12 Passive Income Ideas To Help You Make Money And Wealth

passive income ideas

Recently, the idea of passive income has become increasingly popular. Earlier, there weren’t many options, but as different online platforms have developed, people now have the chance to supplement their main source of income. A pandemic like Covid-19 has also highlighted the need of having a passive income.

What is Passive Income?

Regular earnings from a source other than an employer or contractor are considered passive income. Passive income refers to income that doesn’t demand a lot of time, money, or other resources. It does not require active engagement, and creating a passive income does not require you to put in set, dedicated hours.

Earn Some Extra Money Online

Earning some extra money is made possible via passive income. To do this, you might need to spend some time or money creating anything up front, but once you do, you’ll be able to earn money lifetime with almost any extra work. In essence, it is money that may be earned without doing a lot of “active” effort. Basically, the main objective is to make money while you sleep.
Here we will explore 12 passive income ideas to help you make money and wealth in detail, as well as how to produce one.

Passive Income Ideas That Require A Monetary Investment

1. Renting out Property

Renting out property is one of the most sought-after passive income opportunities, particularly for those who own multiple properties. If you have two homes, for instance, you can rent out the vacant one and make money. If you own a property in a desirable area with adequate infrastructure and connectivity, your rental income may be significant. On the other hand, a business/commercial property might bring in a much higher amount of money if you put it up for rent.

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2. Non-cumulative Fixed Deposits

Non-cumulative Fixed Deposits are a reliable source of passive income. The financial institution, bank, or NBFC consistently pays the interest on these deposits either monthly or quarterly. In certain circumstances, it happens every two years.

In a cumulative fixed deposit, you do not earn anything during the FD tenure. However, the interest on a non-cumulative deposit is significantly lower than that on a cumulative deposit. Additionally, you do not have the option to reinvest in a non-cumulative deposit.

3. Dividend Options

a. Mutual Funds

Mutual funds are a popular investment tool that many people use to accumulate funds for their intended life goals. There are many different kinds of funds available in the vast mutual fund universe. Mutual fund dividend options can be a reliable source of passive income.

In a dividend plan, the earnings are divided among the investors. They are not invested in the scheme. Payments are made quarterly, semi-annually, or half-yearly. Additionally, a dividend is only declared when the fund is profitable. The sum is not promised. You can choose the dividend option if you want a steady revenue stream from your mutual fund investment.

b. Dividend Stocks

Owning dividend-paying stocks can be one of the most passive ways to make money. The income from the stocks is unrelated to any action other than the initial financial investment. Companies with dividend-paying stocks make payments on a recurring basis to their shareholders. All you need to do to receive cash dividends from a company is own the stock. Companies pay them out quarterly from their profits. The more shares you own, the bigger your payout will be because dividends are paid per share of stock.

c. Chit Fund

Chit funds rank among the best passive income business ideas. They were in existence in India much before the development of the formal banking infrastructure. Even today, millions of Indians invest in chit funds. In simple terms, a chit fund is a rotating saving scheme that can help you save, invest, and even borrow, depending on your requirements. Today, you have online chit fund platforms like The Money Club where the entire operations are online.

Pros of investing in chit funds

  1. The risk of losing money in a homogenous group is practically non-existent.
  2. You have access to funds in an emergency.
  3. Depending on the terms and conditions of the chit fund, you can earn a dividend from your investments.

The Money Club Referral program is one of the best passive income business ideas available for users. This program is open to users registered with the platform. Let us see how to invite new customers to the forum.

Grab The Chance To Earn Passively Through The Money Club Referral Program

  • Download the Money Club app. Read to know How Does The Money Club Mobile App Work.
  • Tap on the Refer & Earn option.
  • You can invite your friends by sharing your referral code with them. First, ensure that they enroll using your referral code.
  • You become eligible for earning passive income, depending on the referral’s activities on the platform.

Here are the benefits of the referral program.

  • Every referral earns you Rs 200 (100 in cash and 100 as credit). Besides, the referred member gets a concession of 50% on the verification fee.
  • Users get an additional Rs 50 as a recurring bonus when the referral completes a real club in the following 12 months.
  • Other rewards include a Topper Prize of Rs 1000 every month.
  • Grand Prizes are also available whenever announced by Moneyclubber.com.

