If you’d prefer to be more hands-off, you can open an account with a robo-advisor that will give you all the benefits of stock investing without having to do all the legwork. If you choose to pick your own stocks or funds, then you can open an account with an online stockbroker and start your investing. To make stock investing part of your passive income strategy, you would first have to decide if you’re going the DIY route and just need a brokerage, or if you want your passive income strategy to truly be passive so your investments are automatic. (This is what everyone is shouting about on the floor of the NYSE in movies about the world of high finance). When you purchase a stock, your expectation is that the value of the stock will either increase or decrease, and your goal is to buy low and sell high. Investing in stocks (or funds of stocks) means that you are becoming a (very) partial owner in the company whose stock you own. Investing your money is one of the oldest passive income strategies on the books. Resource: 7 Ways to Kick-Start a Winning Saving Habit (Start Now!) 2. (Passive income can also be derived from a CD Laddering strategy at your bank) This is earned from my emergency fund money, which I hold at Ally Bank. This year so far, I’ve banked around $700 in interest from my savings. Of course, rates with savings accounts typically fluctuate overtime so your actual passive income will vary. Again, that’s not an amount of money you can retire on, but it’s still $300 you don’t have to toil for. At the end of one year, you’d produce $300 of passive income (10,000 x. Let’s say you put $10,000 into a high-interest online savings account that pays 3% annual return. To give you an idea of what kind of return you can expect using this approach I’ve put together a quick example. That’s not a massive return–but considering you’re not really putting your money at risk, this is a great way to create some passive income in your life to allow you to at least attempt to keep up with inflation rates today. Right now, most of the banks are paying more than 3% for your money. I love this method because it’s truly and completely passive and your money is secure in a rock-solid FDIC insured bank account. Hands-down, the easiest way to start earning passive income is to take your money and put it into a high-interest savings account. While some of the best passive income ideas require capital and maybe even a little effort upfront, at the end of the day, all of these ideas could be producing regular, consistent passive income for you for years to come. Just take what is already effective and find a way to make it yours. There’s no reason to try and reinvent the wheel here when there are a number of strategies that are already working for people. So how do you tap into passive income? Let’s explore the best passive income ideas out there today. My passive income helps me to grow my wealth ( see my savings goals here) and frees up my time so I can focus on building my business. I have several passive income streams going on in my own life (as you’ll see below) and I’m building up reservoirs to tap in the future. Honestly, though, passive income sounds a little bit like a leprechaun: a mythical creature that provides you with money without you having to work for it.īut passive income–otherwise known as residual income or investment income–is the real deal, unlike magical bearded men with pots of gold. If you’re like me you’re always in search of the best passive income ideas.
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