Earning active income is great but you can have more money by earning passive income.
Here are some ways to earn passive income.
- Index funds
Trying out index funds offers you a way to venture into the stock market passively. Investing in index funds gives you a way to get into the general stock market without having to bother about what investments to make, how to rebalance your portfolio and when to buy or sell. All these concerns will be dealt with by the fund based on the underlying index’s makeup.
You can invest in index funds for just about any industry or sector, sit back, watch your stock portfolio operate on autopilot and earn more income.
- Build A Portfolio of High Dividend Stocks
When you buy high dividend stocks and build a portfolio, you will create a regular source of passive income which had a higher annual rate than what bank investments offer.
There is also the added advantage of appreciation of capital since high dividend stocks are still stocks. This way, you would have two streams of passive income – capital gains and dividends. Get a brokerage account and start earning.
- Invest in real estate
People always need buildings to live in and carry out other activities. This means that investing in real estate would yield a lot for you. Sometimes, the income earned from investing in real estate is termed semi-passive income because of how much it yields and the fact that if done on a large scale, you can earn more from it than your day job.
If you own an established, fully rented property, all you have to do is to manage it and ensure that it functions optimally. You can also get professional real estate managers to help you manage the property for about 10% of the monthly rent of the property.
Make smart purchases, acquire properties which have high performance potential. Investing in real estate is not just a way to build passive income, you can use it to plan a future for you and your family.
- Silent Partner In A Business
Do you know any businesses which are in need of capital, maybe a friend’s business or an already established and successful business? Simply become a small investor in the brand. Do not offer a loan which will be paid back. Instead, request for an equity position. This way, the owner of the brand or business handles the day-to-day running of the business while you become the silent partner who partakes in the profits.
- Be A Referral Source
All small businesses need referrals for them to thrive. You can earn passive income from this. Put together a list of small businesses which you patronise and feel you can refer people to. Contact the owners of the businesses and find out if they have cash referral offers.
Take these opportunities and earn some money by simply investing and watching your investments work.