How To Earn Passive Income: 10 Smart Ideas For 2025

September 1, 2025

Research reveals that 69% of Americans are pursuing extra income in 2025. It is a clear sign that traditional paychecks no longer stretch far enough. This is where passive income can become a lifeline. In this article, we will uncover ten accessible ways to build passive income, starting with how to sell internet data and create online courses, to investing in dividend funds and ETFs.

What passive income means in 2025

Passive income is money you earn with minimal effort once you set the system in place. It can come from dividends, rental payments, royalties, or digital product sales.

In contrast, active income requires your time and effort. Whether it’s a salary, hourly pay, or freelance work, the money stops the moment you stop working.

Why is passive income so sought after in 2025? A closer look shows several factors pushing more people to develop passive income strategies:

Inflation continues to shrink the value of each paycheck, leaving less disposable income.
Automation and AI are changing industries, reducing job security and cutting hours in some fields.
Flexible work has expanded, but gig earnings often fluctuate and can’t be relied on month to month.

There is no single path to passive income. The best approach is to explore different categories that balance effort, cost, and risk.

In this guide, we’ll cover:

Category	Examples	Effort Level
Digital opportunities	Selling unused internet data, creating digital courses, licensing creative work, print-on-demand products	Low-to-Moderate (setup needed, then scalable)
Financial strategies	ETFs, high-yield savings, peer-to-peer lending, crypto staking	Low-to-High (depends on risk tolerance and capital)
Tangible assets	Rental properties, fractional real estate, renting out vehicles, equipment, or space	Moderate-to-High (requires ownership and upkeep)

Let’s get started!

1. Sell your unused internet data

Knowledge needed: Very low

Startup cost: Near-zero

Earning potential: Low-to-moderate, scalable

One of the easiest ways to make money from your phone is by selling unused internet data. The idea is that most of us pay for the internet that we never fully use. Bandwidth-sharing networks turn that unused capacity into income. By joining a data crowdsourcing app, you allow the platform to access idle internet connections and, in return, you earn small payments.

One of the easiest ways to try this is through the JumpTask platform. Their mobile app takes just one tap to set up, requires no technical skills, and pays out weekly in JMPT tokens. You can start earning with JumpTask almost instantly.

The cost to get started is close to zero, but payouts depend on how much idle data your devices share. For safety, check each app’s usage policies and avoid running it on sensitive networks.

The best results come from leaving the app active on always-on devices like a spare phone, router, or PC. This way, your uptime stays high and your rewards accumulate steadily.

Want to earn more without doing more?

JumpTask offers quick online tasks to multiply your income stream without doubling your effort.

2. Earn passive income from exchange traded funds (ETFs)

Knowledge needed: Moderate

Startup cost: Flexible

Earning potential: Moderate, compounding

An exchange traded fund, or ETF (a larger category of investment funds), is like a basket that holds many different stocks or bonds. Instead of buying one company’s stock, you buy a share of the basket.

With one purchase, you’re investing in dozens or even hundreds of companies across the financial markets, which helps spread out your risk.

Many ETFs are designed to track the performance of the broader market, which is why they’re also known as index funds.

Some ETFs are designed to pay steady dividends in the form of cash rewards that companies give to shareholders. When you own dividend-focused ETFs, you receive a slice of those payouts.

These are often called dividend funds, and they provide one of the simplest ways to generate recurring income while diversifying your portfolio.

Two of the most popular options are:

Vanguard High Dividend Yield ETF (VYM): Holds more than 400 U.S. companies that regularly pay dividends. It’s broad, diversified, and one of the easiest ways to capture consistent income.
Schwab U.S. Dividend Equity ETF (SCHD): Focuses on about 100 high-quality companies with a track record of strong and sustainable dividends. As of mid-2025, SCHD offered a dividend yield of about 3.7%, with payouts every quarter.

You can opt for a Dividend Reinvestment Plan (DRIP). Instead of taking dividend payments in cash, the plan reinvests them to buy more ETF shares automatically. This snowball effect helps your holdings grow faster over time.

Compared to picking individual dividend stocks, ETFs are easier to manage and less risky. With one purchase, you’re investing in dozens or even hundreds of companies. This makes ETFs one of the most reliable and beginner-friendly ways to generate passive income.

3. Use high-yield savings or money market accounts

Knowledge needed: Low

Startup cost: Flexible

Earning potential: Low but stable

Not all passive income streams involve investing in stocks. You can also put your cash to work safely through high-yield savings accounts (HYSAs) and money market accounts (MMAs). As of 2025, both HYSA and MMA typically earn 4–5% APY, which is far more than traditional savings accounts.

