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

Moneymax Editorial Team

Moneymax Editorial Team

Last updated May 27, 2022

Are you tired of the 9-5 rat race? Do you want to find a way to make money without exerting so much effort? If so, then you need to start looking into passive income ideas. 

If there's one thing Filipinos are good at, it's finding ways to make money. Even in the most difficult times, we always find a way to get by. And now, with the global economy slowly getting back on its feet from the effects of the pandemic, there’s never been a better time to start exploring different passive income ideas in the Philippines.   

No matter what your interests are, there's likely a passive income idea that will suit you. And with the right strategy, you can start generating a substantial passive income within a year.  

Whether you're looking to invest some money or just want to learn more about potential passive income opportunities this year, this article can help.

What is Passive Income?

Passive Income in the Philippines - what is passive income

Passive income is an income received regularly, with little effort required to maintain it. It can come from investments, such as dividends from stocks or rental income from a property. Other passive income includes earnings from internet-based businesses, such as online advertising or affiliate marketing. 

The key to generating passive income is to select an income stream that requires minimal ongoing work. Once the initial setup work is complete, the passive income will begin to flow in, providing a regular source of revenue with little effort required to keep it going. And for many people, passive income can provide a welcome supplement to their regular wages, helping them achieve their financial goals. 

You can start creating passive income depending on how much money you want to invest, your knowledge or expertise about something, and your risk tolerance. 

Why is Having Passive Income Important?

Passive Income in the Philippines - Why Is Having Passive Income Important?

There are many good reasons to have passive income, the most important of which is achieving financial freedom. 

Financial freedom means being able to live without worrying about money. It means retiring early and enjoying the rest of your life without worrying about money. 

Having passive income also helps you diversify your investment portfolio. Diversification is important because it helps to reduce risk. When you have a diversified portfolio, you’re less likely to lose your money if one of your investments fails. 

Passive income can also help you build your wealth over time. When you reinvest your earnings from your passive income streams, you can grow your wealth exponentially. This is because you’ll be earning interest on your investments and the earnings from your passive income streams. 

Lastly, passive income can help you earn money while you sleep, giving you more time to pursue your passions. While there are no guarantees in life, investing in passive income ideas can be a smart way to secure your financial future.

So, 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.  

List of Passive Income in the Philippines 

When it comes to generating passive income, there are many options to choose from. However, not all of them are created equal. Some require significant effort and time investment, while others offer a more passive income stream. 

If you're looking for passive income ideas in the Philippines, you can 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 different types of passive income that we’ve categorized into investments, online activities, and rentals. 


How to earn passive income through investments? You earn passive income from your investments when you allocate funds or capital for investments that give you potential earnings for the long-term.

1. Dividend-Earning Stocks

Dividend stocks are a great way to earn passive income. They’re stocks that pay out dividends to shareholders. The dividend is usually a portion of the company's earnings, and it’s paid out from the profits, either stocks or cash, that the company has earned during the period. 

Dividend stocks are great because you can reinvest the dividends that you receive back into the stock, which can help you to compound your gains over time. In addition, they tend to be less volatile than other types of stocks, which means that they can provide a more stable source of income. You can open an online brokerage account accredited by the PSEi and choose reputable companies to invest in. 

2. Treasury Bonds

Passive Income in the Philippines - treasury bonds

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

Treasury bonds are one of the safest investments you can make since they are backed by the government. They also offer a relatively high rate of return compared to other fixed-income investments such as corporate bonds.

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

3. Mutual Funds

Mutual funds are a type of investment vehicle that allows investors to pool their money together and invest in a variety of securities, such as stocks, bonds, and other assets. 

In the Philippines, mutual funds are mostly offered by banks and investment companies, allowing investors to easily diversify their portfolios and earn passive income.

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. 

Both types of mutual funds have their own pros and cons, so it's important to choose one that aligns with your investment goals.

Mutual funds offer a great way to earn passive income, as they provide exposure to a wide range of securities without the need for active monitoring. However, it's important to remember that all investments come with risks, so make sure you understand the nature of these risks before investing. With careful research and due diligence, you can greatly reduce the risk of losses and maximize your chances of earning good returns from your investments in mutual funds.

4. Pag-IBIG MP2

Another way to create passive income is through the Pag-IBIG MP2 program. With this program, you can earn up to 7% interest per year on your savings, which is higher than what you would earn if you kept your money in a bank. 

In addition, your money is protected from inflation, and you can save as much as you plan for your future. The best part about the Pag-IBIG MP2 program is that it's a completely passive income stream. 

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, then the Pag-IBIG MP2 program is definitely worth considering.

Related reading: Investments for Beginners: Find the Right Investment for You

5. 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. 

