3 Great Ways to Make Passive Income in 2021 Experts say you should save about $1 million for retirement. Here's how to make sure you can.

So many of us were taught in school that the way to be "successful" in life was to earn good grades, get a college degree, and get a 9 to 5 job. In reality, this is an old idea that will not set us up for the lives we'd like to lead, much less ensure we have enough money to thrive. Experts say you should save about $1 million for retirement, or 80% to 90% of your annual pre-retirement income.

One million sounds like a lot — but what if it were easy? Making the right investments takes research, but can be completely life-changing when done properly.

How passive income can change your life

The traditional mindset of having just one income stream from a corporate job is failing us. Have you ever missed out on family time because you didn't have enough PTO? Ever had a health crisis, but had to go to work anyway? Have you been through financial-market crashes, which made you question whether you'd still have a job to go to?

Passive income can quell all these worries. For some, passive income is a way to pad their bank accounts along with their corporate job. For others, it's an escape route to financial freedom.

Related: Is Passive Income Truly Achievable?

Here are the top three passive-income invesments of 2021.

1. Real estate

Real estate has been a strong income investment strategy for years — and that isn't changing. There are plenty of ways to get into the investment strategy, including Airbnb, REITs and real-estate arbitage.

While utilizing Airbnb may seem labor intensive, you can automate the entire process. First, research the area and estimate how much other Airbnbs are earning to ensure it is worth your investment. Once you choose a space, you can hire a property manager and cleaning company, so you'll never have to physically be there.

Real-estate investment trusts, or REITs, are a great way to invest in real estate without the need for a lot of money down. Instead, you invest in a trust, which purchases real estate.

With real-estate arbitrage, you purchase a property and quickly sell it for a profit. This requires plenty of research to identify areas and times of opportunity, then the ability to act quickly.

Related: 3 Golden Rules for Starting a Real-Estate Investment Business

2. Peer-to-peer lending

Peer-to-peer lending allows you to earn higher returns by offering loans directly to consumers. You collect monthly payments on the loan by contributing to slices of loans rather than the entire loan. You can find opportunities on sites like Peerform, which offers the best rate; Prosper, which finds borrowers with established credit histories; and Funding Circle, which helps fund small businesses.

3. Robo-advisors

For a more hands-off approach to investment strategies, a robo-advisor is the way to go. For a small fee, robo-advisors can create a diversified portfolio and manage your account over time, ensuring your portfolio is balanced and maintaining the target goals you set. Just fund the account and watch it grow — the ultimate passive-income investment. Some popular robo-advisors include SoFi, offering a 0% management fee and free career counseling; Betterment, offering a .25% management fee and free management for up to one year; and Vanguard, which requires a $1 to $9 per month fee.

Related: This Certified Financial Planner Explains How to Invest $10,000

Finding a way to utilize passive-income investments is key to building millions of dollars. By ensuring you have multiple streams of income, you're setting yourself up for a much more enjoyable and financially secure future.