How To Create Passive Income With No Money

What is passive income? Do you know how to create passive income with no money? Can you start business without capital?

“Making money while you sleep” has a nice ring to it, doesn’t it? After all one of the goals of financial independence is to build wealth that doesn’t eat up your time, so you can enjoy life and do the things you choose to do.

The truth is that building a passive income stream usually isn’t passive at first. It requires time, money, skills or all three. But where do you start?

Passive income can be a great way to help you generate extra cash flow, whether you’re running a side hustle or just trying to get a little extra dough each month.

Passive income can help you earn more during the good times and tide you over if you suddenly become unemployed or even if you voluntarily take time away from work.

What is Passive Income?

Passive income is money earned with minimal activity through any venture that requires little daily effort or upkeep on the individual’s part. Its called residual income.

Passive income is money you earn that doesn’t require you to do a lot of “active” work to continue making it.

In essence, you can do most of the work upfront and put some additional effort along the way to earn an income.

For example, if you create an online course, you just need to update its content to keep the money flowing.

Active Income vs. Passive Income – Which Is Best for Me?

In theory, all of your income sources carry similar weight. But when it comes to achieving financial freedom, passive income leaves active income in the dust.

You see, active income is the money generated from all those efforts you’re currently making. And you need to keep working in order to continue earning an income. If you quit, you don’t get paid. Your time literally equals money.

And then you have passive income. An income that doesn’t require you to work actively. And the money continues to flow in for years and years.

Passive income is not…

Your Job. Generally, passive income is not income that comes from something you’ve been materially involved in such as the wages you earn from a job.
A second Job. Getting a second job isn’t going to qualify as a passive income stream because you’ll still need to show up and do the work to get paid. Passive income is about creating a consistent stream of income without you having to do a lot of work to get it.
Non-income Producing Assets. Investing can be a great way to generate passive income, but only if the assets you own pay dividends or interest. Non-dividend paying stocks or assets like cryptocurrencies may be exciting, but they won’t earn you passive income.

How to create passive income business ideas — Learn how to make passive income with this list of 20 ideas you can get started today. Passive income can be a great way to make money.

How To Create Passive Income Ideas For Building Wealth

If you’re thinking about creating a passive income stream, check out these strategies and learn what it takes to be successful with them. While also understanding the risks associated with each idea.

21 Tips On How To Create Passive Income With No Money

If you are not into investing, you can start now. To create a passive income stream,

1. Build Your Own Website

Building your own website can be a reliable source of passive income.

Some folks create marketing agencies and outsource the work to freelancers. Others, like a couple entrepreneurs on this list, create online courses to share their knowledge and educate others.

You can also sell products – digital or physical – online. New to online selling? Here are some ideas for what to sell on the internet.

However, by building your own website, you gain more control over what you sell and how much money you make.

It’s one of the best beginner passive income ideas as there are a variety of tools to help you create a website (no coding required).

You can then spruce it up by adding a theme, logo, and other UI elements. Ultimately, your success lies in your hands, enabling you to take your brand wherever you want it to go.

2. Start a Blog

In alignment to creating an online course, you can create a blog.

It will take some time to build an audience and your blog, but once it is done, and start making some money, it can create passive income without investing a lot of money.

Creating a blog can open up so many ways to make money without investing money. A blog can be started with as low as under $100. It will be an investment of time.

There are many bloggers who are making a lot of money from their blogs.

You can learn how to create a blog from my free email course. Starting a blog is a good way on how to create passive income ideas for students who want to pay off their student loans fast.

How to create passive income with no money — There are two ways to start earning passive income, first invest money and second, invest time. If you don’t have money to invest, you have to invest time in order to create passive income streams.

3. Affiliate Marketing

Affiliate marketing can be a great way of earning money on autopilot.

It is not that easy because it need an audience that trust you. Having a blog makes it easy to earn money from affiliate marketing.

Though it is not necessary to have a blog, it can be done on social media platforms too if you have a good following.

If you want to start with affiliate marketing, you can learn it from this course.

Some people make very niche-specific websites with great SEO and start affiliate marketing. If you have started a blog, then earning money with affiliate marketing will be much easier.

If you are a beginner and want to learn affiliate marketing then Michelle’s course Making Sense of Affiliate Marketing is really good for you.

Learn more on how to create passive income with no money by reading tutorials and YouTube videos for free.

4. Invest in Crowdfunded Real Estate

Peerstreet is the third largest real estate crowdfunding site. It works as a middleman between the investor and the borrower.

It is a peer to peer lending for real estate projects. Here the borrowers are considered to be the professional investors who purchase the property, fix it up ad sell at a higher price.

