18 Passive Income Ideas To Help You Make Money In 2022

18 Passive Income Ideas To Help You Make Money In 2022

What is passive income?

Passive income includes regular earnings from a source other than an employer or contractor. The Internal Revenue Service (IRS) says passive income can come from two sources: rental property or a business in which one does not actively participate, such as being paid book royalties or stock dividends.

“Many people think that passive income is about getting something for nothing,” says financial coach and retired hedge fund manager Todd Tresidder. “It has a ‘get-rich-quick’ appeal… but in the end, it still involves work. You just give the work upfront.”

In practice, you may do some or all of the work upfront, but passive income often involves some additional labor along the way, too. You may have to keep your product updated or your rental property well-maintained, in order to keep the passive dollars flowing.

But if you’re committed to the strategy, it can be a great way to generate income and you’ll create some extra financial security for yourself along the way.

Earn cash back on credit cards

If you’re still using cash or a debit card for your purchases, you’re potentially missing out on a lot of free money. As long as you’re spending money on the things you buy anyway, why not use one of the best cashback credit cards that provides easy cashback rewards on every purchase?

Learn How to Apply See rates and fees Earn a $200 statement credit after spending $2,000 in the first 6 months $0 3% cash back at U.S. supermarkets up to $6,000 a year, 2% cash back at U.S. gas stations and select U.S. department stores, and 1% cash back on other purchases Benefits and Drawbacks Benefits cash back at U.S. supermarkets Annual fee of . Terms apply. Drawbacks No travel rewards Grocery rewards are capped Rewards dollars can’t be used toward the minimum payment due Card Details Earn a $200 statement credit after spending $2,000 in the first 6 months 3% cash back at U.S. supermarkets up to $6,000 a year, 2% cash back at U.S. gas stations and select U.S. department stores, and 1% cash back on other purchases Intro purchase 0% APR offer: 0% for 15 months then 14.24% to 24.24% (variable) Terms apply


Get into affiliate marketing on your blog

Blogging can be a great side hustle for a lot of different types of people. Whether you’re posting recipes, how-to guides, parenting advice, or just cute pictures of furry animals, there are likely some products that will be of interest to your readers. When you include an affiliate link to a product on your blog, you’ll either get a share of the revenue if one of your readers makes a purchase or a flat fee per click. If you’re just getting started with affiliate marketing, check out Shopstyle Collective or the Amazon Associates Program, both of which make it easy to monetize links on your website or blog.

14. Generate passive income with your car

You may know it but your car is worth gold! In fact, there are two main ways to make money from your car.

The first thing is that you can advertise your car. Basically, you will be paid to stick a sticker for a period of time. We pay you for that. And, rest assured, the stickers are small.

Here is the Itsmycar site that allows you to earn money with it.There is also the Jeroulefute site which also allows you to earn money by advertising. Besides, to increase your chances, I advise you to use both sites.

8. Create a Youtube channel

Very clearly, in this section, the top of the list is earning money with Youtube. It is — and I repeat myself — the Eldorado of our time, that’s for sure.

You should know that the two types of business there (the blog and youtube) require completely different skills. Both involve a different personal investment.

Also, be aware that these are passive incomes that you will have in absolute terms but that, all the same, you will have to work a little.

Also, I am clarifying something here; We are in an article that talks about passive income so I will address the fact of having a youtube channel in a passive version.

For example, for Youtube, I’m not going to tell you to create a classic facecam channel. That is rather to be considered if you want to make it an activity strictly speaking. You can otherwise make money on Youtube this way, of course, but you will still have to work.

If you really want to make passive income, then the best would be to make videos without showing your face and even ideally to delegate all the tasks.

You can recruit freelancers who do all the tasks (research, voiceover, video editing) and you just have to publish it. You can find freelancers on Fiverr or 5euros for example.

This means that when things are going well, you won’t need to work to generate money. You would simply pay your freelancers who will publish your videos (without you having to move a finger).

Otherwise, you can simply make classic videos on a subject that you like. You will earn money and even if it is not totally passive, you will have many opportunities to earn more and more.

Remember that with your Youtube videos, you can earn money with Youtube advertising remuneration. And, you can also put affiliate links if you talk about specific topics. Basically understand this:

To gain affiliation: You will have to make videos of the “opinion” type, testimonial or tutorial on this or that product. You can do this simply by filming your screen. The whole thing is to have a targeted niche with good affiliate products to offer.Otherwise, to win through advertising, in this case, you will have to be more public, and make video editing type videos where you accompany your audio with images and photos. This is how you can have passive income. Indeed, after a while, your videos will be seen (a lot) and you will earn money even while sleeping.