Let’s get into more details:

High-Yield Savings Accounts (HYSA): These are online or bank-based savings accounts that earn higher interest. They don’t come with checks or debit cards, but you can transfer money in and out easily.
Money Market Accounts (MMA): These accounts also pay competitive interest rates, but many include limited check-writing or debit card access. This makes them slightly more flexible if you need occasional access to your funds while still earning interest.
Money Market Funds: Unlike MMAs, which are bank products, money market funds are investment vehicles offered by brokerages or mutual fund companies. They invest in short-term, low-risk securities like Treasury bills. Returns are usually similar to MMAs, but they are not FDIC-insured, so it’s important to weigh the safety tradeoff.

The main advantage here is safety. HYSA and MMA account types are typically insured by the Federal Deposit Insurance Corporation (FDIC), up to $250,000 per depositor, per bank account, meaning your money is protected even if the bank fails. They also allow easy withdrawals, so your funds remain liquid.

While this is not the highest-earning passive income option, savings accounts and MMAs are steady, low-risk options that people often turn to as recession-proof side hustles, since they protect capital while still generating income.

4. Grow rental income through real estate or rental property platforms

Knowledge needed: Moderate

Startup cost: Medium-to-high

Earning potential: High, long-term

Real estate investments have always been a classic path to making passive income. Rent from tenants can create a steady cash flow, and over time, properties often gain value. There are two ways you can get started:

Owning rental property: Buying a house, apartment, or multi-unit building gives you full control and the potential for 8–12% annual returns when combining rent and property appreciation. The tradeoff is responsibility. As a landlord, you’ll be in charge of handling repairs, dealing with tenants, and following local rental regulations.
Fractional real estate investing: If buying a property outright feels out of reach, platforms like Fundrise let you invest small amounts, sometimes as little as $10, into real estate projects. Your money is pooled with other investors, and you earn a share of the rental income and appreciation. This way, you access real estate returns without the hassle of being a landlord.

Another option worth exploring is real estate investment trusts (REITs). These are companies that own or finance real estate across different sectors, like apartments, office buildings, or warehouses.

When you buy shares in a REIT, you earn a portion of the rental income they generate, often paid out as dividends. REITs are traded like stocks, making them one of the easiest and most accessible ways to tap into real estate income without directly managing property.

If you choose to earn rental income, technology can help you a lot. Tools like Buildium and AppFolio manage rent collection, lease tracking, and accounting. At the same time, Avail Landlord software can help you screen tenants, sign digital leases, and send rent reminders automatically.

Owning rental property requires a larger initial investment, since you need to purchase a house, apartment, or building, but the tradeoff is steady cash flow and growth in value as years go by.

5. Sell print-on-demand merchandise

Knowledge needed: Low-to-moderate design skills

Startup cost: Minimal

Earning potential: Moderate, compounding

If you’ve ever wondered how to earn passive income online with minimal upfront cost, print-on-demand is one of the most beginner-friendly ways. This concept is fairly straightforward: you create a design (artwork, slogans, branded graphics, etc.) and upload it to a POD website.

You don’t spend any money until someone makes a purchase. When they do, the POD platform takes its share for printing and shipping, and you keep the profit from the sale.

One of the biggest advantages of POD is its flexibility. You can design T-shirts, hoodies, mugs, phone cases, or posters, and launch them across multiple platforms at once.

Since products are made only after an order is placed, you avoid upfront bulk orders and cut down on waste.

Some of the most popular POD platforms in 2025 you can explore include:

Printful – Offers a wide catalog of customizable products, from apparel to home décor, with branding options like custom labels and packaging inserts. Their global warehouses in the U.S., Europe, and Asia help reduce shipping costs and delivery times.
Gelato – Operates more than 100 local printing hubs worldwide and supports easy integration with Shopify, Etsy, and WooCommerce stores.
Amazon Merch on Demand – Lets you sell directly on Amazon without upfront costs. You upload your design, and Amazon handles production, shipping, customer service, and returns. With Amazon’s massive built-in audience, your designs can reach millions of shoppers instantly.

Profit margins depend on how you price items, but creators often get to keep between 15–30% per sale. While the income starts small, over time, a strong design portfolio can build into a reliable stream of repeat sales, especially if you tie your products to a niche community, social media following, or trending theme.

6. Digital courses & micro-learning bundles

Knowledge needed: Subject-matter expertise

Startup cost: Low

Earning potential: High, evergreen

Online education has shifted from long, traditional online courses to bite-sized, focused lessons that people can complete in a short time. This trend, often called micro-learning, is powered by AI-assisted tools that make creating and packaging content easier than ever.

Even if you create a short guide or a 60-minute course, you can generate a steady income if it solves a real problem.

