I decided to develop some passive income streams late in 2009 and started with writing an ebook… It took me 10 days to setup, writing the book, creating the pdf, wrote the sales page, created the website, registration on Clickbank, etc. It sold so well, on complete autopilot, that I used the ebook content to create a membership site and over 1,100 people have been through the membership site.
A month later, the direct deposit hit my account. The next month brought another. I found myself greatly motivated to keep learning real estate, to understand what some of the terminology meant and the different ways to invest. Now that there was some money on the line, I became more interested than ever. Next thing you know, I had invested nearly $100,000 in total in various crowdfunding ventures.
If you have a spare bedroom, you can find a roommate or list the space on AirBnB for travelers. Having a roommate is the more passive of the two, as being an Airbnb host will require more work in the form of turning over the room between stays. This is a super painless way to earn $500 to $1,000 a month without much effort – you may even be able to cover your mortgage payment with this extra income!
Investing is arguably the easiest way to make passive income. The problem is most investments sound good in theory but don’t work out so well in practice. And if you don’t have much experience or access to capital, let alone the time to work it all out, it can seem more or less impossible. However, there is one smart way to invest that just might work. Continue reading >
Those who choose to focus on passive income will need either family money, funds from investors, or the nerve to borrow large sums by taking on debt to fund the purchase of assets. Consider someone who takes out substantial bank loans to build an apartment building or buy rental houses. Although this can turn a very small amount of equity into a large cash flow stream, it is not without risk. When using borrowed money, the margin of safety is much smaller because you can’t absorb the same degree of setback before defaulting and finding you balance sheet obliterated.
If you need cash flow, and the dividend doesn’t meet your needs, sell a little appreciated stock. (or keep a CD ladder rolling and leave your stock alone). At the risk of repeating myself, whether you take cash out of your portfolio in the form of “rent”, dividend, interest, cap gain, laddered CD…., etc. The arithmetic doesn’t change. You are still taking cash out of your portfolio. I’m just pointing out that we shouldn’t let the tail wag the dog. IOW, the primary goal is to grow the long term value of your portfolio, after tax. Period. All other goals are secondary.
And if you think, I am not a photographer, creator or designer and don’t have money to invest in real estates, ETFs and so on - don’t worry. We will also cover dozens of strategies that require no up-front investments and that could potentially earn you thousands of dollars every month - like renting out a room in your apartment via Airbnb, putting ads on your car, renting it our, hosting webinars, building a membership site, teaching online and much more!
One of the most appealing options, particularly for millennials, would be #12 on your list (create a Blog/Youtube channel). The videos can be about anything that interests you, from your daily makeup routine (with affiliate links to the products you use), recipes (what you eat each day) or as you mention, instructional videos (again with affiliate links to the products you use). Once you gain a large following and viewership, you can earn via Adsense on YouTube.
It takes the “books I’m reading” area you often see in blogs (within Amazon affiliate links) to a whole new level. not only is this great for you, but it’s extremely helpful for your readers who may be looking for additional resources related to your niche. Plus, they may come across products or services they weren’t originally looking for while on your resources page.
Dividend Income: Dividend income is wonderful because it is completely passive and is taxed at only 15% if you are in the 25%, 28%, 33%, and 35% income tax bracket. If you are in the 39.6% income tax bracket you will pay a 20% tax on your dividends. My dividend income portfolio mainly consist of dividend equity and bond ETFs such as DVY, VYM, MUB, TLT, and IEF. Total stock and bond income is a little over $100,000 a year due to a heavy accumulation of stocks and municipal bonds after selling my house.
If you’ve ever thought to yourself, “I wish there was a product that did this,” then invent it! Create a product, medical or otherwise, and sell it as a company or get royalties for it. It’s not impossible to figure out, I have many friends who have taken a concept to market. Don’t overlook an invention as a fantastic means of attaining passive income.