UITFs are 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. 

For example, investors in UITFs that invest in stocks may receive dividends from the companies in which they’re invested. Similarly, investors in bond funds may receive interest payments from the bonds that make up the fund. 

In addition to providing passive income, UITFs can also help investors diversify their portfolios and reduce their overall risk. As such, UITFs can be an excellent investment choice for those looking to build long-term wealth.

6. Cooperatives

Passive Income in the Philippines - cooperatives

There are many different types of cooperatives in the Philippines, ranging from agricultural cooperatives to financial cooperatives. Agricultural cooperatives help farmers to pool their resources and negotiate better prices for their products, while financial cooperatives offer members access to affordable credit and other financial services. 

In addition, there are also cooperative housing societies, which help members to purchase or build homes, and cooperative insurance schemes, which offer members discounted rates on insurance premiums.

One of the great things about cooperatives is that they offer members the opportunity to earn passive income. This means that members can earn money without having to actively work for it. For example, some cooperatives pay dividends to members based on the profit that the cooperative makes. This means that as the cooperative grows and becomes more successful, members can start to earn a regular income just by being a part of it. 

In addition, many cooperatives also offer member-only discounts on products and services, which can save members money on everyday expenses. As a result, being a member of a cooperative can be a great way to reduce your living costs and boost your income at the same time.

7. Investment Crowdfunding

Passive Income in the Philippines - crowdfunding

Investment crowdfunding is a process where individuals pool money together to invest in a business venture. In return, they receive equity in the form of shares. 

This type of crowdfunding has become increasingly popular in recent years, as it allows people to invest in early-stage companies that they may not otherwise have access to. 

Philippines-based businesses can use investment crowdfunding to raise capital for their operations. In return, investors can earn passive income by owning shares in the company. Some examples of crowdfunding companies you can check are Spark Project, SeedIn, and Investree. 

This type of investment offers the potential for high returns, but it also carries a higher risk than more traditional investments. As such, it’s important to do your research before deciding to invest in any company. If done properly, investment crowdfunding can be a great way to earn passive income and support early-stage local businesses.

8. Peer-to-Peer Lending

Peer-to-peer (P2P) lending allows individuals to borrow and lend money without the use of a traditional financial institution, such as a bank. In the Philippines, P2P lending platforms have emerged as a popular way to earn passive income. It works by matching 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 with P2P lending in the Philippines, you'll need to create an account on a P2P lending platform like LendPH, BlendPH, or Acudeen. Once you're registered, you can browse through the available loan listings and choose which ones you wish to fund or invest in. Once you've made your investment, you’ll begin earning interest on the borrower’s loan repayments.

Personal loan application

9. Variable Universal Life (VUL)

A Variable Universal Life (VUL) insurance policy offers the death benefit of traditional whole life insurance while also providing the opportunity to invest in sub-accounts similar to mutual funds. The cash value of the policy grows tax-deferred, and the policyholder can choose how the money is invested. Some VUL policies also offer living benefits, such as long-term care riders.

VUL policies are popular in the Philippines because they offer a way to earn passive income. 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.

Whether you’re looking for a way to save for retirement or simply want to earn some passive income, a VUL policy may be right for you. Speak with a financial advisor to learn more about how a VUL policy could fit into your overall financial picture.

Online Activities

How to earn passive income online? There are many ways, such as affiliate marketing, drop shipping, selling of digital products like online courses and e-books, and more. Initially, it may take a bit of effort, time, and money (building the website, promoting products etc.). But over time, you’ll start earning with minimal effort on your part. 

1. Sell eBooks

If you're looking for a way to earn some passive income, selling ebooks is a great option. And wherever you are, there's no shortage of buyers! Thanks to the growing popularity of digital reading, more and more people are purchasing ebooks online. 

What's more, ebooks are typically very affordable. You can sell them for as low as $0.99 to $2.99 so you can make a great profit on each sale. Best of all, once you've created your ebook, it requires very little effort to maintain and sell―meaning you can enjoy true passive income. You can publish and sell it on Amazon and ask your readers and fans to leave reviews about it.

So if you're looking for a way to generate passive income, selling ebooks is a great option. Just be sure to create quality content that will appeal to your target audience.

2. Online Courses

There are a few key ways in which selling online courses can help you earn passive income. First, by sharing your knowledge and expertise with others through an online course, you can create a valuable resource that people will be willing to pay for. 

Second, online courses tend to be much cheaper to produce than traditional courses, meaning you can charge less for them while still earning a good profit as you grow your customer base. 

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

3. Graphics and Artwork

Many people who are trying to earn passive income don't realize that they can do so by selling graphics, artwork, and photos online. 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 that you're passionate about and that has a loyal following. Once you've established yourself in your chosen market, you'll be able to sell a wide range of products, from e-books and templates to prints and custom designs. 

