The world we live in seems to become more predictable by the day. Endless political strife, coupled with economic anxiety, makes it almost imperative to have more than one income stream. Unfortunately, there are only 24 hours in a day, and handling two jobs quickly becomes untenable. That is why a solid passive income stream can be a lifesaver these days. Here are five ways you can help yourself and your family achieve financial independence and prosper.
Bitcoin Mining
Since there are plenty of detailed guides on Bitcoin mining, we will skip the technical details and focus on the benefits of it as a passive income stream. Bitcoin mining entails the use of specialized hardware to validate transactions and secure the blockchain network in exchange for newly minted Bitcoin. Considering the current Bitcoin price, the rewards can be extremely profitable.
As with most passive incomes, the initial costs will be a tough hurdle to clear. But once you have your mining operation set up, there is very little in terms of maintenance. Modern rigs run almost fully automatically, with little need for user input.
Dividend Stocks
When we think about successful stock market investments, we usually envision buying and selling shares. But stock trading often demands a massive time investment, both in researching and executing deals. That is why dividend stocks can be a much more convenient source of income. Sure, the profit margin may be smaller, but that is the trade off for having a truly passive income stream.
The most common way to benefit from dividend stocks is to build a diversified portfolio of dividend stocks, reinvest their earnings through a dividend reinvestment plan (DRIP), and make your income from compounding returns over time.
Some of the best choices for dividend stocks are blue-chip stocks like Coca-Cola, Johnson & Johnson, or Procter & Gamble as the most reliable choices.
Real Estate Rental Income
Real estate rental is probably the most expensive way of creating a passive income. Even if you don’t try for a ridiculously expensive market like Dubai, real estate prices have skyrocketed across the board. Still, with some patience, knowledge, and luck, it is possible to obtain your first property and start earning some cash.
By carefully scouting high-rent areas, it is possible to find a property or two that need some work and may be bought on the cheap. If you are handy, you can do most of the repairs by yourself or with help from friends. Then all you need is to screen potential renters until you find reliable ones and voila, you have successfully created a lucrative passive income stream.
Peer-to-Peer Lending
Peer-to-peer (P2P) lending platforms like LendingClub and Prosper have become very popular lately. The best thing about P2P lending is that you don’t have to have a lot of money available.
Even smaller sums can be made to work for you with little to no effort. Of course, the risks exist, as borrowers can go bankrupt or default on their loans, but that is true for almost any other enterprise.
Before you commit yourself and your money, make sure to do thorough research on several platforms. That way you will have the best chance of selecting the one that works best for you and offers acceptable risk.
Conclusion
Earning passive income is not a simple task. On the other hand, it is not as complicated as some would make you believe. It requires a lot of effort and initial investment to get started, but once it does, you can enjoy your newly found financial freedom and the peace of mind that comes with it.
