{"id":15280,"date":"2017-02-10T07:00:40","date_gmt":"2017-02-10T13:00:40","guid":{"rendered":"https:\/\/www.hrblock.com\/tax-center\/?p=15280"},"modified":"2025-06-25T14:12:50","modified_gmt":"2025-06-25T19:12:50","slug":"ways-to-generate-passive-income","status":"publish","type":"post","link":"https:\/\/www.hrblock.com\/tax-center\/income\/investments\/ways-to-generate-passive-income\/","title":{"rendered":"7 ways to generate passive income"},"content":{"rendered":"

Into a new year, there\u2019s still time to put a plan in motion to bring in extra income this year. Before you roll your eyes and think that means taking on a late-night gig at the coffee shop, relax.<\/p>\n

The two following words will make your life much easier: passive income<\/strong>.<\/p>\n

Passive income is that term we thought only billionaires used. You know, \u201cI make money in my sleep!\u201d Well, in this day in age of opportunity and side hustles<\/a>, you can earn cash during your bedtime slumber just the same. Passive income is where you invest your time upfront, setting up a plan that will earn money as time goes on\u2014even when you are not physically working.<\/p>\n

Reality check: Like with anything in life, you have to be willing to work hard and follow through. Once your passive income streams are up and running, you can\u2019t just sit back. Think of them as plants that need vitamins\u2014and constant nurturing. It\u2019s still work, but can be exciting and profitable!<\/p>\n

Here are some ideas to bring passive income into your bank account while you sleep, play, eat or work your main job!<\/p>\n

1. Digital downloads:<\/h2>\n

If you are a creative, you can take this in so many directions! The concept is to open an online shop where you can sell PDFs of your choice. Use a graphic editing program to create art that people can buy and download to be framed. Maybe skip the art and go for lesson plans for teachers, or templates for a small business press kit, cupcake toppers for birthday celebrations. You would design the items, upload them to your shop, promote them far and wide, then smile every time you make a sale. Nothing to ship or pack! The buyer simply pays for the item then receive the link to download the article.<\/p>\n

Check out this article that show three ways to make money from social media<\/a>. Keep in mind, you have to report every penny, so before you look into these ideas, get right with the tax procedures<\/a>.<\/p>\n

2. Write an eBook:<\/h2>\n

You know that family cookbook you\u2019ve dreamed of publishing? Do it yourself! Maybe it\u2019s creating a guide to video games or a juicy romance novel. With the help of YouTube tutorials<\/a>, you can learn how to use a variety of free platforms to format, price, and promote it. Then, upload it to online booksellers.<\/p>\n

3. Cash-back programs:<\/h2>\n

Cash-back programs won\u2019t exactly pay for an exotic vacation, but maybe some cute outfits. Whether it\u2019s a personal credit card or an online shopping site, you can actually earn a kickback from your purchases. Check with your bank to find out if your card qualifies and visit websites like Ebates<\/a> for shopping. You can find many retailers where you can register on their site, shop and receive a percentage of the sale.<\/p>\n

4. Affiliate programs:<\/h2>\n

If you have a blog or website where you share all your favorite shopping, cooking or craft finds, make sure to sign up for Amazon Affiliates<\/a>, ShareASale<\/a>, rewardStyle<\/a>, and others. You can choose from all kinds of ads for products that you know will appeal to your audience. Once they click and start shopping, you\u2019ll earn a percentage of whatever they buy.<\/p>\n

5. Offer online classes:<\/h2>\n

But what will you teach? Whatever you\u2019re great at doing or making! From cake decorating classes to brush lettering or from teaching Photoshop to business tips – there is a class out there for everything! Why not step into that space with your skills! The great part is once you film, edit and post the video, you can set up an online payment system so people can purchase and take your class any time of the day or night.<\/p>\n

6. Rent out extra space or services:<\/h2>\n

Do you have an extra room in your house, or perhaps a detached space or apartment on your property? Check out sites like Airbnb or VRBO to rent it out.<\/p>\n

7. Buy a vending machine:<\/h2>\n

Snacks, toys, office supplies, coffee… There are many types of vending machines that offer the opportunity to generate passive income. It\u2019s like a physical store without an employee. It will require an initial investment upfront in time and money, but if strategized creatively, it can certainly add to your wallet.<\/p>\n","protected":false},"excerpt":{"rendered":"

Into a new year, there\u2019s still time to put a plan in motion to bring in extra income this year. Before you roll your eyes and think that means taking on a late-night gig at the coffee shop, relax. The two following words will make your life much easier: passive income. Passive income is that […]<\/p>\n","protected":false},"author":418,"featured_media":26758,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[24,47],"tags":[],"class_list":["post-15280","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-income","category-investments"],"acf":[],"yoast_head":"7 Ways to Generate Passive Income | H&R Block<\/title>\n<meta name=\"description\" content=\"Earn extra income by setting up a plan that will earn money as time goes on \u2013 even when you are not physically working. 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