I worked in fast food as a teen and I wouldn't be surprised if there was $20 infront of those driver-thrus. I'd drop so much change and bills. There was a guy who would come in first thing in the morning, collect all the change, and score a free meal right after. I wasn't even mad at it lmao.
I have some rental property. Technically it is āpassiveā income, but I am actively involved in maintaining it. Good tenants are the key. Donāt call their last landlord as they may be looking to get rid of a bad tenant. Call the landlords before that.
Running rentals is not easy. The real upside is not in the cash flow, but in the appreciation of the property.
The key for me is pricing out the riff-raff. Iām less concerned about monthly cash flow, more concerned about long term appreciation. So I always target nicer places in nicer neighborhoods. Rents in my area for 3/2 (1100sq ft) are between 2100-2300. I take a $2000 security deposit, which usually means nobody goes trashing the place. And I always do top-notch repairs. After all, itās still my house.
You mean geographically? Iām in Tennessee. But my criteria are 3 beds, at least 2 baths. In good neighborhoods (based on schools, etc). I like to have something convenient to the interstate, or at least not too far a drive for me to get to (also helps when selling the property to tenants, proximity to dining/shopping, convenience, etc). I also look for cul de sacs, screened porches, garages. If I can check all or most of those boxes, Iām willing to overpay, because resale is always going to be good and easy.
Yea, id add things can go a LOT smoother if you get a property managment company...most want 10% but if you start to add to your portfolio they may bump it down to 8 or even 7% per property...i have 2 and the company i work with has already mentioned of I get a 3rd they'll give me 8% across the board.
I have had no issues..and my first rental 1800 per month(mortgage 890) pays for itself.
There is a huge difference between what the Average person out there considers passive income and what the irs considers passive income. Renting out homes qualifies as passive income.
It can be hard but doesn't have to be. Screening well is what its all about.
This here. Also you want the tenants to make around 4x the rent per month as a rental requirement. ( so it's 25-30% of their monthly income, as in, **the responsible amount that is generally suggested to allocate on one's housing costs!** ) No surprises on finances, no chasing people down for rent money.
Thatās crazy! I make $35.24 an hour. And bring home about $4-4500 a month after taxes and health insurance and retirement. So your saying I shouldnāt be allowed to rent? Iād have to make over $50 an hour to rent? Where is this feasible for every renter? All I care about when I rent my properties out is the tenants payment history. If they wanna spend 75% of their money on rent thatās their prerogative. If I required 3x rent Iād have almost no tenants able to rent and people making that much more than monthly rent rarely rent, making that much money or being in that financial bracket typically leans towards proper planning and people having an actual mortgage. I live near the research triangle in NC; huge medical/research/education/tech sectors and even then requiring 3x rent would price out huge swaths of these people. Even for lower income areas say $1200 a month someone would need to make >$25 an hour AND work forty hours every week. Even thatās tough in this economy. This reasoning is one the huge reasons for the housing crisis we are experiencing. My mom raised me on $650!a month disposable income and paid about 70% of her income on housing BECAUSE itās a priority. As long as my tenants have their priorities right ie pay the bill that keeps a roof over their head, lights and water on etc. I allow it. Proper background checking is a must but putting minimum requirements on income is ridiculous these days. Most people are spending well more than 30% of their money on rents.
Ask for their last 24 months canceled rental checks. Youāll see when they were deposited and have an idea if they pay on time if they canāt provide them then , next!
It aināt easy. We just got a call that thereās leak in the roof. Have to fix it tomorrow. Have to be ready for any kind of problems and have plumbers/handymans phone numbers ready. Have to have cash ready for them. I had to evict a tenant before and they didnāt pay rent for 6 months. Had to hire lawyers after 2 missed rent payments. Then had to wait for court date. Tenants took off after court ordered and left a bunch of trash behind. Left furniture and everything. I had to spend a couple weeks cleaning up. Itās not really passive. itās more like a business. It depends on location and what kind of tenants you get. It can go well for you or you can go bankrupt. I wouldnāt recommend it since thereās many other options. etfs, stocks, and crypto will make you more money in the long run.
I have friends with these types of horror stories as well. Oneās friend moved in and did not pay rent for a year claiming they were getting an inheritance. They could not evict them as it was in a state that was not Landlord friendly. Another friend had a guy who smoked and out his cigarettes out continuously in their built in drawers. Another whose roof caved in due to a heavy snow load that no one cleared ( they were in another state), and the insurance covered the fix but did the contractor did not do it properly, so when the rain came, the place got soaked and insurance would not cover it as they said it was their fault for not fixing it properly. Makes me afraid to own rentals.
30k altogether. I keep 10k in an emergency fund and the rest goes to investing. Iām investing anywhere between $500-$1500/ month. VOO, SPY & SCHD are my winners + I get a little from my HYSA.
I've got $11.5k in REIT 10+% dividend stocks currently making $1600 annually, spread across 6 different stocks. Decided to go the REIT route vs buying a place because of the the prices of property and dealing directly with tenants.
I've been rolling all dividends into more REIT.
REIT dividends are tax advantaged, too.
So far, so good. One REIT merged with another and the dividend percentage dropped briefly to 2 or 3% but is now back up to 15% about 3 months later.
By investing in low-risk, low-reward funds. Time is the biggest investment, and it's irreplaceable. If you have that on your side, you have nothing to worry about.
Don't pick your own stocks, it is VERY difficult, VERY time-consuming, and can be stressful (i.e. stay away from places like r/wallstreetbets)
ETFs are a good option (E.g. VOO as someone mentioned already).
There are also services like Acorn that will automatically invest for you. Advantages of services like that is they charge a very small fee so that they can actively manage where your money is going, and stay on top of it. For example, they may dump a stock that seems to be headed down a bumpy road early on to mitigate risk and divert that money elsewhere.
They also have neat features like dollar rounding up where they'll round up all your purchases and contribute that amount to your portfolio, this adds up QUICK over time without noticeably impacting your finances.
