13 Passive Income Ideas for Young Adults to Build Wealth

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passive income ideas for young adults

As a young adult, you’re likely juggling a busy schedule of studies, work, or both, while trying to figure out your long-term career path. But what if there was a way to earn money without being tied to a traditional 9-5 job? This is where passive income comes in.

Maybe you want to start saving for your future or maybe you simply want to enjoy a bit of financial freedom. Whatever it may be, building passive income streams can help you earn while you focus on what truly matters—living your life.

In this article, we’ll go through some of the best passive income ideas for young adults that you can start working on today. If you have a little extra time, a particular skill, or just a small sum of money to invest, these ideas will show you how to generate passive income.

Why Passive Income is Important for Young Adults

Passive income brings in decent money, yes, but it’s also about having financial freedom and flexibility. It offers you the ability to:

  • Achieve financial independence early in life.
  • Save for future goals like traveling, higher education, or investing in property.
  • Have multiple income sources to reduce dependence on a single paycheck.

Let me just give you a little heads up – these passive income ideas are not quick get-rich-overnight schemes. You will need to put in some effort and have patience to actually see results. If you are ready to put in some work, these ideas may offer you a good starting point.

Let’s now look into the top passive income ideas for young adults. Go through each one of them and see which one resonates with you.

What are the Best Passive Income Ideas for Young Adults ?

Here are the 13 best passive income ideas for young adults:-

1. Start a Blog

If you enjoy writing , then start a blog! Being a blogger is an awesome way to make passive income. For example, Melyssa Griffin, who owns the blog melyssagriffin.com, earns about $200,000+ per month from her blog.

We’ll not go into the technical details about setting up a blog here (that’s worth another article) . I’ll just show you how you can earn passive income through your content.

  • Affiliate marketing: This is a very popular monetisation method where you promote products and earn a commission for every sale made through your referral (affiliate) link.

You first need to decide on a niche for your blog or YouTube channel. Niche is a category or a topic you focus your content around. Here are a few examples of niches:

  • Travelling
  • Digital marketing
  • Fashion and Lifestyle
  • Health and Fitness
  • Technology and Gadgets
  • Personal Finance
  • Parenting
  • Gaming

You should choose a niche which can make you money and which you know atleast a little about.

Find some good high paying affiliate programs in your niche. Look at the commission rates and the reviews. For example if your niche is Fashion, you might what to consider joining the Nordstrom affiliate program.

Then start going content-crazy and make valuable high-quality content for your readers. Try your best to optimize it for search engines using SEO tools like SEMrush. Most of the traffic you get is going to be from SEO, so this step is very important. This is the SEO crash course which I went through, before I started creating my content.

Introduce the affiliate products and place your unique affiliate links across your content. Give in-depth reviews about it. Then promote your affiliate links and content on social media. I also use Pinterest to drive traffic to my blog.

Every time someone clicks on your link and makes a purchase, you get a small commission. Make sure to let your audience know that you use affiliate links.

  • Ad revenue: As your audience grows, you can monetize your blog through ads.

For your blog, you could join ad networks like Google Adsense or Mediavine, which are both popular ad networks. Mediavine has an application process and requires 50,000 sessions/month. 1 session is counted when someone interacts with your website, like signing up for your newsletter, reading a post etc. It can be quite hard to get into, but once you’re in, you can start earning some good money.

  • Sponsorships: Brands may pay you to promote their products once you’ve built a large, engaged audience. You can do this by reaching out to brands which align with your niche and sending them a pitch.

I would recommend creating a media kit. A media kit contains the story of your blog/business. It includes data like social media statistics, the no. of sales you have driven , audience demographics , testimonials , top posts etc. You basically flaunt your work and personal brand.

You then share these to the brand you reach out to. You can use free influencer media kit templates available on Canva.

  • Selling you own products: Once you’ve gained a good amount of following, you can consider selling your own courses or products. You can sell webinars, ebooks and printables on your website’s own shop page.

2. Start a Youtube Channel

If creating video content excites you more than writing content, create a Youtube Channel! You don’t even need to show your face, if you are not comfortable with it. You just need to learn basic video editing on a platform like DaVinci Resolve ( It’s free but has a paid version too). You could even use AI to speed up this process.

Very Briefly, here is how you can monetise your video content:

  1. Sponsorships
  2. Ads: Join the YouTube Partner Program to earn money through ads on your videos.
  3. Affiliate marketing
  4. You could also include links to your own courses in the description.

3. Invest in Dividend-Paying Stocks and ETFs

Dividend-paying stocks are an excellent way to generate passive income while investing for the long term. Some companies pay out dividends to their shareholders, which you can either reinvest to grow your wealth or take as cash payouts.

Here’s why dividend investing is a great passive income strategy for young adults:

  • Reinvestment potential: By reinvesting your dividends, you can take advantage of compounding, which significantly boosts your long-term wealth.
  • Long-term stability: Many blue-chip companies pay dividends, making this a relatively low-risk investment compared to growth stocks.

