Best 12 Passive income ideas for young adults

In this article, we're going over Best 12 Passive income ideas for young adults. Now, these 12 sources, for me personally, generate anywhere from 25,000 to $37,000 per Week.

Now, just because you implement one of these sources of passive income, don't expect to make that much right off the bat. It's taken me nearly a decade to build up all of these income streams, but let me tell you, it has 100,000% been worth it.

Trust me, your future self will thank you if you set some of these passive income streams up that have the potential of paying you well into the future. And I wish that I had a article just like this one when I was starting out building my passive income streams because I made so many mistakes, I focused on the wrong things. I can just straight up show you what works, and I would have been able to implement all of these passive income streams so much faster instead of learning through trial and error.

So, within this article, we're going to be ranking these passive income streams on a scale of 1 to 10, and it's going to be based on how easy they are to set up how passive they are, and then how easy it is to make money. And I'm also going to be revealing just how much I personally make from each of these passive income sources.

Passive income ideas for young adults

Now, let's first define what I mean by passive income. Now, to some people, making passive income means literally not having to do any work whatsoever. But for the purpose of this article, I'm defining passive income as income that you make that you didn't trade your time for.

Because you see, with most traditional 9 to 5 jobs, you trade your time for money, and the second you quit that job, you stop receiving the same amount of money for that job in most cases.

Whereas with the methods that I'm about to reveal to you today, you do the work once and you set up some of these passive income streams, and they have the potential of paying you for years and years into the future.

In fact, I set up some of these streams of income when I was just 14 years old that literally still pay me every single month to this day. So this way it literally doesn't matter if you're sleeping, watching YouTube videos, traveling, or doing literally whatever you want with the money that you're making within your life.

And these passive income streams can continue to make you money. But it does mean that you do have to do the work once to set these up for your future self. But like I said, I truly believe that you will be happy that you did.

Now, the way that this is going to work is going to be different than other articles that you may have seen out there on these topics that talk about all these different ways of making money. Go to these websites, do these things, fill out these surveys. I'm not going to be talking about any of that within today's article.

Within this article, I'm going to be showing you how to leverage technology to provide real value to people, because that's the real way of making money online, in my opinion.

I don't want to show you how to make a couple cents with a survey because while you might make a little bit of money, it's not going to bring you that lasting money that most people are actually looking for. And that comes by providing value.

Also, don't listen to some of those spam comments that you may see below this article right here saying to send them money for crypto or get rich quick schemes. Trust me, those things do not work and I highly do not recommend wasting your time with them.

But that being said, guys, it is way easier today to make money online and create passive income streams than it was 10, 15, 20 years ago, because we can leverage technology to provide value to people at all times throughout the day.

So it doesn't matter what we're doing with our time. And we can potentially make money while we're sleeping. And I'm not just saying this, guys. This is coming from someone who actually does this, who earns 25 to $37,000 per Week. It sounds crazy even saying that, but I'm about to prove it to you. And let's get into these methods.

Income Idea 1: Running YouTube Channels

Now, there's two main ways of running YouTube channels, and one of these methods is probably a lot different than you're currently thinking. And the two methods are personal channels and faceless niche channels.

Now, I personally run over a dozen different YouTube channels, most of which are those faceless niche YouTube channels. And at this point you're probably asking Ahmed, what are faceless niche YouTube channels? Now, faceless channels can be absolutely amazing if you're an introvert like I am, and you don't want to get in front of a camera and film videos.

And you can scale potentially to running as many channels as you want without ever having to potentially even create the videos. But I did end up overcoming my fear, I started a personal channel as well. And those can be really good to provide even additional value to people and you can build more Trust.

If you ever want to sell something with your channel. Now, chances are you've probably watched YouTube channels that don't ever even show their face, but you probably didn't know that they could be making a lot of money. And I'm going to get into how to do that.

