Did you every dream of making money without lifting a finger?
There’s an ongoing debate about whether passive income truly exists, with some claiming that “maturity is realizing there is no such thing as passive income” (Reddit post).
But I disagree. While no income source is entirely hands-off, certain investments, like dividend-paying stocks and rental properties, do require little active management once set up.
In this post, I will cover some of the most promising passive income ideas, especially ones incorporating Bitcoin, for those aiming to achieve financial freedom in 2024. With each method, I’ll dive into the initial effort required, the potential returns, and just how passive it can become over time. I will pull insights from sources Ali Abdaal's approach to financial independence from his YouTube video.
More than 20 ways in which you can generate passive income
1. Investing in Stocks, ETFs and Dividend Funds
One of the easiest ways to start generating passive income is through stocks, especially index funds and dividend stocks. These investments allow you to grow your money passively without actively monitoring the market. In fact, this is the most passive way of making money according to one of the best books of finance that I have read and that I really recommend (the millionaire Fastlane. I’ve summarized the book’s highlights and tips here)
Difficulty to Start: Very easy – Most brokerage accounts offer easy access to these stocks with low entry fees (I showed here a list of the cheapest brokerages and exchanges).
How Passive? Once invested, it’s a "set and forget" system basically. Of course, it depends in case you want to monitor it to avoid losses and maximize your profits by trading. But in general, if you use ETF as your investment strategy, history has shown that it’s generally worth it to hold it for a long time.
Expected Returns: Dividend yields vary, with the S&P 500 providing about a 10% average annual yield historically since 1957 until the end of 2023, though this can fluctuate.
This investment approach is perfect for long-term passive income and can be as simple as buying a diversified index fund like the S&P 500. Ali Abdaal also highlights this as one of the primary ways he earns passively through his portfolio, which generates about $682 per week on average in purely passive returns.
Pro Tip: If you want you can use my referral links on stock exchanges and brokers to have an initial bonus of a couple of 100€ referral links (https://www.byobanking.com/post/how-to-earn-800-in-one-day-with-sign-up-bonuses). I did many accounts on exchanges and banks to accumulate 800€ in Bonus :D
2. Rental Properties
Real estate is one of the most popular and long-standing forms of passive income, especially for those with a bit of capital.
Initial Effort: Moderate to High – Involves finding a property, securing financing, and potentially making renovations.
Maintenance: Low – If you hire a property manager, this can become very hands-off. Of course, if you do something like Airbnb it will require a more active involvement but if you just rent it out for years, you don’t have to do much. I tell it from my experience. Repair something from time to time basically.
Expected Returns: Rental income varies based on location and property type, but typically yields a steady monthly cash flow, plus potential appreciation. I have for example two properties shared with my family and one of them is being rented so we basically can almost pay the credit with what we get from the rent. Moreover, the apartment is in Barcelona and it’s appreciating in time since we bought it, it has been increased by 43% (in 5 years). It’s not Tesla actions or bitcoin but it’s not bad 😊
Rental properties are ideal if you want recurring income without daily oversight. By hiring a property manager, you can eliminate most of the active requirements, and your main role becomes collecting rental checks. Again, in the book I mentioned above (Millionare Fastlane) and in Million Dollar Weekend, and the Rich Dad Poor Dad book (that I summarized with main action items here and here) all of them agreed that this is one way of generating passive income with minimal efforts.
3. Crypto Staking and Bitcoin Investments
Cryptocurrency, especially Bitcoin, Ethereum and stable coins, has become a new way of generating passive income with very high returns. With the rise of platforms that offer crypto staking and lending, you can earn returns on your holdings. This is my favourite way of generating passive income. I’ve been in it since 2015 (almost 10 years of experience) and the price has been multiplied by almost 20 but it’s not too late to enter because one of the ways in which I generate passive income is basically by using the returns that are paid yearly, which for stable coins are as high as 16%. I did a complete guide on the exchanges with higher returns here. This basically allows me to earn about 7€ per day without doing anything (without counting the value of the crypto going up)
Starting Difficulty: Moderate – Requires understanding of crypto markets and a bit more tech-savviness. But I did complete guides on different platforms and I will create more guides for all the 21 platforms I use.
