Top 5 Ways To Build Passive Income Streams

8 Aug 2022
Updated on 29 Sep 2025
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Creating multiple income streams is one of the smartest ways to gain financial freedom. By investing in passive income, you can make money with minimal effort, sometimes even while you sleep!

But first, let’s answer an important question:

What is passive income?

Passive income is money you earn with little day-to-day involvement, often through investments or systems that generate ongoing revenue. Unlike active income, where you trade time for money, passive income allows your money, assets, or skills to work for you.

In this guide, we’ll explore the top passive income ideas, how to generate passive income step by step, and what to do if you need quick cash today with title loans or installment loans.

Best Passive Income Ideas To Start Today

1. Sell Digital Products Online

These days, people are leaning into digital products as an opportunity to build passive income streams.

Some popular digital products you could sell online are journals and planners that you can create on Canva or another program. You could also create templates for websites, excel sheets, and graphics.

If you are into photography or editing, you could sell presets or stock photos. If you have always dreamed of becoming an author, you could get your start by self-publishing an eBook.

If you consider yourself an expert in a niche field, consider creating an online course, digital guide, or how-to tutorials. You can use this knowledge to start a blog or YouTube channel while using social media to gain an audience and promote any digital product you are selling.

Online places you could sell your products include Shopify Lite, Gumroad, Amazon, and Etsy.

2. Invest in Real Estate (House Hacking)

If you have been interested in getting into the real estate game, but don’t know where to start, you should consider house hacking. Essentially, you buy a house or apartment to live in and then rent out any extra space to tenants to lower your rent and utility payments.

The key is to make sure the house is in a popular, safe area where people want to live and is near public transportation. The best housing model for house hacking is a multi-family property with separate units – the more space the better – but even apartments can be house-hacked if you have a spare bedroom.

Another idea is having a finished basement for you to live in and rent out the majority of the house to another family, or vice versa. You can also look at properties that have an Additional Dwelling Unit (ADU), such as a guest house with its own electrical and plumbing systems.

You can also buy a multiple-bedroom house in a neighborhood with single-family homes. The more bedrooms you have to rent out, the better, but also keep in mind the house should have adequate lounge space for everyone to feel comfortable.

Before getting started, remember to consider barriers such as Homeowner Association (HOA) restrictions or areas that don’t allow for short-term rentals.

Once you’ve mastered house hacking, you can continue growing your passive income streams through real estate by purchasing more properties and renting them out.

3. Earn Passive Income Through Dividend Stocks

Another way to get a passive income is through the stock market. When purchasing stocks, look for ones that pay significant dividends. These range in amount and frequency. REITs are a great place to start.

Diversifying your stocks increases stability, so you should build a dividend portfolio with diversity across many sectors and industries. Consider companies with a strong history of paying dividends with a payout ratio of 60% or less. And remember, any investment within the stock market comes at a risk, so only invest with money you aren’t relying on to cover other expenses.

woman sitting by a lake with laptop with text Top 5 Ways To Build Passive Income Streams

4. Rent Out Your Car

If you have a car that you aren’t using, you can rent it out to others for some extra cash with companies like Turo, Getaround, and HyreCar. These companies function like Airbnb, but for your car.

Let’s say you only use your car during the week or weekend but have it sitting in the driveway the other days. Open up your car’s calendar for those days on one of these sites and have others pay you to use it as a rental!

5. Get Paid To Advertise On Your Car

On the other hand, if you drive your car a lot, you can get paid to wrap your car in advertisements. Companies such as Carvertise and Wrapify match companies to drivers’ preferences to make sure you’re advertising something you support.

How much you earn depends on how long the ad campaign runs, what city you live in, and if you decide to fully or partially wrap your car. You could potentially earn between $190 to $450 per month or $300 to $1,200 per campaign.

There are also plenty of other ways to make money from your car that are easy and fast. Read more here about other ways to make money from your car. 

Need Money While Building Passive Income?

While these income streams are powerful, they take time to grow. If you need cash fast to cover bills or an emergency, consider:

Title Loans in Delaware

Title loans allow you to use your vehicle’s lien-free title as collateral. You can borrow $300–$15,000 in as little as 30 minutes. Best of all, you keep your car while making payments.

Installment Loans in Delaware

If you prefer smaller payments over time, installment loans may be a better fit. With amounts up to $1,250, you’ll need your ID, proof of income, and a checking account. Installment loans can be a flexible option when you need quick funds.

FAQ: Title Loans & Installment Loans

1: Can I get a title loan with bad credit?
Yes. Approval is based on your vehicle’s value, not your credit score.

2: What is an installment loan?
An installment loan allows you to borrow a set amount of money and repay it in smaller, fixed monthly payments.

3: How do installment loans help with emergencies?
Installment loans break down repayment into manageable amounts, making them a flexible option for covering unexpected bills or expenses.

Start Earning Passive Income Today!

Now that you know the top 5 passive income streams, it’s time to take action. Whether you're selling digital products, investing in real estate, or renting out your car, the key is to start small and stay consistent.

Ready to start your passive income journey? Let us know which method you'll try first!

Need cash now? Apply for a title loan today and get money in as little as 30 minutes.

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.

Emma Frost

Emma Frost is a lifestyle and finance blogger with a talent for communication and a passion for financial literacy. She uses her writing talents to explore topics that help her readers gain financial stability and growth.

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