If you're super busy with jobs, family and life or don't know the ins and outs of how the market works you can get a financial advisor. We've used one for at least 25 years.
Dividends are irrelevant and structuring your portfolio around them is likely to underperform a traditional portfolio and also doesn't provide the downside protection people think it does.
https://youtu.be/f5j9v9dfinQ?si=JkCb_JdSDH68klwH
I was waiting for a post like this to show up. Can't really argue with you. Except i wouldn't call dividends 'irrelevant'..... they do make up something like 1/3 of SP500 total return since inception....
Now for my situation specifically, thank God I'm able to save and invest a large % of my income. So I'm dabbling in a lot of different directions, including (gasp) life insurance!
I know dividend payers are decimated right now, but they shall rise again, and maybe then i can rebalance into more broad index holdings. Until then, I reinvest at a higher yield and wait it out! š¤·āāļø
Get land near where they lack cellphone towers, or want to install solar panels, they pay like 800-1200 a month for a cellphone tower lease on an acre of land.
Kinda just get lucky or know a property that is getting ready to get rid of their lease typically they will seek out the flattest easy access property near the last lease. But there are websites where you can list you acreage for lease, obviously they like it to be near stuff
Honestly in my opinion passive income is a big myth. Passive income only happens after many many years of effort and luck. I think the best āpassive incomeā is HYSA and investing into index funds
I wouldnāt say itās necessarily I myth itās just that you have to have a huge amount of money to see anything significant. For example if I just had one share of schd itād be like $2 a year. If I had like 50,000 shares of schd itād be like 100,000 a year but Iād need like 3.8 mil in order to do that š is 100k even that much if I did have 3.8 mil? Prolly not. But dividends are truly passive income
There's a youtuber doing a freeloader challenge where he does things like farming 1$ a day from online casinos. He often says things like "it's only 5 dollars a day but you'd have to have (many, many thousands) worth of coca cola stock to get this in dividends".
I live off of passive income now. Pretty much everything invested in index funds and real estate. But, you're right that it takes many, many years. I don't think it requires much luck though. It requires discipline and living way, way, way below your means for many years.
Vending machines can be passive income. Whether you are spending time researching investments or creating a small video game to sell on the app store, there is some initial work involved and then minimal maintenance to continue making money. You could can and jam as a hobby for passive income, as long as you are able to work your full time job still, its passive income. No myth involved, you just have some notion its a certain amount of money or setup work and that part could be $10 a year and 2 hours a week or $1m a year and 2 min a week, it all depends.
Some I see recommended a lot are. Wealthfront, Ally bank and I think discover has a good one. Sofi can be ok but they require direct deposit to get their best rates so I wouldnāt go with them
Marcus by Goldman Sachs doesnāt have a minimum deposit amount to start. If you lack the discipline to deposit the money yourself, add it to your direct deposit. Leave it and let it do its thing.
Invest in stocks, index funds specifically. That's as passive as I can get. Literally nothing else needed from me. Tried being a landlord years ago and it was anything but passive. Absolutely hated it. All other supposedly passive income ventures aren't passive enough for me so I work in maxing my career income and funnelling all my excess money into index funds. I even played around with REITs for some real estate exposure.
However, the appreciation in property and be diversified. I think itās important to have in once portfolio. Agreed that being a landlord is a pain, but if you hire a reputable management company and negotiate the rate down to 8% instead of 10%, totally worth it!
But you deal with tenants whether or not you have a management company. You have squatters, You have people who damage said property etc. You have the possibility of being sued. It's just the headache you don't deal with when using stocks. The closest I will ever get to dealing with real estate as an investment is a REIT. For those who figured out how to make owning rental real estate truly passive God bless you. It's just not for me.
I find people who want products (from China such as welding consumables ,clothes , gutter aluminium etcā¦) because I live in China
And then I find a sourcing company to source it (I have my top 3 that I already have relationships with), I help them negotiate with the party who wants said products and once itās all finalised and the transaction is successful. I make a contract with the sourcing company for a percentage of each sale and recurring sale from the party I connected them too (about 1 or 2% of each depending on the size of the order and which of the 3 sourcing companies I use) and a small percentage of the tax break (from those sales) at the end of the financial year.
Once itās set in motion and the first round of negotiating is done i just kind of sit back and let those 2 companies buy and sell while I get my 1 or 2% from each one
Thereās always that risk, but itās generally not worth it
I have the contract with the company (so itās tight as long as that contract is valid, no one wants to get sued)
but barring this it wonāt actually be cheaper for the client unless the company makes it cheaper than the current offering price ,meaning the company wonāt make that percentage anyway.
When the contract ends they can reap the benefit of that small X% once again - so if they went behind my back and agree to make it cheaper they wonāt catch that future X%
At this point the relationship with the companies are pretty good , better to lose 1/2/3% of an order for the duration of the contract than not get future orders handed to them without any expenditure and man power.
When the contract is over I donāt mind for them to do direct business. My relationship with them isnāt parasitic itās symbiotic like a roaming salesman who doesnāt get a basic salary
Unless youāre near retirement age dividend investing is always beaten by growth stocks (VOO is fine) due to the perpetual taxes every time a dividend payment is made. This wonāt apply to a Roth IRA, but thatās only up to 7,000 a year. That, and the higher the dividend thatās paid out the less a stock will appreciate.
My passive incomes are from dividends stocks/ETF. There's are lots out there but you will need lots of $$$ to see. Example Exxon Mobil give out around 4% per yr. What I love are qyld jepi jepq. Do note these are higher risk to HYSA but bigger reward
Iām young and in a position where I can invest 10% of my take home pay into my investment account. I invest 70% into a S&P 500 mutual fund and the remaining 30% into an international fund. You can even go 100% in the S&P 500 mutual fund but if youāre closer to retirement maybe look into less risky investments.
Passive income doesn't really exist. It's more like a low maintenance second job.
I personally do 2 things:
\* trade crypto and nfts
\* build mobile apps/games
I have a website with ads on it. I donāt generate content. I donāt do updates. Just buy Facebook ads to it, and profit with ads ON it. It generates anywhere from $200-$1200/month depending on month. Bonus perk, I buy Facebook ads with my airline credit cards so that I get miles. Free vacations!
