What are Some Ways to Make Passive Income
Passive incomes are often misunderstood, for this source of income-you require upfront investing and nurturing time. But after some time these streams start to build up and can maintain themselves and you will be getting a constant source of income.
Talking from my own experience, adding passive income streams will help you increase your earnings and accelerate your financial goal in a lot of ways. For example, starting a YouTube channel can be a great place to start your entrepreneurial journey.
How and What does it take to Earn Passive Income?
Before diving into different streams of passive income I want you to clear some misunderstandings. The name 'Passive' tells that you don't need to do anything to make it. But, this is not true. You have to start by investing your time, energy or money.
You cannot start your residual income by not investing your time or money. However, passive income also takes risks so it will be a good idea to change your mindset and become a risk-taker from today.
In this article, I will be diving deep into the top 10 strategies to make a lot of passive income.
You will find this useful: My Favorite Passive Income Ideas You Can Use To Build Real Wealth
Passive Income that Requires Monetary Investment
These types of streams require upfront cost to start but don't leave as you can start from as little as $10. Thus, it is achievable for everyone.
1. Dividend Stocks
Dividend stocks are tried and tested methods for passive income. You will have to do plenty of research to find good stocks and invest a significant amount of money for large dividends.
Moreover, if you consistently invest money back into stocks you can have a compounding effect and can make a large amount of residual income. Compounding investment means that you invest all of the dividends back into stocks and enlarge your portfolio.
Prince Walid bin Talal from Saudi Arabia and Warren Buffet(father of Business) made their first billions from stocks.
Before starting investing in stock, I will advise you to open an account at the best brokerage account so that you get rewards while doing it.
My favourite place to invest is eToro You may have heard about them from YouTube ads I guess. You can invest there without paying commissions, also they are FREE.
2. Rental Properties
This is my favourite stream of income. I guess if you get deeper into this field you will end up owning a big apartment building. I would suggest that you should listen to Grant Cardone, who started with $3500 and now he owns $2 Billion of real estate and every month he is getting positive cash flow month. Another example is ex-president Donald Trump owns 27000 rental properties all across the US.
It is hard to manage big properties but if you hire good management companies then you can make this completely passive and you never have to attend any calls from your tenants.
However, the internet has made our lives easier than ever to invest in rental properties. Depending on your aims and interests, there are a variety of ways to invest in rental homes. You can invest as a limited partner in large residential or commercial properties, or you can buy homes and become a landlord - all from the comfort of your own home!
Want a deeper understanding of real estate- Fundamentals of How to Create Wealth Investing in Real Estate
Annuities are a type of insurance that you pay for but that can provide you with monthly payments for the rest of your life. If you're interested in purchasing an annuity, the terms vary and aren't always a good deal, so talk to a knowledgeable financial expert first. Below is a list of which types of annuities you can invest in as a beginner.
4. Invest in REIT (Real Estate Investment Trust)
If you don't want to manage the properties, are not an accredited investor or invest directly in real estate then REIT will be the best option for you. You can invest in big buildings and apartments from the comfort of your home by buying shares of REITs.
These investment vehicles hold properties under them and owners get to benefit from gains, sales & refinances.
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