Earn Money While You Sleep: Passive Income Ideas in the Philippines

Moneymax Editorial Team

Moneymax Editorial Team

Last updated July 24, 2023

Are you tired of the nine-to-five rat race? Do you want to earn extra income without exerting so much effort? If so, start looking into passive income ideas in the Philippines.

If there's one thing Filipinos are good at, it's finding ways to make money and get by even in the most difficult times. No matter what your interests are, there's likely a passive income idea that will suit you. With the right strategy, you can start generating substantial income passively within a year.  

Read more to discover potential passive income opportunities. 

What is Passive Income?

Passive income refers to income received regularly with little effort required to maintain it. The key is to select an income stream that requires minimal ongoing work. Once the initial setup work is complete, passive income will begin to flow in.

Your passive income will depend on how much money you want to invest, your knowledge or expertise in your chosen area, and your risk tolerance. It can come from investments, such as dividends from stocks or rental income from a property, or earnings from internet-based businesses, such as online advertising or affiliate marketing. 

For many, passive income provides a welcome supplement to their regular wages and helps them achieve their financial goals. 

❓ What is the Difference Between Passive and Active Income?

With active income, you need to actively—hence the term—work to earn money in the form of salary, commissions, tips, side hustle wages, and more. Meanwhile, with passive income, you're making your money work for you. 

Why is Passive Income Important?

passive income ideas in the philippines - importance

There are plenty of reasons to earn passive income, the most important of which is achieving financial freedom. When you gain financial freedom, you can live without worrying about money and retire early. 

Passive income also helps diversify your investment portfolio. When you have a diversified portfolio, you’re less likely to lose money if one of your investments fails. When you reinvest earnings from your passive income streams, you can also grow your wealth exponentially. 

If you’re looking for ways to achieve financial freedom, build wealth, and earn without exerting a lot of effort, generating passive income is your best bet.  

21 Best Passive Income Ideas in the Philippines This 2023

Not all passive income ideas are created equal. Some require significant effort and time investment, while others offer lower income streams. 

Start with something that requires little to no work on your part or invest in assets that will generate income without you having to do much. Here are some different ways to earn passive income in the Philippines. 


How to earn or make passive income in the Philippines? Look into investments.

You can earn passive income through investments that give you potential earnings for the long term. Remember that all investments come with risks, so make sure you understand them before investing. 

👉 Dividend-Earning Stocks

Dividend stocks are great income-generating assets in the Philippines. These are stocks that pay out dividends to shareholders. The dividend is usually a portion of the company's earnings. It's paid out from the profits, either stocks or cash. 

You can reinvest the dividends that you receive back into the stock, which can help you compound your gains over time. They tend to be less volatile than other types of stocks. You can open an online brokerage account accredited by the PSEi and choose reputable companies to invest in. 

👉 Treasury Bonds

passive income ideas in the philippines - treasury bonds

Treasury bonds are debt securities issued by the government. They’re typically issued with maturities of five, seven, 10, or 20 years and pay interest monthly, quarterly, or semi-annually. 

They're one of the safest investments you can make since they're backed by the government. This passive investment in the Philippines offers a relatively high rate of return compared to other fixed-income investments such as corporate bonds.

For government bonds such as T-bonds, head straight to the Bureau of Treasury[1] website and check their offerings, or ask your bank. 

👉 Mutual Funds

Mutual funds, which are mostly offered by banks and investment companies, allow investors to pool their money together and invest in a variety of securities, such as stocks, bonds, and other assets.

There are two main types of mutual funds in the Philippines: index funds and actively-managed funds. Index funds track a specific market index, such as the Philippine Stock Exchange Composite Index (PSEi). Actively-managed funds are managed by professional fund managers who aim to outperform the market. 

Mutual funds offer one of the best passive income investments in the Philippines, as they provide exposure to a wide range of securities without the need for active monitoring. 

👉 Pag-IBIG MP2

With this program, you can earn up to 7% interest per year on your saving. In addition, your money is protected from inflation. 

You don't have to do anything other than save your money and let it grow. If you're looking for a safe and effortless way to grow your money, consider the Pag-IBIG MP2 program.

👉 UITFs 

Unit Investment Trust Funds are a type of collective investment scheme that allows investors to pool their money together and invest in a wide variety of securities, including stocks, bonds, and other asset classes. 

They're a popular investment choice in the Philippines due to their flexibility and potential for high returns. While there’s no guaranteed return on investment, UITFs have the potential to provide investors with significant passive income. 

