Learning how to make passive income in your 20s is one of the best ways to set yourself up for financial freedom in the future. While the best methods remain the same at most ages, making passive income in your 20s may not look the same as it does in your 30s and beyond.
The best ways to make passive income in your 20s include:
- Blogging
- Creating digital courses
- Writing ebooks
- Creating digital content for download
- Affiliate marketing
- Investing in real estate
Keep reading as we explore what passive income is and what these avenues look like when you’re in your 20s.
Passive Income Explained
Passive income refers to money you make without putting time or effort into the task.
Some fail to recognize that passive income requires an upfront investment of either time or money, and you need to identify what resources you can invest and where your investment pays off the most.
Passive income is riskier than other types of income because there is no guaranteed return on your investment, and you may come up short. It’s best to work with something you are passionate about or able to take a risk on to ensure your attempt is not a total loss.
Best Methods for Passive Income in Your 20s
While you may not have much to work within your 20s, each of these passive income avenues are attainable through effort alone. Paying for help certainly makes things easier, but you get more return on your investment by keeping money out of it.
Blogging in Your 20s
If you have a specific niche you are interested in, blogging is one of the best ways to make passive income while in your 20s. It doesn’t have a high content demand to stay relevant (you can realistically post once a week), and anything that you post stays online to make you money in the future.
Blogging makes money through:
- Display ads
- Affiliate marketing
- Digital product sales
While this is a better choice for someone willing to invest their time and knowledge into writing blog articles, you can pay a ghostwriter to help create quality content and earn revenue from that work.
You will also need to invest in a domain name, web hosting account, and the tools needed to design your blog.
Creating Digital Courses in Your 20s
One step up from blogging is creating digital courses, and the two seem to go hand in hand. If you are particularly knowledgeable in one area, you can create a comprehensive course on the subject.
You may already do this in a blog or on social media, especially if you’re posting “how-to” videos. You can use this content to attract potential customers and then create an online course they pay for to access more comprehensive lessons.
Platforms like Teachable, Podia, and Kajabi are great places to market your courses, but you’ll need to figure out how to piece everything together and add value through worksheets and downloadable tools.
These courses are designed to be self-paced and include little to no oversight on your part, so they’re a significant source of passive income once you’ve finished the curriculum.
Writing Ebooks in Your 20s
Selling ebooks is easier now than ever before, and you can write both fiction and nonfiction for a passive profit.
Unlike a traditional print book, ebooks do not need to be a minimum of 10,000 words. You can get away with writing 2,500 words as long as your content and price match your customer’s expectations.
Keep in mind that readers can be highly critical, and you may need to hire an editor, formatter, and cover designer to give your book the best shot at success.
Creating Digital Content in Your 20s
If you don’t have much to say but do have an eye for design, creating digital content for download is the best choice for you.
Whether you have formal training or not, you can easily create content in forms such as:
- Journal prompts
- Templates
- Mini-courses
- Checklists
- Craft and/or hobby guides
- Spreadsheets
Those with a more artistic eye find more satisfaction in creating designs that easily go on:
- Stickers
- T-shirts
- Journals
- Prints
If you connect to an on-demand print fulfillment service, you don’t need to worry about keeping inventory in your home. Just make sure you perform the proper market research and take the time to promote your business while you sell on creative websites such as Etsy.
Affiliate Marketing in Your 20s
Affiliate marketing refers to teaming up with retailers to promote their products. You get paid either by the click or by the sale (usually the latter) along with an initial investment, and you only need to create content the specified number of times using their product.
This is great if you already have a following on social media accounts such as TikTok, YouTube, or Instagram. You can also promote these products on your blog, podcast, or newsletters.
Affiliate marketing should be authentic, so you need to take the time to provide honest reviews on products relevant to your existing audience. It may not pay all your bills, but it gets you free items and helps you build a brand while in your 20s.
Real Estate Investments in Your 20s
It may seem like 20 is too young to start investing in real estate, but if you’re capable of it then this is one of the most lucrative ways to start.
When you’re talking about passive income with real estate investments, you want to stay away from homes that require repairs. Look for housing opportunities that are already put together well, but understand that there is never a guarantee you can rent them out.
One way to make passive income through real estate in your 20s involves purchasing a multi-unit home, staying in one unit, and renting out the others. This way you aren’t at a total loss if you have no tenants.
Airbnb and other short-term rental sites pay off well if you live in a popular tourist area, and you can get started with SniffSpot to rent out land to local dog owners who have no yard of their own.
What About Investing In Stocks?
You can do this slowly over time and let the market do a lot of the work for you.
However, it’s important to understand that unless you’re making a lot of money already, it’s going to take plenty of time for this to become a significant source of passive income.
The best thing you can do is get a side hustle going, so you’re making extra money to invest. Once you have a little bit of cash coming in regularly, you can start investing without putting too much strain on your budget.
What Are The Benefits Of Getting a Side Hustle That Can Become Passive?
The number one thing is that it will give you extra money to invest, but there are plenty of other benefits as well.
Pay Off Debt
For one, it can help you pay off debt faster. If you’re able to make more than the minimum payments on your debts, you’ll be able to get rid of them that much quicker.
House
It can also help you save up for other financial goals, such as retirement or a down payment on a house. The sooner you start saving, the better off you’ll be in the long run.
Learn About Yourself
And finally, it can help you learn more about yourself and what you’re capable of. If you’re able to successfully run a side hustle, it can give you the confidence to take on other projects and challenges in your life.
So, there are plenty of good reasons to start a side hustle that has the potential to become passive income. Just make sure that you’re realistic about the amount of time and effort it will take to get there.
Conclusion
There are many opportunities for those in their 20s to make passive income. It’s important to do your research and find what works best for you.
Don’t be afraid to try multiple things at once, and always remember that it takes time to see results. The most important thing is to enjoy the process and learn as you go!
What are your thoughts on passive income in your 20s?
Do you have any methods you’d recommend?
Share your thoughts and experiences in the comments below!
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