Peerstreet claims to have a lower fee than other similar platforms. Also, it gives you good returns.

If you feel comfortable then you can invest in this crowdfunding platform and start earning passive income. It is said to give you around 5-6 % return on your money invested.

5. Buy Property

Depending on where you buy and when, real estate can be a good way to make or create passive income.

In many popular cities like Toronto, New York, London, Paris, there has been a steady increase in property value – 9.36% during 2020, the highest growth in Canada since 2016.

By buying pre-construction condos. You may find some lower cost properties that’ll increase in value by the time it’s finally built. Allowing you to sell the property once it’s complete for a profit.

As with all investments, it can be risky. So it’s best to speak with a real estate agent if you’re new to the game to help you buy the right investment property.

best passive income ideas for building wealth — Passive income is money you can earn without too much ongoing effort. After you identify and establish a stream of passive income, you won’t need to work anymore

6. Create a Course

Selling online courses is one of the best passive income ideas of 2022.

That’s because we’re still seeing massive sales growth for course creators. Whether you decide to sell a course on your own website or on a platform like Udemy, you’ll find customers who want to learn your insider tips and tricks.

Creating an online course can become truly passive if you are committed to building a solid income stream.

You just need to invest time, as said earlier, that either you have to invest time or you have to invest money.

A good quality course will take some time to create, but once created, it can start giving you passive income.

There are many other people who are earning a good amount of money from online courses. The only catch is that the course should provide value and solve a solution.

Megan’s course is great for Pinterest beginners and intermediates. It feels like she is holding your hand at every step of setting your Pinterest account.

7. Create an App

We might only be on the fifth passive income idea on this list, but you probably noticed a trend: Creating stuff tends to lead to passive income. If you’re a developer or programmer, you might want to try creating apps as a passive income stream.

You can go about it in two ways. First, you can charge a fee for people who want to buy your app.

Second, you can make your app free and monetize with ads. My fiance did this a few years ago and still makes a side income from his app to this day.

He bought code from CodeCanyon.

Then, he used a tool called Eclipse and installed the Android Development SDK to make modifications to the code to create his own unique app.

You can monetize your app in a number of ways, including running in-app advertising, offering paywalled content, and charging for premium features.

8. Rent a Room In Your House

This can be your best way to earn or create passive income. You don’t need to do anything extra, just rent your room.

Many international students rent single rooms near universities and it is good for both the family and the students.

If you are a bit worried and want to be more secure, you can rent it through Airbnb. This income is truly passive.

If the rent of the room is around the same amount which you make in one week, you will add an extra 12 weeks to your year. Now, instead of 52 weeks, a year contains 64 weeks. ( I love this idea)

9. Invest in Stocks

When you look at the world’s richest people, it’s pretty safe to say that stocks have played a big role in their deep, endless bank accounts.

While the act of investing in stocks is pretty passive, the research that goes into it is active.

Warren Buffett reads 500 pages a day, but he’s not reading your average mystery book. Nope. He reads business’ annual reports.

By reading annual reports each day, he better understands whether or not a business is performing well, which helps him improve his ability to invest in stocks.

Stock investments can help you create passive income stream that stretches far beyond what your value at your 9 to 5 job is worth.

So, consider this passive income idea if you like reading about the performance of various businesses.

10. Sell digital products on Etsy

If you know how to create some digital products like stickers and posters, Etsy is a great place to sell your art and craft creations.

You just have to create once and then you can earn an income in coming time. You can create passive income jobs from home by selling stuff online.

11. Become A Social Media Influencer

Did you know that you can get paid for posting on social media?

There are a variety of ways to earn money as a social media influencer. You can work with companies to produce sponsored posts/content which the company will pay you for.

Typically rates for sponsored posts are calculated by how many followers you have and your engagement rates.

You can also earn income as a social media influencer by sharing affiliate links, writing sponsored blog posts or by hosting events/attending events as an influencer.

To get started earning money as a social media influencer, it is a good idea to create a media kit highlighting your social media accounts, your niche and samples of your work.

12. Investing In Index Funds

Investment funds are also called exchange-traded funds and these are the investment products that let you invest in different companies simultaneously.

These are really great if you yourself don’t know how to outperform the market. Index funds or ETFs invest in multiple companies and mix good apples with bad apples.

There are different type of index funds :

Vanguard S&P 500 ETF
Fidelity Total Stock Market index
Vanguard Total Stock Market Index
Vanguard High Dividend Yield ETF( VYM)

13. Sell Your Videos

If you always find yourself in the midst of drama and excitement, you might want to pull out your phone and hit record.

Doing that can help you make some passive income. The latest video marketing stats indicate that people are obsessed with video content, so you should be able to find an audience for your films.

