“Make money while you sleep.”
“Have your money make money for you.”
The slogans around passive income are tantalizing. But what’s the truth behind this concept? Can people really secure and rely on trustworthy passive income sources, or is this alluring idea more hype than reality?
What is passive income? Technically speaking, passive income is any sort of money coming in without active effort. In other words, it’s money earned without working for yourself or an employer. You can generate passive income from niche opportunities such as mineral royalty streams, fractional farm ownership, peer-to-peer lending, rented-out parking spaces and music recording royalties, but most investors want simpler solutions.
Here are five of the best passive income ideas for 2025.
This post originally appeared at U.S. News & World Report.