6 Different Ways People Earn Passive Income

Most people, especially those who are relatively new to the world of finance and investing are under the impression that passive income is only for old retired people. That’s completely wrong. While it’s true that some methods take more time upfront, there are several methods to earn passive income at any age. Here are six different ways you can do it.


Non-Fungible Tokens (NFTs) are unique tokens on the Ethereum blockchain. They are created as ERC721 smart contracts, giving them their own identities and attributes which can be verified by studying the blockchain.

NFTs are a fairly new investment vehicle but they’ve already gained a lot of attention because they’re rare and collectable in nature. This, combined with their rarity on the blockchain, makes them perfect for investors that like to buy and sell unique assets.

One of the biggest reasons why NFTs have become so popular is because they can be exchanged for other goods and services. For example, someone could create a superhero trading card that’s super rare but then allow people to buy that card with other collectables or even money itself. In addition, you don’t have to worry about taxes.

To get started with NFT investing you’ll need a marketplace where you can buy and sell your assets. Whether you pick jungle or another marketplace, keep in mind that not all marketplaces work the same way. Some of them will have a transaction fee for every trade while others have a membership fee monthly or yearly. 

Lending Money to Friends & Family

A great way that you can earn some passive income is by lending money to family or friends. You may be wondering whether or not this is really a good idea, after all, what if they don’t pay you back? The truth is, however, that lending money to family or friends can be a good idea as long as you come up with a contract first. That way there will be no disagreements later on.

When drafting said contract make sure your lawyer includes certain clauses. Such as:

  • Boilerplate clauses. Boilerplate clauses are clauses that you find in legal documents all the time. Such as 

“In the event that x happens, y will occur.” 

Boilerplate clauses protect both parties from things such as lawsuits or bankruptcy. You can rest assured knowing that if your friend or family member goes broke, you’ll still get your money back and vice versa.

  • Time frame for repayment. It’s in your best interest to figure out when the money is due in full so you can decide in advance what fee needs to be paid if payment occurs past the agreed upon time frame (i.e.: late fees).
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The clause may be framed as “If payment has not been made in full by y date, there will be a late fee of x%.” 

This way it’s fair for everyone involved. If your friend or family member is on the fence about paying back the loan then they’ll think twice if they know that it will cost them some extra cash.

  • Security/Collateral. If your friend or family member can’t repay the money they owe, then there should be some kind of collateral that they can offer to ensure that you’ll get your money. For example:

“For late fees and repayment in full, x will provide y as collateral.” 

This way if your friend or family member defaults on the loan then the collateral goes to the person who lent the money instead of being auctioned off to the highest bidder.

Real Estate

Real estate investing is a great option for earning passive income because it’s one of the most recession-proof investments you can make. In fact, even when markets are down real estate values tend to hold strong because people always need a place to live.

When it comes to real estate you have a few options. You can either invest in someone else’s property or you can buy one of your own and rent it out for passive income. You could even do both! 

In order to get started with real estate investing, however, there are a few things you need to do. First, you need to determine how much money you’re willing to invest as well as where and what type of property you want to purchase. If you don’t have a lot of cash on hand then you can find a partner or someone with good credit who will go in on the investment with you.

Real estate investing has a very high barrier to entry and that’s because it can be difficult for you or your partner to get a loan. This is one of the biggest reasons why many people decide to partner up with someone instead of going in on their own.


Exchange-Traded Funds (ETFs) are essentially index funds that are bought and sold like stocks. A real-world example of an ETF is the S&P 500 Index (aka SPDR).

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If you want to get started with index fund investing, then ETFs are a good way to do it because they usually have extremely low fees associated with them. For example, if your plan is to buy and sell five shares of an ETF then you can usually expect to pay about $5 for the transaction.

When it comes to ETFs, however, you have a few options that can affect how much active involvement you want. You can do everything on your own by buying individual stocks or you can invest in an index fund that is completely hands-off. The nice thing about investing in index funds is that your investment will only be as risky as the market itself.

Software Is Your Friend

Software is your friend when it comes to earning passive income because all you have to do is create an app and let people use it. In most cases, you don’t even have to worry about hosting because most popular app-hosting services will take care of the hard stuff for you.

When it comes to generating passive income with software, however, keep in mind that you need to be a bit tech-savvy as far as programming goes. If you can build a quality product then you’re halfway to earning passive income. The other half is reaching out to your users and asking them for money. If the app is really good then you shouldn’t have trouble making sales or getting advertisers.

Start A Blog


Whether you want to write about news, sports, personal finance, technology, or anything else under the sun, you can make money by starting a blog.

The premise of blogging is very simple: Write about what you know, get people interested in it, and then find a way to monetize your site. This doesn’t have to be difficult, either. In many cases, the easiest way to monetize a blog is by using Google Adsense or affiliate links.

People will keep coming back as long as they have fresh content to read so the key is finding a balance between posting enough and not overdoing it.

As you can see, there are plenty of ways that people generate passive income these days. Some of them don’t take much effort while others do but in all cases, they’re designed to help you earn money with as little effort as possible.

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