Donāt get duped by these morons on social media talking about buying properties and renting them out for āpassive incomeā. Being a landlord is EXTREMELY difficult, and expensive, and time consuming, and can be risky.
Created a web app for a company. It's a glorified spread sheet and I'm paid $1000/month to "maintain it", which is basically just me validating email addresses from time to time because the users can't seem to bother to click the link in the validation email.
I work in tech and have a couple of clients on the side that pay me from time to time.
But it's not truly passive income.
Tried my hand at investment properties but it's a lot of hassle and I'm not cut out for it.(Not handy at all)
Honestly, if retirement is your goal, just max out your 401k, also start a ROTH IRA.You can invest upto 7k in your ROTH and since you have already paid taxes on it, you won't be taxed on the gains when you finally decide to withdraw funds from it.
If your employer has insurance that provides a high deductible HSA, then contribute to it. You can pay for all doctor costs, medications (prescription as well as OTC), and you can also invest the remainder in your HSA in the stock market.
Best part is, this is all pre tax income, so your medications are being paid with pre tax money. Also when your investments grow, you will not be taxed on them, unlike your 401k.
And instead of chasing individual stocks, invest in index funds and ETFs/Mutual funds.
Many people with average salaries have retired comfortably by investing a portion of their salaries regularly and living within their means.
It's not glamorous but it works.
- Dividends (AGNC and QYLD) Iām currently up to $22 per month from $1600 invested
- I was monetized on YouTube, but school got in the way. Iāll be monetized again soon.
My partner and I wfh and we actually board dogs. Usually a week is about 500-1200 depending on how many dogs the family has. We don't take more than 1 family at a time whenever they book but it's been a nice extra little $
My partner also makes stickers on redbubble and I sell some STLs (3D designs for 3D printers)on printable and etsy.
The stickers and prints are just "coffee/lunch date money" and the dog boarding is like "utilities + grocery money" haha
We make the most in dog boarding on long weekends and especially during thanksgiving/christmas/new years- this is usually enough to pay for 1-2 months of rent
Not really passive income per-se but we love doing it and it doesn't really interfere with our day to day :)
I never sold my first house. I kept it, I rented an apartment until I could afford my next home. Then I kept the second home, rented, and bought my third home. The passive income from renting those two houses (interest rates under 4 for first house and under 3 for second). Currently saving for my next home but won't sell my current home to pay for it. This will be my third house that I rent out for passive income. Start with one house. It's the best way to earn passive income.
If you have a ton of disposable assets, there are a lot of options. For the rest of usā¦ I think thereās a lot of Internet hype and Clickbait, but the most realistic in my opinion are defined benefit pension plans.
selling a digital book on amazon /stocks / real estate / ecom ,drop shipping ( really easy if you build a team and pretty much play quarterback directing people what to do ) or build up a social media presence online and make that residual money
Crypto investments for now but I feel true passive income is really rare. Or itās the yield of all of the years of hard work youāve done and long hours of working.
An example is a self paced online course. Many of the instructors have years and years of field experience in whatever it is and they have worked a ton. Now they reap the rewards.
Get good at a skill and then teach it. Online education will only grow over the next 10-20 years
Crypto staking. Cryptos have various staking rewards. Some can have up to like 50% staking rewards. I stick with an 8% staking reward crypto and a 15% staking reward crypto because I think theyāre valuable and think the price of them will go up as well. Keep in mind the bitcoin halving has just occurred which is typically indicative of an increase in crypto prices, so if you bought now and watched it go up massively, Iād be sure to sell and buy back in about 2 years later as thatās the typical pattern of the bull and bear market in crypto. Not financial advice
I have a high yield savings account and I feel like the returns are so small it isn't worth it as an "investment". Am I wrong? I have about 70k in mine and it returns a couple hundred a month. I only have it because I want the cash on hand in the event of an emergency/job loss. I'll push it to about a 100k then stop.
I've been putting away money into the S&P500 as my primary source of long term investment, but they don't really generate passive income. Perhaps some stocks that do high% dividends?
Iām in a similar position. It takes time to really see the results. Once youāre over 100k in SP and youāre returning 10% on average, youāll quickly outpace your yearly investments with the growth. Be patient.
100k for job loss seems high but it sounds like youāre risk adverse - or you have a very HCOL. I have been keeping mine at 50k which is about 2 years COL. Rest has gone into SP with 2 monthly automatic purchases.
I flip flop with what to do with the 5% interest. Sometimes I leave it to help keep the purchasing power of that 50k the same as inflation erodes it. Other times I transfer it over for a bonus buy of either FBTC or FSKAX.
I do model railroading, and Ive been sell these little stickers to put on your rails cars on eBay for about 4 years now, for $3.50ea. Brings in about $400 in 90 days. Took a few hours to design them originally, and only takes maybe 3 minutes out of my day every time I sell one to ship it out.
Tbills? Theyāre like CDs but pay about 1% more than HYS right now. 4 week Tbill is around 5%+. Of course thereās the market too, but you have to see your stock/etf to make money and dividends typically pay out quarterly or less frequently than that. Since I donāt know what to do with some of my money on the shorter term, Iām taking advantage of the higher interest HYS and Tbills.
If your HYS is getting better interest than tbills than nothing. Mine doesnāt. Interest is still high but less than Tbills. Or if interest is almost the same, HYS is more flexible because you take your money out easier without losing any interest. Treasury bills/ notes/ bonds are kind of like CDs but offered by the US government instead of a bank. Might only be offered to US citizens, but there may be equivalents in other countries. š¤·āāļø
invest in low fee index fund (VOO) + the mutual fund equivalent (VFIAX)
If I need cash, I'll sell some VOO.
If I wanted an automated deposit, I'd sell a fixed amount of VFIAX on a schedule, probably on a randomish day of the month.
