Investing Investing Basics

15 Ways To Generate Passive Income (That Don’t Require a Ton of Money to Start)

Unlock the path to financial freedom with these low-cost passive income ideas.

By Jenny Cohen

Edited by Eric McWhinnie

Updated Dec. 31, 2024

A side hustle or other income generator can be a great way to make extra money outside your primary job. But these types of money makers can also be demanding.

If you know where to look, some side gigs can generate passive income without much time or money invested. Check out these passive income streams that can easily fit into your schedule.

Steal this billionaire wealth-building technique

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If you have at least $10k to invest and are ready to explore diversifying beyond stocks and bonds,see what Masterworks has on offer. (Hurry, they often sell out!)

Open a high-yield savings account

One of the easiest ways to make money without much effort is to open a high-yield savings account, especially since interest rates are higher now than in recent years.

Check with your local financial institutions to see what kind of options are available and how much you may need to deposit to open an account. Keep in mind that online banks typically have the best rates.

You may be surprised at how little you need to start earning money without having to do anything.

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Rent out your car

More cars may be sitting in driveways as many workers still work from home. Use your car’s downtime to make extra cash by renting it out to another driver who may need it.

Check out car-sharing apps like Turo or Getaround that allow you to rent out your car when you’re not using it to someone who may need it for a trip to the grocery store or a drive to a doctor’s appointment.

Invest in vending machines

Vending machines can be an easy way to make income from hungry customers who need a bite to eat or something to drink.

You’ll have to do some additional work, such as stocking the machines regularly or figuring out the best products to keep in them. But once they’re stocked, you can walk away and let the machine collect cash from customers while you’re at home.

Get a free stock valued between $5 to $200

Secret: You don't need thousands of dollars to buy thousand-dollar stocks or create a diverse portfolio.

Robinhood offers a method of investing called “fractional shares.” On its own, one share of a single stock could cost a lot of money, making it difficult to diversify. Robinhood allows you to buy pieces of stock instead, so you have the option to build a diverse portfolio quickly.

Let’s say you want to invest $250, as an example.

With that amount, you could build a relatively diverse portfolio with an investment of $50 in a big tech stock, $50 in a retail stock, $50 in an energy stock, $50 in a manufacturing stock, and $50 in a bank.¹ This content is for informational purposes only, you should not construe any such information as legal, tax, investment, financial, or other advice. To get stock reward, new customers need to sign up, get approved, and link their bank account. Stock rewards shares cannot be sold until 3 trading days after the reward is granted and the cash value of the stock rewards may not be withdrawn for 30 days after the reward is claimed. Stock rewards not claimed within 60 days may expire. See full terms and conditions at <a href="https://robinhood.com/us/en/support/articles/open-account-pick-your-stock/">rbnhd.co/freestock</a>. Fractional shares are illiquid outside of Robinhood and are not transferable. Not all securities available through Robinhood are eligible for fractional share orders. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see the Fractional Shares section of our Customer Agreement. Robinhood Gold is offered through Robinhood Financial LLC and is a membership offering premium services available for a fee.

Even better news? Add a Robinhood Gold membership, and you’ll get access to 4.25% (as of 11/15/24) APY² Annual Percentage Yield. Rate valid as of April 12, 2024. To earn interest, a cash balance is needed. If you have a margin balance, there is no cash balance to earn interest. Interest rates for cash sweep and margin investing can change at any time. Fees may reduce interest earnings. on your uninvested cash³ Interest is earned on uninvested cash swept from your brokerage account to partner banks. Partner banks pay interest on your swept cash, minus any fees paid to Robinhood. As of Nov 15, 2023, the Annual Percentage Yield (APY) that you will receive is 1.5%, or 5% for Gold customers. The APY might change at any time at the partner banks' or Robinhood's discretion. Additionally, any fees Robinhood receives may vary and are subject to change. Neither Robinhood Financial LLC nor any of its affiliates are banks. All investments involve risk and loss of principal is possible. Robinhood Financial LLC (member SIPC), is a registered broker dealer. and the ability to buy and sell stocks 24 hours a day, 5 days a week.

Open and fund a Robinhood account and earn up to $200 in stock

Publish an ebook

You may be an expert on a specific topic or industry. Perhaps you’ve led an interesting life that you think others may want to hear about in a memoir. You could even like to make up fictional stories.

All these options are available to you as an author of an ebook that you can self-publish with little to no cash. Simply upload your files to a retailer like Amazon or Apple Books and see if you can earn extra cash selling a book to readers.

Invest in a retirement fund

You may work for an employer that includes matching funds for a 401(k) as part of your employment benefits package.

Consider investing in retirement funds to help build the nest egg you’ll need when you finish working. Matching funds can be considered free cash your company or organization gives you as part of those investments.

Take advantage of matching funds and consider putting in as much as you can to hit the maximum amount of cash for those funds.

Sell affiliate products

You can earn passive income as an affiliate marketer for sites like Amazon using your social media page to promote products.

You have to put in some work, like making posts or generating interest in products for your followers to click on the links, but a quick post or photo could generate extra cash with little effort.

Grow Your $$: 11 brilliant ways to build wealth after 40

Invest in rental property

A rental property is a great way to get started in real estate investing without going overboard if you haven’t tried it before.