Active Income vs. Passive Income Which Is Best for Me?

In theory, all of your income sources carry similar weight. But when it comes to achieving financial freedom, passive income leaves active income in the dust.

You see, active income is the money generated from all those efforts you’re currently making. And you need to keep working in order to continue earning an income. If you quit, you don’t get paid. Your time literally equals money.

And then you have passive income. An income that doesn’t require you to work actively. And the money continues to flow in for years and years. If you’re looking to design a dream life where you are financially free, it might be better for you to focus on passive income.

Just remember, while you might be able to build a passive income stream with a small investment, you’re not making any less of a commitment than someone investing their time. Making passive income comparable to income earned from active efforts requires a good amount of work upfront.

How to Start Building Passive Income

There’s no magic trick that turns your time directly into money. Instead, you plant seeds so your money will grow, even when you’re sleeping or at the park walking your dog.

The initial downtime you put into passive income can be as involved as starting a blog or as simple as logging into a robo-advisor platform and investing $100. You can earn passive income whether you’re an entrepreneur with a brilliant business plan, a talented artist, or just happen to have extra cash to invest.

1. Start building a nest egg

Remember earlier I said to create passive income you need time, money or skills? Let’s start with money. Open a high-interest savings account and park even $100 dollars in it. Boom, you just made passive income!

It may not be much, but you’ll earn interest on that money and many online banks even offer cash bonuses for opening accounts. Our favorite right now is CIT bank.

Sign Up With CIT Using Code “Spring20”

2. Assess your skills

When I started GoodFinancialCents I was a Certified Financial Planner looking to grow my business and answer common client questions. I figured out that I could use these skills to create great content online, and that I could make money with this blog over time.

I have friends who were stock traders and now have communities around that skill or write for financial publications. Other friends have gotten good at management, and now are building career websites.

What are you good at? What are you passionate about? Take a quick inventory, and research the ways others have used those skills to build income streams.

3. Assess your time, money and effort. Be realistic about your commitments

Time is a tricky one, because it’s our most limited resource. Trying to make more money or create passive income can be a trap because it usually requires you to learn new topics or new skills, and that can be a time suck. Remember, you may have to bite the bullet in the short term, but in the long term your goal is to minimize your time investment.

Are you fully committed? Current work, family and social activities eat up a lot of time. If you don’t have much time, you’ll need to lean more towards investing or getting someone else to do the work for you.

In this guide, we’ve labeled each idea with an effort level (1-5, 5 requires the most effort) to help you match your current abilities to the idea.

4. Ideate and choose

The final step is to put some ideas down on paper and choose how to begin. We created the following list to help you kick off your brainstorming. To help with that, we’ve created this list of ideas to get you started. Here’s to your wealth and freedom!

Passive Income vs. Active Income

No matter how you make your income, making money always falls into two categories: passively or actively. While you may have heard about these, plenty of people still don’t have an idea of their differences.

To put it simply, passive income is indirectly obtained, such as interest from savings accounts or dividends from stocks. Additionally, income is procured from rental property, limited partnerships, or other businesses where you invest funds without any added effort.

Active income on the other hand is money you substantially work to earn. Your paycheck from your job is an example of others such as wages, tips, salaries, and commissions. If you possess a business in which you actively engage, it falls under this income type.

How many income streams should you have?

There is no “one size fits all” advice when it comes to generating income streams. How many sources of income you have should depend upon where you are financially, and what your financial goals for the future are. But having at least a few is a good start.

“You’ll catch more fish with multiple lines in the water,” says Greg McBride, CFA, chief financial analyst at Bankrate. “In addition to the earned income generated from your human capital, rental properties, income-producing securities and business ventures are a great way to diversify your income stream.”

Of course, you’ll want to make sure that putting in effort into a new passive income stream isn’t causing you to lose focus on your other streams. So you do want to balance your efforts and make sure you’re choosing the best opportunities for your time.

5 Residual Income Ideas

Passive income, semi-passive income, side hustles, and now residual income?! It may seem like splitting hairs, but there is a difference between passive income and residual income. One type of residual income is a payment to an actor or writer for each rerun after an initial TV season. Don’t worry. You don’t have to be a celebrity to take advantage of this type of income stream.

1. Royalties

Let’s say you wrote a book. It could be an eBook (e.g., via Amazon’s kindle direct publishing) or a traditional book published in print. If you self-publish, almost all the money from sales of that book goes straight to you–even years later. If you use a publisher, they pay you an upfront fee for the work. Once they recover that fee from sales, any additional income you receive (net the publisher’s cut) is residual income. Meaning you did the work once, yet all sales proceeds going forward provide you residual income.