UITFs can also help investors diversify their portfolios and reduce their overall risk. They're perfect for those looking to build long-term wealth.

👉 Cooperatives

There are many different types of cooperatives in the Philippines, ranging from agricultural to financial cooperatives, and also cooperative housing societies.

Cooperatives offer members the opportunity to earn passive income. Some pay dividends based on the profit the cooperative makes. As the cooperative grows and gains success, members can start to earn regular income just by being part of it. 

In addition, many cooperatives also offer member-only discounts on products and services. 

👉 Investment Crowdfunding

passive income ideas in the philippines - investment crowdfunding

Investment crowdfunding is a process where individuals pool money together to invest in a business venture. In return, investors can earn passive income by owning shares in the company. Some examples of crowdfunding companies you can check out include Spark Project, SeedIn, and Investree. 

This type of investment offers the potential for high returns, but it also carries a higher risk. Do your research before deciding to invest in any company. If done properly, it's a great way to earn passive income and support early-stage local businesses.

👉 Peer-to-Peer Lending

Peer-to-peer (P2P) lending allows individuals to borrow and lend money without the use of traditional financial institutions, such as a bank. 

It matches borrowers with lenders. The borrower then makes payments to the lender, with interest, over an agreed period of time. The interest rate is typically set by the platform based on the borrower's creditworthiness.

To get started, create an account on a P2P lending platform like LendPH, BlendPH, or Acudeen. Browse through the available loan listings and choose which ones you wish to fund. Once you've made your investment, you’ll begin earning interest on the borrower’s loan repayments.

👉 Variable Universal Life (VUL)

A VUL insurance policy offers the death benefit of traditional whole life insurance and the opportunity to invest in sub-accounts similar to mutual funds. 

The policyholder can choose to invest in sub-accounts that best suit their goals, whether it’s growth, income, or preservation of capital. Additionally, VUL policies offer the potential for higher returns than traditional whole life insurance policies. Over time, the cash value can grow to equal or exceed the death benefit of the policy.

Speak with a financial advisor to learn more.

Apply for a personal loan through Moneymax

Online Money-Making Activities

Is there a way to earn passive income online in the Philippines? There are plenty!

Initially, it may take a bit of effort, time, and money to build your website or create products. But over time, you’ll start earning with minimal effort on your part. 

👉 Sell eBooks

If you're looking for more passive income ideas in the Philippines, selling ebooks is a great option. Thanks to the growing popularity of digital reading, more and more people are purchasing ebooks online. 

Once you've created your ebook, it requires very little effort to maintain and sell―meaning you can enjoy true passive income. Publish and sell it on Amazon and ask your readers to leave reviews. 

Just be sure to create quality content that will appeal to your target audience!

👉 Online Courses

By sharing your knowledge with others through an online course, you can create a valuable resource that people will be willing to pay for. Also, online courses tend to be cheaper to produce than traditional courses, meaning you can charge less for them while still earning good profit as you grow your customer base. 

Because they can be accessed from anywhere in the world, online courses have the potential to reach a wider audience, giving you the opportunity to earn passive income from a larger number of people.

👉 Graphics and Artwork

There are a number of ways to do this, including selling digital products on sites like Etsy, Deposit Photos, and Getty Images, or even setting up your own online shop. 

The key is to find a niche with a loyal following. Once you've established yourself in your chosen market, you can sell a wide range of products, from templates to prints and custom designs. You'll be able to reach a global audience and make sales round the clock.

If you're looking for creative passive income ideas in the Philippines this 2023, just capitalize on your skills and talents. 

👉 Dropshipping

Dropshipping is a business model where you sell products without any physical inventory. When you receive an order from customers, you simply contact the supplier and they’ll ship the products directly to the customer.

It's a great way to start an online business with little upfront investment—and a great way to earn passive income as well. 

Because you don’t need to invest in inventory, you can test out different products and markets without incurring much risk. Try this on Shopify and find different products and suppliers. 

👉 Website Flipping

passive income ideas in the philippines - website flipping

Website flipping involves buying a website, improving it in some way, and selling it for a profit. 

Choose the right website to flip. Look for one that has potential but needs some work. Next, improve the site, a process that can involve anything from redesigning the layout to adding new content or features. 

Once you've made improvements, market it for sale. List it on a marketplace like Flippa.com. Here, you can reach a large audience of potential buyers and get top dollar for your site.

👉 Affiliate Marketing

Affiliate marketing is a type of performance-based marketing in which a business rewards one or more affiliates for each visitor or customer brought by the affiliate's own marketing efforts. It's like a commission-based sales job where you earn income by promoting and selling products on behalf of another company.

