A few passive income strategies to accumulate wealth
What is passive income? Is a way to earn income without directly being involved in the day to day operation of your business. In the real world, the word “Without directly” means the opposite, it takes a lot of work to setup a business that will generate income, even if the final strategy is for you not to directly participate in the day to day operations of the same.
Every passive Income requires either upfront money and/or time.
Speaking solely from personal experience adding passive income streams can help your earnings. and accelerate your financial goals in positive ways.
If you want to get started earning passive income here are some ideas that can guide you in your search:
Passive Income strategies requiring upfront money:
Dividend Stocks – Dividend stocks are tried and true way to earn passive income. You must do plenty of research to find good stocks and invest a significant amount of money to receive large dividend checks.
Rental Properties – A cash flowing rental property is a fantastic way to bring in a monthly income. To make this truly passive you can outsource the running of the properties to a management company. This also is a great strategy to diversify risks from the stock market (not having all eggs in one basket strategy).
Annuities – Annuities are insurance products that you pay for but can then provide you passive income for life in the form of monthly payments. The terms with annuities vary and are not always a great deal so it’s best to talk to a trusted financial adviser if you’re interested in purchasing an annuity. This also is a great strategy to diversify risks from the stock market (not having all eggs in one basket strategy).
Semi-Passive Small Business Ideas
Franchise model– Self explanatory, you buy someone else’s idea, their IP, take all the risk and share on the reward if everything goes well. Fast food models work well in this model.
Opening/buying a business – Some examples as follow:
Car Wash/Laundromat –While maintenance will be needed at a car wash/laundromat it’s something you can either hire out or require minimum time.
ATM/Vending Machines – The work is replenishing cash and or inventories every few days/weeks.
How to Get Started
While it can be tempting to want to pick one of these or any other passive income idea to get started with. It’s always better to start with something that you actually have experience doing. And regardless of that you need to make a plan, learn as much of the business as possible, and put your money, time and dedication to make it happen.
Best of luck!