But first of all, let me give you some of the best niches to make money on YouTube in which include anything related to wealth, happiness, relationships, technology, and travel.

And I also have a article on my Blog where I go over what are, in my opinion the absolute best 24 niches to make money on YouTube without ever even showing your face. And you can read that article later if you want to do this method.

You might be asking Ahmed, how is running YouTube channels passive? Don't you have to make the videos for these channels? Well, YouTube is passive in the sense that you make the videos once and that video can continue to get views and pay you for years and years into the future.

I literally have videos that I uploaded seven years ago that still pay me monthly income to this day. And I personally don't know any other social media platform like this. And I absolutely love YouTube.

Now, you might be asking, Ahmed, how do I make money with YouTube? Well, there's a couple of different ways of doing it, and one of the most common is that once you get 4,000 hours of watch time and a thousand subscribers, which can happen a lot faster than you probably think, if you implement the right growth tactics.

Then you can put ads on your videos and then YouTube will pay you a percentage every single time someone views one of those ads, which is also known as a monetized playback.

You can Also monetize your YouTube channels by selling your own course or selling affiliate products.

And now it's time to rank this passive income stream. For ease of setting up running YouTube channels gets a 7 out of 10. It's super easy to start a YouTube channel. Anybody can do it. But it does take a little bit of work to make sure you set up and optimize it correctly.

And for how passive YouTube is, I actually give it an 8 out of 10. And that's because videos on this platform have what I would consider a very long half life. And I have videos that I uploaded in 2014 that still make me money today.

But in order to keep things running at a super high level, it is recommended that you upload regularly on YouTube. But as you grow and as your success grows, you can outsource a lot of the things that you don't personally enjoy doing for how easy it is to make money.

YouTube gets an 8 out of 10. And that's because there's so many ways of monetizing YouTube. If you think about it, YouTube has that built in ad revenue monetization. So you can make money through that method. But also you're getting all these targeted viewers in whatever niche that you happen to be in.

You can monetize in so many different ways from that, but it does take some time to get things going in the first place. So we took two points off of that. And that brings our grand total score for running YouTube channels to 7.7 out of 10.

Now I make around $30,000 a month from YouTube from ad revenue alone. And then we add an additional over $100,000 per month through multiple different monetization sources, which we're going to get into in just a second.

Income Idea 2: Affiliate Marketing

This is where you promote someone else's product and you get a commission for every sale that you get. Some good affiliate marketplaces include websites like digistore24.com, clickbank.com the Amazon affiliate program.

And another way to find great affiliate programs is to check if different YouTubers within the niche that you'd like to promote a program in, sell a course or anything else and then see if they have an affiliate program for down in the footer of their website.

Now the best type of product to be an affiliate for, in my opinion are products that can sell for a lot, have high margins and have high payouts. And the type of product that meets all three of these criteria are digital products and especially online courses.

For example, you can promote literally anything you're interested in. If you have an interest in a certain hobby, something that's personally helped you check if there's an affiliate program for something related to that to potentially sell.

Now let's talk about the traffic sources for promoting affiliate products. First of all, you have free traffic sources like YouTube, which has a special place in my heart due to having made millions of dollars from YouTube. So I highly recommend YouTube.

The videos can last for a long time and continue to get views sometimes even if you don't upload on a channel, which is why I love YouTube so much.

And you also have traffic sources like running blogs, running Instagram accounts and paid Traffic sources include YouTube ads, Instagram ads and Facebook ads.

And also a really overlooked traffic source is running Instagram shoutouts. This is where you go on Instagram accounts within your niche and you message them, ask them if you can buy a shout out on their page and then ask to put your affiliate link at their link in bio or in their story swipe ups and you can potentially make money that way. And I personally have spent hundreds of thousands of dollars on Instagram shoutouts.

But when it comes to traffic sources, do not overcomplicate it. Don't try to do everything at once. Just pick one good decent traffic source and go all in on it. And trust me, you will be way happier than if you try to spread yourself thin with all of them.