Platforms vary in how they split revenue:

Udemy – Massive marketplace with built-in traffic. Instructors typically keep 37% of sales when Udemy promotes the course, and up to 97% if students purchase through the instructor’s own referral link.
Gumroad – A creator-friendly platform with simple, transparent pricing. You keep 90% of every sale after fees. Specifically, Gumroad charges 10% + $0.50 per transaction when you sell directly through your profile or links you share, and 30% per transaction when new customers find and buy from you through the Discover marketplace.

For a chance to earn more money, try pairing your online course with a paid community or membership group. So, instead of earning just once from a $50 course, you could invite students to join a community at the price of $10 per month.

The course gives them knowledge, while the community keeps them engaged, offers ongoing support, and brings you recurring income every month. This “course + community” model will increase your monthly income while building long-term relationships with your audience at the same time.

7. Profit from peer to peer lending platforms

Knowledge needed: Moderate (risk grading)

Startup cost: Flexible

Earning potential: Moderate-to-high, risk-adjusted

Peer-to-peer (P2P) lending puts you in a bank role. You lend money directly to individuals or small businesses through an online platform in exchange for interest payments.

Instead of keeping savings in a low-yield account, you put it to work funding loans that typically return higher rates.

Most platforms use risk grading to help you decide. Borrowers are rated (for example, A–E), with safer grades offering lower returns and riskier ones offering higher returns.

Beyond personal loans, some platforms now let you lend money to businesses by covering their unpaid invoices or inventory costs.

For example, with a site like Kickfurther, you put in money to help a company manage cash flow. When their customer pays the invoice, you get your money back plus interest. These deals are often shorter-term than regular loans, so your money comes back faster.

There are also some rules and protections to know about. In the UK, certain platforms qualify for an Innovative Finance ISA (IF-ISA), which means the interest you earn can be tax-free. In the U.S., rules depend on the state, and protections vary. Some platforms create backup funds or insurance to cover missed payments, but these are not guaranteed.

You are essentially lending money to people or companies who need it, but doing so online with tools that handle the contracts and payments for you.

Like any investment, P2P lending involves risk, but if you spread your money across many small loans instead of just one, you can reduce that risk and build a steady passive income stream with higher returns than a typical savings account.

8. Crypto staking & tokenized Treasury bills

Knowledge needed: High (crypto savvy)

Startup cost: Variable

Earning potential: High but volatile

If you hold digital assets, staking is one of the most popular ways to earn passive crypto income. Think of it like putting money into a savings account, but instead of a bank, you’re helping the crypto network keep operating.

In return, you earn rewards, usually around 3–5% a year if you stake Ethereum (ETH). Some services even give you a “receipt token” (like stETH or rETH) so you can still use or trade your crypto while it’s staked. Just remember, sometimes your money is locked for weeks or months before you can take it out.

Another option is tokenized Treasury bills. Normally, U.S. T-bills are government bonds that pay interest. Now, some platforms have turned them into digital tokens you can buy on the blockchain. They usually pay about 4–5% a year, similar to what you’d get with a traditional Treasury bond, but you can manage it all online without a broker.

Of course, both methods come with risks. Crypto markets go up and down quickly, and digital platforms can be hacked. That’s why many people use a hardware wallet (a small device that stores crypto offline) to keep their money safer.

If you’re comfortable with crypto, staking and tokenized T-bills can offer solid returns. But if you’re new, start small, learn the ropes, and never invest more than you’re ready to lose.

Bear in mind that investing involves risk any time money is tied to a digital platform.

9. Licensing photos, music, and AI art

Knowledge needed: Creative skills

Startup cost: Minimal

Earning potential: Moderate, royalty-based

If you’re a photographer, musician, or digital artist, you can turn your creations into a passive income source by licensing your art through stock photography and media libraries.

Platforms like Shutterstock, Adobe Stock, and Pond5 let you upload your work and earn a royalty every time someone downloads it. Instead of selling once, the same photo, track, or illustration can generate income again and again.

A big trend in 2025 is the rise of AI-generated assets. More creators are using AI tools to produce images, music, and even 3D designs. However, many stock sites now require proof of originality.

To get your work discovered faster, think like an SEO marketer:

Use clear, descriptive titles (“Sunset over Dubai Marina” instead of “Nice view”).
Add relevant keywords in tags so buyers can find your work.
Include seasonal or trending topics (e.g., “remote work,” “electric cars,” “AI tech”) to match current demand.

Licensing creative assets won’t make you rich overnight, but with a growing portfolio, royalties can stack up into a steady stream of passive income.

