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Top 5 Passive Income Tactics

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The phrase “earning money while you sleep” has a catchy rhythm to it, don’t you think? After all, one of the objectives of achieving financial independence is to amass riches in a manner that does not consume one’s time, so that one may take pleasure in life and engage in activities of one’s own choosing.

The fact is that creating a passive income stream almost never begins as a completely hands-off endeavor. It takes either time, money, talent, or all three, to accomplish. However, where do you even begin?

The first thing you should do is start simple savings account that you may utilize for many purposes in the future. This topic will be revisited later.

Building up various sources of passive income offers a number of benefits, one of which is that it can make you more robust and better able to weather economic storms. This advantage is realized in the near term.

Earning a passive income is a choice that must be made over the long run but calls for sacrifices in the near term. If you are ready to invest your time and money in the actions and concepts that are outlined here, you may find that generating money becomes much simpler in the years to follow.

To put your ideas for passive income into action, you only need to be aware of where to begin and make a decision regarding the resources that you are ready to invest.

You are free to skip forward to the ideas if you’d like, but first I’m going to explain what passive income is and show you the procedures that I took to set up the streams of passive income that I now have. Let’s plunge in!

 5 Passive Income Ideas

1. Build an Empire Without Leaving Your Couch Real estate

Since the beginning of time, investing in real estate has been a common strategy for accumulating wealth. Investing in real estate is utilized to need a significant amount of one’s time, money, and skill. Apps that facilitate real estate investment, on the other hand, have made it simpler for regular people like you and me to build up a source of income that requires no active effort on our parts.

If you are interested, I have included several sites below that you should check out:

Fundraise

Fundraise focuses on REITs (real estate investment trusts). REITs are the way to go if you reside in a city with high housing costs or if you don’t have the time to maintain a property on your own.

Investors receive a portion of the profits made by income-generating assets that are owned and managed by REITs. Fundraise has eliminated the need for certification as well as the high costs associated with investing in real estate investment trusts (REITs).

When I first started using Fundraise, the minimum commitment was $500, but today you can get started with as little as ten dollars.

Roofstock

Roofstock is an online marketplace that offers single-family houses that are ready to move into immediately. The phrase “turnkey” indicates that the financials have been analyzed, that the property may have undergone renovations, and that it may already have renters.

The only thing required of you as an investor is to supply the necessary funds. Once you have paid for the property in full, it will always be yours, and all rental revenue will be paid to you directly.

RealtyMogul

Check out RealtyMogul if you’re looking for an option that falls somewhere in the between the single-family houses offered by Roofstock and the real estate investment trusts offered by Fundrise.

Realty Mogul is a crowdsourcing platform that combines the money contributed by investors to acquire expensive homes (office buildings, retail space, etc.). The starting capital requirement is $5,000.

2. Peer to Peer Lending

P2P lending, often known as peer-to-peer lending, is one of my personal favorites. The plan is to make money loans to either private persons or commercial enterprises. They will subsequently reimburse you, along with interest.

Let’s imagine that in order to combine their debt, someone has to borrow $10,000. They sign up for an account with, say, Lending Club, and then an interest rate on the loan is assigned to them based on a variety of factors, including their income, credit history, and so on.

The investor, who is you, will also need to sign up for an account with Lending Club in order to purchase the debt. You will receive both the principal and the interest that is accrued on your loan in the form of monthly payments made by the borrower to your Lending Club investing account.

P2P lending is an industry that is underwritten by a number of different firms; some of these organizations, like Lending Club, facilitate personal loans, while others, like Worthy, facilitate business loans (the process is the exact same).

Returns in the region of 5 percent are anticipated at this time (depending on platform and loan type). Even if it is not the same as stock returns, an annual return of at least 5 percent is better than the interest rates offered by most national banks.

3. Put Your Money in High-Return Investments

Although savings accounts are likely the most uninteresting kind of investing ever developed, they are also the most reliable.

At an interest rate of 0.15 percent or below, you would need to have an account balance that is more than the $250,000 FDIC insurance limit in order to see any actual activity.

However, internet savings accounts provide rates that are far higher than those offered by traditional banks. Even better, these rates are comparable to those offered by certificates of deposit (CDs), but they do not need you to lock up your money for a number of years.

CIT bank is now our top pick for high-yield savings accounts because of their competitive rates.

4. Invest Your Money In The Markets On A Passive Basis

People’s retirement plans or brokerage accounts are the primary vehicles through which they accumulate wealth over the long term and generate income via investing in public equities and bonds. The numbers are quite accurate; nevertheless, the typical individual like you and I should be investing in a passive manner through exchange-traded funds (ETFs) and index funds, both of which have modest management costs.