You can handle the daily needs of the property yourself or use a property management agency. Remember that an agency costs additional money for the convenience of its services, which could eat into your revenue.

Rent out space for storage

Do you have an empty room or a big basement with plenty of space? Consider renting it out as storage to neighbors or locals.

You can even charge short-term fees for people who just need their items close by for a few days and don’t want the hassle of a large storage rental unit.

Create digital products

You can design journal pages, event planners, party activities for kids, and more in PDF files you can charge per download.

Advertise your downloads on places like Etsy, which can take payments from customers and deliver downloads without your involvement.

Earn up to a $300 bonus and grow your money with up to 4.00% APY

This powerful combination checking + savings account from SoFi® allows you to earn up to a $300 bonus with direct deposit and grow your money with up to 4.00% APY.⁴ New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Direct Deposits received during the Direct Deposit Bonus Period) OR $300 (with at least $5,000 total Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/2026. Full terms at <a href="http://sofi.com/banking">sofi.com/banking</a>. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC. SoFi members with Direct Deposit can earn 4.00% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the 4.00% APY for savings (including Vaults). Members without Direct Deposit will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of Dec. 3, 2024. There is no minimum balance requirement. Additional information can be found at <a href="http://www.sofi.com/legal/banking-rate-sheet">http://www.sofi.com/legal/banking-rate-sheet</a>

This is one of the top accounts we’ve seen, and offers like this can be rare. You work hard, and now it’s time to make your money work for you — with SoFi, you can grow your money with hardly any effort!

SoFi has no account or overdraft fees⁵ Overdraft Coverage is limited to $50 on debit card purchases only and is an account benefit available to customers with direct deposits of $1,000 or more during the current 30-day Evaluation Period as determined by SoFi Bank, N.A.  The 30-Day Evaluation Period refers to the "Start Date" and "End Date" set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the "30-Day Evaluation Period"). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY.  Members with a prior history of non-repayment of negative balances are ineligible for Overdraft Coverage. and additional FDIC insurance up to $2 million on deposits is available through a seamless network of participating banks.⁶ We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Checking & Savings Fee Sheet for details at <a href="http://sofi.com/legal/banking-fees/">sofi.com/legal/banking-fees/</a> ⁷ SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $2M through participation in the program. See full terms at <a href="http://sofi.com/banking/fdic/terms">SoFi.com/banking/fdic/terms</a> See list of participating banks at <a href="http://sofi.com/banking/fdic/receivingbanks">SoFi.com/banking/fdic/receivingbanks</a> Plus, you can receive your paycheck up to 2 days early.⁸ Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.

How to earn up to $300: Sign up and make a direct deposit within the first 25 calendar days of the promotional period, then collect a $300 cash bonus with a direct deposit of $5,000 or more.

SoFi is a Member, FDIC. ⁷ SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $2M through participation in the program. See full terms at <a href="http://sofi.com/banking/fdic/terms">SoFi.com/banking/fdic/terms</a> See list of participating banks at <a href="http://sofi.com/banking/fdic/receivingbanks">SoFi.com/banking/fdic/receivingbanks</a>

Open your SoFi account and set up direct deposit

Rent out an Airbnb

Turn a vacation home, spare room, or other space into an Airbnb to earn extra short-term rental income. It’s a great way to let a space work for you when you’re not using it.

Remember to factor in any costs you may incur, such as utilities, property management, and regular cleaning service after guests leave.

Sell hand-crafted goods

You may have a hobby you love, like pottery, knitting, or woodworking. Consider turning your hobbies into additional income.

This may be a little more intensive than other passive income because you have to make your own products. But websites like Etsy and eBay can make it easy to sell them without much work on your part.

Invest in an index fund

An index fund is a portfolio of stocks that tracks a particular index, such as the S&P 500, Nasdaq, or Dow Jones Industrial Average.

An index fund is a wise investment option as it can give you solid returns over a long period and doesn’t require you to keep a close watch on it or adjust to market changes like you would have to do with a specific company stock.

Supercharge your investments: See what could happen if you add fine art to your investment portfolio

Housesit

Find clients who need someone to check in on their houses to make sure everything is running smoothly.

You’ll need to check over the house regularly with a quick walk-through or check the mail, but it can be an easy stop to earn make extra cash on the side.

Start a YouTube channel

YouTube is home to different kinds of information viewers may need, so think about things you can teach someone or talk about to make extra income when someone watches your video.

You may have to invest in editing software or a good camera, but a few cheap investments can be covered by users finding your content.

Start a blog

You can write about topics that interest you or important news in different industries using a blog that can help you generate income.

Check out different blog platforms that can help you earn extra income from subscribers or find ways to advertise to boost your bank account each time someone reads one of your blog posts.

Bottom line

Passive income is a great way to supplement your income so you can stop struggling financially, retire early, or achieve any other financial goal you may have.

It’s important to find ways to generate passive income that interests you or work within your talents, such as what you do professionally.

You’ll also want to create a budget for costs you might incur when setting up and operating your passive income generator to make sure you account for revenue and expenses. Once you've gathered some extra income, you can keep it rolling.

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Invest in Paintings by Basquiat, Picasso, Banksy

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