11 Best Passive Income Ideas

Unlock Financial Independence: Explore Smart Passive Income Strategies for Diverse Investments, Scalable Returns, and Synergistic Growth.

By Catherine Brock – Updated Mar 11, 2024 at 9:55 AM

Money for nothing — what could be better? That's the optimistic promise of passive income. Passive income is money you earn with minimal regular effort.

While most passive income sources will require some investment in time or money up front, that hurdle can be worth it. Once you get your passive income stream rolling, you have a source of cash that's not tied to your boss or your timecard. It could even grow into a business that allows you to quit the daily grind and achieve financial independence.

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Passive Income written on a chalkboard with money lying on top. — Image source: Getty Images

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How to Invest Money

Before you put down your hard-earned cash, consider your investment style.

Income Stocks

Investing in these companies can mean collecting passive income.

Retirement Income Strategies

You've worked hard to build a retirement nest egg. Here's how to make the most of it.

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Making passive income work for you

The profit potential of a passive income idea often correlates to the size of the up-front investment in time or money. Dividend stocks, for example, can generate tens of thousands in income over time — but they demand a larger cash outlay to start. On the other hand, cashback apps have lower upside potential but don't require much to get started.

If the strategy you can afford today has less potential than you'd like, you could use one passive income stream to fund another. For example, you could take your cashback app earnings and invest them in dividend stocks. That's a long-term play, but it's also a smart move financially. Down the road, you can look at your portfolio and feel good about how you funded it.

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About the Author

Catherine grew up in Southern California wearing a lot of black and trying to perfect the art of sarcasm. Prior to joining The Fool as a contract writer, Catherine was climbing the corporate ladder in marketing roles and dabbling in too many side hustles. When she's not writing, she can be found riding a horse in the country or shopping online for clothes.

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