How To Make $4,000 a Month in Passive Income: 10 Easy Ways

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Whether you have looked into starting a side hustle or have started selling unused items around your home, earning extra money goes a long way to reaching your financial goals. Creating passive income streams can make the dream of easily earning extra cash a reality. Imagine making $4,000 every month without actively working for it. 

Quick Take: Passive Income

Passive income is money earned with little to no ongoing effort where you don’t necessarily have to be actively involved. In other words, instead of the money you get from an employer in a paycheck, you earn additional income through various ways that can range from joining the gig economy to earning compound interest on a traditional savings account or high-yield checking account.

How To Make $4,000 a Month in Passive Income

If your risk tolerance is lower, keep it simple by opening an account with an online bank or financial institution with higher APYs. If you can handle a bit more volatility you might want to dip your toe in bigger investments such as real estate or stocks. The good news is that there are a multitude of ways to build your bank account so you try more than one to find the right fit for your finances.

Here are 10 great ways to earn passive income every month.

1. Open a High-Yield Savings Account 

Unlike a traditional savings account, a high-yield savings account earns you a higher-than-average interest rate on your deposits. For example, the current national average for savings accounts is a rate of 0.47%. A high-yield savings account would earn you much more and help you grow your wealth faster. 

A great way to earn passive income is from the interest on these accounts. You can also take other income streams and put them in the account to earn passively. GOBankingRates has ranked the following as some of the best high-yield savings accounts for 2024:

  • Bask Bank Interest Savings Account
  • BMO Alto Online Savings Account
  • Bread Financial High-Yield Savings Account
  • Salem Five Direct eOne Savings Account
  • TAB Bank High Yield Savings Account

2. Invest in Dividend-Paying Stocks

Investing in dividend-paying stocks means you buy shares of companies that distribute a portion of their profits to shareholders. Over time, these dividends can add up to a significant income stream. 

Though there are no guarantees in this type of investment, it helps to look for stable companies with a history of paying dividends consistently. In order to earn $4,000 a month off of the interest you’ll need to invest a lot of money up front.

3. Rent Out Your Real Estate Investments

Real estate can be a lucrative source of passive income. You can invest in rental properties and earn monthly rental income. Additionally, real estate tends to appreciate in value over time, providing both rental income and capital gains.

If this seems like a viable option for you, maybe consider renting for short-term stays on platforms like Airbnb or Vrbo. By hosting guests, you can earn passive income without much effort. Just make sure to provide a comfortable and welcoming experience for your guests to maximize your earning potential. 

4. Start a Blog or YouTube Channel

Online content can generate passive income through advertising, affiliate marketing and sponsorships. Choose a topic you’re passionate about, create engaging content and build an audience. With time and dedication, your blog or channel can attract advertisers and sponsors, earning you a steady income.

For platforms such as YouTube, to make upwards of $4,000 of passive income a month, it takes more than just posting videos. Here are some ways to amplify your money-making potential:

  • Focus on increasing your followers and growing your audience so you can monetize your content. 
  • Turn on display ads to further your income streams from your page. 
  • Incorporate product or affiliate marketing by working with sponsorships and branding opportunities. 

5. Write an E-Book

If you have knowledge or expertise in a particular subject, consider writing an e-book and self-publishing it online. Once published, you can earn royalties every time someone purchases your book.

Though this form of passive income can be a slow-growing one, if you write about topics that interest you and have a potential audience, this idea has the potential to gain momentum and earn you thousands of dollars per month.

6. Participate in Peer-to-Peer Lending

Peer-to-peer lending platforms allow you to lend money to individuals or businesses in exchange for interest payments. By diversifying your loans across multiple borrowers, you can minimize the risk while earning passive income through interest on your loans. Essentially, you become the bank and can set your competitive interest rates to ensure you get a lot of loanees. 

7. Create an Online Course

Share your skills and expertise by creating an online course. Platforms like Udemy and Teachable allow you to create and sell courses on various topics, or you can do so from your own website once you build a solid number of students. You can earn passive income as people enroll and purchase your course. This allows you to set your own schedule and course load to cater to your specific monthly financial goals. 

8. Invest in Index Funds or ETFs

Lower-risk index funds and exchange-traded funds offer a diversified portfolio of stocks or bonds. By investing in these funds, you can benefit from the market’s overall performance without the need for active management. Over time, your investment can grow, providing a steady stream of passive income through dividends and capital gains.

9. Try Affiliate Marketing

Affiliate marketing involves promoting products or services and earning a commission for each sale made through your referral link. Join affiliate programs related to your niche and promote products you genuinely believe in. As your audience grows, so will your affiliate income.

It’s one of the easiest ways to earn extra cash on a blog, website or social media platform you already participate in and have a following on. 

10. Build a Mobile App or Website

If you have programming skills or can hire a developer, consider creating a mobile app or designing a website. Monetize your app through advertisements, in-app purchases or subscriptions. With millions of smartphone users worldwide, a successful app can generate significant passive income.

If you want to expand this idea more, you could also build a website to cover a specific topic or niche you feel equipped to attract visitor traffic on. This is another passive income idea you can grow over time.

Final Take To GO

The bottom line is that earning $4,000 monthly in passive income is achievable with the right strategies and mindset. Whether it’s through investments, online ventures, rental income or diversifying your investment strategy, your sources of passive income can provide financial stability and freedom. 

Combining or trying more than one of these potential income streams requires you to stay consistent to help it grow over time. With dedication and perseverance and maybe even a little risk-taking, you can earn thousands of extra dollars a month.


Here are the answers to some of the most frequently asked questions about ways to make money.
  • How much money do I need to invest to make $4,000 a month?
    • Making $4,000 a month based on your investments alone is not a small feat. For example, if you have an investment or combination of investments with a 9.5% yield, you would have to invest $500,000 or more potentially. This is a high amount, but could almost guarantee you a $4,000 monthly dividend income.
  • How can you make an additional $4,000 a month?
    • There are many ways you can make an additional $4,000 a month including, but not limited to, the following:
      • Open a high-yield savings account
      • Invest in dividend-paying stocks
      • Rent out your real estate investments
      • Start a blog or YouTube channel
      • Write an e-book
      • Participate in peer-to-peer lending
      • Create an online course
      • Invest in index funds or ETFs
      • Try affiliate marketing
      • Build a mobile app or website

Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.

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