Here are my favourite passive income streams i love to attain. These income streams are also most recommended by world's successful peoples like warren buffet, bill gates etc.
Invest your money in a high yield savings account.
However, even if a high yield savings account is not a passive source of income, your money should still generate something (unlike Seinfeld's syndicated trash, rather commercial advertising trash!) When you don't. are not in front of your computer. . Having a risk-free cash rate of 1% or more won't make you rich, but it's good to have it. The best high yield savings accounts (also known as money market accounts) offer higher interest rates without any risk to investors.
For those who don't mind keeping their money safe, certificates of deposit can provide additional income, although the interest rate is not particularly attractive.
Invest in stocks, bonds, real estate mutual funds and business development companies.
Traditionally, passive income is generated by keeping stocks or fixed income bonds in your investment account. Holding shares or fixed income securities generates dividends / capital gains and / or interest income, respectively.
REITs are called REITs or Real Estate Investment Trusts, they are companies that invest in real estate and must distribute at least 90% of their profits to shareholders to avoid being considered a partnership for tax purposes. Depending on the broader economic environment, real estate investment funds (REITs) may offer higher returns than stocks or bonds.
BDC, or business development company, refers to a company that must distribute at least 90% of its profits to shareholders (similar to REITs), but does not invest in real estate, but instead focuses on others. development activities. The assets they usually invest in are too large for a typical investor, but too small for a private equity firm. Main Street Capital Corporation's investment starts at US $ 5 million and provides financing to private companies in the form of equity and debt and other forms of debt financing.
Investing in dividend-paying growth stocks
For the purpose of this article, I want to specifically mention one equity investing strategy that I think is worth mentioning: investing in dividend growth. Here you focus on stocks that not only pay dividends but also have a history of high dividend growth. Early in my equity portfolio, I focused on companies with dividend records, high growth records, and financial records that support the pursuit of these three.
Another advantage is to take this opportunity to satisfy my desire to choose individual stocks. In recent years, many of these stocks have produced double-digit returns, and the cash flow generated from these investments has helped me solve the problem of income inequality that I know as an entrepreneur.
Write an eBook and publish it.
Writing eBooks is very popular with bloggers. A lot of people say it's just a collection of blog posts in one package. You not only need to invest time and effort to create an eBook, but you also need to invest time and effort to market it effectively. On the other hand, if your product is promoted correctly (for example, via an affiliate blog in your niche), it is possible to make residual sales in the long term.
E-books generally work well because they are relatively cheap to buy. It is quite possible for your customers to buy an inexpensive e-book, as long as they can use a laptop, tablet, or smartphone to read the book. Yes, you read that right: residual income!
Suppose you have an online store and you want to increase your visibility on Pinterest in order to increase traffic to your store. There are many options for higher education. On the other hand, the price of an online course can be over $ 100, while the price of an eBook is usually less than $ 10.
Earn money by renting items you already own.
As the sharing economy grows, your waste can start to pay off. Suppose you have some great antique furniture inherited from your grandmother and now it looks older or you want to update, you can sell it online with huge margin.