Sure, it’s great to have a high-paying job and a comfortable salary, but passive income can help you to really build wealth and try to live like the 1%. Several streams, ideally.
Passive income is an investment that makes money while you sleep, or read, or take that evening class you’ve been meaning to get around to.
“Many members of the ultra-wealthy have multiple income streams, and earn money through methods beyond their traditional 9 to 5,” notes Yieldstreet CEO Milind Mehere.
The effort and insight required for creating a new passive income stream can potentially pay serious dividends. If you’re a newer investor wondering how you can start building your wealth, our top 5 passive income ideas can help you:
Rental Income From Home or Car
Services like Airbnb and Touro can make it easy for you to take a spare bedroom or car and turn them into sources of passive income. This is a great option for smart, time-pressed investors because the maintenance required (think house cleanings and car valets) can be cheaply outsourced.
Investments in fintech platforms set a record high in the first half of 2021. And there is good reason: smart investors who want to stay ahead of the curve are looking to fintech to help construct their portfolio. This means huge amounts of capital are flowing into the industry.
Platforms like Prosper or Funding Circle allow individuals to apply for a loan, or allow investors to lend out money for a targeted return. Make sure that you’re comfortable lending and know what you’re getting into, but P2P lending is another passive income stream to consider.
You may be able to employ dividend stocks effectively as part of your overall passive income strategy. Investing in dividend stocks makes you a shareholder, and can bring with it the benefits of regular payouts in the form of cash or more shares. This can be a great cycle to take advantage of because the more you own, the more passive income you can build.
Real Estate Investment Trusts function like a dividend stock, allowing you to potentially earn a fixed amount on your real estate investment with the benefit of certain underlying protections. If you are looking to add exposure to real estate into your passive income portfolio, this can be an easy way to start without much effort on your part.
Alternative Investments Like Art Finance
Yieldstreet offers crowdfunding investment opportunities in deals outside of the stock market. This can allow you to access traditional passive income opportunities at a fraction of the cost of opportunities traditionally offered through hedge funds. For instance, our Art Finance asset class offers investment opportunities in works by some of the most important and widely recognized artists.
If you’re not sure where to start, you can take our quick and easy quiz which will give you some ideas about the best types of investment for you.
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