3 Effective Ways To Earn Passive Income
3 Ways To Earn Passive Income
With lots of people losing jobs, inflation running high, interest rates skyrocketing more and more people are looking towards ways to earn passive income. In this post I'm going to go over 3 effective ways to earn passive income through your more traditional methods and in a future post I'll go over how to earn it on the Hive blockchain directly.
To get the first thing out of the way passive income isn't what you think it is. It's not hands free and it will require some more. What you're doing however is putting in time or money or even both combined in order to generate income for you into the future.
Dividend stocks require very little time on your part but substantial cash to really get moving. Most stocks will pay a dividend of 1%-5% that tend to do well in terms of holding their price value and low risk. However others can pay upwards of 10% even 20% but come with higher risks.
To follow this up you could invest into index funds instead which spread the investment money over many stocks some that pay dividend and some that don't. Overall over a long period of time this is often a solid move.
Invest In Yourself
While everyone is mainly focused on money and making more money investing in yourself knocks out two things. It creates passive income for you because you're more aware, can make better choices and could increase your pay at a job compared to not having learned those skills. However the biggest plus for me is not the $ value but instead the feeling that I never want to stop learning, doing and creating. By investing in myself you're improving your skills for many areas and might be able to do projects yourself that you end up enjoy doing instead of paying a plumber, wood worker, electrician etc to come out and do for you. To me that's priceless and ends up saving you a ton of money which you could invest into passive income methods.
Interest Savings / Bonds / Loans
I know the dreaded savings account but hear me out here. Savings accounts are paying a respectable amount at the moment and it's very possible they will go north of 3% that puts you right on par with stock dividends at the moment and removes 99% of the risk as long as you use a FDIC insured bank.
Bonds are also posting new highs at over 4% APR putting it in line with the upper end of what is considered "safer stocks" and loans if you live in an area that can do P2P loans you'll most likely have small risk for about 6%+ putting you on the upper end of dividend stocks.
These are some very basic methods to earning passive income and while boring they are some of the most productive to continue to compound and grow. This
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