This can be accomplished in one of two ways:

With a Robo-advisor, you can “set it and forget it.”
Taking the most passive approach possible to manage your money is to delegate that responsibility to an algorithm. Robo-advisors such as Betterment provide you the opportunity to determine the level of risk you are ready to take, after which you can relax and let the money pour in. In addition, the costs are far more affordable in comparison to what you would pay for a human account manager. The following is a rundown of a couple of the most prominent robot-advisor systems now available.

I have been a supporter of Betterment for a very long time, and as part of my Betterment investing review, I even had an interview with the company’s CEO. Betterment is an excellent tool for lowering the amount of taxes you are required to pay on your assets, and the company will collaborate with you to provide the very best financial guidance using their proprietary algorithms.

Betterment is not like other robo-advisors in that it gives users the option to communicate with a real person if they so want. The costs charged by Betterment are the same as those charged by Wealthfront, and the company does not waive the fee on the first $10,000 that you invest.

Make your own selections of dividend stocks and exchange-traded funds using an online brokerage.
You may get consistent crypto passive income at an annual rate that is far greater than what you earn on bank deposits if you construct an investment portfolio comprised of stocks that pay large dividends.

As essential, given that high dividend stocks are still equities, there is always the possibility that the value of the investment might increase. You will be able to generate passive income from two different sources, namely dividends and capital gains if you do it this way.

If you create an account with any of the brokerages that are listed below, you will be able to make this procedure extremely simple and inexpensive for yourself. Trading commissions are no longer required by the majority of brokerages in today’s market, which results in significant cost savings for us.

You have a bit more leeway to pick which exchange-traded funds (ETFs) and individual equities you wish to invest in when you use an online brokerage. Existing online brokers such as TD Ameritrade and E-trade have been tremendously successful because to their competitively cheap trading costs for individual stock and bond transactions.

Despite this, M1 Finance is now my go-to choice for an internet broker. They make it extremely simple for you to invest in ETFs in a passive manner, and they are expanding their array of services to make it easier for you to obtain access to your money.

5. Invest in compact discs

CDs are an uncomplicated and uncomplicated investment plan that, if I’m being honest, are not even close to being the most fascinating investment strategy out there. However, if you want to generate money while you sleep, there is no activity other than selling CDs that is more passive than that. The accumulation of interest through the purchase of a certificate of deposit is an excellent and low-risk investment technique.

CDs are similar to savings accounts, but there is a catch with them. You will not have access to your money until it has reached its maturity, which is determined by the amount of time you decided upon when you opened the account. This period of time might last anywhere from a few months to a few years.

It is imperative that you purchase your certificate of deposit (CD) from a financial institution that is FDIC-insured (your investment is protected up to a maximum of $250,000), and that you shop around for the best CD rates. The greater the length of time that the certificate of deposit is held, the higher the interest rate that the financial institution will pay.

6. Invest in a Website or Blog

My business partners were able to make a lot of profitable investments a few years ago by acquiring blogs that were developed by other people and then “monetizing” those sites. There are many thriving markets for online companies, and they do an excellent job of connecting consumers and sellers. Despite the fact that it is not as simple as it once was to obtain a screaming deal, there are many of these marketplaces.

Every year, the proprietors of thousands of different blogs just stop updating them. If you are able to acquire blogs that already receive a satisfactory level of web traffic and have a history of positive revenue flow, this can be the ideal way to generate passive income.

The majority of blogs make use of Google AdSense, which generates a steady stream of monthly cash from advertisements placed on the site by Google. There is also the possibility of affiliate programs that bring in additional cash.

From a monetary point of view, blogs often sell for twenty-four times their average monthly revenue. Therefore, if the website brings in $250 each and every month in revenue, you should not spend more than $6,000 to acquire it. If you invest $6,000, you will receive an annual cash flow of $3,000 as a return on your money.

Some websites include what is known as “evergreen content,” which means that it will continue to generate cash even after the website has been taken offline for some years; hence, a modest investment of $5,000 may bring you continual passive income.

Extra hint: If you acquire a site like this and then revitalize it by adding new material, you might be able to boost the monthly revenue and then sell the site at a later date for a significant amount more than what you paid for it. This is an added bonus tip.

Final Words

I think that Flippa is a good place to purchase a blog. The following is a list of some quick facts about this incredible market:

Includes everything from very obscure sites to those that get millions of visitors.
More than 2,000 web-based enterprises are currently available for purchase.
On the basis of a bidding system, and with the fulfillment handled by the Flippa Escrow program, both your money and your company will be kept secure.
My business partners keep purchasing web-based enterprises through online marketplaces such as Flippa and Empire Flippers. Opportunities to start enterprises like applications, blogs, SaaS providers, and online retailers may be found all over those sites.

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