6 Passive Income Streams To Build Wealth in 2025, According to Vincent Chan
Written by
Vance Cariaga
Edited by
Gary Dudak
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Plenty of people fantasize about getting paid to do nothing but don’t take the necessary steps to turn fantasy into reality. It’s not as hard as you might think — as long as you have a little money to invest in passive income sources. As the name suggests, passive income is money you earn with little or no effort.
The main thing you need to earn passive income is capital, but even that’s not required if you already own certain assets (like a car or house).
In a recent YouTube video, financial influencer Vincent Chan discussed some of these passive income streams. Here are six passive income streams to build wealth in 2025, as recommended by Chan.
Also see the truly most passive income you can make, according to money coach Chloé Daniels.
Real Estate
Contrary to what you might believe, it doesn’t take a massive capital outlay to get involved in real estate. As Chan noted, you can actually get started for as little as $1,000, $100 or even $10 with a real estate investment trust (REIT). REITs are companies that own income-producing real estate, according to Investor.gov. As Chan noted, they are required to pay out 90% of their income to shareholders.
Many, but not all, REITs are publicly traded on stock exchanges, and they usually produce decent returns. For example, the Dow Jones Equity All REIT Index produced an 11.3% return in 2023, according to S&P Global.
Chan recommended investing in “future-proof” REITs, such as those that specialize in data centers, which likely will be in high demand due to the rise of artificial intelligence and other technologies.
Small Businesses
The U.S. is home to about 34.7 million small businesses, according to the U.S. Small Business Administration, so there’s no shortage of investment opportunities. But for passive income, you want to focus on businesses that don’t require your active participation.
Chan recommended looking for businesses that can run with minimal effort, such as FBA (fulfillment by Amazon) stores or affiliate marketing sites. You can invest in many of these for only a few thousand dollars.
Car Rentals
For this passive income option, you’ll want to consider using Turo, a car rental marketplace.
“Think of Turo like the Airbnb for cars where you essentially put your car on its marketplace and other people could rent it out,” Chan said.
There are a couple of key things to consider, though. First, think about your location. Cars in tourist hotspots or bustling cities typically get the most bookings, according to Chan. You’ll also want to consider your vehicle type. Higher-end cars earn more on average than other cars.
Dividend Stocks
When you invest in a dividend stock, you get passive income in the form of dividend payouts. Key things to consider, according to Chan, are the dividend yield, which tells you how much return you should get relative to the stock price, and the payout ratio, which is the percentage of profits a company will pay out in the form of dividends.
One of the best places to find dividend stocks is on the S&P 500 because it is mainly made up of large, established companies. A recent analysis from U.S. News found that the top 10 dividend-paying stocks include Ford Motor Company, Verizon and Walgreens Boots Alliance.
Dividend Index Funds
For those who like the idea of a regular dividend but don’t want to choose specific stocks, Chan recommended investing in dividend index funds. Think of these as a “buffet” of dividend-paying stocks that lets you enjoy a “spread of companies without having to pick out each dish,” Chan said.
Pay close attention to the expense ratio, which is the annual fee the fund charges to cover administrative costs. The lower the ratio, the better your return.
High-Yield Savings Account
Chan called this his “absolute favorite” passive income stream. High-yield savings accounts pay much higher-than-average annual percentage yields, and many are offered by smaller banks, online banks and fintechs.
You will want to consider the interest rate, fees and insurance by the Federal Deposit Insurance Corporation when choosing a high-yield savings account, according to Chan.
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