What's more, you'll be able to reach a global audience and make sales round the clock. So if you're looking for a creative way to earn passive income, you can capitalize on your skills and talents. 

4. Drop Shipping

Drop shipping 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.

Drop shipping is a great way to start an online business with little upfront investment, and it can be a great way to earn passive income as well. One of the main advantages of drop shipping is that it’s relatively easy to get started. You don’t need to invest in inventory or worry about shipping logistics―you can simply find a drop shipping supplier and start selling products online. 

It also offers a high degree of flexibility; you can run your business in your spare time, and there’s no need to rent office space or hire employees.

Another advantage of drop shipping is that it’s relatively low-risk. Because you don’t need to invest in inventory, you can test out different products and markets without incurring much risk. You can try this on Shopify and find different products and suppliers. 

5. Buy and Sell Websites or Website Flipping

Passive Income in the Philippines - website flipping

If you've ever thought about buying or selling a website, you're not alone. In fact, website flipping is a growing trend among online entrepreneurs. Simply put, website flipping is the process of buying a website, improving it in some way, and then selling it for a profit. While the concept may seem simple enough, there are a few things you need to know before you get started.

For starters, it's important to choose the right website to flip. Look for a site that has potential but needs some work. Once you've found a good candidate, the next step is to improve the site. This can involve anything from redesigning the layout to adding new content or features. The goal is to make the site more valuable so that you can sell it for a higher price.

Once you've made improvements to the site, it's time to start marketing it for sale. There are a number of ways to do this, but one of the best is to list it on a marketplace like Here, you can reach a large audience of potential buyers and get top dollar for your site.

6. 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. In simple terms, it's like a commission-based sales job where you earn income by promoting and selling products on behalf of another company.

There are two ways to make money with affiliate marketing: through product sales and through lead generation. With product sales, you earn a commission on every sale you refer.

Affiliate marketing is an easy way to earn passive income because it doesn't require much effort on your part. Once you've established yourself as an affiliate, all you need to do is promote your affiliate links and wait for the commissions to roll in. However, it's important to choose your affiliates carefully and make sure you're promoting products that are relevant to your audience. Otherwise, you risk losing out on potential commissions.

7. Blogging/Vlogging

Passive Income in the Philippines - vlogging

Blogging and vlogging are two popular ways to earn passive income. With blogging, you can write articles on topics that you’re passionate about and then post them on your website or blog. You can also include affiliate links in your articles, which means that you’ll earn a commission if someone clicks on the link and makes a purchase. 

Vlogging is similar to blogging. But instead of writing articles, you create videos. You can post your videos on YouTube or another video sharing website. Once again, you can include affiliate links in your videos to earn passive income. 

Both blogging and vlogging require some initial work to set up. But once you have a following, they can be quite profitable. And best of all, they’re both fun ways to share your passions with the world.


Earn money while you sleep by leasing or renting out properties or commercial space. The key to making this a successful passive income stream is being realistic on your rental fees and having a property in a good location. 

1. Rentals via Airbnb

Passive Income in the Philippines - airbnb

Airbnb is a platform that allows people to rent out their homes to guests. It offers a variety of rental options, from entire homes to private rooms, and it's a great way to earn passive income.

By renting out your home on Airbnb, you can earn money without having to do any work. You simply list your rental on the site and set your own price. When someone books your rental, you collect the money and then provide the guest with a place to stay. 

Airbnb takes a small percentage of the rental price, but the rest goes directly into your pocket. In addition, you can also use Airbnb to rent out other properties, such as vacation homes or apartments. 

This is a great way to earn money if you have an investment property that you're not using all the time. By listing it on Airbnb, you can earn money while someone else enjoys your property.

2. Lease Commercial Space

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

The terms of the lease are typically negotiated between the landlord and tenant and can last for a period of months or years. Commercial leases often include provisions for renewals, so that the tenant can continue to occupy the space for an extended period of time. 

There are many benefits to leasing commercial real estate, including the ability to generate passive income. By leasing out commercial space, you can earn rental income without having to actively manage the property. This can provide you with 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 that your income will grow over time. As a result, commercial leasing can be an excellent way to generate passive income and build long-term wealth.

Final Thoughts

Now that you know what passive income is and why it’s smart to have one, which type of passive income do you think suits you best? Do you want to invest in dividend stocks or real estate? Maybe affiliate marketing is more your style. 

No matter what route you choose, remember that it takes time and effort to get started. But once the money starts rolling in, it’s completely hands-off. Hopefully this article gave you some ideas for creating your own passive income stream. 

Personal loan in the Philippines

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.