Now let's rank this passive income stream for ease of setting up. This one gives a five out of 10 because it does take some work to find a good traffic source and a good product that actually helps people and provides value to make sure that you can actually get sales for how passive it is.

This one gets a six out of 10 and the passiveness really depends on the traffic source. You know if you do YouTube, that can be super passive. But if you do a different traffic source, it can take a lot of work to keep that going. Like if you have to post 10 TikTok a day or something to keep getting the same amount of views.

For how easy it is to make money, affiliate marketing gets an 8 out of 10 because you don't have to make your own product. You can literally go and promote somebody else's product that they've already done, but you do have to split a little bit of the money with them. So we knocked off two points for that.

Now, currently, I personally make around five to $10,000 a month through affiliate marketing. For example, I promote a software called Vidiq that helps people optimize their YouTube videos, do keyword research, and everything else.

And what's awesome about promoting a software is that once somebody signs up and they stay subscribed to that software month over month, you can potentially get a paycheck from that software every month, which means that you can make what's called recurring revenue that has the potential to keep coming in, which can even make this more passive.

Income Idea 3: Online Courses

Now, online courses are simply a collection of videos teaching a specific subject. Now, by no means do you have to be some super expert on a topic in order to teach it. You literally just need to know 1% more than most people on a given topic.

And you can teach how you got to the point that you did with it. And I would just ask yourself, do people ever come up to you and they ask, hey, how did you do this or that? And if this is something that can provide a lot of value to people, you can potentially teach them how to do it.

And for example, I teach a course about how to grow on YouTube. And by no means am I the biggest YouTuber in the world, even though I've gotten some success, gotten millions of subscribers and everything else. But I know a bit more than most people on this subject, so I can teach them how to get to my point and hopefully even surpass me.

Now I use Kajabi for hosting my online courses and for email marketing, I use clickfunnels for the sales pages. I use a website called EverWebinar to run automated webinars that can sell your course at all hours of the day. So you don't have to keep doing webinars to sell your course.

And then I just put a link in all of my YouTube videos to both my course as well as the evergreen webinar. We use digistore24 for payment processing. And it also lets you connect with a huge marketplace of affiliates who can promote your products for you.

And if you're just getting started, you don't have to buy any of these fancy expensive software that I personally use right now. You can start with something way cheaper like a teachable or even put it on Udemy and let them promote your course for you and start getting some sales that way. But I wouldn't recommend doing that long term since Udemy takes half of your course sales.

Now, to make the absolute most with selling courses, I recommend combining this monetization source with the absolute best traffic source known to manufacture, which is running YouTube channels. Combine these and it's like a match made in heaven and you can potentially make a lot of money.

Now, online courses are passive because you make the course once and then you can sell that course as many times as you want into the future.

And I like to think of it as I have numerous clones of myself out there teaching people how to grow on YouTube. Even if I'm sleeping, even if I'm sitting on the beach, no matter what I'm doing, I have what I like to consider digital clones of myself teaching people how to do YouTube.

And that's because at any given time of the day, multiple people are likely going through my course and my programs and definitely my YouTube videos. And that's what these passive income sources are about. Using leverage and technology to your advantage.

Now it's time to rank this passive income stream for ease of setting up, this one only gets a three out of 10. And that's because it does take a lot of work in the beginning to create an online course. It's so worth it once you do, but it does take some time to actually make a good one.

I spent months and months creating my online course, but if you break it down, most courses are like 30 videos long. And if you just make one video a day for an entire month for your course. You have a course that you can sell forever into the future. And trust me, it's so worth it.

Now for how passive selling online courses is, it gets a nine out of ten. It's super passive. You make the course once, you can sell it as many times as you want.

But I took off a point from the passiveness due to the fact that sometimes, especially in the beginning, before you hire a support person or anything, you do have to do the support for the course and help with it and everything like that. And I personally, even to this day, still answer questions every single day within my private Facebook group for the course.