How Passive? Very passive (like holding stocks or ETFs), depending on platform and security measures.
Potential Returns: High volatility, but staking rewards often range from 5-10% annually, depending on the crypto asset.
Bitcoin is often seen as “digital gold,” but it’s essential to understand the risks. Platforms like Binance, Nexo, Coinbase, and HTX offer crypto rewards and staking options, where you can earn passive income through a mix of interest and appreciation.
Pro Tip: If you want you can use my referral links on crypto exchanges and stock exchanges to have an initial bonus of a couple of 100€ referral links (https://www.byobanking.com/post/how-to-earn-800-in-one-day-with-sign-up-bonuses) to maximize crypto earnings. On platforms like Nexo you can get 35$ in BTC, on Binance 100$ of fees saved, etc.
4. Affiliate Marketing
Affiliate marketing can become highly passive over time. By creating content (like blog posts or social media posts) that include affiliate links, you can earn commissions each time someone clicks through and makes a purchase.
Initial Effort: High – Requires consistent content creation. It’s not so easy to create videos or articles every week. Moreover, google doesn’t put you up in the search until you don’t create enough content (which for me it seems to be about 100 articles).
Maintenance: Low – Once your content ranks well, it continues driving traffic on its own. But you still need to do an article from time to time.
Expected Returns: Varies widely; some affiliates make hundreds, others make thousands monthly.
My own experience with affiliate marketing on www.byobanking.com has been promising (when suggesting Plutus as one of the crypto cards for example), and it can be scaled with minimal ongoing work. Ali Abdaal highlights how platforms like Amazon Affiliates and Skillshare have significantly contributed to his passive income.
5. Sell Digital Products (Ebooks, Templates, Apps)
Digital products, like budget templates, an eBook, or a financial planning app, require upfront work but can provide recurring income. As you probably heard, I’m currently developing a financial planning app that will be a mixture between Splitwise and a Budget App, so that you can basically share expenses with people but everything is reflected into your budget. I will make this App free (with all the premiums) for everyone who subscribes to this blog and keeps active 😊
Initial Effort: High – Requires creating a valuable product. I’ve been developing the App for some weeks now and it’s probably going to take a couple of more weeks until I have the first version. The same for an eBook. Writing an eBook is not so easy and requires a lot of time.
How Passive? Once created, this can become highly passive with the right marketing strategy. Let’s see if I can market it properly. Once the book is out you basically don’t have to do much more writing but just market it.
Expected Returns: Varies based on pricing and demand but can be lucrative with minimal ongoing effort. For the book it’s clear. For an App, it depends because you will depend on Advertisement or adding some affiliate marketing or subscription for premium features.
This is perfect if you enjoy writing or designing. Teaser of the App I'm developing for all my subscribers:
6. YouTube Channel and Content Monetization
If you’re comfortable with creating video content, YouTube can be a fun and profitable passive income stream. Once a video is published, it can continue to earn through AdSense and sponsorships.
Initial Effort: Moderate to High – Requires video production and consistency.
Maintenance: Moderate – To keep growth steady, some channel management is necessary.
Expected Returns: Income varies widely; ad revenue can be as low as $2 per 1,000 views.
Even Ali Abdaal, whose channel now generates around $12,000 monthly from older content alone, emphasizes that it takes time to build a consistent income. This option is a great addition if you’re already sharing content on topics like crypto and financial freedom. I started 3 Youtube channels but I didn’t keep posting consistently. One was a travelling channel and a travel blog from when I did a 6 months sabbatical in Asia with my wife , the other is the one that summarizes content from BYO Banking and the last one is one about the new puppy we have who is sometimes very fun Mali the Golden.