Pro: A steady income stream from now until you die.

Con: You’ve got to write an excellent book (or make a good movie, show, etc.). It takes skill and hard work.

2. Product Sales

Not the writing type? That’s fine. Let’s say you’re a widget salesperson.

You sell the widget for a set price. Part of the sale is for ongoing service. The purchaser pays a monthly (or other) ongoing fee for your company to service the widget. The company receives the money, the service department handles the continuing service, and you get a piece of the ongoing fee from the service contract— that’s residual income.

In the insurance world, salespeople get an upfront commission for the initial product sale. For example, the sale might be life insurance, property, and casualty, or health coverage. After the original commission gets paid, the salesperson receives an ongoing residual income from the initial sale as long as the customer pays the premiums. Service usually comes from the client services team, not the selling agent.

Pro: There’s a very high ceiling. Sales commissions and residual income frequently have no upper limits.

Con: Being in sales is a tough job, and your failures are very apparent and right in your face.

3. Stock Photos

Do you love photography and have an eye for capturing beautiful shots? Did you know there are numerous ways to sell your photos online? While you could launch a site to sell your photos directly, you can also sell your shots to large established stock photo sites like Shutterstock and iStockphoto with a built-in customer base.

Pro: After the initial time spent taking and uploading photos, you can receive regular royalty payments for years to come.

Con: There’s a lot of competition in the space from both amateur and professional photographers.

4. Online Course

Do you have a particular skill? Have you mastered a piece of your profession that you can teach others? If you’re a media relations professional, you could teach others how to write a press release that drives editorial coverage, for example. With over a dozen places to sell an online course, it’s never been easier to make residual income from the knowledge you already have.

Pro: Large, existing marketplace for online courses.

Con: Standing out among all the other existing course offerings can be difficult.

5. MLM Marketing

For those not familiar with it, MLM is a multi-level marketing program with residual income aspects.

In MLM programs, participants are encouraged to sell a company’s products. Of course, the participants get paid for that. But big money typically comes from recruiting others to sell those products under your account. Every person you recruit pays a percentage of their sales to you, as does every person they recruit. So you encourage those folks to recruit others, etc. The idea is to build a sales empire—sometimes shaped like a pyramid where many people are at the bottom and fewer people at the top.

People at the top of this food chain earn residual income via the people underneath them in their “line.” The folks at the top aren’t selling themselves yet are making income from those underneath them.

Pro: Turn your entrepreneurial spirit into passive income.

Con: MLMs are very controversial. Don’t get trapped by purchasing many products upfront, and don’t alienate your friends and family.


Passive income can really help elevate your earnings and fill in the gaps that your 9 to 5 job can’t fill on its own. If you’re looking to replace your 9 to 5 income so you can quit your job, the passive income ideas on this list can help you do that.

And it’s okay if you like your full-time gig too. The work that goes into earning passive income tends to be manageable when paired with a 9 to 5. So, yup, you can do both. 

Whether you’re looking to start a dropshipping store, start your own agency, or create profitable content, you’ll find that there’s money to be made in all these areas. All you need to do is get started.

The golden rule of passive income protect your time

Passive income is more about time than anything else. You could do a lot of things to make money, but not all income streams are passive.

I’m all for you actively building a business or a side hustle, but for the income stream to truly be passive, it must require less and less effort to produce income, eventually requiring no effort (or very little to maintain).

For example, if it takes you 2 hours to generate $100 today, and it takes you the same 2 hours to generate $100 next week or a year from now, that income stream is not passive, because it takes the same effort (money, time, etc).

On the other hand, if I open an investing account today that takes some effort. But as that account grows and I check it 4 times a year, my returns go up, and my effort goes down.

Same if I build an online course. At first, I’m earning no money and my effort is very high. But I expend a ton of effort at first.

Once the course is complete, I do some continued marketing and client support which amounts to just a few hours per week, while sales roll in month after month.

You get the picture? Now let’s talk about what passive income is not.

Passive Income is all about protecting your time.

How to Get Started

While it can be tempting to want to pick five passive income ideas to get started with I’d really encourage you to pick one in the beginning. You need time and the ability to focus to really a grow a passive income stream. Master one thing before moving on to the other.

It’s going to take a substantial amount of time or money in the beginning but I promise earning passive income is everything it’s cracked up to be! Pick an idea, make a plan, and dedicate yourself until that income stream comes to fruition.


Leave a Reply

Your email address will not be published.