with potential renters in your area. Whether you have a compact car, a luxury vehicle, or an SUV, you can set your own rental rates and availability, giving you flexibility while earning money.
26. Rent out equipment or unused items
Do you have a table saw you used once to make a catio and now it’s collecting dust? What about that lawn mower or hedge trimmer?
Renting out equipment or unused items is an excellent way to generate passive income from belongings that would otherwise sit idle. Whether it’s tools, outdoor gear, or specialty equipment, many people are willing to pay a fee to borrow items they need for a short time. My neighbor has a foam machine he rents out to kid’s parties all summer!
Platforms like Fat Llama make it easy to list your equipment and connect with potential renters in your community.
Sanity check: How passive is passive income really? 🤨
Truth-telling time: The term “passive income” can be a bit misleading, as it often implies that income generation requires little to no effort. However, the reality is that while passive income can provide a steady income stream with minimal ongoing work, it often requires significant initial effort, investment, or setup.
Here are some key points to consider regarding how passive income really works:
- Initial investment: Many forms of passive income require a substantial upfront investment of either time or money. For example, investing in real estate requires not just capital but also time to find properties, manage tenants, or renovate. Similarly, creating a digital product (like an online course) takes significant effort upfront but can yield passive income once established.
- Brand development: Some of the ideas listed above require additional investment in branding (logos, websites, etc.) That’s where tools like Looka can come in!
- Ongoing management: While some passive income sources, like high-yield savings accounts or dividend stocks, can be more truly passive, others like rental properties or affiliate marketing may require ongoing management to keep the income flowing. This could include maintaining properties, updating content for affiliate links, or marketing products.
- Market risks: Income generated from investments, such as in the stock market or real estate, can fluctuate based on market conditions. Therefore, there’s an inherent risk involved, which can affect the sustainability of that passive income stream.
- Time commitment: Even sources labeled as passive often require periodic attention. For instance, while a YouTube channel can generate income through ads, it requires regular content updates to maintain viewer engagement and income.
- Tax implications: Earnings from passive income sources may be subject to different tax treatments. Understanding these implications, such as how the Internal Revenue Service treats different forms of passive income, is crucial for maximizing profits.
So, while passive income has the potential to provide a consistent cash flow with relatively low ongoing effort, it usually requires an initial investment and some level of ongoing management or adjustment.
How many income streams should you have?
When it comes to generating passive income or other income sources, diversification is key. In general, more income streams are better; this helps to reduce risk and ensures that you’re not reliant on one single income stream.
While 2-3 income streams are ideal, it boils down to your individual goals, appetite for more work, and enthusiasm for the idea. It’s good to start small, perfect one income stream, and then expand to others over time. Plus, don’t forget to consult a senior wealth advisor or financial advisor when planning your investment portfolio.
Wrapping up: Find the right passive income stream for you 🙌
There’s no one-size-fits-all approach to making passive income, but with a bit of effort upfront, you can find the passive income strategy that works for you. From dividend stocks and real estate investment trusts to e-commerce and affiliate marketing, the possibilities are endless.
Start small, diversify your income streams, and consult with a financial advisor to make sure you’re on the right path. Over time, your passive income sources can help you build wealth, gain financial independence, and enjoy more freedom in your daily life.
For even more inspiration, check out Looka’s extra income ideas blog and learn how to turn your side hustle into a full-blown business. Happy earning!
More FAQs:
What is the easiest form of passive income?
One of the easiest forms of passive income is earning interest from a high-yield savings account. Unlike traditional savings accounts, which offer minimal interest, high-yield savings accounts provide significantly better rates, allowing your money to grow with little to no effort.
You simply deposit your funds, and the bank pays you interest, which can compound over time. This method is particularly appealing to those who prefer a low-risk investment strategy and want to maintain easy access to their money.
How do beginners start passive income?
Beginners looking to start earning passive income should first assess their financial situation and identify how much they can invest—both in terms of money and time.
Simple steps include opening a high-yield savings account to earn interest on existing savings or exploring dividend-paying stocks to generate income through regular payouts. These options require minimal initial investment and are relatively low-risk, making them ideal for beginners.
What’s an ‘easy’ passive income idea also depends on your existing skills. Browse the ideas above and see what jumps out as being most immediately approachable!
Can passive income replace my regular job?
While it is possible to generate enough passive income to replace your regular job, this often takes time and requires careful planning and investment. You may want to have more than one form of passive income up and running before you quit your job.
Take into account not only your salary but healthcare and other benefits that may come with your job.
It’s also important to consider the tax implications of becoming fully self-employed. Faced with these considerations, many people use passive income as a supplement to their regular income rather than a full replacement.