10 top ways to make passive income



welcome to my channel so before we get started make sure to hit that like button also subscribe to my channel in this video we will talk about top 10 ways to make passive income so make sure to watch the full video one dividend stocks one way to build an income stream is to invest in dividend stocks which distribute part of the company's earnings to investors on a regular basis such as quarterly the best ones increase their payout over time helping grow future income dividend stocks typically are less volatile than growth stocks and help diversify your portfolio investors can also choose to reinvest dividends Say by 100 shares of a company for ten dollars each and each share pays a dividend of zero dollars and fifty cents annually if you invested one thousand dollars you would receive fifty dollars in dividend payments over the course of a year that works out to a five percent yield not too shabby what do you choose to do with your dividends is up to you you can reinvest them to buy more shares of the company buy stock in a different company save the cash spend the money regardless of whether the company's stock price goes up or down you would receive those dividend payments as long as the company continues to disperse them the beauty of stocks at paid dividends is that part of your return includes predictable quarterly payments not every company offering dividend stocks can maintain a dividend payout in every economic environment as the covi d19 pandemic is demonstrated but a diversified portfolio of dividend stocks can produce reliable income rain or shine combine those dividends with capital appreciation as the companies you won't grow in value and the total returns can rival and even exceed those of the broader Market two dividend index funds and exchange traded funds you can also invest in index funds or exchange traded funds that hold dividend stocks rather than picking and choosing individual stocks to buy this is a form of passive Investing For Those Who prefer more hands-off approach index funds hold a well-rounded selection of many stocks that aim to mirror the performance of a given index such as the S and P 500 a dividend Index Fund will invest in a selection of stocks that pay dividends index funds can help balance portfolio risk as Market swains tend to be less volatile across an index compared with individual stocks dividend EDS offer the diversification benefits of index funds while mimicking the ease with which stocks are traded to invest in dividend stocks index funds edfs or other publicly traded assets you'll need to open a brokerage account if you don't already have one three bonds and bond index funds a bond Index Fund is a firm that buys bonds to match an index it then creates Securities from the bonds and sells them to investors the index fund is designed to match the performance of an index such as the Barclays aggregate U.S Bond index you can buy index related products like Bond mutual funds or you can choose from the growing number of exchange traded funds EDS traded through a broker these products are a simple and cheap way to invest in bonds Bond index funds are highly Diversified have low fees and use an approach that's easily understood by most people Bond index funds May well be a leading option for those who want to earn income from their Investments a bond Index Fund is a firm that invests in a portfolio of bonds designed to match the performance of a particular index index funds are passively managed which means they have lower management fees index funds perform more consistently than actively managed funds four high-yield savings accounts another way to earn passive income albeit at a lower level than stocks and bonds is a high-yield online savings account which can be ideal for growing your emergency fund the interest paid by savings accounts is added to your balance high yield accounts are a type of federally insured savings account that earns him interest rate that's often much higher than the national average the apy leaves high yield accounts may vary slightly and over time those small differences Adam to real cash so it pays to shop around for where you put your savings five rental properties purchasing properties to earn rental income is another way to build passive income long-term rentals can provide a reliable source of cash they are located in a healthy market for renters but they also carry long-term stressors like maintaining those properties as well as paying multiple mortgages property tax bills and other costs you could also focus on short-term rentals through a platform like Airmen which is dependent on a steady flow of visitors to your area or start small rent out a room in your house to begin to bankroll your rental property Empire six peer-to-peer Lending real estate check here Investments are long-term bets to build passive income if you want to potentially earn income and cash out your investment in under five years one tactic to consider is peer-to-peer Lending an alternative to traditional bank loans peer-to-peer lenders like prosper and Lending Club match investors who are willing to lend money with borrowers who are vetted by the platforms for creditworthiness it's riskier than putting cash in a high yield savings account or money market fund but also potentially can earn more interest as much as five percent or more seven private equity perhaps the original form of peer-to-peer lending another common form of passive income is finding a private business you believe has the opportunity to generate future income for high net worth individuals this might be investing in private Equity Funds which are typically only available to accredited investors who meet certain net worth or income requirements another way is to back a family member friend or other trusted partner to help fund their business with an agreement to earn returns from any future profits but beware no matter how large or small investing in a single business isn't inherently risky long-term bet never invest more than you can afford to lose eight content a way to build passive income at home it's through payments for the use of intellectual property that you have created yourself or for which you purchase the rights creating content can be a lot of work especially for work that is engaging and reaches a large enough audience to generate income but once you've created something that people are using it's possible to generate Revenue through display advertising using a program such as Google AdSense or to run sponsored content which means companies pay you a fee to publish a post on your blog another way to monetize a Blog is affiliate marketing which allows you to earn commissions if your readers purchase a product or service you've recommended or linked to you may however find that creating content is not as hands-off as you might expect there's always pressure to create more content or update what you have to keep it viable nine real estate investment trusts Reedy Deeds a real estate investment trust Reit is a company that owns operates or finances income generating real estate modeled after mutual funds REITs pull the capital of numerous investors this makes it possible for individual investors to earn dividends for Real Estate Investments without having to buy manage or Finance any properties themselves a real estate investment trust Reit is a company that owns operates or finances income producing properties rates generate a steady income stream for investors but offer little in the way of capital appreciation most Reis are publicly traded like stocks which makes them highly liquid unlike physical real estate Investments rates invest in most real estate property types including apartment buildings cell towers data centers hotels medical facilities offices retail centers

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