Did you know the average American spends 1,780 hours working per year at their job? No wonder more people are looking to make money from home or make passive income. Let’s face it nobody likes working too hard for their daily bread.
These are the best ways to make passive income and take your wealth to a new level this year.
Earn Money While You Sleep: 5 of the Best Ways to Make Passive Income
If you were to build your passive income streams large enough while you sleep you could be able to eventually spend less time at work or even have the choice to quit your job. Another great reason to make passive income even while having a job is in case there is ever an emergency.
The best ways to make passive income include:
1. Invest in Stocks/Bonds
This is a traditional choice for passive income. Investing in stocks, holding equities in your investment generates passive capital gains and or an interest income. Learning how to trade options for income is another way to bring in passive cash flow.
2. Invest in Dividend Growth Stocks
This is when you focus on stocks that pay a dividend and have a history of strong dividend growth. You will also want to make sure you see financials that support a continuation of both strong growth and a history of dividends.
3. Peer-to-Peer Lending
This industry is for investors who want to help others while adding passive income to their wallet. To become a lender for Lending Club or Prosper which are two of the biggest peer-to-peer lending platforms investors can fund loans with as little as a $25 investment.
The returns can be profitable for investors who are willing to take on more risk. The highest rates are paid for loans given to borrowers that are considered the biggest credit risk.
4. Index Funds
These are mutual funds that are tied to a specific market index. Index funds mirror the performance of the underlying index they track.
The securities in these funds don’t change unless the composition of the index changes. This means lower management costs as an investor.
5. Invest in a Rental Property
It might take a little bit to put a 20% down payment but it’s worth it if you figure out your income and expenses to calculate how much cash flow you will have. If you are going to have a property manager in charge of managing your property don’t forget to include this cost in your calculations.
If you are going to have a property manager in charge of managing your property don’t forget to include this cost in your calculations.
This can be a great passive income once it gets going on a consistent basis. To have a bigger monthly cash flow you can add additional rental properties as your cash flow grows.
Ready to Earn Money While You Sleep?
With so many ways to earn money passively while you sleep thanks to technology there is no reason to not starting right away. The best ways to make passive income mentioned above will have you well on your way to earn money while you sleep.
Have you been looking to add passive income as an extra stream to get out of debt quicker? Check out our article talking about ways to become debt free.
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