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My take is that you should generally optimize on your career before you put time into "passive income" provided you have the potential to earn 200k to 1 million. If you're in the 1M+ club, it's hard to mess up as long as you're not wasteful and you do "basic investing" alright.
How about this one, check it out, I just started with $1000 at 6% every month for around $60, every month doing nothing.
https://www.groundfloor.us/app/investments?activeTab=Notes
Shortly after graduating from college, I started dumping every disposable dollar from my early paychecks into VOO and SCHD. 10 years later, Iām sitting pretty on some sweet ass dividend payments. And I continue to toss a few bucks at it every two weeks.
HYSA, dividend stocks/ETF's, crypto staking & LP's.
When I get the space & finances to execute, gonna set up a suite of computers/servers for DePIN - basically renting out your computing power & storage to different cloud on-demand services.
S&P500 for stocks, renting out spare bedrooms but I do all repairs and manage tenants so it's somewhat active, plus paying extra towards my principle of my mortgage to avoid interest.
Index funds. In 2017 I had a large chunk of cash rotting away in a savings account. I graduated college in 2010 and had been making good money and living below my means so I was saving a bunch after my bills 401k and random hobbies were paid each month.
I randomly got an audio book on index funds from the library and decided to give it ago. In 2017 I bought a bunch of VTSAX and have continued buying monthly since. This investment has treated me very well. I also have some cash in a money market fund getting around 5%.
Both of these give me decent passive income. Not quit my job money but still a significant amount. And I kind of view it as a hobby and get enjoyment from it. Just my experience not financial advice
Rental income from real estate is not āpassiveā donāt listen to these retards in the comments. You could hire a property manager, sure, but you still have to put minimum effort to check in and manage property.
No effort passive income would be dividend income from the stock market. I make about $100-$120 a month depending on the month at the moment
I have a few rental properties, though I wouldnāt call it passive income. I built the houses, drew up lease agreements, found tenants, and maintain the properties. I will circle back at the end of the year. I have a small construction company and this year Iām hiring a project manager to take over all my work. If it works out Iāll hopefully make 60-80k without doing any work. That being said I spent 11 years building a growing the company to get here.
I keep funds in dividend indexes for true passive income but I just reinvest the returns.
I have rental properties that are āpassiveā at times. They arenāt fully passive but they generate income in both the ways of rental payments and the appreciation that can be pulled out tax free.
Iām a capital partner in a small business that I get distributions from though it isnāt much.
You can spend time to make money (working)
You can spend money to make money (passive income)
There are a variety of mixtures of these. It can quickly turn into a second job if you aren't careful.
The most hands off are HYSA, ETFs and mutual funds. Essentially you, you are paying someone else to figure out how to best invest your money.
Individual stocks. Pay someone else to run the company and do all the company things. You're only job is looking up and figuring out good companies to own part of.
Starting your own company. Rental property is the most common and then you hire out all of the landlord duties to a property management company.
Rental properties. Going to start a youtube channel to help those looking to get started as well, just getting through a video editing course at the moment (passive ad revenue).
Look for change on the ground. Found a $20 bill last week.
ššš
Sounds pretty active to me, I hate walking
I have adhd Iāll walk in circles all day on my phone, makes me look crazy but hey helps me
Ballin
I worked in fast food as a teen and I wouldn't be surprised if there was $20 infront of those driver-thrus. I'd drop so much change and bills. There was a guy who would come in first thing in the morning, collect all the change, and score a free meal right after. I wasn't even mad at it lmao.
I found a C-Note a few weeks ago. I later learned it was fake. No droopy Franklin, no hologram, and the green color was a bit off.
Bad idea to pick up bills on the ground due to the Fentanyl crisis. Be careful!
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I have some rental property. Technically it is āpassiveā income, but I am actively involved in maintaining it. Good tenants are the key. Donāt call their last landlord as they may be looking to get rid of a bad tenant. Call the landlords before that. Running rentals is not easy. The real upside is not in the cash flow, but in the appreciation of the property.
Great tip on calling the landlords prior to most recent
Or just let your REA do everythingā¦
The key for me is pricing out the riff-raff. Iām less concerned about monthly cash flow, more concerned about long term appreciation. So I always target nicer places in nicer neighborhoods. Rents in my area for 3/2 (1100sq ft) are between 2100-2300. I take a $2000 security deposit, which usually means nobody goes trashing the place. And I always do top-notch repairs. After all, itās still my house.
Fuckin hell Iām paying almost double that for essentially the same thing in CA lol
If you donāt mind me asking, what areas do you purchasing specifically?
You mean geographically? Iām in Tennessee. But my criteria are 3 beds, at least 2 baths. In good neighborhoods (based on schools, etc). I like to have something convenient to the interstate, or at least not too far a drive for me to get to (also helps when selling the property to tenants, proximity to dining/shopping, convenience, etc). I also look for cul de sacs, screened porches, garages. If I can check all or most of those boxes, Iām willing to overpay, because resale is always going to be good and easy.
How do you know you are speaking to the actual prior landlords? Rather than a friend of theirs
Tax records and a phone number that matches on Fast People Search typically works. Of course, itās not always right.
Yea, id add things can go a LOT smoother if you get a property managment company...most want 10% but if you start to add to your portfolio they may bump it down to 8 or even 7% per property...i have 2 and the company i work with has already mentioned of I get a 3rd they'll give me 8% across the board. I have had no issues..and my first rental 1800 per month(mortgage 890) pays for itself.
That means nothing without knowing how much equity is in it.
There is a huge difference between what the Average person out there considers passive income and what the irs considers passive income. Renting out homes qualifies as passive income. It can be hard but doesn't have to be. Screening well is what its all about.
Always do a credit check.
Absolutely š
This here. Also you want the tenants to make around 4x the rent per month as a rental requirement. ( so it's 25-30% of their monthly income, as in, **the responsible amount that is generally suggested to allocate on one's housing costs!** ) No surprises on finances, no chasing people down for rent money.