And for how easy it is to make money selling courses gets a 9 out of 10. As long as you're in a decent niche that people are actually interested in related to health, wealth or happiness, you'll likely be able to do pretty well with selling your course because people want to learn from people who they resonate with. So if your program actually solves a real problem people have, you'll have no trouble selling it.

Now, trust me, I know this sounds crazy coming from a 22 year old, but I personally at this point make over $100,000 a month selling my online course. And I'm not saying this to brag by any means.

In fact, I know a lot of people won't even believe this. And I'm really just saying this to inspire that one person out there who's thinking about doing an online course, who's thinking about implementing one of these passive income streams to just give yourself the permission, go ahead and do it, even if it's not the best in the beginning, you'll get better over time. And trust me, it's so worth it and your future self will thank you down the line.

And if we break down the math with big revenue numbers like this, that might sound crazy upon first glance. $100,000 a month, that's literally just 100 sales per month with a $1,000 course. And if you manage to get 1,000 sales, that's a million dollars.

And if you grow a YouTube channel the right way, you can definitely get hundreds of thousands of views per month. Even if just a tiny percentage of those people buy your course. And even if you're not very good at selling it, you'll likely do a pretty good job.

Income Idea 4: Selling Digital Products

Now, digital products are an amazing way to make money online because number one, you can make them without much upfront cost. They're Almost pure profit. And the profit margins can be super high.

You don't have to store any type of inventory like you do with most e commerce stuff, and customers get their digital products delivered to them instantly.

Now some digital product ideas to think about include eBooks, PDF downloads, membership sites, stock footage in pictures, audio books, graphics, website themes, templates, and writing packs.

And if you want to see a list of a bunch of digital products that you can potentially sell, feel free to check out the article that I did on it on my blog. And you can host your digital products and sell them from websites like Gumroad. And also feel free to check out Gumroad yourself for tons of examples of digital products that are sold.

Now for ranking this passive income stream for ease of setting up, this one gets a seven out of 10. Because it really depends how complex the digital product you're creating is.

But if you make something like an ebook, you can easily make that within a couple hours. And it doesn't have to be super long and complex. It can literally be a couple dozen good pages that actually provide value to people.

For how passive it is, this one gets a nine out of 10. And for how easy it is to make money, this one gets a seven out of ten.

Income Idea 5: Blogging

Now, if you're more writing inclined, you don't have to run YouTube channels. You can just run a blog if you want, where you provide value to people in the form of the blog posts that you create.

And once you post a blog post, you can potentially get paid for it for years into the future, just like all these other passive income sources. And you can think about every article that you're writing as a seed that you plant that can pay you in the future.

Now, the way that people will typically find your blog is through search results. With search engines like Google, you can use websites like Ubersuggest to find good keywords to write about.

And the way that you can make money doing this is by putting ads on your blog. And you can also use this traffic to promote any affiliate products that you want or even your own course.

Now, a quick tip to make the absolute most amount of money blogging is I would take those blog articles that you write and then also transform them into YouTube videos by rewriting them for YouTube and then hiring someone to do the voiceover and make the videos for you.

And this in turn can plant seeds on a whole nother income source that can come to fruition and provide you income as well. And now the best blogging platform in my opinion is WordPress, just because of how easy it is to set up. And you can use a theme like the Astra theme, and for the hosting, you can use something easy like WPX hosting. And for SEO optimization, you can install a plugin like Yoast.

Now it's time to rank this passive income stream for ease of setting up, this one gets a 4 out of 10. Despite WordPress being way easier than coding your website yourself, it can take a little bit of time to figure it out. It probably will mean watching a couple YouTube videos to figure it out in the beginning. Or you can just be lazy like I did and hire someone off of Upwork for $300 to make your website for you.

For how passive it is, this one gets an eight out of 10. You write your blog article once, can pay you forever into the future, pretty passive there.

