Passive income is my favorite type of income.
Passive income is the keys to your freedom.
Passive income frees up your time allowing you to spend it on things you would rather do.
Some passive income requires very little money but lots of time, other passive income requires very little time but lots of money.
The best thing to do to be prepared for both scenarios is to learn how to save.
Renting Real Estate
Every month your renters send you a nice check in the mail that you can use for your own rent.
This is like getting free rent.
In the beginning, researching and buying real estate takes a lot of work. When I bought my first rental property, I looked though hundreds of houses. The good news is that most of my research was done at the computer.
The benefits you can reap from this method are ongoing. Each property is like your own little money machine creating a check every month.
There are times when the “machines” require maintenance, but if you don’t want to do the work yourself, it’s easy to hire a handyman or have a property management service in place.
Vending machines are a great way to increase your passive income.
It requires very little work and sales keep coming in.
A vending machine is like your personal vendor doing his shift 24-7. They stand on location all day selling goods for you. The only thing you have to do is bring a refill of goods to them and they hand you the money they made.
If your not used to the world of business, this was one of the simplest ways to break into the world of sales.
My personal preference is to buy vending machines already in place. This eliminates the need to buy the machine, then find the location, then transport the machine to the location.
In addition, this method is turnkey so the machine starts making money for you from day 1.
Investing In High Dividend Stocks Or High Intrest Accounts
This is by far the easiest method to gain passive income.
If you have a bank account, you already have passive income.
The problem is that this type of passive income doesn’t pay very much.
In the beginning, I kept most of my saved money in a savings account. Little did I know that I could have had my money in a money market account, which pays double the interest. The only difference was a higher minimum balance. Even at the double interest rate, the passive from this method is very small.
Investing in high dividend stocks is riskier and I currently don’t do this.
I did however have success with the real estate investment trust (REIT) category. This category of stocks invests in real estate or mortgages and earns capitol based on the income from those sources.
I would consider it indirect real estate investing. The good ones in this category have stable prices. All that you need is a simple brokerage account. My two favorite ones at the time I was investing were Health Care REIT and Annaly Capitol Management.
Before I broke into these passive income methods, I had no clue what I was doing. I spent a fair amount of time doing my own research.
Research is great because it gives you that initial jump of knowledge and gives you a feel for the outcome.
The problem with “just research” is it only gets you so far.
It’s too easy to get stuck in the loop of research. The most important step I did for moving forward was to take action and do it.
There are mistakes to be learned along the way but the experience is the means to know what works best for you.