7. Investing in REITs (Real Estate Investment Trusts)
For those who want real estate exposure without owning physical properties, REITs offer a hands-off alternative. REITs pay out dividends from the rent and profits generated by a portfolio of properties.
Starting Difficulty: Easy – Purchase shares through a brokerage account.
Maintenance: Very low – REITs are fully managed investments.
Expected Returns: Dividend yields often range from 3-5%.
This is ideal if you want real estate exposure without the responsibility of managing a property. Many REITs also invest in commercial real estate, adding diversity to your portfolio. For this I used Mintos and for now it has been quite good 😊 You and I can get 50€ if you register with this link https://www.mintos.com/en/l/ref/6VPPWB/, create an account and deposit and invest your first €.
8. Create an Online Course
If you’re skilled in a particular area, online courses offer a scalable way to share knowledge and earn passively.
Initial Effort: High – Requires creating the course and a bit of marketing.
Maintenance: Low – Update course materials periodically.
Expected Returns: Varies widely; a well-received course can generate thousands monthly.
Platforms like Skillshare and Udemy simplify course creation, and Skillshare in particular has been a significant passive income stream for Ali Abdaal.
9. High-Yield Savings Accounts or CDs
For a guaranteed return, high-yield savings accounts and CDs (Certificates of Deposit) offer a stable way to earn interest.
Starting Difficulty: Very easy – Open an account with an online bank.
Maintenance: None – Interest accumulates automatically.
Expected Returns: Rates currently range from 2-4%, depending on the account.
While these rates may seem modest, they’re a low-risk way to grow savings, especially if you want cash liquidity. For this I would especially suggest trade republic, scalable capital or Revlout, which offer between 3.5 and 4%. If you create an account with my link, you and I will get between 10 and 50€ depending on the platform.
10. Peer-to-Peer (P2P) Lending
P2P lending platforms connect borrowers with individual investors. You can lend your money and earn interest.
Initial Effort: Moderate – Research and select trustworthy borrowers.
Maintenance: Moderate – Some platforms require periodic investment management.
Expected Returns: Interest rates vary, but typically range from 5-10%.
P2P lending can be riskier than traditional investments, but platforms like LendingClub and Prosper help simplify the process. In fact, Mintos has also peer to peer lending. I’ve been getting about 11 % in the last 2 years. You and I can get 50€ if you register with this link https://www.mintos.com/en/l/ref/6VPPWB/, create an account and deposit and invest your first €.
11. Crowdfunded Real Estate
Crowdfunding platforms allow you to invest in large real estate projects with other investors, earning returns from rental income or property appreciation.
Starting Difficulty: Moderate – Most platforms have minimum investment requirements and it can be a little bit risky depending on the countries you invest in.
Maintenance: None – Managed by professionals.
Expected Returns: Typically 7-12% annually, depending on the project.
Platforms like Fundrise and RealtyMogul make it easy to get started with a small amount of capital.
12. Rent Out Storage Space
If you have extra storage space, consider renting it out. Platforms like Neighbor let you list and rent storage for others.
Initial Effort: Low – Set up a listing on Neighbor or similar sites.
Maintenance: Very low – Manage access as needed.
Expected Returns: Rates vary based on location and space size but can bring in steady monthly income.
13. Create and License Music or Stock Photography
For creatives, licensing music or stock photography can provide a steady income. Each time someone uses your work, you earn royalties.
Initial Effort: High – Requires creative effort to produce high-quality work.
Maintenance: Low – Upload and wait for royalties.
Expected Returns: Variable; depends on popularity and demand.
14. Dividend-Paying Cryptos (e.g., NEO, KuCoin)
Some cryptocurrencies, like Nexo, YouHodler, Kucoin, Binance pay dividends to holders. These “crypto dividends” can be earned passively, similar to stock dividends. Check this complete guide on how to generate crypto dividends for these and many other platforms. You also get referral bonus when you create accounts with my links.