Now for how easy it is to make money. This one only gets a six out of 10 because there's a lot of blog articles out there on the Internet and it can take a little bit of a backlog of articles to start actually making money with this method.

Now, I make anywhere from five to $15,000 per month from my website ozearn.com and that's not through ad revenue or anything like that. That's just from people going there, reading my blog, checking it out, and buying my course.

Income Idea 6: Automating an Online Business

There's so many different online businesses that you can start, including Amazon fba, dropshipping, E Commerce, Etsy, and being a social media marketing agency.

And they probably all say that their method is the absolute best. But the truth is, literally any of these business ideas can work amazingly. But the key is staying consistent with one of these businesses.

Now, once you have a business idea that's working, you can hire other people to manage most of the business for you. But the key word there is having a business that's working. Now you might be saying, Ahmed, what if I don't have a business that's working right now? You could potentially buy one.

In fact, there's websites like Flippa, Motion Invest, and Empire Flippers, that have websites that you can pay for that are already making some money. You can reinvest some of that money into hiring other people to manage them for you and then make pretty passive income from that.

They might be asking Ahmed, where do I hire people? I recommend hiring people from Upwork.com that's where I hire all the people to help me run my dozen or so YouTube channels. And I personally use a tool called Trello to keep track of the production workflow for those channels. But you can also use it to manage any type of business.

Now it's time to rank this passive income stream for ease of setting up. This one only gets a 2 out of 10. And that's because it can be hard to find the right people to hire to manage your business. You might go through a couple bad ones in the beginning, and that's totally normal. Unless of course, that is you have done for you templates for hiring people.

For how passive this is gets a 6 out of 10. You still have to manage the people to make sure they're running your businesses correctly. You can hire managers, but at a certain point, somebody even has to manage the managers for how easy this is to make money.

It gets an 8 out of 10. And that's because we're starting from the premise that you already have something that's making money, or you go out there and buy something that's already making money and then you can automate it to a degree by hiring other people.

Income Idea 7: Sell Stock Photos And Videos

Now, this was actually one of my first side hustles when I was a kid. And believe it or not, I actually made a couple hundred dollars doing this. And I did not have the best equipment or gear in the world.

I literally had just like a super crappy camera. And I filmed things in my hometown that most people were probably not interested in buying. But I did take a couple videos of my dog at the time and a couple people actually bought them.

Now, if I did this today, I would definitely get better camera gear and maybe even something like a drone so I could get aerial shots that most other people couldn't get. And I'd also focus on shooting videos and pictures that people actually want.

I would ask myself, if I'm filming a documentary or a video or something, what type of stock footage would I be looking for for that? And then reverse engineer and go out there and film it.

This is pretty passive because you can film the videos once and sell the rights to them forever into the future. And you can sell stock assets on web like Pond5, Dreamstime and Shutterstock.

Now let's rank this income stream. So for the ease of setting up, this gets a 7 out of 10. You do need a camera to do this, but you can start even if you have nothing with a phone, because most phones have good cameras nowadays.

For how passive this is, it gets a 9 out of 10. And for how easy it is to make money, this one only gets a three out of 10. And that's because you typically need a pretty big backlog of stock assets before you start getting some consistent sales.

Income Idea 8: Software

Now software can be super passive because people typically pay monthly for it. And you can make what is known as monthly recurring revenue or MRR. And you can hire people from upwork to make a software for you, or you can make one yourself if you know how to do it.

But you need to make sure that your software solves a problem that people actually have. For example, I had a problem for getting subscriptions that I signed up for that I kept getting charged for month after month.

And I looked everywhere for a good solution until I came across a website called TrackMySubs. Now this is a very simple software that literally just keeps track of all of your subscriptions and when they renew. And I'm so happy to pay for this every single month because I'll never forget about a software subscription again.

And one of the awesome things about software businesses is that they can sell for huge multiples compared to other types of businesses online.

