“Passive income” is a phrase that gets tossed around a lot in the wealth-building community. Basically, it means an investment that pays income and doesn’t need much tending once you’ve done the preliminary work.
By contrast, your day job provides active income – and it takes up a lot of your time and energy. The beauty of passive income is that while it’s more “set it and forget it,” it still brings in extra dough.
Not everyone can design an app or create an online course – things that basically sell themselves once they’re up and running. Fortunately, some types of passive income require practically no work at all. You’re free to deal with your day job and then enjoy your off-hours.
In other words, extra income without a lot of extra brain drain. That’s a win-win in our book. Use one or more of the following tactics to enrich your finances without depleting your personal life.
1. Earn passive income by investing in real estate
Stocks and mutual funds go up and down, but people will always need a place to live. More than one-third of Americans cite “real estate” as the best investment, according to Gallup. But not everyone wants to fix toilets or deal with problem tenants.
Good news: You don’t have to! Fundrise provides all the potential benefits of real estate investing without any of the landlord hassles.
Just as buying stocks lets you own a little piece of a company, investing with Fundrise lets you buy a piece of real estate investments — and you can start with as little as $10. The average Fundrise investor saw a 25% increase within three years and more than 50% over a five-year period, according to the company.
Rents in professionally managed apartment buildings “skyrocketed” last year, according to a new study from Harvard’s Joint Center for Housing Studies. Apartment prices rose 16.8% year-over-year by the fourth quarter of 2021.
Rather than focusing all your investable dollars in stocks or bonds or mutual funds, you’ll be diversifying your portfolio. And all without having to fix a single toilet.
A $10 investment could get you in the door, so to speak. In other words, you could start your real-estate empire by packing your lunch once or twice this week.
Start small if you must. But starts today. It just takes a couple of minutes to sign up and get started with Fundrise.
2. Add $1.7 million to your bank account by hiring an investment professional
Interested in day trading? We didn’t think so. Most people aren’t: 71% of US investors believe that passive investing will maximize returns over the long haul.
And those who think they’d be great at “active” investing? They’re probably kidding themselves. A recent Vanguard study said that a self-managed $500,000 investment would turn into $1.69 million after 25 years. The same money, managed by a qualified financial advisor, would have become $3.4 million†
Because twice as much from your money? We can’t guarantee that. No one can. what we can do is say there’s no need to wander alone in the investing world, where you might fall victim to lousy advice or the latest investing scams. Not when SmartAsset is ready to get you the help you need.
This free matching service will put you together with a qualified advisor whose job as a fiduciary is to make the best decisions for your money. That advisor will help you create financial goals, then show you how to make those goals happen.
It takes about 60 seconds to answer the “find your advisor” questionnaire. Once you enter an email address, SmartAsset will send you a list of fiduciaries who can help you make the most of your investing dollars.
A minute’s worth of clicking can completely change your life. Get started now.
3. Invest in this overlooked asset returning 14% for the past 15 years
It’s wise to diversify your investments. So in addition to a portfolio full of pork bellies and precious metals, may we suggest … fine art?
Yep. This overlooked asset has returned 14% annually for the past 15 years.
Don’t have hundreds of thousands (or millions) of dollars to gain entrance to an art auction? Invest the way you invest in other high-returning assets: one small piece at a time. Masterworks can help you become a player in the global art market.
You can buy “slices” of these investment art pieces, the same way you buy stocks: in affordable amounts. How affordable? As little as $20 plus fees and you’re in.
That 14% return isn’t guaranteed. Then again, stocks and other investment vehicles don’t promise anything, either. And sometimes, the appreciation rate is much better than that 14% average. For example, Masterworks put Banksy’s “Mona Lisa” up for investors in October 2019. The painting was sold in October 2020 and provided a 32% net annualized return. Not bad for a year’s wait.
In some cases, the appreciation rate is just plain astonishing. Works by Basquiat generally appreciate 18.4% — but one painting that cost $20,900 a few decades ago was sold for $110,487,500. That’s a 5,286% increase in just 33 years!
Fine art investment used to be limited to the rich. no more. Click here to request your invitation to join Masterworks.
4. Secure your portfolio by diversifying into gold
The market goes up, the market goes down — and sometimes it comes crashing down. Just ask anyone who watched their portfolios shrivel during the January 2022 market correction.
Stock market volatility is a good reason to diversify. Besides, some people want tangible goods, not on-paper ones. American Hartford Gold is there for those who want something solid and real.
Gold is a finite resource that’s also a physical commodity, as opposed to paper wealth that can be regulated by governmental or banking rules. It’s remained the standard for wealth for thousands of years — ever since people first started buying and selling goods and services.
In these modern times, though, it’s not just about stashing shiny metal in a safe deposit box. You can now create a “gold IRA,” a retirement account that meets all Internal Revenue Service regulations. (Fun fact: Gold is one of the few commodities you can turn into an IRA investment.)
While no one can predict whether gold will maintain a super-high value, here’s what we can predict: that most folks won’t willingly give up their electronics. And guess what electronics manufacturers desperately need in order to build our devices? gold.
The family-owned American Hartford Gold will help you buy gold coins/bars or gold stocks, ETFs and mutual funds, either directly or in an IRA. They’ll also make sure any physical gold is stored safely in an approved depository.
American Hartford Gold has an A+ rating with the Better Business Bureau and a 5-star rating with Trustpilot. They earned these things by helping customers like you feel more secure during uncertain economic times.
Want to protect some of your hard-earned dollars from market volatility? Get your free investor kit now.
5. Invest smarter with this robo-adviser
Keeping your money in a savings account won’t build wealth. Heck, it won’t even keep pace with inflation. While you should always have some liquid cash, the road to riches requires risk. Specifically, it requires investing.
Seems like you hear about a new investment scam every week, though, so you’re wary about taking the plunge. The very thought of becoming a DIY investor makes your head hurt. Besides, can you really afford it right now? don’t you need like, thousands or dollars to open an investment fund?
Nope. With a robo-adviser app called Public, you can start your investing journey with a single dollar. You’re quite literally starting small, since Public specializes in “fractional” investing: little slices of funds, companies or crypto from among thousands of stocks and exchange-traded funds. Once you’ve opened an account, you qualify for a free slice of stock that’s worth up to $300.
Getting started couldn’t be simpler. You tell the app how much (if any) investing experience you’ve had, then spell out your investment goals. According to the company, 90% of Public’s investors are thinking long-term.
Bonus: Public doesn’t charge any fees! It’s possible for you to leave a tip whenever you make a trade, however. And speaking of tips, Public encourages investors to learn from one another by sharing info about their trades in the feed and/or creating chat groups to discuss investing.
To get going on your investment journey, download the free app and claim your free stock.
6. Earn 20 times the national average on your savings
As mentioned earlier, you need some liquid cash. It’s not a good idea to have all your funds locked up tight.
Unfortunately, that money isn’t doing much just sitting there. The national average annual percentage yield (APY) in US banks is a paltry 0.06%. This means that for every $1,000 you bank, you’ll earn just 60 cents a year. Hey boy.
Would earning 20 times that rate pique your interest, so to speak? Then head over to Axos Bank and open a rewards checking account.
You could potentially earn up to 1.0% APY when you combine the best services and accounts at Axos. The online bank charges no service fees. Axos also provides unlimited ATM fee reimbursements, so you can access your money when you need it. Your funds are FDIC-insured, too.
Fact is, you’re never going to get rich on bank interest. But Axos gives you a better rate on your cash. Would you rather earn 0.06% or 1%? While that may not sound like much now, when rates start rising, that 1% could also rise.
Beat the local banks’ interest rates, open an account today.
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