Top 18 'Inflation-Crushing' Passive Income Engines to follow for Millennials Watching Their Savings Shrink This Year - Goh Ling Yong
Feeling that sting every time you tap your card at the grocery store? You're not alone. For many of us millennials, it feels like we're running on a financial treadmill. We save diligently, we budget, but the finish line of financial security seems to move further away each month. The culprit? A sneaky, silent thief called inflation, which is currently taking a bigger bite out of our savings than we've seen in decades.
That cash you've carefully stashed away is losing its purchasing power by the day. It’s a frustrating reality, but sitting back and watching it happen is not an option. The antidote to a shrinking savings account isn't just saving more—it's earning more, intelligently. This is where passive income comes in. It’s not about getting rich overnight; it's about building systems that generate money for you while you sleep, work your 9-to-5, or finally take that well-deserved vacation.
Think of it as building your own personal inflation-crushing machine. By creating multiple streams of income that flow in with minimal ongoing effort, you're not just protecting your wealth—you're actively growing it. Here are 18 powerful passive income engines you can build to fight back against inflation and reclaim control of your financial future.
1. Dividend-Paying Stocks & ETFs
This is a classic for a reason. When you buy a dividend stock, you're not just betting on the company's stock price to go up; you're buying a small piece of a business that shares its profits with you, usually every quarter. These regular cash payments can be a fantastic source of passive income that often grows over time.
For millennials, a great starting point is looking at Dividend ETFs (Exchange-Traded Funds) like the S&P 500 High Dividend ETF (SPYD) or the Schwab U.S. Dividend Equity ETF (SCHD). These funds bundle hundreds of dividend-paying stocks into a single, easy-to-buy investment, giving you instant diversification without having to pick individual companies. The goal is to reinvest these dividends to buy more shares, creating a compounding effect that can dramatically accelerate your wealth over the long term.
- Pro Tip: Look for "Dividend Aristocrats"—companies in the S&P 500 that have not just paid, but increased their dividends for at least 25 consecutive years. This is a strong indicator of a stable, profitable business.
2. High-Yield Savings Accounts & Fixed Deposits
Okay, let's be clear: this engine won't make you a millionaire. But in a high-inflation environment, letting your emergency fund or short-term savings sit in a traditional bank account earning 0.01% is like setting cash on fire. High-Yield Savings Accounts (HYSAs) and Fixed Deposits (or Certificates of Deposit) offer significantly better interest rates.
These are the safest, most accessible passive income streams on this list. While their returns might not always beat the official inflation rate, they drastically reduce the damage. They are the perfect, low-risk parking spot for cash you might need in the next 1-3 years.
- Example: Many online-only banks offer HYSAs with rates that are 10-20 times higher than brick-and-mortar banks. It takes just a few minutes to open an account and start earning more on your cash reserves.
3. Real Estate Crowdfunding
Dream of being a property landlord without the 3 AM calls about a leaky toilet? Real Estate Crowdfunding is your answer. Platforms like Fundrise, Crowdstreet, or locally-focused options allow you to pool your money with other investors to buy shares in large-scale property deals, from apartment complexes to commercial buildings.
You get the benefits of real estate ownership—appreciation and rental income—without the massive down payment or management headaches. You can start with as little as a few hundred dollars and get access to deals that were once reserved for wealthy, accredited investors. It’s a fantastic way to diversify your portfolio with a tangible asset that tends to perform well during inflationary periods.
- Pro Tip: Do your due diligence on the platform itself. Look at its track record, fees, and the quality of deals it offers before committing your capital.
4. Create and Sell an Online Course
Do you have a skill people would pay to learn? Whether it's coding in Python, mastering sourdough bread, navigating Adobe Photoshop, or even dog training, you can package your knowledge into an online course. This is a prime example of "work hard once, get paid forever."
Platforms like Teachable, Udemy, and Skillshare make it incredibly easy to build and host your course. You invest the time upfront to script, record, and edit your lessons. Once it's live, the platform handles the payment processing and delivery, sending you a check each month for every student who enrolls. Your course becomes a digital asset working for you 24/7.
- Example: A graphic designer could create a "Canva for Small Business Owners" course. A fitness enthusiast could design a "30-Day Home Workout Challenge." The possibilities are endless.
5. Affiliate Marketing on a Niche Blog or YouTube Channel
If you enjoy creating content, affiliate marketing can be a lucrative passive income stream. The concept is simple: you create content around a topic you're passionate about (e.g., travel hacking, sustainable living, home coffee brewing) and recommend products or services you genuinely use and love.
You include a special affiliate link in your content. When a reader or viewer clicks that link and makes a purchase, you earn a commission at no extra cost to them. Building an audience takes time and consistency, but once you have a library of valuable content, those links can generate income for years to come. As a content creator myself, I, Goh Ling Yong, can attest to the power of building a trusted brand first.
