Prioritizing financial stability in the form of a typical 9-5 job pays the bills for most Americans. However, no job can guarantee with complete certainty that employees won’t be suddenly laid off, and it can’t hurt to have multiple sources of income.
However, you don’t have to be Warren Buffett to increase your net worth by way of several streams of passive income.
Creating Several Streams of Income
There are numerous ways for anyone to begin generating extra money, even from the comfort of their home. While getting started has several upfront costs, building several streams of passive income can help increase personal wealth while reducing financial stress.
So, instead of putting all of your eggs in one basket, try out these five ways to generate passive income and secure more financial stability.
Starting Small
There are several simple ways to cash in and begin making passive income without breaking the bank. One of the most popular is e-commerce, which sells products to customers over the internet.
Starting a small e-commerce business can become fairly lucrative and require less than 10 to 15 hours of work per week once it’s up and running.
Starting an E-Commerce Business
In order to create a successful e-commerce business, there are a few tips that should be followed. Begin by researching products and ensure there is a market available for them.
Follow this by figuring out where to source the product, how to ship the items, and finally, somewhere to sell it, such as an Amazon storefront. With careful planning, a small online e-commerce business can bring in several thousand dollars monthly.
Investing in Real Estate
Purchasing property and becoming a landlord is another excellent way to generate passive income.
The one downside to buying property is that it generally requires a sizable down payment. But, several programs and initiatives can help first-time buyers.
Rental Market Is as Strong as Ever
Once over the initial purchase, landlords generally receive a steady flow of payments that help them both pay off the mortgage and even some of their own bills.
As over a third of American households currently rent, per MSN, the market is as strong as ever. You can also hire property management firms to take care of all the day-to-day tasks, ensuring you free up time to focus on other ventures.
Affiliate Marketing
With the age of the internet, everyone can make money online. Affiliate marketing is one way to increase personal revenue without hefty initial investments.
Affiliate marketing is a term used to describe those who recommend all kinds of products online. With each sale, the marketer earns a small commission. Influence enough sales, and the money begins to pour in.
Building a Following
It costs little to nothing to become an affiliate marketer. However, you need a market to advertise to. This generally comes in the form of a social media account with several thousand followers.
According to a survey from HypeAuditor, per Time, influencers with as little as 1,000 to 10,000 followers can make close to $1,500 per month.
Invest in Dividend Paying Stocks
Dividends are payments issued by companies to shareholders. Larger investments into the stock will result in a larger share of the company’s profits.
Per NerdWallet, the average payment of some of the larger companies is around 12%.
Reinvesting the Dividend Payments
Dividends can provide investors with a steady stream of passive income throughout the year. Typically, dividends are typically paid out quarterly. However, some companies issue them each month.
For those who are serious about growing their net worth and increasing the amount of passive income they bring in monthly, reinvesting the money from dividends is a great option.
Open a High-Yield Savings Account
A high-yield savings account is a low-risk option for anyone seeking to increase their revenue streams. Generally, these are offered by online banks or credit unions.
This particular kind of savings account offers greater interest rates when compared to traditional alternatives. In some cases, the yearly yield could exceed 5% of the total amount placed in the account.
Low Risk, Low Reward
Compared to the other passive income options on the list, a high-yield savings account certainly has the lowest return.
But it does offer stability and the opportunity to slowly increase net worth without the risks associated with other ventures. When it comes to passive income, it’s best to start small make a plan, and anyone can begin earning extra cash throughout the year.