4. Savings Account Offering a High-Interest Rate

While bank savings account interest rates have decreased, certain banks still offer higher interest rates. In addition, some banks credit interest on loans monthly rather than quarterly. These high-interest savings accounts can be a reliable source of passive income. Small saving schemes like Sukanya Samriddhi Yojana Scheme, Senior Citizen Savings Scheme, Public Provident Fund Account, Kisan Vikas Patra and National Savings Certificates offer a higher rate of interest. However, do your research before investing.

5. Peer-to-Peer Lending

Getting listed on peer-to-peer (P2P) lending platforms can help you create a decent passive income source if you have money to lend. Platforms for peer-to-peer lending serve as a middleman between borrowers and lenders. You are connected with a potential borrower after evaluating their credit score.

The interest rate that you choose to charge on loans is up to you. After the necessary requirements are completed, you deposit the funds into the borrower’s account, and you collect interest when the EMI is paid. P2P platforms are governed by RBI rules and require an NBFC P2P license to operate.

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Passive Income Ideas with Little Or No Monetary Investment

6. A Website with Blog

A website is the first essential of any profitable passive income business done online. There are a few free options like Blogger, Tumblr, or WordPress.com where you can create your website. Once you start your website and drive massive traffic, there are three ways to monetize your blog. You can use display advertising, affiliate marketing, or sell a product or service and keep earning while you sleep. 

7. A Podcast

Podcasts have also become a route to building passive income. If your podcast performs well, you may be able to attract sponsors to your show that add value to your listeners. Such high-quality sponsors are another fantastic source of passive income. 

8. Write an Ebook

If you have enough knowledge or are an expert in a certain subject, you can write a book and earn money through it. Publishing an eBook is cheap, free, and accessible. You can write short novels, stories, poems, cooking recipes, innovative business ideas, fitness, fashion, and numerous topics. Publishing eBooks on platforms like Amazon Waterstones, and international sites like Barnes and Noble are a great way to start earning passive income. You get a percentage of money whenever a person purchases your eBook through these platforms. 

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9. Create a YouTube Channel

If you prefer using video as your medium, you can make money by uploading your original works on YouTube. You can make any kind of video you like, including instructional, entertainment, travel, fashion, short films, ones with original music etc. You can set up your account for monetization through the YouTube Partner Program once you have a certain number of subscribers and views.  As YouTube’s partner, you’ll make money by receiving revenue for each click or view that an ad placed on your video gets.  When your videos rank or get recommended by the algorithm, you make passive YouTube income from ad views.

10. Become a POSP Insurance Agent

A POSP, or Point of Salesperson, is an insurance agent. They work with insurance companies to sell insurance policies to customers as per their personal needs. The more policies you sell, you will get commission on it. While this requires an initial active involvement, you can also earn a passive income when these customers renew their policies.

11. Network Marketing

As everyone agrees, networks of people build businesses. Network marketing is where you have to build a team involving more people. You have to sell the products of a particular brand, explain the advantages of doing so, and direct them toward the options that are most appropriate for their needs.

For each product you sell, you will be rewarded with presents or cash. Some of the top companies that pay you well if you establish a network for them are Oriflame, Herbalife, and DXN India. If you enjoy social interaction and have strong communication skills, network marketing is the best way to earn passive income.

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12. Sell Stock Photos

Whether you’re an amateur or seasoned photographer, you can sell your original photos as stock images and earn passive income. You can sell your photos using sites like Alamy, Shutterstock, Stocksy, or Adobe Stock. Once you put your photos up for sale, in future whenever somebody buys it, you will earn money. Once you put in your efforts you can earn a lifetime. Your photos could be shots with models, landscapes, creative scenarios and more, or they could capture real events that might make the news.

Bottom Line

Passive income provides you with financial stability and security if you are willing to do a little hassle and have skills and time. It is much easier to earn passive income. You can start with one idea in the beginning and see how it works. If it works well, you can try out different ideas. Since a passive income does not require much effort, it is advisable to actively scout for them and give it a try. 
This article has discussed 12 passive income ideas to help you make money and wealth. If you want to earn extra money, read and select the best ways mentioned in the article.


A passive income can help you with additional income which can strengthen your personal finances. It provides you peace of mind regarding your future financial stability. Additionally, it can also help you have more free time and reduce stress and anxiety.

Passive income is not about becoming wealthy overnight. You’ll need to think more long-term. It may not generate much revenue in the short term because you will be investing your money at first, but it will generate income over time.

With a passive income, you can make as much or as little money as you like. It depends on how many hours, how much initial effort, and how much money you can put into it. It also relies on the kind of passive income you choose, such as stock market investment, real estate investment, etc.

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