Passive income is essentially (but certainly not always) obtained regularly without too much effort or work. However, you still have to leverage your effort and time to generate multiple income streams that will keep on growing in the near future. You either need to do a lot, at first, to establish your passive income stream, or you regularly need to spend a decent amount of money, time, and effort to keep that… rolling…
I’ve found that the best method to start generating multiple income streams is to focus on one area of investment. That’s right: diversifying. When you’re just getting started with real estate investing, your best bet is to choose one niche and stick with it. In my experience, this is by far the best strategy for long-term success.
For example, some of the best investments are those made with rental income. Rental income is best made with an online bank, because the interest rates are extremely low, and there are many investors in this area. When I make my monthly deposits, I can enjoy very high-yield returns. However, I also have the convenience of owning my own home while I am working away from home. While an online bank is not high-yield, it’s also not tied to the ups and downs of the stock market, so if you don’t like to gamble on the stock market, then you will most likely enjoy investing in rental properties.
Another area of great passive income investing is short sales. This method is very similar to investing in rental properties; however, you are trading cash for an outstanding amount of “book value”. The downside, however, is that you have almost no control over the property, and the interest rates are higher than with other types of investing. If you feel that the risk is too high, then this might be a poor choice.
Bond Leverage: Investing in bonds is another common method for generating passive income. Bond Leverage is exactly what it sounds like. You use a high interest rate investment in order to gain a small amount of monthly income. You will need to pay a dividend to the company, but most companies will pay out more in dividends than they do in interest payments. This is a high-yield investment that should have you paying out quite a bit in dividends, but since they are paid out at a slower rate than other investments, you could end up seeing little or no returns on your investment.
A bond ladder is another popular choice among passive income investors. Bond ladders basically invest in a variety of different investments with different monthly dividend payments. You will want to pay out the highest dividend first, and then invest your money so that you gradually dividend less. This can be done through using a variety of bonds and by diversifying your portfolio. Since there is no limit to how many different types of investments you can have, this type of investment has the potential to give you a steady stream of income for years to come.
Social Media: As technology improves and becomes more readily available to consumers, individuals who create content or services related to the Internet can quickly and easily earn passive income through various websites and social media platforms. Many people today find that creating a business through social media platforms such as Facebook, Twitter, YouTube, MySpace, and LinkedIn are very beneficial to their businesses. In fact, some marketers find social media marketing to be their most effective form of advertising. If you own a blog or website, then you can easily begin to earn a good passive income from it by simply posting relevant content to your site. By connecting yourself with other people online who may have similar interests, you can build a network of people who can offer you useful advice and tips on what products and services they might be able to recommend to you. This is one of the easiest ways to earn an income as a blogger or website owner, and once you’ve gotten to a level where you feel as though you’re fairly proficient at running a page, you can then begin to use that knowledge to help you earn even more money.
Information Products: Passive income streams are just one part of the broad spectrum of ways that you can create a steady stream of money through the Internet. Another popular method of creating a passive income stream is through creating information products, which are basically online versions of physical books. You can choose to focus on selling physical books, as well as digital versions, but either way you’ll need to write information products that are in the best possible shape and copy for the purposes of getting them into the hands of readers who want them. There are many different places on the Internet where you can sell information products, and while you do have to make sure that your website or blog is monetized to make money from it, once you’ve built up a good reputation you can simply go about selling information products and begin making money in no time at all.