Earn Passive Income
By the time you realize that the income from your 9 am to 5 pm job is not sufficient to run your family, pay your mortgage, school fees, summer camp and oh your sister’s marriage present, you already ran out of money. Don’t blame yourself if your primary job is not paying well. A survey say’s that 90% of the working class people are either not happy with their salary or with their job.
Passive Income is the money that you invest in something, and that grows in value by itself over time. Most successful entrepreneurs and business leaders get richer by having multiple sources of passive income. Today, I am going to walk you through 5 easy ways to invest your money. But before I get started, you must understand that, unless you put your money to work, your wealth won’t grow.
So let’s get started,
1. Investing in Real Estate
Is real estate a good investment? Yes. You have a lot of options when it comes to real estate, home, a piece of land or commercial space to rent are a few ideas. Let’s do the math and prove it right. Assume that you are paying a rent of $1200 for a two bedroom apartment. In five years, you will be paying a rent of $1500 assuming an increase in rent of 5% every year. By the 5th year, you would have paid $79560 in rent. That is a LOT OF MONEY! What if you had paid the mortgage for a home worth $320,000? That would be around $1600 per month, 800 would go towards the interest and insurance and $800 towards the principle. So that would mean, you have paid $48, 000 for taxes and fees over the period of 5 years. Consider that your home value increases by 4% every year. In 5 years, your home will be worth $375,000. Therefore, you have saved $78,000 in 5 years.
Fundrise is a financial firm which invests on realestate on your behalf. You can avoid the hassel of buying a property by investing in fundrise. You can invest as small as $500 and invest more as you grow. Join me and 100,000 others who have invested. Use my referal link https://fundrise.com/r/42q8d and get started.
2. Invest in Stock Market
I have seen many people comparing the stock market to gambling. That’s a shame! Let me tell you the difference, its competitive edge. In gambling, the competitive edge will always favor the Casino. Every game is designed to profit the casino owners.
But the stock market investments is purely analytics, data insights and a little bit of common sense. Amazon sore from $300 per share in 2014 to $2000 per share in 2018. That is almost a 700% increase in 4 years. If you had invested 100 shares on Amazon in 2014, you would have earned $17,000 just by doing nothing!
Robinhood is an investment firm where you can invests on thousands of publicly traded companies including Apple, Amazon, Netflix. The best part is unlike other traders, Robinhood charges $0 transaction free. What is more, use my referal link to get a FREE STOCK.
3. Long-term investment in 401K, HSA, Mutual Funds, Provident funds and Bonds
Most employers in the US offer a match for the investment you make into your 401K account. Though these look complicated, all you have to do is deposit a percentage of your pay to these accounts. You get tax benefits, up to a certain limit and a compounding interest builds over time. Take advantage of the benefits, a small percentage, say 5% of your income can go into these accounts. If you are not sure about Stock Market investments, consider Mutual Funds. Mutual funds are a collection of stocks, diversified in various portfolios which you don’t have to manage. Investment companies like, for instance, will handle everything for you. You will get a return on investment year over year of up to 15% or more.
4. Blogging, Adsense & Affiliate Marketing
Ryan is a 7-year-old boy who runs a toys review on youtube. Guess how much he makes? A whopping $11 million through ads and affiliate marketing every year. That is because Adsense and affiliate marketing are easy money. There is surely something you are good at, like computers, cooking, gardening or traveling. Here are simple steps to get started: i) Now that running a website is damn easy, get a domain and a content management platform to host your blogs. Or choose a platform like youtube or podcast where you are comfortable. Choose a niche you are good and write a post, make a video or a podcast every week. ii) Enable Adsense and marketing ads on your site. Once you started creating content. iii) Make your site searchable on Google, social media and other search engines. Learn about what people search for on the internet. Google Keyword Planner is a great tool to get started. iv) Maintain the site, keep updating posts using the right keywords. Learn a few basics on SEO and content optimization. All you need to spend is 1 hour every week.
That is it. As your blog gets older and your website is searchable, your ads and affiliate marketing clicks will start you getting money every time a visitor clicks those links.
If you are interested in setting up a blog and want to learn about hosing a website or wordpress site, I can help you with that. Send me a brief note and I will set up a session with you to discuss more.
5. Dropship e-commerce store
Drop shipping is getting a lot of attention lately. You don’t need to set up a supply chain or manage an inventory for setting up an online store. All you need is a bunch of suppliers who have products to sell. Drop shipping concept is where you set up an e-commerce store on a platform like Shopify, Woo Commerce or BigCommerse, and list the products available from your supplier. When a customer places an order on your site, the order request automatically goes to your supplier. Your supplier then ships the order to your customer.
If you are already running a small business and need help with improving sales or looking for a mentor to advice or ask a question visit Get Mentored page apply for a mentorship program. Its FREE.
Most approaches briefed here though said easier than done, eventually, in the long run, will earn passive income without having to work on it 24×7. The techniques that I have listed above to earn passive income are not just suggestions, rather they are proving to work for me and my friends. To earn passive income is not difficult, it’s instead procedure which takes time initially but once a routine, its a guaranteed way to success.