3 Passive Income Opportunities Everyone Should Consider
Passive income is the best, isn’t it? Getting money you don’t have to work for gives us so much more free time, security, and general peace of mind. But passive income doesn’t just happen. It takes a lot of work to set up and maintain. Fortunately, if you understand how passive income works, you’ll be able to set up systems gradually which will eventually give you a great deal of money in the future. With luck, you could get to a point in life where you don’t have to work to live and can use your time for any other purpose you can think of. Here are three of the best ways to create passive income streams.
Real Estate - Rental properties are one of the most reliable ways to create passive income in the entire world. They do more than create income, as well. When you have renters, these people give you the money you need each month to pay off your mortgage. Every cent of these mortgage payments is saved as equity, or the portion of your house’s value which would go to you if you were to sell it. If you pay off your house, you have 100% equity.
Rental Properties can be new homes, multi-family properties, or subdivided units in your home that you live in. You can also rent out portions of your house for AirBNB and other room sharing models. If you have solid properties with reliable tenants, there’s pretty much no downside. It can take awhile to build up the money to buy even one house, but if you are able and you choose your property well, it’s likely to pay off for you in the long run big time.
Spread Betting - Spread Betting isn’t completely passive, but it’s so easy to set up that it might as well be. Spread betting lets users look at all of the major investable assets in the world, then choose one or more to make value predictions about. The user will try to guess how the price will change within a certain period of time. All the user has to do is make a spread betting account with ETX Capital. Then they’ll either begin to make demonstration trades, with no money changing hands, so as to test their spread betting skills risk free; or they’ll set up real spread betting contracts which could yield big returns if the prices change in the predicted directions. Spread bettors have to set up these contracts, but then all they have to do is wait. When time is called, they’ll either make money or lose money depending on how the prices actually changed. There’s not much effort involved at all.
Dividends - There are many stocks that give off dividends. Dividends are a way a company can use its profits, rather than pay off debt or invest in its operations. Dividends are a reward to shareholders for continuing to own the stocks, rather than selling them for something else. It takes a big portfolio to yield enough dividends to live on, but even a modest portfolio can provide extra income enough to change your budget and lifestyle for the better. There are many other ways to invest in stocks, bonds, and funds, but dividends is one of the most popular and well studied, which will appeal to a certain kind of investor.
Passive income isn’t easy to set up, and it may take more time and perseverance to realize than many people are willing to put in. But once you have it, your life will never be the same. Work for passive income and passive income will work for you.