Affiliate marketing is one of the easiest passive income ideas in the Philippines because it doesn't require much effort. Once you've established yourself as an affiliate, just promote your affiliate links and wait for the commissions to roll in. However, choose your affiliates carefully and make sure you're promoting products relevant to your audience. 

👉 Blogging

With blogging, you can write articles on topics you’re passionate about and post them on your website or blog. Include affiliate links in your articles so you can earn a commission if someone clicks on the link and makes a purchase.

👉 Vlogging

passive income ideas in the philippines - vlogging

Vlogging is similar to blogging. But instead of writing articles, you create videos. Post your videos on YouTube or another video-sharing website.

Once again, you can include affiliate links in your videos to earn passive income. You can also monetize your views. 

Vlogging requires some initial work to set up. But once you have a following, it can be quite profitable. And best of all, it's a fun way to share your passions with the world.

Related reading: Start Your Creator Journey: How to Make Money on TikTok Philippines

👉 Cashback Apps or Websites

Did you know that you can earn money while spending it? Earn a portion of the money you spend while shopping for both essentials and wants through cashback apps such as ShopBack Philippines.

Simply browse through ShopBack's or your chosen cashback website's catalog of partner stores. Then click on the partner store via ShopBack instead of going directly to its website. After ShopBack verifies your transaction, you can withdraw the money into your bank account. 

The earnings may not seem much initially, but after a while, you'll see just how much you can earn from cashback apps or websites. 

Read more: Earn Cash on the Side: Legit Apps to Earn Money in the Philippines

Property Rentals 

Earn money while you sleep by leasing or renting out properties or commercial space. To earn passive income through these business ideas in the Philippines, you need a good location and realistic rental fees. 

👉 Rentals via Airbnb

passive income ideas in the philippines - rentals airbnb

Airbnb is a platform that allows people to rent out homes or private rooms to guests. By renting out your home on Airbnb, you can earn money without having to do any work.

Simply list your rental on the site and set your price. When someone books your rental, you provide the guest with a place to stay and collect the payment. Airbnb takes a small percentage of the rental price, but the rest goes directly into your pocket. 

This is a great way to earn money if you have an investment property you don't often use anyway. 

👉 Lease Commercial Space

Commercial leasing is when a business or individual rents out commercial real estate, such as office space, retail space, or industrial space, to another business or individual. 

By leasing, you can earn rental income without having to actively manage the property. This provides a steady stream of passive income that can help to offset the costs of owning and maintaining the property. 

In addition, commercial leases often include provisions for rent increases, so your income will grow over time. As such, commercial leasing can be an excellent way to generate passive income and build long-term wealth.

👉 Vehicle Rentals

But you're not limited to real estate-related passive income ideas—you can use your vehicle too! If you have a car gathering dust in your garage, you might as well make money off it by renting it out for a fee. 

If you're wary, rent it out only to people you know personally. Otherwise, conduct background checks and include relevant stipulations in your rental agreement. 

Before you get started, make sure to consider costs such as car insurance and maintenance fees as well.

Related reading: Car Business Ideas in the Philippines: 15 Ways to Earn More Income

Final Thoughts

Now that you know what passive income is, which type do you think suits you best? Do you want to invest in dividend stocks or real estate? Or is affiliate marketing more your style?

No matter which passive income idea in the Philippines you choose, remember that it takes time and effort to get started. We hope this article gave you plenty of ideas for creating your own passive income stream. 

Need extra cash to buy tools or equipment for your new venture? Consider getting a personal loan. Compare your options and apply easily through Moneymax:

Personal Loan Provider Minimum Loan Amount Maximum Loan Amount Minimum Annual Income Approval Time


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₱20,000 ₱1 million ₱350,000 7 days

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20,000  ₱2 million 300,000 5 to 7 banking days


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10,000  ₱150,000 120,000 As fast as 24 hours

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₱30,000 ₱2 million ₱180,000 5 banking days

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30,000 ₱500,000 or 3x gross monthly salary, whichever is lower 168,000 5 to 7 banking days

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₱20,000  ₱1 million 180,000 3 to 5 banking days

Source: [1] T-Bonds Offerings (Bureau of the Treasury)

The Moneymax Editorial Team consists of talented and experienced writers, editors, investors, and subject matter experts on a mission to help Filipinos build healthier financial lives. Browse the Moneymax blog for information and advice on credit cards, loans, insurance, investments, and other personal finance topics. For more financial news and articles, follow Moneymax on LinkedIn.


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