Hello !! Lets imagine if you had an extra $ 5 or even 20 dollars a day which you deposited into your bank account and live on its passive income without having to do any work whatsoever. We all might have tried pretty much every single passive income idea in existence. Even most of them are a complete waste of time, they’ll take you forever to build. Rather its better to a minimum wage job instead but there’s also legitimate ways of making passive income that are often overlooked and even though you’re not going to get rich overnight but the good news is that you would be able to get started today with as little as a hundred dollars.
If you could simply understand the basics and repeat these exact same strategies, eventually it will work your way up to a hundred dollars a day. So let’s talk about everything that you need to know in terms of exactly what to do, where to start and how to scale.
First it’s important to understand that when it comes to passive income there are two very different types that you could generate for yourself. These are
- Investing your money
- Investing your time
Some people say that passive income is not a real thing it doesn’t exist, it’s not possible but its not true. Realistically passive income is a way for you to leverage your time and efforts up front in such a way that you’ll get paid later on in the future even when you’re not working. Before that just be prepared to put in the work, learn these strategies and don’t expect money to be pouring into your account overnight.
A) Investing in Money
1. Investing in High Dividend Stocks
If you’re looking for the simplest easiest no work approach to making true passive income where you literally do nothing but just collect money then you might want to consider buying high dividend stocks. Now this certainly isn’t going to make you rich overnight but a hundred dollars is going to be enough to lay the groundwork from which you’d be able to build from and this is how you could do it anytime you go and buy a stock that will be pay you good dividends. Usually, companies pay dividend that range anywhere between 1% and 10% depending on the company.
This can be the easiest passive income you’re ever going to make in your entire life. The benefit from an investment standpoint is that you’ll be able to receive predictable cash flow on a regular basis without having to sell any shares and this gives you leftover money that you could use to buy even more Investments that will make you even more money. Just make a good research before investing in any of the stocks.
2. Investing in Index Funds.
Index fund this is basically a big basket of stocks that you could buy at a low price and that way you’ll own a small piece of everything. For example, if you were to buy each individual stock in the SP 500, not only it would be a logistical nightmare and take you hours but it would also cost you around eighty thousand dollars so instead an index fund was created as a way to track the entire market and simplify investing without having to dump everything into caravan.
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Index Fund investing has outperformed the vast majority of professional investors over a 20-year period that means that statistically you’re going to make more money doing this than any other stock market investment that you could think of and in terms of passive income. Here first you’ll receive a dividend. In most of these funds the dividend yield is anywhere between 1% to 3.5% annually which might not sound like a lot because on a hundred dollars you’re only going to make about one to three dollars a year but you could also combine that with number two the stock price increasing overall. Throughout the last 100 years the S P 500 has increased by an average of seven percent a year.
B) Investing your time
100 dollars by itself is probably not going earn you much that’s why if you want to make a lot of passive income the highest yielding investment that you can make is in education.
1. Read books
First for ten dollars out of hundred, go and buy the book “Think and Grow Rich”. If you want to become wealthy this book contains the mental blueprint for achieving whatever you want. It can be the best investment that you could have possibly made in terms of learning actionable steps that anybody could use to build wealth.
After that take 15 Dollars again and buy the book the “Four hour work week” this is a book that will change your views towards business money and leveraging your skills.
Now at third take 20 dollars and buy the book on “Rental property investing” by Brandon Turner. The information is invaluable and since buying a home is the largest financial transaction you’re ever going to. Possibly make it worth knowing.
Take ten dollars and buy the book “How to Win Friends and Influence People” here’s the thing no matter what business you’re in you need to understand how to effectively communicate with another person understand their point of view and treat people with respect. This book teaches you how to make win-win conversations for everybody and I think more people should be imploring this.
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Since we’ve only spent 55 dollars so far and from the leftover take another 7 dollars on “Rich Dad Poor Dad”, $ 20 on the “Millionaire fast lane”, 17 dollars on “Die with zero”.
If you actually go and buy these books and read them over the course of a year then you’ll have more business acumen than most of the people on the planet and because of that it’s practically guaranteed that you will make more money.