Now let's talk about ranking this stream for ease of setting up. Making a software only gets a 1 out of 10. And that's just because it takes a lot of work to build a software, or a lot of money in some cases, hundreds of thousands of dollars to build a good one.

But once you do, it can be very profitable. For how passive it is, it gets a 9 out of 10 in most cases software gets delivered automagically and then you just hire someone to do support and update it.

And for how easy it is to make money, it gets a six out of 10. And that's because it's so variable depending on the software that you're building, and you want to make sure that it actually solves a problem.

Income Idea 9: High Yield Savings Account

Now, once you start making money with any of these passive income sources, you're going to need a place to store it. Now, I'm not a financial advisor or anything, but I personally like to store 6 to 12 months of living expenses in a high yield savings account.

And you can go to websites like Bankrate or NerdWallet to see what the best current interest rates or yields are. And currently you can get about 3% interest in the United States. But depending on where you live in the world or what country you're in, it could be higher or lower. And I personally make around $500 a month from my high yield savings accounts.

For ease of setting up, this one gets a nine out of ten. You literally just go to the bank and apply or in some cases you can just apply online.

For how passive it is, this one gets a 10 out of 10 because once you deposit the money, you literally do nothing.

Now, for how easy it is to make money, this one only gets a 2 out of 10, because you typically have to have a lot of money built up to make any decent amount of passive income from this.

Also, the rates go up and down, they're not usually this high, so you have to deal with that as well. But it's a heck of a lot better than letting your money sit in a checking account and literally do nothing for you.

Income Idea 10: Rental Properties

Now, this can be good. If you already own a house, you can potentially rent it out and then rent somewhere cheaper to live. And in some circumstances, you can even make so much from renting out your house that you can pay for some, if not all of your rent.

Now, some options for renting out your house are doing vacation rentals for something like Airbnb or just doing an annual lease. You can also invest in rental properties and real estate in general by investing in a real estate ETF or REITs or something known as REITs. And you can also just think about renting a spare room on Airbnb that you already have within your house.

For ease of setting up, this one gets a four out of 10. And that's because you have to actually get Your house ready to rent out. And in some circumstances, you might even want to get a property manager to manage the house and the tenants for you.

Now, for how passive this is, it gets a six out of 10, because even if you get a property management company, you still have to usually approve expenses, manage cash flow, and everything else. So it still will take a little bit of work.

Now, for how easy this is to make money, it gets a 4 out of 10 because you do have to usually buy a house, which can typically be very expensive. And you typically need a bunch of units rented out to make decent money, which of course means spending a lot of money to acquire them. And also, this highly depends on the market.

Income Idea 11: Investing In Stocks And ETFs

Now, you might be asking, Ahmed, I thought this was about providing value. How do you provide value if you're just investing in Stocks? Now, the way we do that is that we provide capital to a given company that they can theoretically use to make their company better and bigger. And in return, we get to own a tiny slice of that company. And if you have money sitting in a checking account or a savings account, it's probably not doing very much for you currently.

Now, I'm not a financial advisor, and this is not financial advice, but what I personally do is invest in what are called Index funds. And these are essentially funds that invest in a bunch of different companies for you.

So you spread and diversify your investment across a bunch of good companies. And these can be funds like VOO, SCHB, and VTI, which all monitor one of the biggest indexes in the world, which is known as the S&P 500, which is essentially the 500 biggest companies in America.

And the different companies and the rankings shift around. But by investing in the S&P 500, you essentially invest in the top 500 biggest companies in the country. But wherever you live in the world, there's probably different ETFs or index funds or the equivalent that you can potentially invest in within your country. And there's even international funds that you can invest with as well.

Now, there's a popular movement going on right now known as the fire movement, which stands for financial independence retire early. And these people essentially want to invest enough so that they can pull out around 3 to 4% a year from their investments and then live passively on them for perpetuity into the future. And the theory is that your investments would outpace inflation and your living expenses if they perform like they did historically.

