Never let a job steal your life β Use your salary to invest in passive income so that passive income eventually replaces your salary.
You work for active income but passive income works for you β Here are 7 common ways to create passive income streams:
You work for active income but passive income works for you β Here are 7 common ways to create passive income streams:
Nothing is ever 100% passive upfront, everything requires effort to set up at first. Here are 7 passive income streams you can create:
β’ REITs
β’ Real Estate
β’ Renting Space
β’ Digital Products
β’ Dividend Stocks
β’ Affiliate Marketing
β’ Covered Call Options
Let's discuss:
β’ REITs
β’ Real Estate
β’ Renting Space
β’ Digital Products
β’ Dividend Stocks
β’ Affiliate Marketing
β’ Covered Call Options
Let's discuss:
1/ Real Estate
Borrow money from a bank to purchase property and have tenants help pay the mortgage.
Over 30 years the property appreciates, the mortgage gets paid off, and it becomes cash-flowing.
Outsource the parts of running it to a property manager & make it 100% passive.
Borrow money from a bank to purchase property and have tenants help pay the mortgage.
Over 30 years the property appreciates, the mortgage gets paid off, and it becomes cash-flowing.
Outsource the parts of running it to a property manager & make it 100% passive.
2/ REITs:
A REIT (Real Estate Investment Trust) allows you to invest in real estate without the need to own property.
This decade, the average annual return on REITs was ~10%.
A REIT is a company that owns & manages real estate (commercial buildings, apartments, hotels, etc.)
A REIT (Real Estate Investment Trust) allows you to invest in real estate without the need to own property.
This decade, the average annual return on REITs was ~10%.
A REIT is a company that owns & manages real estate (commercial buildings, apartments, hotels, etc.)
You can find REITs for every sector, such as real estate in:
β’ Data Centers
β’ Apartments
β’ Cell Towers
β’ Healthcare
β’ Industrial
β’ Casinos
β’ Storage
β’ Retail
β’ Malls
REITs are a way to invest in real estate without the hassle of having to be a landlord.
β’ Data Centers
β’ Apartments
β’ Cell Towers
β’ Healthcare
β’ Industrial
β’ Casinos
β’ Storage
β’ Retail
β’ Malls
REITs are a way to invest in real estate without the hassle of having to be a landlord.
3) Dividend Stocks:
Dividends are payments to investors who own shares in the company.
Companies pay dividends from the company profits.
If you consistently invest in dividend stocks you can build passive income over time.
When you receive dividends, reinvest them!
Dividends are payments to investors who own shares in the company.
Companies pay dividends from the company profits.
If you consistently invest in dividend stocks you can build passive income over time.
When you receive dividends, reinvest them!
Highest Dividend-Paying Stocks in the S&P 500:
β’ 11.2% - Pioneer Resources $PXD
β’ 10.4% - Coterra Energy $CTRA
β’ 10.3% - Devon Energy $DVN
β’ 8.2% - Altria $MO
β’ 6.3% - Verizon $VZ
β’ 6.3% - Newell Brands $NWL
β’ 6.1% - Simon Property Group $SPG
Own any?
β’ 11.2% - Pioneer Resources $PXD
β’ 10.4% - Coterra Energy $CTRA
β’ 10.3% - Devon Energy $DVN
β’ 8.2% - Altria $MO
β’ 6.3% - Verizon $VZ
β’ 6.3% - Newell Brands $NWL
β’ 6.1% - Simon Property Group $SPG
Own any?
4/ Digital Products (Courses/ eBooks):
Digital products are a great source of passive income β you have the freedom to create and sell a product from anywhere in the World.
You can leverage the Worldwide audience of Amazon to put your product in front of millions.
Digital products are a great source of passive income β you have the freedom to create and sell a product from anywhere in the World.
You can leverage the Worldwide audience of Amazon to put your product in front of millions.
5/ Affiliate Marketing:
Affiliate marketing is recommending a product or service and then earning a commission when someone uses your referral code to buy it.
Promoting products or services through your social media can generate commissions from any sales that you make.
Affiliate marketing is recommending a product or service and then earning a commission when someone uses your referral code to buy it.
Promoting products or services through your social media can generate commissions from any sales that you make.
6/ Renting Space:
You can rent out storage space with many storage rental apps like Neighbor, Peerspace, or StoreAtMyHouse.
Different types of spaces can be rented out β such as storage spaces, parking spaces, garages, spare rooms, or outdoor spaces for events.
You can rent out storage space with many storage rental apps like Neighbor, Peerspace, or StoreAtMyHouse.
Different types of spaces can be rented out β such as storage spaces, parking spaces, garages, spare rooms, or outdoor spaces for events.
7/ Covered Call Options:
By writing covered call options, you profit from the premium you receive.
You write (sell) a covered call option that earns a premium (from the buyer of the option).
This strategy generates income while you participate in long-term price appreciation.
By writing covered call options, you profit from the premium you receive.
You write (sell) a covered call option that earns a premium (from the buyer of the option).
This strategy generates income while you participate in long-term price appreciation.
You work for active income, but passive income works for you.
If you can work 8 hours a day for someone else, you can use your evenings to work on a side-hustle, side business or learn new skills to create passive income.
Use 5-9 to replace your 9-5.
If you can work 8 hours a day for someone else, you can use your evenings to work on a side-hustle, side business or learn new skills to create passive income.
Use 5-9 to replace your 9-5.
Invest in assets so that they replace your liabilities over time.
First, your passive income will cover your phone bill,
then it will cover your car payment,
then it will cover your mortgage,
then it will cover your salary.
First, your passive income will cover your phone bill,
then it will cover your car payment,
then it will cover your mortgage,
then it will cover your salary.
Active income is temporary but passive income is forever. These threads take time to write, so if you found it helpful, please:
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