You can also invest in dividend-focused ETFs (Exchange Traded Funds), which pool together dividend-paying stocks for diversified exposure.

But again, like any other form of investment, this too carries some risks. So do your research, plan and invest wisely.

4. Create and Sell Digital Products

If you are interested in creating things like eBooks, design templates, or even online courses, you can make money online by selling digital products. What makes digital products so appealing is that, after you initially create it, you don’t even have to do much to maintain it. But, it can be sold over and over again, generating passive income for years to come.

Here are a few options to explore:

  • eBooks: Write an eBook on a topic you’re knowledgeable about and sell it on platforms like Amazon Kindle Direct Publishing (KDP) or Gumroad. But I have to say that it is an extremely competitive market. There are so many people publishing everyday that it can be very hard to build an audience for yourself.

Remember that you don’t have to be an awesome author or a professional to write an eBook. You could centre your eBook around your hobbies.

Do you like cooking ? Write a cookbook with your recipes. Are you interested in gardening? Talk about it. Tried out a business and have advice and ideas to give ? Write them down.

So if you have something valuable to give to your readers or if you’re willing to learn something and write an ebook, go for it!

You don’t have to worry about the design of your eBook. There are multiple free eBook design templates available on Canva. So pick a design that you like and starting writing away.

  • Printables: If you’re into graphic design, you can create printable items like planners, calendars, workbook templates or wall art and sell them on Etsy. Canva is a free platform (with optional pro elements) to create printables.

Besides Etsy, you could also sell them on Creative Market but it has an application process. You are asked to showcase your work portfolio. So, I recommend that you start out on Etsy and when you have created enough designs, use them to apply to Creative Market.

That is a look at what kind of templates people are selling on Etsy. You can take inspiration from the millions of designs that people have made on Canva and Etsy and start creating.

  • Online courses: Selling online courses is great side hustle for young adults. Platforms like Teachable and Udemy make it easy to sell your courses to a global audience. If you’re good at and are willing to teach things like coding, sketching , or even personal finance, creating a course allows you to earn passive income each time someone enrolls.

The best part? You just create it once and sell it to as many people as possible. This is one of the best passive income ideas for young adults online.

5. Peer-to-Peer Lending

If you have some extra cash to invest, peer-to-peer lending (P2P) allows you to lend money to individuals or small businesses in exchange for interest payments. Some third party companies connect borrowers with investors, allowing you to earn passive interest income without the hassle of traditional loans.

Here’s how it works:

  • You invest in loans issued to vetted borrowers.
  • Borrowers make payments (including interest), which are distributed to investors.

The interest rates are generally higher than what you’d earn from traditional savings accounts or CDs. However, there’s also certain risk involved. Be sure to do proper research and invest wisely.

6. Real Estate Crowdfunding

Real estate investing might sound like a pipe dream for many young adults, but with real estate crowdfunding platforms, it’s possible to invest in real estate projects with minimal upfront capital.

Here’s how it works

  • You pool your money with other investors to buy a share in a real estate project.
  • You earn passive income through rental income or property appreciation.

The beauty of real estate crowdfunding is that it allows you to invest in properties without the headaches of property management.

7. Sell Photography or Art Online

Are you a photographer or an artist? Selling your work on platforms like Adobe Stock can help you earn passive income through royalties or sales.

Each time someone downloads your work, you get paid a percentage. While it takes time to build a portfolio, once you have a decent collection, your photos or designs can continue to generate income long after they’re uploaded.

For photographers, consider uploading your best photos to stock photography websites. Artists can sell digital prints or even license their work for use in marketing, merchandise, and more. This is a creative and fulfilling way to build a passive income stream while doing something you love.

8. Invest in Automated Robo-Advisors

If you want to invest in the stock market but don’t have the time or expertise to manage your portfolio actively, robo-advisors are the perfect solution. These platforms automate your investments based on your risk tolerance and financial goals.

Here’s why robo-advisors are an excellent choice for young adults:

  • Low fees: Robo-advisors charge a fraction of what traditional financial advisors charge, allowing you to keep more of your returns.
  • Automatic rebalancing: Your portfolio is automatically adjusted as market conditions change, so you don’t have to worry about constant monitoring.

With automated investing, you can build wealth over time with minimal effort. Just set up your account, invest a small amount each month, and watch your portfolio grow.

9. License Your Music or Audio Tracks

Musicians and audio creators can earn passive income by licensing their tracks for commercial use. Platforms like Epidemic Sound allow content creators to license their music for use in videos, podcasts, and commercials.

Each time your music is used, you receive a royalty payment. Whether you’re producing original songs, jingles, or background music, licensing your music is a great way to turn your passion into a passive income stream.

10. Invest in Bonds or Fixed-Income Instruments

While stocks offer higher returns, bonds and fixed-income investments provide a more stable source of passive income. Bonds pay interest over a fixed term, providing you with regular income regardless of market conditions.