Now, to get started with investing in stocks or ETFs. I would personally just recommend starting a little bit smaller and trying to pick one expense that you currently have and then using ETFs to pay for it.

Let's say, for example, you have an expense like I do, which is YouTube Premium, and let's say we pay $12 per month for it. In order to pay for that expense using your investments and using the 3% rule, all you simply have to do is multiply 12 dollars times 12 which is $144 per year that you're spending on YouTube Premium, and then what you do is you multiply this by 33 and this equals $4,752.

So as long as you invest that amount and you pull out just that 3% a year to cover your YouTube Premium membership, you could potentially be able to pay for your YouTube Premium membership indefinitely given the historical performance of an index like the S&P 500.

Now, a great article that I recommend reading is called the Shockingly Simple Math to Early Retirement. And it basically just breaks down the percentage of income that you'd have to earn compared to your spending to retire early.

Now it's time to rank this passive income stream for ease of setting up ETF investing gets a 10 out of 10 is super easy. You can sign up with any brokerage out there like Charles Schwab Robinhood or M1 Finance, and you can also just look up best brokerage for insert your country.

Now for how passive it is, this also gets a 10 out of 10 because once you invest the money, you literally don't have to do anything except for occasionally rebalancing if you want to, and for how easy it is to make money. This only gets a 1 out of 10 because you typically have to invest a lot to have the potential of making any sizable amount back.

Now, as for how much I make with stock investing, the only money that I currently make right now is through dividends that pay me out. And I'm going to go over that in just a second. And that's because I'm not manually withdrawing anything from my brokerage accounts right now, because I want to keep my money invested at least for several decades before I potentially start drawing some out and retire.

Income Idea 12: Investing In Dividend Stocks

By investing in dividend stocks or ETFs like SCHD, you typically get a higher payout than normal ETFs that just track the market because it's invested in dividend focused companies.

Now what is a dividend? A dividend is simply a small amount of money that a company pays regularly to their shareholders. And dividend investing has pros and cons. One of the pros of dividend investing is more reliable income that you can easily calculate.

For example, let's say you invest $10,000 in a company with a dividend yield of 4%. Then you would make around 400 a year from that dividend or $33 per month.

And one of the cons of dividend investing are that you have to typically pay taxes in those four forced dividend payouts. And also, many of the investments aren't as focused on growth and they're more focused on just dividend companies. So in theory, it may not grow as much as more growth focused portfolios.

Now dividend funds can be really useful, especially when you want to retire or just have a more dependable source of income that you know you're going to get. Especially if you're close to retirement. You know how much your lifestyle costs every month. You can calculate out based on the dividend yield of a certain etf, how much you would need invested to make that amount.

Now, dividend yields can and do change. So I would only invest in a dividend ETF that's invested in a bunch of different dividend paying companies.

Now let's say our lifestyle costs $50,000 per year. All we have to do is take this number and divide it by the dividend yield percentage of a certain ETF or company. Let's call it 4%. Then you would need $1.25 million invested in a dividend focused portfolio, getting that dividend yield to potentially live off those dividends indefinitely. And that's without even ever touching the initial investment.

Now I personally mainly only focus on index fund investing right now. But many of the indexes I do invest in, like schb, do pay out dividends, and I make around $250 per month from them currently.

Now let's rank this passive income stream for ease of setting up. It gets 10 out of 10 feel free to use any brokerage account, but I would make sure there's some type of SIPC insurance if you're in the US. For how passive it is, dividend investing gets a 10. And for how easy it is to make money, it gets a 2 out of 10.

Now, this article and these rankings can hopefully help you to get best income stream.

Now, read this article to discover how to make money on YouTube without making videos. I'll show you exactly step by step how do you start and scale faceless YouTube channels? But really, you can grow any type of YouTube channel with this knowledge.