7 Passive Income Ideas To Make $5,000/ Month

7 Passive Income Ideas To Make $5,000/ Month

Hey everyone, it's Ahmed here with ozearn.com and I hope you're all having a fantastic day today. So if you want to build real wealth, then you've probably heard about the importance of passive income.

After all, earning extra income without having to lift a finger is pretty sweet, but so many people think that you need to be rich or know some hidden secrets to start earning passive income.

But in reality, anyone can start earning passive income even without any starting cash or experience. And that's why in today's article I'm covering over 7 effective passive income strategies you can use to get ahead in 2025.

Many of these ideas are perfect for beginners and I'm also sharing one passive income idea that's earned me over $100,000 to date, as well as some out of the box ideas you might not have thought of before. You don't want to miss it. Let's get to it.

7 Passive Income Ideas For Beginners

But really quickly before we dive into the passive income ideas. I wanted to share a cool passive income idea in the crypto space and thank today's article sponsor, which is Sensible.

And so Sensible is basically a high yield account for your crypto that lets you earn passive income on your cryptocurrency. And so right now Sensible lets you earn interest on major cryptocurrencies like Bitcoin, Ethereum and Solana.

And it actually lets you earn up to 8% APY right now, which is pretty impressive. What's also nice about Sensible is that there's no account fees or minimum deposit requirements.

You also maintain custody of your crypto, which is huge for maintaining security and ownership over your digital assets. Sensible is also backed by Coinbase Ventures and it connects super easily to Coinbase.

So if you have an account there, it's pretty easy to move your crypto over to Sensible to start earning passive income. Support for other exchanges is also coming soon.

So again, Sensible is very beginner friendly and quite easy to use. So if you currently own crypto and you want to earn passive income with your digital assets, you can definitely check out Sensible.

And again, thanks to Sensible for sponsoring today's article. Let's get on to more passive income ideas.

Passive Income Idea 1: Sharing Economy

All right, guys. So one of the first methods of earning passive income in 2025 that I wanted to cover is leveraging the sharing economy to basically earn passive income from some assets you have.

And I really like this idea because it's basically helping people monetize assets they already have. Some of these assets not even costing you anything. Let me explain.

Now, there are obviously platforms like Airbnb where you can earn money by renting out a spare room or entire property. Similarly, there's platforms like Turo, where you can make money by renting out a vehicle to people in your city.

And, you know, you can look all over YouTube and there are people who have full on Airbnb businesses or Turo fleets, and they're making a serious amount of cash.

But there are also tons of other sharing economy routes to earning passive income that help you monetize all kinds of assets, some of which don't cost anything.

For example, platforms like Neighbor let you rent out storage space to people in your city. So you can actually make passive income every month by renting out a basement, a driveway, a garage, or some space you're not really using.

SpotHero is similar, and you can rent out parking spaces to people. And there are also platforms like Fat Llama, where you can rent out anything from cameras, drones, tools, bikes, pretty much any kind of equipment you can think of.

And, you know, the sharing economy, it's a really cool space in my opinion. I mean, there are people making thousands of dollars a month with things like Turo fleets or Airbnbs.

But again, some people are earning like 200 bucks a month just by renting out a parking space or some spare storage space with Neighbor.

Again, you need some kind of assets for this to work or something valuable like storage space or a parking space. But I thought it was pretty neat, so I wanted to start the article with this idea.

Passive Income Idea 2: YouTube

All right, guys. And the second way you could potentially earn some passive income in 2025 is to start a YouTube channel.

And really, YouTube is one of my favorite ways to earn passive income. And even though it takes a lot of upfront effort and it takes some skills and knowledge and also a lot of luck, it is a passive income source that you can build with time and consistency.

There are so many people out there who start with really small YouTube channels and that channel ends up growing into something that pays their rent or their groceries, or maybe becomes a part time or full time gig.

And with the rise of AI and YouTube shorts, I now know tons of people making money off of faceless channels or channels they've mostly automated. Which again turns YouTube into kind of a semi passive income source.

You also don't need thousands of dollars to started your cell phone or a really budget camera will work. I used a USB microphone and like a $400 camera when I got started. You don't need thousands of dollars in any experience really to try out YouTube.