Here are a few options for young adults:

  • Government bonds: Low-risk and backed by the government, but offer lower returns.
  • Corporate bonds: Higher returns, but slightly more risk.

Bonds are a great way to diversify your portfolio and provide a safety net during economic downturns.

11. Code an App

In today’s digital age, creating and monetizing an app can be a lucrative passive income idea for young adults from home. If you have coding skills or are interested in learning, this could be a great way to generate passive income from home while building something innovative.

How to Get Started with App Development

To start coding an app, you’ll need an idea that solves a problem or provides value. The app could be anything from a productivity tool, a game, or a lifestyle app. The key is to identify a niche and develop an app that appeals to that audience. You don’t have to be an expert developer, either. You can make use of platforms like BuildFire offer tools that allow beginners to create apps with little to no coding experience.

Once your app is developed, the next step is to publish it on platforms like Google Play or the Apple App Store. You could even choose to initially sell it for a price. After your app is reviewed, you can start earning passive income through various monetization methods.

Ways to Monetize Your App
  • In-App Purchases: One of the most common ways to generate passive income from apps is through in-app purchases. This allows users to buy premium features, content, or upgrades within the app.
  • Advertising: Placing ads within your app is another way to create a passive income stream. Platforms like AdMob by Google allow you to earn money by showing ads in your app, especially if you have a large user base.
  • Subscription Model: For apps that provide ongoing value, such as fitness or productivity apps, a subscription model can be a reliable source of passive income. Users pay a recurring fee to access premium features or content.
  • Freemium Model: Offer a basic version of your app for free but charge for advanced features or ad removal. This model is popular for many apps and games, allowing users to try the app before investing in premium features.
How to Maintain Passive Income from an App

App development requires a lot of effort to be put in, even after its initial release, but it is rewarding. You may need to provide occasional updates to fix bugs or add new features . As long as your app remains relevant and useful, it will continue to generate passive income with minimal effort on your part.

By coding an app, you can create a side hustle that earns extra cash while focusing on other projects.

12. Rental Income

Renting out space is one of the most straightforward ways to earn passive income. If you have an extra room, a parking spot, or even storage space, consider turning it into a passive income stream by renting it out.

How Renting Space Generates Passive Income

There are several ways to generate passive income through rentals, depending on the type of space you own or have access to:

  • Renting Out a Room: If you have an extra room in your home or apartment, you can list it on platforms like Airbnb. Short-term rentals are a great way to make money, especially if you live in a popular or high-demand area. You can set your own rates, and once listed, it becomes a steady source of passive income.
  • Renting Out Storage Space: Many people are looking for affordable storage spaces. If you have extra space in your garage, attic, or basement, you can rent it out to those who need a place to store their belongings. Websites like Neighbor allow you to list your storage space for rent. This is a true form of passive income since you don’t need to actively manage or interact with the stored items once they’re placed.
  • Parking Space Rental: If you live in a city or near busy areas like airports, stadiums, or downtown centers, you can rent out a parking spot. This is one of the easiest ways to earn passive income from home.

13. Start a Podcast and Generate Passive Income

Podcasting has seen an explosive rise in popularity. So, this offers a unique opportunity for young adults to create a passive income stream. If you’re passionate about a specific topic or enjoy having meaningful conversations, starting a podcast could be your gateway to earning passive income from home.

Podcasting comes with a small upfront investment and the potential to reach a wide audience. Hence, it is a low-cost, scalable income idea for anyone looking to get creative while earning.

How Podcasting Generates Passive Income

Podcasting can generate passive income through multiple channels once you’ve built up a consistent listener base. Here’s how you can make money while doing what you love:

  • Sponsorships: As your podcast gains more listeners, sponsors may reach out to advertise on your show. These companies pay you to mention their products or services, and you can even sign long-term deals for recurring ads, which provides steady passive income. Companies often look for niche audiences, which makes this one of the most lucrative passive income streams in podcasting.
  • Affiliate Marketing: Just like blogging or YouTube, affiliate marketing works wonders in podcasts. You can promote products or services related to your podcast’s theme, and earn commissions for every sale made through your referral links. For example, if your podcast focuses on personal finance, you could promote investment tools or apps, earning commissions each time a listener signs up.
  • Patreon or Membership Programs: If your listeners find your content valuable, you can set up a Patreon page or other membership programs. This allows your audience to support you directly by contributing small amounts on a recurring basis. In return, they get exclusive content, early access to episodes, or other perks. This system can provide a consistent source of passive income.
  • Advertising Revenue: Once your podcast reaches a certain level of downloads, podcast platforms may offer you a share of advertising revenue. This includes ads inserted before or during your episodes, allowing you to generate passive income as your listener count grows.

Building passive income streams as a young adult is one of the smartest financial moves you can make. Whether you’re interested in starting a blog, investing in stocks, or selling digital products, there are countless ways to generate passive income. Start small, stay consistent, and over time, you’ll see your passive income streams grow.

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