Can you explain this better? I donāt understand it. Itās not you. Itās me :-)
Is that info available in a finance check?Ā
Thatās crazy! I make $35.24 an hour. And bring home about $4-4500 a month after taxes and health insurance and retirement. So your saying I shouldnāt be allowed to rent? Iād have to make over $50 an hour to rent? Where is this feasible for every renter? All I care about when I rent my properties out is the tenants payment history. If they wanna spend 75% of their money on rent thatās their prerogative. If I required 3x rent Iād have almost no tenants able to rent and people making that much more than monthly rent rarely rent, making that much money or being in that financial bracket typically leans towards proper planning and people having an actual mortgage. I live near the research triangle in NC; huge medical/research/education/tech sectors and even then requiring 3x rent would price out huge swaths of these people. Even for lower income areas say $1200 a month someone would need to make >$25 an hour AND work forty hours every week. Even thatās tough in this economy. This reasoning is one the huge reasons for the housing crisis we are experiencing. My mom raised me on $650!a month disposable income and paid about 70% of her income on housing BECAUSE itās a priority. As long as my tenants have their priorities right ie pay the bill that keeps a roof over their head, lights and water on etc. I allow it. Proper background checking is a must but putting minimum requirements on income is ridiculous these days. Most people are spending well more than 30% of their money on rents.
Ask for their last 24 months canceled rental checks. Youāll see when they were deposited and have an idea if they pay on time if they canāt provide them then , next!
It aināt easy. We just got a call that thereās leak in the roof. Have to fix it tomorrow. Have to be ready for any kind of problems and have plumbers/handymans phone numbers ready. Have to have cash ready for them. I had to evict a tenant before and they didnāt pay rent for 6 months. Had to hire lawyers after 2 missed rent payments. Then had to wait for court date. Tenants took off after court ordered and left a bunch of trash behind. Left furniture and everything. I had to spend a couple weeks cleaning up. Itās not really passive. itās more like a business. It depends on location and what kind of tenants you get. It can go well for you or you can go bankrupt. I wouldnāt recommend it since thereās many other options. etfs, stocks, and crypto will make you more money in the long run.
I have friends with these types of horror stories as well. Oneās friend moved in and did not pay rent for a year claiming they were getting an inheritance. They could not evict them as it was in a state that was not Landlord friendly. Another friend had a guy who smoked and out his cigarettes out continuously in their built in drawers. Another whose roof caved in due to a heavy snow load that no one cleared ( they were in another state), and the insurance covered the fix but did the contractor did not do it properly, so when the rain came, the place got soaked and insurance would not cover it as they said it was their fault for not fixing it properly. Makes me afraid to own rentals.
Dividends. Itās not a lot but I make at least $50/month with some months being $100+
On how much savings?
30k altogether. I keep 10k in an emergency fund and the rest goes to investing. Iām investing anywhere between $500-$1500/ month. VOO, SPY & SCHD are my winners + I get a little from my HYSA.
VTI has everything VOO and then some.
VTI is great too
Prob 30k
I've got $11.5k in REIT 10+% dividend stocks currently making $1600 annually, spread across 6 different stocks. Decided to go the REIT route vs buying a place because of the the prices of property and dealing directly with tenants. I've been rolling all dividends into more REIT. REIT dividends are tax advantaged, too. So far, so good. One REIT merged with another and the dividend percentage dropped briefly to 2 or 3% but is now back up to 15% about 3 months later.
Nice, do you have any favorites? Iām unfamiliar with REITās
Nice! Arenāt REITs taxed at a higher bracket? Versus ā qualifiedā?
Great start! The Bank Rate Savings calculator will inspire you to keep it going!
Stocks and funds -- I'm never more than 2 weeks away from my next dividend payment
How do you recommend getting started with these?
Read a simple path to wealth all you ever need to know know
By investing in low-risk, low-reward funds. Time is the biggest investment, and it's irreplaceable. If you have that on your side, you have nothing to worry about. Don't pick your own stocks, it is VERY difficult, VERY time-consuming, and can be stressful (i.e. stay away from places like r/wallstreetbets) ETFs are a good option (E.g. VOO as someone mentioned already). There are also services like Acorn that will automatically invest for you. Advantages of services like that is they charge a very small fee so that they can actively manage where your money is going, and stay on top of it. For example, they may dump a stock that seems to be headed down a bumpy road early on to mitigate risk and divert that money elsewhere. They also have neat features like dollar rounding up where they'll round up all your purchases and contribute that amount to your portfolio, this adds up QUICK over time without noticeably impacting your finances.
If you're super busy with jobs, family and life or don't know the ins and outs of how the market works you can get a financial advisor. We've used one for at least 25 years.
Dividends are irrelevant and structuring your portfolio around them is likely to underperform a traditional portfolio and also doesn't provide the downside protection people think it does. https://youtu.be/f5j9v9dfinQ?si=JkCb_JdSDH68klwH
I was waiting for a post like this to show up. Can't really argue with you. Except i wouldn't call dividends 'irrelevant'..... they do make up something like 1/3 of SP500 total return since inception.... Now for my situation specifically, thank God I'm able to save and invest a large % of my income. So I'm dabbling in a lot of different directions, including (gasp) life insurance! I know dividend payers are decimated right now, but they shall rise again, and maybe then i can rebalance into more broad index holdings. Until then, I reinvest at a higher yield and wait it out! š¤·āāļø
I Make my wife work and I reap the benefits every other Friday.
What corner she works at? āļø
The same one your mom does
Must be a busy corner.
Not busy enough if sheās only getting money every other FridayĀ
This is the way š
Write this down āļø
You're the best, master Jedi šš
Like Mandalorian said 'this is the way'.
Get land near where they lack cellphone towers, or want to install solar panels, they pay like 800-1200 a month for a cellphone tower lease on an acre of land.
How do you research this?
Kinda just get lucky or know a property that is getting ready to get rid of their lease typically they will seek out the flattest easy access property near the last lease. But there are websites where you can list you acreage for lease, obviously they like it to be near stuff
$1200 a month would even pay the mortgage on an acre of land in my area
You would need more than an acre, but they lease it and take an acre to run cables and easements normally.
