Get rich by doing nothing with Passive Income that makes you money effortlessly

Many people’s dream is to have a steady stream of income without having to work. This is not a science fiction story, but a real concept called Passive Income - a continuous cash flow that comes in while you just sit back and wait. This article will explore how Passive Income works, how many types there are, how it differs from other income sources, and will compile 8 ideas that anyone can start this year.

What is Passive Income, Really?

Passive Income does not mean money appears out of nowhere; it is the result of making our assets generate income for themselves. For example, if you own a house, renting it out will generate Passive Income for you every month without additional effort. Or if you hold stocks that pay dividends, the dividends will automatically come in when the system processes them.

Most Passive Income is generated from owning assets that produce cash flow, such as copyrighted artwork, books, music, or tangible assets like real estate, stocks, and cash. Then, let these assets work for you without extra effort.

What Do We Call These Income Types: Active Income vs Portfolio Income vs Passive Income

When talking about income, most people think of a salary. But in fact, income comes in many forms, and understanding the differences can help you plan your finances better.

Active Income - Income you earn by working

This is income from exerting effort—whether through freelance work, a regular salary, or hourly wages. You receive money when you work, but it stops when you stop working. This is where the phrase “Time is money” comes from—because your time has tangible value in the market.

Portfolio Income - Profits from trading and selling

When you buy stocks and sell them for profit, or buy coins and sell at a higher price, that is Portfolio Income. This requires (at least monitoring the market), but the returns can be substantial in a single go.

Passive Income - Money that flows in on its own

Unlike Active Income, Passive Income continues to come in even while you sleep. It’s excellent because you can work on other things or create other Passive Income sources simultaneously. Part of Portfolio Income can also become Passive Income, such as dividends paid regularly.

8 Types of Passive Income Ready to Generate Revenue for You

1. Create digital art and leave it for sale

In this era, if you have creative skills such as photography, drawing, writing, or even creating templates, you can sell them on platforms like Adobe Stock, Shutterstock for images, Amazon, MEB, Ookbee for e-books, or Canva for templates. Then, money will flow in little by little from buyers.

Advantages:

• No initial capital needed
• Created once, earns for a long time
• Choose your preferred niche

Disadvantages:

• Platforms take a cut, usually you get less than 100%
• You need to promote your work to attract buyers

2. Fixed deposit - Honest but with strict returns

This method is very simple: deposit money into a bank for (6 months, 1 year), and when the term ends, the bank pays interest. This is a traditional form of Passive Income where you don’t have to worry about investments.

Advantages:

• Safe, no risk
• No maintenance needed
• Returns are known in advance

Disadvantages:

• Requires a large principal to see significant returns
• Low interest compared to other methods
• 15% tax deduction

3. Investing in bonds and debentures - Better interest than savings accounts

Bonds and debentures are loans to the government or companies, and upon maturity, you receive the interest. The interest rate depends on the issuer’s risk—government bonds are less risky with lower interest; corporate bonds are riskier but offer higher returns.

Advantages:

• Steady, higher returns than savings
• No management after purchase

Disadvantages:

• Need a large amount of capital
• Risk depends on the issuer’s ability to repay
• 15% tax deduction

4. Endowment insurance - Save and get insurance benefits

Buy a selected endowment insurance policy. Since it’s a non-volatile investment, you pay in and earn interest around 2-3% per year. When it matures, it returns the principal plus interest.

Advantages:

• Includes life insurance benefits
• No 15% withholding tax like savings accounts
• Can reduce taxable income

Disadvantages:

• Low returns
• Lump-sum payout at maturity, not gradual

5. Rent out property - Make assets work

If you own a house, condo, or space for selling goods, rent it out. You will receive rent every month, and at the same time, your property may appreciate in value( or even increase in value), giving you two types of Passive Income simultaneously.

Advantages:

• Immediate income from the first month
• Income alongside asset appreciation
• Good returns

Disadvantages:

• Must own the property first
• Maintenance costs
• Risk of no tenants

6. Invest in REITs - Rent real estate through stocks

Don’t want to buy a house to rent out? Try investing in REITs (Real Estate Investment Trust). The company collects rent from offices, hotels, warehouses, then distributes dividends to you. The benefit is low capital requirement, easy trading, and diverse asset options.

Advantages:

• Low initial investment
• More convenient than buying property
• Wide variety of options

Disadvantages:

• Share prices may fluctuate with the market
• Dividends are subject to 10% tax

7. Buy dividend stocks - Keep your portfolio spinning

Stocks can provide two types of returns—growth in price and dividends. Dividend stocks (Dividend Stock) are known for consistent profits, high and regular dividends, and can yield 6-8% annually.

Advantages:

• Passive Income alongside Portfolio Income
• Higher returns compared to other methods
• Easy to buy and sell, liquid

Disadvantages:

• Stock prices may fall, leading to capital loss
• Dividends are taxed at 10%

8. Staking cryptocurrencies - High returns but risky

In the crypto world, Passive Income options include staking—deposit coins into a pool according to specified rules, earning 3-5% or even higher, sometimes dozens of percent. But remember, high returns come with high risks.

Advantages:

• Highest returns
• Easy to trade on platforms
• Can generate Passive Income alongside Portfolio Income

Disadvantages:

• High risk, possible loss of principal
• Tax systems are not yet clear
• Requires high knowledge; not suitable for beginners

Summary: Passive Income, the Bridge to Financial Freedom

Passive Income is not a fantasy; it’s a real strategy that helps ordinary people achieve their financial goals faster, rather than relying solely on Active Income.

There are many options—from those that require no capital (like selling art) to those that demand high expertise (like staking). You don’t need to do all 8 at once. Just choose the Passive Income that fits your situation and goals. Everyone’s wealth-building formula is different, but increasing Passive Income will bring your goals closer.