Why? Because you can sell that video to a news site.

And if the video takes off, you can make some recurring money for weeks, months, and sometimes even years.

Of course, the easiest way to get in on the action is to be at public events such as protests, demonstrations, and festivals.

Wherever there’s controversy, you’ll find opportunities for your content to be sold.

And if you’re good at producing entertaining content, companies will pay you to create viral videos along with offering a share on overall earnings.

Peter Kock, Owner of Seller at Heart, shares how he made passive income uploading videos to popular websites: “I uploaded a few videos to Newsflare and Rumble.

When my content gets bought, 50% of all revenue generated gets wired to my personal account.

My videos were featured on MSN, AOL, Yahoo, Daily Mail, The Guardian, etc. With Newsflare, I made over $4,000 so far and still I’m getting royalties for videos uploaded a few years ago.”

15. Create YouTube Videos

YouTube is the passive income stream that just keeps on giving.

From sponsored videos to ad revenue, you’ll find that you can make recurring income from your YouTube channel.

Are you an expert on travel to Thailand? A maven of Minecraft? A sultan of swing dancing?

Take your passion for a subject and turn it into a blog or a YouTube channel, using ads or sponsors to generate your income.

Find a popular subject, even a small niche, and become an expert on it.

At first you’ll have to build out a suite of content and draw an audience. But it can create a steady income stream over time, as you become known for your engaging content.

The secret to creating a successful YouTube channel is creating content on a consistent schedule for a long time. That’s it.

If you stick with it for the long haul, you’ll eventually start reaping the passive income rewards.

Already have a YouTube channel? Check out, How to Make Money From YouTube, for ideas on how to monetize your video content.

16. Invest in a Business

If you don’t like the stock market, a better way to build or create passive income is to invest in tangible assets that you can see, understand and watch grow over time.

My favorite way to do this is to invest in small businesses. Entrepreneurs are a special breed and when you come across the right one with the right idea… there’s no doubt that money is in their future!

So how to jump on the bandwagon? It’s simple: Provide them with the funds they need in order to grow.

Below are platforms and websites that connect entrepreneurs and businesses with investors seeking a return.

Often, investments in private businesses are reserved for “high net worth” individuals, but there are other ways you can invest in a business.

Chances are you know a local business or two that could use some capital, or help, or both. You can provide services such as social media consulting or operational consulting for a share of the cash flows of the business.

If you have capital, and meet certain qualifications, you can buy a percentage of the business.

I have made both passive and active private business investments across a range of businesses including venture capital deals and local small businesses like restaurants.

17. Advertise On Your Car

You can Passive income by doing nothing but driving as usual.

Wrapify will wrap your car with some advertisements, and you will get paid for having that advertisement on your car.

This one works well if you drive in popular areas and you don’t mind how your car looks like.

You have to download the Wrapify app through which they track your mileage.

a). Carvertise: With Carvertise you could earn up to $1200 during an ad campaign and can usually expect around $100 a month, just to use your car as ad space.

Check out their site to see if they’re currently advertising in your area.

b). Wrapify: Wrapify operates a lot like Carvertise, but differs in how you get paid. With Wrapify, you track your mileage and location.

The more you drive, the more ads you qualify for, and the more money you make, which can add up to $200 a month.

c). Vugo: Vugo is an awesome way to earn passively alongside rideshare driving. All you do is mount a phone or tablet to your dash and play ads, games, and videos.

The app is compatible with Google Maps and Waze. Drivers can earn up to $200 more a month playing the ads, and there’s a driver tipping feature built in.

18. Earn Money Doing What You Are Already Doing

Create passive income ideas with little money.

This one is a great way to earn some passive money. If you love shopping online, you can start earning passive income by getting some cashback and these sites pay for referring people too.

Rakuten: Earlier Ebates is a great place to get cashback on shopping.
Cashrewards: Another great site for cashback
Raiz invest: This micro-investing site will invest your spare change by rounding off your purchases

19. Flip Websites

Do you love building websites and online stores? If so, you could make passive income selling them.

You’ll likely need to get your first few sales (to prove that your store is awesome).

But if you’ve got great design skills and build out some of the content on your website, you could find someone who’d be willing to buy your store.

If you’re looking for a place to sell your website, you could try out Shopify’s Exchange Marketplace.

On the platform, you can sell your newly built online store or your advanced six- or seven-figure store. It’s the perfect platform for website flipping. Flip websites to earn passive income.

20. Help Businesses Bring in Clients

Are you a savvy marketer or salesperson? If so, there are tons of businesses who will pay you referral fees for bringing them more business.

Real estate agents are always looking to help more people find a home they love.

