Passive income is money you make (with little to no effort to maintain) and that you earn on a regular basis. Sounds great, right? Here are some sources you’d want to try out.
The first thing to keep in mind about passive income is that even if it takes little to no effort to maintain, it does take some effort to achieve — two different things. And it might also take some time, but once you’ve started, you will be able to enjoy the perks of passive income and you will be making money while you sleep.
There are several ways of achieving passive income, some of them are easier and quicker than others. Those are the ones we are going to list here:
The great thing about Robo-advisors is that they will invest your money for you, automatically. You will determine how much risk you are willing to take and they will take it from there.
The average Robo-advisor fee ranges from 0.25% to 0.9% a year, which is not too bad considering the perks of automatic investment —and, most of all, considering traditional investment advisors charge considerably more.
A lot of people need money but can’t apply for a loan at a bank. That’s when peer-to-peer becomes a good alternative: people lending money to other people. You will be able to help a peer out while getting some interest in return. The amount of interest you get will depend on the borrower’s credit history.
This one is a rather safe investment option offered by most banks and credit unions. If you have a certain amount of money that you know you will not use in the short term, you might invest it in a certificate of deposit. Actually, some experts recommend a strategy known as the CD ladder, which will allow you to create ongoing cash flow.
This is a great way of getting into real estate investment, without the risks of going solo. REIT stands for Real Estate Investment Trust, which is basically a company that owns an income-producing real estate. When you invest in REITs, you get a share of the profit produced by the real estate owned by that REIT.