Passive income is a huge passion of mine. It wasn't until about 7 years ago when I read some books on my own about finances and business building that I ran into passive income. It's pretty crazy that no one teaches this stuff in school or your parents tell you about it.
This is someone that once you learn and continue to learn and build pays for itself over and over again and it will be something I make sure to teach my own kids.
Just like anything though you need to constantly be learning, adapting and changing. The world is not stagnate so what works passively one day might not be so passive the next.
What is passive income?
Passive income is the ability to invest time or money in the short term to earn on it in the long term. Each has it's benefits, risks and rewards.
Why you should invest time into learning about Passive income?
I'm a big advocate for bettering yourself. I'm by no means perfect I have my flaws, my own battles etc. But what's important is I work on them and realize I should spend the time to do so.
By learning about passive income you'll have personal growth, Financial literacy and develop multiple income streams. That's the big one MULTIPLE INCOME STREAMS!
One lesson growing up I was always taught was don't put all your eggs in one basket. We pretty much all know this one yet we teach everyone to follow the same path.
Go to school - Go to college - Get a good job - Pay off debt asap - maybe retire
It just doesn't work anymore. Those days are gone or very few happen. This is why creating more than one income stream is important. It's ok to have a job, I encourage it but do something you love and enjoy so you're not totally fried at the end of the day and can't work on a 2nd or 3rd income stream.
Ideas for passive income
Crypto Investments - Did you know you earn passive HIVE just by powering it up? At the moment it's about 3.44% much higher than some bank pays you. Plus every day that bumps your voting power and curation rewards a little more. This is compounding at it's finest!
Dividend Investments - REITS have always been a rather solid bet. However there is talk about this system coming crashing down here in 2021. I personally don't see that happening. If realestate fails in the USA that pretty much means the country will fail. So much is build on realestate that the government will always bail them back out.
Now of course it has it's risks, companies can go bankrupt and a few have filed chapter 11s mostly focusing around malls. Do your research but to me your safe bets are housing, data and storage. Some of these are even under government contracts which I feel makes then an even safer bet.
The really nice part of this is these REITS are required by law to pay out at least 90% of the companies earnings. This amounts to a very high and nice dividend yield. Some of these stocks took a pounding early last year and have since recovered. They now pay me roughly 12% - 15% dividend rate because of the low price I picked them up at. I'm currently waiting for that next round as it seems these stocks have hit there max cap before another sell off.
3)Creating products - This one to me isn't so passive as everyone says. Creating a product is a good idea however there's constant marketing work that has to go into it afterwards to generate that income. A popular way to try and offset this is by offering affiliate commissions. Having others promote the products for a cut.
4)P2P Lending - There are a number of sites that provide this however I actually would say don't bother with them. the reason being is you'll earn about 5% - many people will default on the loan and you can't do anything about it and you have to pay normal taxes in the USA on and of the interest earned. It really eats up your profits. I wanted to include this one though so you had information on it.
Do you have goals to start earning passive income or already do? Share them below.