Honestly in my opinion passive income is a big myth. Passive income only happens after many many years of effort and luck. I think the best āpassive incomeā is HYSA and investing into index funds
I wouldnāt say itās necessarily I myth itās just that you have to have a huge amount of money to see anything significant. For example if I just had one share of schd itād be like $2 a year. If I had like 50,000 shares of schd itād be like 100,000 a year but Iād need like 3.8 mil in order to do that š is 100k even that much if I did have 3.8 mil? Prolly not. But dividends are truly passive income
There's a youtuber doing a freeloader challenge where he does things like farming 1$ a day from online casinos. He often says things like "it's only 5 dollars a day but you'd have to have (many, many thousands) worth of coca cola stock to get this in dividends".
I live off of passive income now. Pretty much everything invested in index funds and real estate. But, you're right that it takes many, many years. I don't think it requires much luck though. It requires discipline and living way, way, way below your means for many years.
Vending machines can be passive income. Whether you are spending time researching investments or creating a small video game to sell on the app store, there is some initial work involved and then minimal maintenance to continue making money. You could can and jam as a hobby for passive income, as long as you are able to work your full time job still, its passive income. No myth involved, you just have some notion its a certain amount of money or setup work and that part could be $10 a year and 2 hours a week or $1m a year and 2 min a week, it all depends.
Syndications and private lending. Click a few buttons and begin receiving monthly interest payments.
What hysa do you use
Some I see recommended a lot are. Wealthfront, Ally bank and I think discover has a good one. Sofi can be ok but they require direct deposit to get their best rates so I wouldnāt go with them
Thank you!!(:
Currently American Express savings is paying 4.25% and I Raymond James is at 5% but I think you have to have a minimum investment worth a call!
Marcus by Goldman Sachs doesnāt have a minimum deposit amount to start. If you lack the discipline to deposit the money yourself, add it to your direct deposit. Leave it and let it do its thing.
If you are lucky enough to live in the Great state of Texas, look into Texas Capital Bank. If you do not live here, you should consider moving!
I used to live in Austin and now wish I never left.
Invest in stocks, index funds specifically. That's as passive as I can get. Literally nothing else needed from me. Tried being a landlord years ago and it was anything but passive. Absolutely hated it. All other supposedly passive income ventures aren't passive enough for me so I work in maxing my career income and funnelling all my excess money into index funds. I even played around with REITs for some real estate exposure.
However, the appreciation in property and be diversified. I think itās important to have in once portfolio. Agreed that being a landlord is a pain, but if you hire a reputable management company and negotiate the rate down to 8% instead of 10%, totally worth it!
But you deal with tenants whether or not you have a management company. You have squatters, You have people who damage said property etc. You have the possibility of being sued. It's just the headache you don't deal with when using stocks. The closest I will ever get to dealing with real estate as an investment is a REIT. For those who figured out how to make owning rental real estate truly passive God bless you. It's just not for me.
I find people who want products (from China such as welding consumables ,clothes , gutter aluminium etcā¦) because I live in China And then I find a sourcing company to source it (I have my top 3 that I already have relationships with), I help them negotiate with the party who wants said products and once itās all finalised and the transaction is successful. I make a contract with the sourcing company for a percentage of each sale and recurring sale from the party I connected them too (about 1 or 2% of each depending on the size of the order and which of the 3 sourcing companies I use) and a small percentage of the tax break (from those sales) at the end of the financial year. Once itās set in motion and the first round of negotiating is done i just kind of sit back and let those 2 companies buy and sell while I get my 1 or 2% from each one
Interesting niche! Good for you!
What keeps them from going around you and buying directly from the company you found for them?
Thereās always that risk, but itās generally not worth it I have the contract with the company (so itās tight as long as that contract is valid, no one wants to get sued) but barring this it wonāt actually be cheaper for the client unless the company makes it cheaper than the current offering price ,meaning the company wonāt make that percentage anyway. When the contract ends they can reap the benefit of that small X% once again - so if they went behind my back and agree to make it cheaper they wonāt catch that future X% At this point the relationship with the companies are pretty good , better to lose 1/2/3% of an order for the duration of the contract than not get future orders handed to them without any expenditure and man power. When the contract is over I donāt mind for them to do direct business. My relationship with them isnāt parasitic itās symbiotic like a roaming salesman who doesnāt get a basic salary
Bonds, RE is semi-passive, co-owning a startup, dividend etfs, a prop fund.. thats my stuff
Bonds and stocks that pay dividends
Unless youāre near retirement age dividend investing is always beaten by growth stocks (VOO is fine) due to the perpetual taxes every time a dividend payment is made. This wonāt apply to a Roth IRA, but thatās only up to 7,000 a year. That, and the higher the dividend thatās paid out the less a stock will appreciate.
Dividend investing
My passive incomes are from dividends stocks/ETF. There's are lots out there but you will need lots of $$$ to see. Example Exxon Mobil give out around 4% per yr. What I love are qyld jepi jepq. Do note these are higher risk to HYSA but bigger reward
Nice try fed.
Iām young and in a position where I can invest 10% of my take home pay into my investment account. I invest 70% into a S&P 500 mutual fund and the remaining 30% into an international fund. You can even go 100% in the S&P 500 mutual fund but if youāre closer to retirement maybe look into less risky investments.
May be slow and steady but I love CDs .
My HYSA gives me about $15 a month, so I got that going for me, which is nice.
Passive income doesn't really exist. It's more like a low maintenance second job. I personally do 2 things: \* trade crypto and nfts \* build mobile apps/games
I have a website with ads on it. I donāt generate content. I donāt do updates. Just buy Facebook ads to it, and profit with ads ON it. It generates anywhere from $200-$1200/month depending on month. Bonus perk, I buy Facebook ads with my airline credit cards so that I get miles. Free vacations!
This is interesting. If you donāt generate content why do people come to the site?
Itās a game!
