Robert Kiyosaki’s 6 Passive Income Ideas (2024)

Commitment to Our Readers

GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.

20 Years
Helping You Live Richer

See Also

Embracing the Passive Income Mindset: Nurturing Abundance and ProsperityWhat is Passive Income? | DefinitionPassive vs. Active Philosophy

Reviewed
by Experts

Trusted by
Millions of Readers

Building long-term wealth and increasing your financial stability is key to success, and passive income can help. Passive income means earning money without having to do any work — it’s one of the easiest ways to earn money and can guide you down a path toward financial freedom.

It’s been reported that 20% of American households earn passive income either through dividends, interest, or rental properties. Among those households who do have passive income, the median amount is $4,200 per year.

Robert Kiyosaki, the bestselling author of “Rich Dad Poor Dad,” stresses the importance of building wealth and getting a financial education. One of his key pillars is finding ways to earn a passive income, and here are the six best ways to do so.

Purchase Shares of Dividend Stocks

If you’re already investing in the stock market, consider buying shares of dividend stocks. Some companies pay out a percentage of each share’s value either monthly or quarterly just for owning the stock. Meanwhile, the value of the stock has the potential to grow over time. You can take the dividend payments and purchase more shares of the same stock, which will further compound your money. Dividend stocks are a smart way to make an effortless passive income.

Invest in Real Estate

Unlike earning a paycheck from your job, owning real estate works for you. Purchasing properties to rent them creates a passive stream of income. In addition, the value of your properties could increase over time, leading to an even higher return should you decide to sell in the future. It’s worth noting that being a landlord comes with responsibilities, including but not limited to property maintenance and building upkeep. You can hire a property manager to take care of manual tasks for you to make real estate investing a true passive income.

Collect Royalties From Intellectual Property

If you’re a writer or musical artist, for example, you could collect royalties from the sale of your intellectual property such as a book or album. Each time a book is sold or your song is streamed online, you’ll earn a percentage of the sale. While it takes time and effort to create something at first, you can earn passive income from the repeat sales of your work.

Peer-to-Reer Lending

Rather than parking your cash in a high-yield savings account or certificate of deposit, you can earn a passive income through peer-to-peer lending. You’ll lend your money to small businesses or individuals looking for capital in exchange for interest payments. Keep in mind that peer-to-peer lending can come with risks so be discerning when choosing the right platform and businesses to lend your money out to.

Make your money work for you

Get the latest news on investing, money, and more with our free newsletter.

By subscribing, you agree to our Terms of Use and Privacy Policy. Unsubscribe at any time.

Thanks!

You're now subscribed to our newsletter. Check your inbox for more details.

Create a Business That Operates Without You

This may seem counterintuitive, but setting up a business that can operate without your involvement can mean lots of passive income. By hiring the right individuals, setting up the right systems, and automating as many processes as possible, you can work on growing the business and not spend time working in the business.

Buy Annuities

An annuity is a type of agreement where you pay an insurance company in exchange for periodic payments of a determined amount of money for a specified period. There are immediate, deferred and variable types of annuities that offer payments at different times. Annuities can sometimes offer high returns but be aware that they also come with risk since the payouts are determined by the performance of the underlying assets that the insurance company buys with your money.