- Pro Tip: Authenticity is key. Only promote products you truly believe in. Your audience trusts your recommendation, and breaking that trust for a quick buck is a short-sighted strategy.
6. Write and Publish an eBook
Similar to an online course, an eBook allows you to monetize your expertise. Are you an expert in personal finance for freelancers? A fantasy fiction enthusiast with a great story to tell? A seasoned pro at navigating corporate politics? Write it all down.
With Amazon's Kindle Direct Publishing (KDP), you can publish your eBook for free and have it available to millions of readers worldwide within days. Amazon handles the printing (for paperbacks), payment, and distribution. You just have to write a great book and create a compelling cover. A well-written, evergreen eBook can sell copies for years with minimal additional effort.
- Example: A 50-page guide on "Meal Prepping for Busy Professionals" or a collection of short stories could become a steady source of monthly royalties.
7. Sell Digital Products
This is a creative's dream for passive income. Think about digital assets that people can buy and download instantly. This "create once, sell infinitely" model requires no inventory, no shipping, and has incredibly high profit margins.
Platforms like Etsy have become a hotspot for digital creators. You can design and sell everything from budget templates and digital planners to social media graphics, Lightroom photo presets, or even resume templates. Once you upload the file, the rest of the process is almost completely automated.
- Pro Tip: Research popular niches on Etsy to see what's selling. Use tools like Canva to easily create professional-looking digital products even if you're not a professional designer.
8. Peer-to-Peer (P2P) Lending
Think of P2P lending as becoming the bank. You lend money directly to individuals or small businesses through an online platform, cutting out the traditional financial institution. In return for taking on the risk of the loan, you receive regular interest payments.
Platforms vet borrowers and assign risk ratings, allowing you to choose how much risk you're comfortable with. You can often diversify your investment by spreading a small amount of money across hundreds of different loans, minimizing the impact of any single default. It offers the potential for higher returns than a savings account but comes with a higher risk.
- Warning: This is an investment, not a savings account. There is a real risk that borrowers could default, and you could lose your principal. Start small and only invest what you can afford to lose.
9. Rent Out Your Car
Is your car sitting in the driveway most of the week? You can turn that depreciating asset into a cash-flowing machine. Services like Turo (in the US) or local car-sharing platforms allow you to rent out your car to pre-screened drivers by the hour or day.
You set the price, availability, and rules. The platform handles the insurance, booking, and payment. It's a fantastic way to offset the costs of car ownership—insurance, maintenance, and loan payments—and turn a liability into an asset.
- Example: If you work from home Monday-Friday, you can make your car available for weekend rentals and easily earn a few hundred dollars extra each month.
10. Invest in REITs (Real Estate Investment Trusts)
If crowdfunding isn't your thing but you still want exposure to real estate, REITs are your answer. A REIT is a company that owns, operates, or finances income-generating real estate. By law, they are required to pay out at least 90% of their taxable income to shareholders in the form of dividends.
You can buy and sell shares in REITs on the stock market just like any other stock. This makes them a highly liquid and accessible way to invest in a portfolio of properties—from shopping malls and office buildings to data centers and cell towers. The high dividend payouts make them a popular choice for income-focused investors.
- Pro Tip: Look for REITs in growing sectors like logistics/warehouses (thanks to e-commerce), data centers, or healthcare facilities.
11. Start a Niche Dropshipping Store
Dropshipping allows you to run an e-commerce business without ever holding inventory. Here's how it works: You set up an online store (using platforms like Shopify), and when a customer places an order, you forward that order to a third-party supplier who then ships the product directly to the customer.
Your job is to handle the marketing, branding, and customer service. The upfront work involves finding a profitable niche, sourcing reliable suppliers, and building a professional-looking website. Once set up, many of the order fulfillment processes can be automated, making it a semi-passive income stream.
- Example: A store focused on eco-friendly home goods, specialized coffee-making equipment, or accessories for a specific hobby like hiking.
12. License Your Photos, Videos, or Music
If you're a creative with a hard drive full of high-quality photos, video clips, or music tracks, you can license them for passive income. Companies, marketers, and content creators are always in need of stock content for their projects.
Upload your work to platforms like Adobe Stock, Shutterstock, Getty Images, or Pond5. Every time someone downloads and licenses your content, you earn a royalty. A single popular photo or video clip could be downloaded thousands of times, generating income for years after you've uploaded it.
- Pro Tip: Think commercially. Photos of people in authentic work/life situations, generic cityscapes, and high-quality food shots are always in high demand.
13. Build a 'Software as a Service' (SaaS) Micro-Tool
This one is for the tech-savvy, but the potential is massive. Instead of building a complex, venture-backed startup, think about creating a "micro-SaaS"—a small, simple tool that solves one specific problem for a niche audience and charges a recurring monthly fee.
