Passive Income that actually works and is passive!
Have you clicked on posts or videos that claim to have passive income tips and secrets for you but they never actually helped? They just want your clicks and views so they can earn ad revenue off you! But I'm here to share some tips that I've actually tried and learned.
Please note that you have to realistic. There is no get rich quick and easy. These all take some effort and time, but it'll be rewarding and not a total waste of time! These methods may not earn you enough to pay your bills at the start but its could potentially in the future. I can only speak for my own experience and I'm not a financial advisor.
HIGH YIELD SAVINGS ACCOUNT
This is by the far the easiest method to get passive income. Just look for the APY in a savings account and open one. If you already have one that's high, keep adding money to it and get that sweet monthly interest added to your account! Now the interest rate is based on the federal reserve so it will change if that changes. But if your bank is going lower than that then it might be worth considering switching. Sometimes the high APY is advertisement to get people to open up an account and then lower it after you've been using it for awhile. Definitely research the institution you are interested in opening and make sure its got a good track record.
Also looking in checking accounts. Some are providing APY interest rates for those too! I have both savings and checking through AMEX and so far I'm happy with them.
DIVIDENDS
So this is one that really works once you understand it. Dividends are payments you get for investments that offer it. So you will need a brokerage account and some money to get started. And you simply just buy some ETFs and/or stocks. You will have to take the time to do research so that you are getting the proper ones that won't end up being a loss so I'd would stick to mainly ETFs. The key point to remember is that this takes time; years even decades and it will pay for as long as you hold those shares. So the earlier you start the better! And try to keep buying more shares to really grow faster till you reach your goal.
Now you might be asking yourself, why buy an ETF or stock that's $50 per share to only get a few cents per quarter off of it? You might think a High Yield Savings account will be better. The difference is that you get Growth. The value of that initial $50 could grow over time! Now don't panic if you check on your ETF one day and see that its going down. We are holding these long term and it can change. So don't sell as the dip might just be temporary!
There are different types of ETFs so there are traditional dividend growth ETFs like SCHD that will have both growth and dividend growth. And then there are covered call ETFs like JEPI that caps its growth in favor of monthly dividends. Depending on your age, the older you are the less you want growth. So if you not near retirement age then you should focus more on growth. And there are Bonds like BND which are the safest.
You could also get stocks but do note that these are more volatile than ETFs. The more safer ones are household names like JNJ and KO but who knows where they will be in 10 or so years. You will have to keep a closer watch on them.
Another thing abut dividends is DRIP which is reinvesting your dividend payment back into the ETF or stock. This is a good passive way to build up your investment so be sure to turn it on for ones you want to build more shares.
Be sure to not go overboard on buying. Try not to put your money in one or two ETFs or stocks, but diversify. But don't get too many different ones that it be hard to keep track.
AD REVENUE
The easiest way to get money for the things you post online is ad revenue. If you post videos on youtube or social media, you could get money from it! If you like writing blogs like I am for this blog, put ads on it and let it earn you money! Now the more views you get the more money you earn. Its why some blogs and websites put up a million ads and put a huge story before you get to the recipe at the bottom of the page. This can take time. These platforms require you to cross a certain threshold before you can earn. I would say to not stress it. Use these platforms for fun and if the opportunity arises to get money, take it!
AFFILIATE LINKS
This one isn't too hard but if you like a product, see if you can find a way to earn money through an affiliate link for promoting it! If someone clicks that link and buys it you get a commission for that sale. Videos are the most effective way to do it. And that video could reach people for awhile! The more you do the more chances of someone watching and buying.
DIGITAL PRODUCTS
This is the hardest one as it involved some skill sets. Digital products are ideal as you don't have to ship anything and don't need to manufacturer it. You may have to invest in some learning some skills and software. But there are many different types of digital products. You can sell art assets, courses, videos, ebooks, anything really. It is a little risky as you may not earn anything at all from all this effort. But if you're successful it could be a full time job!
0 comments: