Who doesn’t want to earn more money? What would you say if I told you you can make money even when sleeping? This is not a joke. There are many ways to make money while doing nothing. Called passive income, this has been a hot topic in the investment space for years now. Here’s all you need to know about passive income with some great ideas to make money passively.
What is passive income?
Passive income is any income that you make without having to actively work. For example, rental income is a type of passive income, where you earn a recurring income from your rented property without being actively involved in it.
There are many other examples and ways of passive income. If you’re interested, here are some top passive income ideas for 2025 and beyond.
Passive Income Ideas for 2025
As 2024 draws to an end and we enter the New Year, let’s find more new and exciting ways to make money passively. Here are the 7 best sources of passive income for everyone:
1. Crypto Trading
You can make money trading cryptocurrencies. However, this may require actively buying and selling tokens as well as basic knowledge of the crypto market. There are some ways to make money passively from cryptocurrencies:
Long-term investing – Buy top cryptocurrencies and hold (HODL) them for long-term profits.
Staking – You can stake (deposit) specific cryptocurrencies on some platforms that pay you recurring interest on your holdings.
Crypto dividends – Some cryptocurrencies pay dividends to holders. This is similar to stock dividends.
Interest on crypto investment – Some platforms offer fixed/variable returns for investing or trading cryptocurrency with them. HighBiti is one example. It offers tailored investment plans, with minimum investment starting at just $10, and pays up to 3.5% Daily Interest. Return frequency depends on the plan.
2. Rental Income
One of the biggest and probably the most straightforward ways to earn a passive income is to own rental properties.
Rental properties are buildings or land that one can rent to others for a fee. Examples include rental houses, vacation houses, shops, offices, etc. By investing in a rental property, you can earn a handsome side income or even a full-time income. This only requires an up-front investment and basic setup efforts, after which you can start earning a recurring income without much work.
Here are some popular ways to earn rental income:
. Renting your secondary property
. Commercial leasing
. Renting a part of your property
. Space sharing
. Holiday/vacation rentals
. Farm leasing
. Storage rental
3. Real estate investment trusts (REITs)
If you want to buy real estate but are not ready or financially able to buy an entire property, REITs allow you to digitally invest in real estate through curated funds. These funds pool investors' money and invest it in select properties. Depending on the funds’ performance, investors are paid dividends or returns.
4. Dividend-paying Stocks
Dividend stocks are one of the most popular investment options to earn a passive income. These are stocks that pay recurring dividends to their shareholders.
Dividends are like interest that are paid to investors once or more than once a year. Not all stocks pay dividends. Dividend yield refers to the annual dividend percentage paid by a company. Look out for stocks with the highest annual dividend yield.
Investing in stocks can be subject to market risks. Invest only in companies that you know and trust.
5. Peer-to-peer Lending
This is an old but evergreen method of earning more from money you already have. You can always lend money to others for an interest. P2P lending can fetch you more income than any bank account or deposit. The interest on lending ranges from 10% to up to 30% per year.
However, there is some risk involved in this type of investment. The person you have lent money to can refuse to pay it back, make excuses or delay the payment.
Nowadays, many online P2P lending platforms have popped up that provide a convenient and safe way to lend money for interest along with an assurance of return.
6. Create and sell content online
Content creation is a thriving industry and a great way to earn money using your knowledge or skills. If you are a specialist in a particular niche, you can monetize your knowledge by creating and sharing content with others online. There are numerous ways to do it:
. Create an online course on any topic you are expert in. Sell your course for a fee.
. Create & Publish YouTube videos on topics you find interesting. Earn money through ads.
. Google Ads: Start a website, create and share useful content, and earn money through ads.
. Other content options to make money online include music, podcasts, voiceovers, and images.
Content creation takes time and work, but it can make you money even when you’re sleeping.
7. Affiliate Marketing
Millions of people worldwide use affiliate marketing to earn a passive or full income.
Websites like Amazon pay you a commission for generating sales for them. This is an easy passive income opportunity that anyone can benefit from.
You can create an affiliate website or promote Amazon’s products on your social or YouTube channels to earn a commission for every sale you generate. The best thing is that it works on autopilot and you can continue receiving commission for every person who buys on Amazon through your referral.