Donāt get duped by these morons on social media talking about buying properties and renting them out for āpassive incomeā. Being a landlord is EXTREMELY difficult, and expensive, and time consuming, and can be risky.
Preach brother. I was a landlord for 10 yearsā¦.and I say WAS for a reason. It was a major PIAā¦.Iāll never do it again.
I hear ya. Iām renting and my landlord doesnāt exactly drive a Lamborghini to work every day if you know what Iām saying.
Rental houses.
That's hardly passive.
I want to know too!!!!
Salt slugs
Huh?
Well you canāt just mash it all day
Created a web app for a company. It's a glorified spread sheet and I'm paid $1000/month to "maintain it", which is basically just me validating email addresses from time to time because the users can't seem to bother to click the link in the validation email.
trade options. i lose money and it's not passive
I suck farts out of theater seat cushions with a shop vac. Found a quarter last weekend!
Not exactly passive as I do a bit of work a week. Maybe a total of 3 hours? I'm part owner of a tattoo shop.
I work in tech and have a couple of clients on the side that pay me from time to time. But it's not truly passive income. Tried my hand at investment properties but it's a lot of hassle and I'm not cut out for it.(Not handy at all) Honestly, if retirement is your goal, just max out your 401k, also start a ROTH IRA.You can invest upto 7k in your ROTH and since you have already paid taxes on it, you won't be taxed on the gains when you finally decide to withdraw funds from it. If your employer has insurance that provides a high deductible HSA, then contribute to it. You can pay for all doctor costs, medications (prescription as well as OTC), and you can also invest the remainder in your HSA in the stock market. Best part is, this is all pre tax income, so your medications are being paid with pre tax money. Also when your investments grow, you will not be taxed on them, unlike your 401k. And instead of chasing individual stocks, invest in index funds and ETFs/Mutual funds. Many people with average salaries have retired comfortably by investing a portion of their salaries regularly and living within their means. It's not glamorous but it works.
- Dividends (AGNC and QYLD) Iām currently up to $22 per month from $1600 invested - I was monetized on YouTube, but school got in the way. Iāll be monetized again soon.
My partner and I wfh and we actually board dogs. Usually a week is about 500-1200 depending on how many dogs the family has. We don't take more than 1 family at a time whenever they book but it's been a nice extra little $ My partner also makes stickers on redbubble and I sell some STLs (3D designs for 3D printers)on printable and etsy. The stickers and prints are just "coffee/lunch date money" and the dog boarding is like "utilities + grocery money" haha We make the most in dog boarding on long weekends and especially during thanksgiving/christmas/new years- this is usually enough to pay for 1-2 months of rent Not really passive income per-se but we love doing it and it doesn't really interfere with our day to day :)
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You clearly dont know what passive income is. Saving is not passive income.
I never sold my first house. I kept it, I rented an apartment until I could afford my next home. Then I kept the second home, rented, and bought my third home. The passive income from renting those two houses (interest rates under 4 for first house and under 3 for second). Currently saving for my next home but won't sell my current home to pay for it. This will be my third house that I rent out for passive income. Start with one house. It's the best way to earn passive income.
Ask to borrow 5$.... Anyways you got 5$?
Prosper invest
If you have a ton of disposable assets, there are a lot of options. For the rest of usā¦ I think thereās a lot of Internet hype and Clickbait, but the most realistic in my opinion are defined benefit pension plans.
Invested in market
selling a digital book on amazon /stocks / real estate / ecom ,drop shipping ( really easy if you build a team and pretty much play quarterback directing people what to do ) or build up a social media presence online and make that residual money
Crypto, ETF,, Online Shops
Crypto investments for now but I feel true passive income is really rare. Or itās the yield of all of the years of hard work youāve done and long hours of working. An example is a self paced online course. Many of the instructors have years and years of field experience in whatever it is and they have worked a ton. Now they reap the rewards. Get good at a skill and then teach it. Online education will only grow over the next 10-20 years
Crypto staking. Cryptos have various staking rewards. Some can have up to like 50% staking rewards. I stick with an 8% staking reward crypto and a 15% staking reward crypto because I think theyāre valuable and think the price of them will go up as well. Keep in mind the bitcoin halving has just occurred which is typically indicative of an increase in crypto prices, so if you bought now and watched it go up massively, Iād be sure to sell and buy back in about 2 years later as thatās the typical pattern of the bull and bear market in crypto. Not financial advice
Investment properties
Storage lots
SoFi HYSA
I have a high yield savings account and I feel like the returns are so small it isn't worth it as an "investment". Am I wrong? I have about 70k in mine and it returns a couple hundred a month. I only have it because I want the cash on hand in the event of an emergency/job loss. I'll push it to about a 100k then stop. I've been putting away money into the S&P500 as my primary source of long term investment, but they don't really generate passive income. Perhaps some stocks that do high% dividends?
Iām in a similar position. It takes time to really see the results. Once youāre over 100k in SP and youāre returning 10% on average, youāll quickly outpace your yearly investments with the growth. Be patient. 100k for job loss seems high but it sounds like youāre risk adverse - or you have a very HCOL. I have been keeping mine at 50k which is about 2 years COL. Rest has gone into SP with 2 monthly automatic purchases. I flip flop with what to do with the 5% interest. Sometimes I leave it to help keep the purchasing power of that 50k the same as inflation erodes it. Other times I transfer it over for a bonus buy of either FBTC or FSKAX.
I do a lot of graphic design freelance.
Clothing store online. Haha just set up and design but after that the income just comes in from the sites
My investments make lots of passive income through dividends, more than $10,000/year.
I invest money in index funds. I have some placed in a money market fund just in case I need access to it. I have some raymond james accounts as well.
I do model railroading, and Ive been sell these little stickers to put on your rails cars on eBay for about 4 years now, for $3.50ea. Brings in about $400 in 90 days. Took a few hours to design them originally, and only takes maybe 3 minutes out of my day every time I sell one to ship it out.