Passive Income Idea 3: Sell Unused Internet Bandwidth

Alright guys. And the third passive income idea you can use is another super beginner friendly one and it involves selling your unused Internet bandwidth.

And really this passive income idea is perfect. If you're brand new to passive income, you don't have any money to get started because really you just need an Internet connection and a phone or laptop and you can try this out.

And so basically there are companies out there like Honeygain and Pawns that let you sell your unused Internet bandwidth to earn small amounts of passive income. And so these companies basically offer VPNs or they work like VPNs.

So if someone in a certain country wants to watch Netflix in a different area or at access some gated content or do market research, they would use a VPN, which involves using an IP address in a different location.

And so with Pawns and Honeygain, they're actually paying you to let people in their network use your IP address. And that's kind of how it works.

Now, I've tested both Honeygain and Pawns on this blog. I have reviews about both of these companies, and honestly, they really didn't pay me that much. And that's because how much you earn by selling bandwidth depends on your location, your Internet speed, and how much data you ultimately share with other people.

However, this idea is fully passive. And if you live in a major city, especially in Europe or North America, you might be able to make, you know, five, ten, maybe twenty bucks a month with this kind of hustle.

With Honeygain, you can cash out right to PayPal. Pawns also has PayPal cash, but also crypto and gift card rewards, which is pretty cool.

Again, these ideas are really not going to make anyone rich, but they are super beginner friendly and they don't require any money to get started. I have plenty of other similar apps and ideas over my blog as well.

Passive Income Idea 4: Dividend Stocks

All right, guys, and the fourth way you can start earning passive income in 2025 is to invest in dividend stocks.

And so this is honestly a pretty boring idea for a lot of people when it comes to earning passive income, but it is honestly a super effective method. And so unlike growth stocks, dividend stocks pay out a portion of their profits directly to shareholders, typically on a quarterly or annual basis.

In other words, companies that pay out dividends, you can invest in them, and then as a shareholder, you'll earn a certain percentage of profit from that company. And this is how a lot of people end up generating cash flow for themselves as they enter retirement and as they try to live off of dividends.

Plenty of companies out there also pay consistent dividends. You know, there's ones like Coca Cola, Johnson & Johnson, Procter & Gamble, all kinds of different companies out there where you can basically buy stocks and then earn dividends. You can also find plenty of dividend ETFs to invest in.

Again, if you don't want to pick individual stocks and instead you'd rather kind of invest in a bundle of stocks. I don't want this article to be long, so I'm not going to dive too in depth with investing terminology or, you know, this kind of thing.

But it's super easy to basically find different dividend stocks or ETFs to invest in that pay you passive income. It's also really easy to get started. And these days, pretty much any top broker offers commission free trading on stocks and ETFs.

Moomoo is one example. And right now it has an amazing signup bonus that pays you with up to 15 free stocks and 8.1% APY on your uninvested cash, which is pretty sweet.

But again, you can find pretty much any broker out there that lets you invest in thousands of different dividend stocks and ETFs. So it's really not rocket science and getting started.

And what I also like about this investing route is that you can get started with like 10 to $50. You don't need thousands of dollars to buy, you know, a business that generates passive income for you or a rental property. You can really get started with dividend investing without much money.

Passive Income Idea 5: Invest in a Business

All right, guys, and the fifth way to earn passive income in 2025 is to invest in a business. And really, there are a lot of ways you could get started here. And like I mentioned earlier in the article, some people are making passive income from Airbnb businesses, Turo businesses.

So you could always buy some kind of asset and rent it out to get started. But what's cool is you can find other business ideas or business models that don't take that much startup cash to test out. I mean, take vending machines as an example.

So there's actually plenty of cool series on YouTube where people show the process of buying a vending machine and Starting this kind of business. Usually these machines cost about 1500 to $3000. And once these people manage to get that machine in a location, you know they're earning a couple hundred of dollars per month at about a 50% margin from one machine.

Financial Wolf, which is one channel I follow, he's a pretty cool financial YouTuber, actually has a series like this where he's trying to build a vending machine empire or business of sorts.

And again, it's pretty cool. I mean, you look at this business model, you buy one machine, you talk to some business owners, you get it in the location, and you're now earning a couple hundred dollars per month in cash flow, really without that much effort, because you only have to restock the thing every couple of weeks.