Freelancers, DJs, photographers, and other solopreneurs will often be willing to pay a referral bonus for finding them a client that signs a contract.

So if you love helping people make money, you can start building passive income through your connections.

All it takes is a couple of emails or messages and you could earn passive income for very little effort.

21. Use Passive Income Apps

Passive income apps work exactly as they sound – you install them on your smartphone and perform a few actions to earn money.

The actions can range from doing everyday activities such as watching videos to turning a small financial investment into a passive income stream.

There are plenty of apps to start putting your mobile device and time to better use. Some good ones are listed below.

Fundrise – Fundrise lets you invest in real estate projects with an initial minimum investment of $1,000. It comes with the option to take quarterly dividends, which serve as your passive income.
InboxDollars – InboxDollars offers cashback for doing activities that you’re likely to do anyway, such as shopping, watching TV, and searching the web. The cashback and the $5 bonus for signing up are your passive income.
Dosh – Dosh gives you the option to link your debit and credit cards to its system. When you pay for something using these cards, you earn passive income in the form of cashback.

FAQs About Passive Income

How Can I Generate Passive Income Ideas?

You can generate passive income ideas in a myriad of ways. For instance, you could write down all the things that interest you and research how other people build businesses around these things. Another idea is to brainstorm how to solve a common problem you have and build it into a passive income idea.

What Passive Income Ideas Can I Start With Little Doney?

There are many passive income ideas that you can start with little money. These include drop shipping, affiliate marketing, print-on-demand, and selling your unused things.

How can I Create Passive Income With No Money?

If you have little or no money to start. You’ll have to rely mostly on your own time investment to power you through, at least until you build up a little money.

That means focusing on passive income sources that take advantage of the following traits:

An area where you’re an expert. Here you can build your expertise out into a useful product or service for consumers, e.g. design, software coding and others.
An upfront work-heavy opportunity. You’ll need an opportunity that requires a time or work investment, such as creating a course, building out an influencer profile or other options.

In effect, you’re substituting your time for your lack of capital, until you can get enough capital to expand your set of opportunities.

Which Passive Income Stream Is The Best?

The question of which passive income source is the best depends on several factors. But some of the most important include:

The total opportunity size,
Your interest and ability in the area,
The amount of money you have to invest
The amount of time you need to invest and the potential to succeed.

Typically, the lower the barriers to entry, the more crowded the field of competitors and the lower likelihood of success.

So you’ll need to weigh the opportunity against these factors and see which passive income strategy works best for you.

But it can be helpful to have natural ability and an interest in your target area. Because these can help motivate you in the early days when things are likely to be tougher.

There are passive income opportunities for people who are starting out with some money and even those who have no money to start.

How Can I Create Passive Income With Capital To Invest?

Money can provide you with more passive investment opportunities.

If you have money to invest in a passive opportunity. You have not only the opportunity set above but a new range, too. Money is a prerequisite for taking advantage of the following passive income areas:

Investing in dividend stocks or REITs. Investing in stocks means you need money upfront, but you’ll receive some of the most passive forms of income around.
Save with bonds or CDs. Other purely passive activities include buying bonds or CDs.

Here you can use your money to make money with little or no effort on your part, if that’s what you’d like to do.

Of course, you could pair your money with a lot of time investment to move into an even more lucrative niche, too.

How Many Income Streams Should I Have?

There is a common saying with millionaires which says that: “millionaires have seven income streams”.

There is no “one size fits all” advice when it comes to generating income streams.

How many sources of income you have should depend upon where you are financially, and what your financial goals for the future are.

But having at least a few is a good start.

“You’ll catch more fish with multiple lines in the water,” says Greg McBride, CFA, chief financial analyst at Bankrate.

“In addition to the earned income generated from your human capital, rental properties, income-producing securities and business ventures are a great way to diversify your income stream.”

Of course, you’ll want to make sure that putting in effort into a new passive income stream isn’t causing you to lose focus on your other streams.

So you do want to balance your efforts and make sure you’re choosing the best opportunities for your time.

Creating passive income with no money, is a strategy which can be used to create wealth and propel you to financial independence.

Conclusion

How To Create Passive income with no money is highly sought after and often misunderstood.

Passive income streams require an upfront investment and a lot of nurturing in the beginning.

After some time and hard work these income streams start to build and are able to maintain themselves. Bringing you consistent revenue without much effort on your part.

Passive income can really help elevate your earnings and fill in the gaps that your 9 to 5 job can’t fill on its own.

Speaking from personal experience, adding passive income streams to your portfolio can help you increase your earnings and accelerate your financial goals in tremendous ways.

If you’re looking to replace your 9 to 5 income so you can quit your job, creating passive income ideas on this list can help you do that.