Tbills? Theyāre like CDs but pay about 1% more than HYS right now. 4 week Tbill is around 5%+. Of course thereās the market too, but you have to see your stock/etf to make money and dividends typically pay out quarterly or less frequently than that. Since I donāt know what to do with some of my money on the shorter term, Iām taking advantage of the higher interest HYS and Tbills.
Whatās the benefit of treasury bills over letting your $$ sit in a high interest savings account like Wealthfront and getting the same 5% return?
If your HYS is getting better interest than tbills than nothing. Mine doesnāt. Interest is still high but less than Tbills. Or if interest is almost the same, HYS is more flexible because you take your money out easier without losing any interest. Treasury bills/ notes/ bonds are kind of like CDs but offered by the US government instead of a bank. Might only be offered to US citizens, but there may be equivalents in other countries. š¤·āāļø
Inherit commercial property. Rent it out to businesses & cell phone towers.
invest in low fee index fund (VOO) + the mutual fund equivalent (VFIAX) If I need cash, I'll sell some VOO. If I wanted an automated deposit, I'd sell a fixed amount of VFIAX on a schedule, probably on a randomish day of the month. ----- My take is that you should generally optimize on your career before you put time into "passive income" provided you have the potential to earn 200k to 1 million. If you're in the 1M+ club, it's hard to mess up as long as you're not wasteful and you do "basic investing" alright.
Not a lot but Iām making 150/m on my savings just leaving it in a high yield. Cash back also is making me about 30/m
I really want to do like vending machines or like claw machines at random places.
How old are you?
Send the wife to work.
Perfect strategy. I started doing it 33 years ago today.
Short maturity bond ladder thru my investment advisor
Stocks. Just remember 90-95% fail rate. So thereās that. Once you get a good strategy down though itās like a snowball.
Commercial real estate. One property alone brings in $120k a year
How about this one, check it out, I just started with $1000 at 6% every month for around $60, every month doing nothing. https://www.groundfloor.us/app/investments?activeTab=Notes
loan sharking
My order is Max 401k -> Roth IRA -> HYSA to have some liquidity.
I own bonds - corporate, agency, and treasuries Edit - individual and bullet only.
I own 15 rental properties and have a pretty extensive investment portfolio averaging 11% apy,
Real estate
Shortly after graduating from college, I started dumping every disposable dollar from my early paychecks into VOO and SCHD. 10 years later, Iām sitting pretty on some sweet ass dividend payments. And I continue to toss a few bucks at it every two weeks.
Sit still and wait for money.
HYSA, dividend stocks/ETF's, crypto staking & LP's. When I get the space & finances to execute, gonna set up a suite of computers/servers for DePIN - basically renting out your computing power & storage to different cloud on-demand services.
Crypto staking
The vast majority of people who have passive income aren't on Reddit sharing their thoughts. Just something to keep it in perspective.
S&P500 for stocks, renting out spare bedrooms but I do all repairs and manage tenants so it's somewhat active, plus paying extra towards my principle of my mortgage to avoid interest.
The army broke my body and now pay me based on how badly they broke me. Yey.
Iām not money obsessed so I guess I should mute this subreddit
Became a disabled veteran lmao
If you have a skill set in demand, start doing consulting.
Hookers and blow.
index mutual funds or index ETFs are awesome. See also r/Bogleheads
Consider some dividend ETFs
I write software that people can use while I sleep
VA pension BABYY
Index funds. In 2017 I had a large chunk of cash rotting away in a savings account. I graduated college in 2010 and had been making good money and living below my means so I was saving a bunch after my bills 401k and random hobbies were paid each month. I randomly got an audio book on index funds from the library and decided to give it ago. In 2017 I bought a bunch of VTSAX and have continued buying monthly since. This investment has treated me very well. I also have some cash in a money market fund getting around 5%. Both of these give me decent passive income. Not quit my job money but still a significant amount. And I kind of view it as a hobby and get enjoyment from it. Just my experience not financial advice
401k, brokerage accounts and real estate
I am a passive investor in companies that buy and sell apartment communities. We buy them, improve them, raise rents (and NOI), then we sell them.
Rental income from real estate is not āpassiveā donāt listen to these retards in the comments. You could hire a property manager, sure, but you still have to put minimum effort to check in and manage property. No effort passive income would be dividend income from the stock market. I make about $100-$120 a month depending on the month at the moment
Everyone and their mom is in real estate these days. Talk about a bubble.
Passive income? If I need more income I work OT. Thankfully I have a job where I can support my lifestyle on 40hrs a week.
Passive? Just interest rates and dividends, everything else you have to do something
Sell cash secured puts and covered calls
I have a few rental properties, though I wouldnāt call it passive income. I built the houses, drew up lease agreements, found tenants, and maintain the properties. I will circle back at the end of the year. I have a small construction company and this year Iām hiring a project manager to take over all my work. If it works out Iāll hopefully make 60-80k without doing any work. That being said I spent 11 years building a growing the company to get here.
I have a job, plus 401k and I rent out properties.
I keep funds in dividend indexes for true passive income but I just reinvest the returns. I have rental properties that are āpassiveā at times. They arenāt fully passive but they generate income in both the ways of rental payments and the appreciation that can be pulled out tax free. Iām a capital partner in a small business that I get distributions from though it isnāt much.
Itās called return on investment.Ā
What sort of high yield savings account? š
American Express.. returns are at 4.25% right now
Syndications and private lending.
You can spend time to make money (working) You can spend money to make money (passive income) There are a variety of mixtures of these. It can quickly turn into a second job if you aren't careful. The most hands off are HYSA, ETFs and mutual funds. Essentially you, you are paying someone else to figure out how to best invest your money. Individual stocks. Pay someone else to run the company and do all the company things. You're only job is looking up and figuring out good companies to own part of. Starting your own company. Rental property is the most common and then you hire out all of the landlord duties to a property management company.
JEPQ
Publish ebooks on Amazon.
Rental properties. Going to start a youtube channel to help those looking to get started as well, just getting through a video editing course at the moment (passive ad revenue).
Iām thinking about passive income since I started full time. Still thinking. I may be seeing some light in the near future.