Everyone wants passive income, but most strategies either require a lot of work or people don’t talk about it until it’s too late.
I asked ChatGPT what the smartest way to turn $10,000 into passive income would actually look like in 2026, and the answer wasn’t what I expected. There are no get-rich-quick schemes, no promises of early retirement and certainly no claims that you can quit your job next month.
Instead, ChatGPT lays out a realistic framework based on one simple question: How much risk and effort are you willing to accept?
ChatGPT says the smart approach for most people is a diversified mix of dividend-paying ETFs and high-yield cash accounts. This combination won’t make you rich overnight, but it also won’t blow your capital, which is where most passive income plans fall apart.
The strategy is not attractive. It’s boring, static and repetitive. But that’s exactly why it works.
Learn more: Passive Income Expert: Here’s How I Make $27,000 Every Week
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ChatGPT also breaks down five different ways to generate $10,000 in passive income, plus what you can actually expect to earn.
Dividend ETFs is the most balanced option. You invest in funds that own hundreds of dividend-paying companies and collect quarterly or monthly payments. With $10,000, you’re looking at about $250 to $400 per year, based on a typical yield of 2.5% to 4%. Income grows over time, it requires almost no effort and you are diversified enough that no single company can tank your investment.
High-yield savings accounts or Treasury bonds is the safest way. You park your cash and earn about 4% to 5%, which translates to $400 to $500 annually. There is practically zero risk, your money stays liquid and you don’t have to worry about market swings. The downside is that rates may drop and you’re not building wealth, just collecting steady income.
REIT ETFs Give you real estate exposure without making you a landlord. Real estate investment trusts own income-producing properties and pay out most of their profits in the form of dividends. Expect yields between 3.5% and 5.5%, or about $350 to $550 per year. You get real estate income without having to deal with tenants, maintenance or mortgages, but REITs can be volatile when interest rates change.
Selling covered calls Generates higher income if you are willing to work more. You own stocks or ETFs and sell call options against them to collect the premium. Done carefully, it can produce 6% to 10% annually or $600 to $1,000 per year. The catch is that it requires learning options trading, active monitoring and it caps your upside if the stock price goes off.