And again, there are even more passive options out there, some that are completely hands off if you don't want something like a vending machine business. For example, companies like FranShares let you invest in shares of income generating FranShises, and you only need a $500 minimum investment to get started. So it's pretty beginner friendly.

So, again, you can invest in assets you rent out, you can invest in a niche business like a vending machine business, or you can just invest in franShises. There are tons of different ways here to earn passive income through other people's businesses or your own.

Passive Income Idea 6: Real Estate Investing

All right, guys, and the sixth way you can start earning some passive income this year is through real estate investing.

Now, a lot of people think you need to be super wealthy to get in on real estate investing. And if you're planning on buying rental units or multifamily homes, or like several rental properties, you definitely need a lot of cash.

But there are still plenty of other ways to earn passive income from real estate, some of which take $100 or less to get started.

Real estate crowdfunding is really the perfect example here. There's been a rise in investing platforms that let you purchase shares of rental properties, like multifamily homes, vacation rentals, and apartment buildings as a shareholder. You then earn distributions from the rental income these properties produce.

And so in the US for example, there are tons of new crowdfunding companies where again, you can buy shares of income generating real estate.

Arrived is one of the newer ones. And this platform specializes in residential real estate and it lets you invest in rental homes for as little as $100. And what's nice about Arrived is that it's fully passive. Its team handles everything from finding tenants to taking care of properties to collecting rent. So you're not dealing with any of the headaches of being an actual landlord yourself.

So Ark7 is another company that launched recently and it actually lets you buy shares of various rentals starting at only $20 per share. Both of these platforms distribute rental profits to shareholders regularly.

And again, they're fully passive. Like you're not getting a phone call in the middle of the night from a tenant because the water heater broke or something like that. You are just a passive investor who earns distributions from rental income.

There are other options you can explore in the real estate space, like investing in REITs. I'm not going to get into in this article because again, I don't want to be long. But this is another passive income option through real estate that doesn't actually involve buying rental units yourself and being a landlord.

So you can research that on your own time. But the point is, there are tons of ways to get in on real estate even without that much money.

Passive Income Idea 7: Fixed Income Investments

All right, guys, and the seventh and final passive income idea I wanted to cover, it's more of a category really, and that is to invest in fixed income investments.

And really, if you're looking for something low risk and stable and you're not as worried about maximizing your returns, something like a fixed income investment could be for you. And so these investments typically pay out a fixed percentage over a fixed period of time.

And usually it's on the lower return side, but again, it's a stable, lower risk investment that is kind of a safe way to get in on passive income.

Some common examples of fixed income investments include treasury notes, treasury bills, certificates of deposit or CDs, municipal bonds and corporate bonds.

Now, I'm not going to get into all of these specifically because again, don't want to be over long, but you can typically invest in these kind of investments, lock up your money for a fixed period of time and earn a certain amount of interest.

Returns can also be pretty decent. I mean, right now, for example, at the time of me writing this article, there are plenty of US government bonds paying around 4 to 4.5%, which isn't too bad.

Now, the downside of many fixed income investments, other than the slightly lower returns than you might get in the stock market, is that you usually have to lock up your money for a fixed period of time.

With some of these investments, like certificates of deposit, for example, you can sometimes take your money out early, but you will generally pay a penalty.

So again, this is a safer investment, but it usually involves locking up your money for a certain period of time. But really, if you have some spare cash sitting around that you don't want to put into the stock market or a business idea, you could look at fixed income investments.

You could even look at something like a high yield savings account. The point is, your money should be working for you in some capacity and not just sitting in a checking account where it earns basically nothing.

Conclusion:

Anyways, guys, that wraps up My list of 7 different passive income ideas you can take advantage of in 2025. I hope there's something in this article for everyone.

Whether you like cryptocurrency, investing or fixed income investments, really there are a ton of options to get started, and a lot of them don't require any starting cash.

Now if you want even more ideas, I'll be linking my passive income guide here as well that you guys can check out for even more ways to to earn some passive income.

That really does it for this one, guys. Thank you so much for reading. I hope you all have a fantastic day and week. And as always, don't forget to check out my blog for more unique ways to make and save money. Catch you guys in the next article.