10. Renting out physical & digital assets

Knowledge needed: Low

Startup cost: Asset ownership

Earning potential: High, location-dependent

Renting out assets means making money from things you already own instead of selling them. Instead of letting a spare room, car, or unused gear sit idle, you list it on a platform where others can pay to use it for a short time.

The same idea now applies to digital assets, like website domain names, which work like virtual real estate.

Platforms you can use for renting out your physical or digital assets include:

Airbnb – Rent out a spare room or property for short stays.
Turo – List your car for travelers who need rentals.
Fat Llama – Rent out cameras, tools, instruments, or other equipment.
Dan.com – Handles automated domain leasing contracts, recurring payments, and renewals.

To keep things as passive as possible, you can use insurance and automation tools, such as:

Airbnb AirCover – Provides built-in protection for hosts, including damage coverage and liability insurance for guest stays.
Turo Insurance – Offers liability coverage and optional physical damage protection, making car rentals safer for owners.
TurnoverBnB – Automates scheduling cleaners after each Airbnb booking and syncs directly with your reservation calendar..

It’s also important to watch for local regulations. Many cities now enforce limits on short-term rentals, cap the number of days you can rent out a property, or require special permits. Always check your local rules before listing.

Common myths about passive income

When people hear “passive income,” they often imagine money flowing in with zero effort. The reality is that most streams need upfront work, some capital, or steady consistency before they feel passive.

Let’s clear up a few myths:

“Passive income means zero effort”: In truth, you usually need to put in work upfront, like creating a course, setting up an Airbnb, or learning an investment platform. Over time, the effort decreases, but maintenance never fully disappears.
“You need to be rich to get started”: While some strategies require significant upfront investment (like real estate), others don’t. Selling print-on-demand designs, licensing photos, or staking small amounts of crypto can all be started with minimal costs.
“Affiliate marketing and courses are saturated”: Yes, competition is high, but niches and trends are constantly changing. If you solve a specific problem or serve a well-defined audience, there’s still room to grow.
“Only tech experts can earn online.”: Many platforms are designed for beginners. From plug-and-play print-on-demand stores to drag-and-drop course builders, the barriers are much lower than most people think.

Passive income works best as a long-term project for reaching your financial goals. It’s about planting seeds now and letting them grow into reliable income streams over time and ultimately achieving financial freedom.

Stay consistent, realistic, and open to testing different approaches, and the results can compound.

Key takeaways

Building passive income is less about finding a single “perfect” idea and more about combining small, steady strategies that grow over time.

Keep these core principles in mind:

Diversify your income streams – Don’t rely on just one. Spread across digital, financial, and tangible assets to reduce risk.
Start small and scale – Begin with low-cost options like print-on-demand or HYSAs, then spin profits into higher-return strategies.
Reinvest earnings – Use dividends, royalties, or rental income to compound growth over time.
Automate wherever possible – Scheduling tools, smart contracts, and platform automation help keep income passive.
Balance risk and reward – Safer streams like savings accounts provide stability, while options like crypto or P2P lending carry higher risk but higher potential returns.

Take action now! Pick one idea and test it this week. Whether it’s selling data, staking crypto, or figuring out how to make money on YouTube, momentum comes from starting, not waiting. Stay consistent, realistic, and open to testing different approaches from this guide and other passive income ideas you may discover along the way.

One passive stream is good. Two is better.

Add JumpTask to your income mix and earn while doing simple online tasks on your own schedule.

FAQs

High-yield savings accounts or money market accounts are the quickest. They require no special skills, are FDIC-insured, and you can start earning interest immediately. Print-on-demand can also be started in hours, though returns take longer to build.

Aim for at least 2–3 diverse streams. This balances safety and growth. For example, pair a stable option like HYSAs with something higher-yield like ETFs or a small digital project. Over time, you can build 5+ for stronger security.

Yes. Rental income is usually taxed as regular income, while dividends may qualify for lower tax rates depending on where you live. Crypto staking rewards are also taxed as income in most regions. Always check your local tax benefits and laws.

Yes, you can create passive income with a blog or YouTube, but it takes consistency. For instance, blogs can earn money through affiliate links and ad revenue, while YouTube channels monetize via ads and sponsorships. Both require upfront content creation, but once traffic builds, the content can keep generating income for years.

Monika Ivanauskaite

Content Manager

Meet Monika, your go-to person for turning side-hustle ambitions into real income. As a content manager at JumpTask, she makes digital earning opportunities easy to understand and follow. With a Communication degree from Vilnius Tech and studies in International Communication at Hanze, Monika knows how to turn tricky money earning topics into practical tips. She’s been where you are and knows how hard it can be to start. That’s why her advice is always honest and clear. No empty promises, just real ways to make money online.