A little extra income can go a long way. Whether you're saving for a big goal, investing for the future, or just trying to ease financial stress, finding new ways to earn can help you build savings momentum. Some ideas take time to grow, while others can start paying off right away. Here are a mix of passive and active income ideas to help you get started.
Passive income ideas
1. Investing in dividend stocks
Some companies distribute a portion of their profits to shareholders in the form of dividends. Because earning dividends can require owning stocks, dividend investing can be considered high risk. But investors may be able to target a general level of risk with a diversified investment mix that could include dividend stocks. To find out how to gain exposure to dividend-paying stocks, read Fidelity Viewpoints: Seeking peace with dividend stocks
Looking for more passive income ideas? Read Fidelity Viewpoints: 6 low-risk investments for yield seekers
2. Create a digital product
Design an eBook, online course, or downloadable template. Once created, it can be sold repeatedly through various digital marketplaces.
3. Rent out a room or property
Monetizing a spare room, vacation home, or even storage space can be a great way to generate income. Many people use short-term rental platforms to connect with guests. However, this strategy comes with important risks and responsibilities.
Upfront and ongoing costs include:
- Maintenance and repairs: Regular upkeep and emergency fixes can be costly.
- Property management fees: Hiring a manager typically costs a percentage of the monthly rent.
- Cleaning and turnover costs: Especially important for short-term rentals.
- Furnishing: Initial setup for furnished rentals can be expensive.
- Utilities: You may need to cover services like water, electricity, internet, or trash.
Legal and regulatory requirements:
- Zoning laws: Many cities restrict or ban short-term rentals in certain areas. You may need a permit or license.
- Taxes: Rental income is taxable. Some cities also require you to collect and remit occupancy or hotel taxes.
- Insurance: Standard homeowners insurance may not cover rental activity. Additional landlord or short-term rental insurance may be recommended, so it can make sense to contact a legal professional.
Renting out property can be profitable, but it’s essential to do your homework and protect yourself legally and financially. Read Fidelity Smart Money: Is renting out your stuff worth it?
4. License your photography or art
If you’re a photographer, illustrator, or digital artist, you can earn passive income by licensing your work through stock content websites. Every time someone downloads your image or design, you earn a royalty.
Why it works:
- Businesses, bloggers, marketers, and publishers are always looking for high-quality visuals.
- Once uploaded, your content can earn money for years with no additional work.
What to watch out for:
- It can take time to build a portfolio that generates consistent income.
- Competition is high, so quality, originality, and keyword tagging are key.
Pro tip: Focus on evergreen content—images or designs that are always in demand, like business themes, seasonal scenes, or lifestyle shots.
5. Start a blog or video channel
Have a passion, skill, or story to share? Starting a blog or video channel can be a fun and rewarding way to build an audience and earn income over time. Monetization can come from ads, affiliate links, sponsored content, or even selling your own products.
Why it works:
- Content lives online indefinitely, so older posts or videos can continue to earn.
- You can build a personal brand and open doors to other opportunities like speaking gigs or collaborations.
What to watch out for:
- It takes time to grow an audience and start earning.
- Consistency and quality are key. Posting regularly and offering real value builds trust and engagement.
Pro tip: Choose a niche you genuinely enjoy. Whether it’s travel, tech, parenting, or personal finance, your enthusiasm will shine through and keep you motivated.
6. Buy and sell domain names
Purchase domain names you believe will be valuable in the future and resell them at a profit. Think of it as digital real estate.
Read more on Fidelity Smart Money: 13 ideas to make passive income
Active income ideas
7. Freelance your skills
Got a talent for writing, design, coding, marketing, or another in-demand skill? Freelancing lets you turn that expertise into income on your own terms. You can work with clients around the world, set your own rates, and choose projects that interest you.
Why it works:
- Flexible hours and location independence.
- You can build a portfolio and raise your rates over time.
- Great for building a side hustle or even a full-time business.
What to watch out for:
- Finding clients takes effort, especially at the beginning.
- You’ll need to manage your own taxes, contracts, and deadlines.
Pro tip: Start with 1 or 2 services you’re confident in, and build a simple online portfolio to showcase your work. Read Fidelity Viewpoints: Managing your finances as a freelancer
8. Tutor or teach online
If you’re knowledgeable in a subject, or even just passionate about helping others, you can earn by teaching online. From math and science to music, languages, or fitness, there’s a demand for all kinds of instruction.
Why it works:
- You can teach from home with just a webcam and internet connection.
- Sessions can be 1-on-1, or group based.
- Some platforms handle scheduling and payments for you.
What to watch out for:
- You may need to market yourself or get certified, depending on the subject.
- Building a steady stream of students can take time.
Pro tip: Offer a free trial session or discounted first lesson to attract new students and build reviews.
9. Deliver food or provide rides
If you have a car, bike, or scooter, you can earn money by delivering food or driving passengers. It can be one of the most flexible ways to make extra cash, since you can log in and work when it suits you.
Why it works:
- No special skills required.
- You can work as much or as little as you want.
- Great for evenings, weekends, or in between commitments.
What to watch out for:
- Vehicle wear and tear, fuel costs, and insurance.
- Earnings can vary depending on demand and location.
Pro tip: Work during peak hours (like lunch and dinner) to maximize tips and bonuses.
10. Sell unused items
Got stuff collecting dust? Turn it into cash by selling it online or locally. From clothes and electronics to furniture and collectibles, there’s a market for almost everything.
Why it works:
- It’s fast, simple, and helps you declutter.
- You can often get more than you expect for gently used items.
- No upfront investment needed.
What to watch out for:
- Be cautious of scams or no-shows if selling locally.
- Take clear photos and write honest descriptions to attract buyers.
Pro tip: Bundle similar items (like baby gear or books) to sell faster and save time.
11. Pet sit or walk dogs
If you love animals, pet sitting or dog walking can be a fun and fulfilling way to earn. Whether it’s daily walks, weekend stays, or drop-in visits, pet owners are always looking for reliable help.
Why it works:
- Flexible schedule and low startup costs.
- You get paid to hang out with furry friends.
- Builds trust and repeat business in your local community.
What to watch out for:
- You’ll need to be dependable and comfortable handling different pet personalities.
- Some pets may have special needs or behavioral quirks.
Pro tip: Ask for reviews or referrals from happy pet parents to grow your client base.
12. Participate in market research
Companies want your opinion and they’re often willing to pay for it. You can earn money by taking surveys, joining focus groups, testing products, or reviewing websites and apps.
Why it works:
- No experience needed.
- You can do it from your phone or laptop, anytime.
- Some opportunities pay in cash, others in gift cards or rewards.
What to watch out for:
- Not all sites are legit, so be sure to stick to well-reviewed platforms.
- Some surveys pay very little, so focus on higher-paying opportunities.
Pro tip: Consider creating a separate email for sign-ups and check it regularly for new opportunities.
Be aware of taxes
Increasing earnings can be one of the best ways to meet your financial goals but it may bring a new problem—higher taxes. If your current income puts you close to the next tax bracket, earning just a little more could increase your tax bill more than you might have expected. Read Fidelity Viewpoints: How tax brackets work
To help reduce the impact of taxes on your bottom line, consider saving in tax-advantaged accounts, like an IRA, health savings account, or a workplace retirement savings plan, like a 401(k). That can be one way to help reduce your taxable income and save for the future. For more tax-saving tips, read Fidelity Viewpoints: 8 ideas to tackle tax-bracket creep