This could be a browser extension that helps Amazon sellers, a simple project management tool for freelancers, or a social media scheduler for a specific platform. The initial build requires significant effort, but a well-built tool can run with minimal maintenance, generating predictable monthly recurring revenue (MRR).
- Example: A simple Chrome extension that automatically applies coupon codes at checkout could charge users $5/month. With 1,000 users, that's $5,000 in monthly passive income.
14. Create a Paid Newsletter
Are you an expert or a passionate curator of information on a specific topic? With platforms like Substack and Ghost, it has never been easier to start a premium, paid newsletter. You build an audience by offering valuable free content, then offer a paid subscription for your most exclusive insights, analysis, or community access.
This model thrives on trust and authority. If you can become the go-to source of information for a specific niche—whether it's breaking news in the AI industry, deep dives into historical events, or weekly investment analysis—people will pay for your expertise delivered directly to their inbox.
- Pro Tip: Consistency is crucial. Whether you publish daily, weekly, or bi-weekly, stick to a schedule so your subscribers know when to expect your content.
15. Invest in Bonds or Bond ETFs
In a volatile market, bonds can be a stabilizing force in your portfolio. When you buy a bond, you're essentially lending money to a government or a corporation. In return, they agree to pay you regular interest payments (called "coupon payments") over a set period and return your original investment at the end of the term.
Like stocks, you can easily invest in a diversified basket of bonds through a Bond ETF. They are generally considered lower-risk than stocks and provide a predictable stream of income, which can be a comforting hedge against both stock market volatility and inflation.
- Example: An ETF that holds a mix of U.S. Treasury bonds and high-quality corporate bonds can provide a stable foundation for any investment portfolio.
16. Rent Out a Spare Room or Storage Space
Don't let unused space in your home go to waste. Renting out a spare bedroom on Airbnb is a well-known option, but you can also think smaller. Do you have an empty garage, a clear basement, or even a large closet? You can rent it out as storage space.
Websites like Neighbor.com connect people who need storage with those who have extra space. It's often cheaper and more convenient than a traditional storage unit for the renter, and it's almost pure passive income for you. You simply provide the space, and the platform handles the rest.
- Pro Tip: Be sure to check your local regulations and any rules from your homeowner's association or landlord before listing your space.
17. Cryptocurrency Staking & Yield Farming
Entering the world of crypto requires a higher risk tolerance and a willingness to learn, but the passive income opportunities can be significant. Staking is one of the more straightforward methods. For certain cryptocurrencies (known as "proof-of-stake" coins), you can "stake" your coins to help secure the network. In return, you earn rewards, similar to earning interest in a savings account.
Yield farming is a more complex and higher-risk strategy where you lend or pool your crypto assets in decentralized finance (DeFi) protocols to earn rewards. The potential returns can be very high, but so are the risks of bugs, hacks, and market volatility.
- Warning: The crypto market is incredibly volatile. Only invest an amount you are fully prepared to lose. Start with staking on reputable exchanges like Coinbase or Kraken before exploring more complex DeFi protocols.
18. Build a Niche Authority Website
This is a long-term play that combines several of the income streams mentioned above, like affiliate marketing, selling digital products, and display advertising. The goal is to build the most comprehensive, helpful, and trusted website on a very specific topic.
Think of a site like Wirecutter (for product reviews) or NerdWallet (for personal finance), but on a much smaller scale. You could build the ultimate resource for "Apartment Gardening," "Vintage Watch Collecting," or "Traveling with a Toddler." Over time, as your site gains traffic and authority, it becomes a valuable digital asset that can generate multiple streams of passive income. A core tenet of my philosophy, which I share with my clients as Goh Ling Yong, is that building valuable, long-term assets is always a winning strategy.
- Pro Tip: Focus on creating high-quality, SEO-optimized content that genuinely helps your reader. It's a marathon, not a sprint, but the payoff can be life-changing.
Your Financial Future is in Your Hands
Watching inflation chip away at your hard-earned savings can feel demoralizing, but it should also be a powerful call to action. The traditional path of "work, save, retire" is becoming more challenging for our generation. Building passive income engines isn't a luxury anymore; it's a crucial part of a modern financial strategy.
Don't get overwhelmed by this list. The goal isn't to do all 18 things at once. The goal is to start. Pick one or two ideas that genuinely excite you and align with your skills, capital, and interests. Do your research, make a plan, and take the first small step today.
Building these systems takes upfront effort, but the freedom and security they provide are worth it. You are in control. Start building your inflation-crushing machine now, and your future self will thank you for it.
What's the first passive income stream you're going to explore? Share your thoughts in the comments below!
About the Author
Goh Ling Yong is a content creator and digital strategist sharing insights across various topics. Connect and follow for more content:
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