Starting Difficulty: Moderate – Requires knowledge of crypto platforms.
Maintenance: Low – Hold coins and track the rewards.
Expected Returns: Varies depending on the coin and market conditions.
15. Car Sharing (Turo, Getaround)
If you own a car that you don’t use daily, renting it through Turo or Getaround can generate extra income.
Initial Effort: Low – Register on a platform and set availability.
Maintenance: Moderate – Routine cleaning and maintenance required.
Expected Returns: Daily rates vary by car model and location.
16. Start a Blog or Website
Blogging can become a solid passive income source through ads, affiliate links, and sponsored content.
Starting Difficulty: Moderate – Requires initial setup and content creation.
Maintenance: Moderate – Update content weekly.
Expected Returns: Varies widely; blogs can earn from a few dollars to thousands monthly.
17. License a Patent or Design
If you have an invention or design, you can license it to others for royalties, allowing companies to use it and pay you a fee.
Initial Effort: High – Creating and patenting an invention takes time and investment.
Maintenance: None once licensed.
Expected Returns: Royalties vary but can be substantial if the product is successful.
18. Vending Machine Business
A vending machine business can be largely passive once you’ve set it up. Place machines in high-traffic areas and earn from sales.
Initial Effort: Moderate – Purchase machines and find locations.
Maintenance: Low – Restock periodically.
Expected Returns: Revenue depends on location and traffic.
19. Rent Out Your Tools or Equipment
If you own equipment, such as cameras, power tools, or sports gear, consider renting them out on platforms like Fat Llama.
Initial Effort: Low – List your items and set availability.
Maintenance: Low – Clean and check items between rentals.
Expected Returns: Depends on the items rented and demand in your area.
20. Invest in Precious Metals
Precious metals, like gold and silver, act as a hedge against inflation and can appreciate over time.
Starting Difficulty: Low – Purchase through dealers or online.
Maintenance: None – Value fluctuates with the market.
Expected Returns: Long-term appreciation varies.
21. Selling Print-on-Demand Merchandise
Print-on-demand lets you create designs that are sold on items like t-shirts, mugs, and phone cases. Sites like Redbubble and Teespring handle production and shipping.
Initial Effort: Moderate – Design items and set up your store.
Maintenance: Low – Passive once designs are uploaded.
Expected Returns: Revenue depends on design popularity.
22. Rent Out Your Home Office
With the rise of remote work, home office rentals are increasing in popularity. Platforms like Peerspace allow you to rent out your home workspace for short-term use.
Initial Effort: Low – List your office and set availability.
Maintenance: Low – Minor cleaning needed between rentals.
Expected Returns: Rates vary but can add up, especially in high-demand areas.
23. Invest in Farmland
Farmland investments have gained popularity due to their stability and steady returns. Platforms like AcreTrader allow small investors to buy fractional shares in farmland.
Starting Difficulty: Moderate – Requires platform research and due diligence.
Maintenance: None – Managed by professionals.
Expected Returns: Historical returns range from 3-6%.
Conclusion on the passive income ideas for financial freedom in 2024: including Bitcoin
Reaching financial freedom through passive income in 2024 is achievable, but the journey isn’t as effortless as some might hope. Almost every method – from investing in Bitcoin to affiliate marketing and YouTube channels – requires a mix of upfront effort and patience. The most passive methods are the ones that involve investing in markets like stock, ETF, cryptocurrencies, REIT, etc. If you want, check out the best crypto and best stock exchange (with tips and referral links inside)
By diversifying your income sources, you not only safeguard your financial future but also create pathways that gradually lessen your reliance on active income.
If you’re looking for a more in-depth guide on these strategies, check out this personal finance analysis based on Ali Abdaal’s favorite book to deepen your understanding of active vs. passive income streams. Good luck choosing the best ways to generate passive income!
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