Making $3000 a month with passive income sounds like a dream. Or a scam. Yet we can tell you exactly how to do just that. No nonsense. Zero hype. Just the tools that you need to help improve your own financial health and to secure your financial future.
Interested in how you could be earning $3000 per month from passive income? Keep reading to find out more! We’ll cover how you can earn passive income and just what it could mean to you and your future.
What is Passive Income?
Passive income is money made with little effort through any endeavor that requires little maintenance or daily effort on the part of the individual.
In order to test if you are generating passive income you should be able to hold down a full time job, complete your working hours and still be able to have your passive income streams functioning.
Passive Income Rule
Passive income is simply about investing less time than any other income streams. Your passive income streams should not take up a lot of your time meaning that not all incomes streams are passive.
For instance, if it takes you the same amount of time to make $100 today as it does to make $100 next week or a year from now, that income stream is not passive because it requires the same amount of work (money, time, etc).
Passive Income is not:
- Side Hustles
- Consulting
- Investing for Speculation
All of these income streams require a certain amount of time invested each day in order to generate enough profit.
Building Passive Income
There is no shortcut to building healthy passive income. You must invest and watch as your money grows into a reliable income.
Starting a blog or using a robo-advisor website to make a $100 investment are just two examples of the initial downtime you invest in passive income. Whether you’re a successful businessperson with a solid plan, a gifted artist, or simply have extra money to invest, you can make passive income.
1. Building a Nest Egg
Opening a high interest savings account and investing as little as 100 dollars is a great way to begin generating passive income. You may find it to be much within the first few months but over time you will learn some valuable skills about investing money.
You will earn interest on the money within your high interest account and some online banks even provide cash bonuses when you open a new account. This is a great way to get started before tackling bigger methods.
2. Your Skills
Before you go out and begin investing or starting a new business, take the time to self-reflect. What skills and knowledge do you possess that could help you improve your passive income?
You may find yourself to be more creative and feel you could create a blog to start generating a small amount of income. Or you may be more logical and feel you would prefer to invest your money in a business.
Figure out what you have to offer and determine how to use it to your advantage.
3. Think and Select
Now you can begin putting your ideas into action. You can start researching how to begin generating income from your ideas. Or you can read below where we have put together a list of ways to start earning passive income which have the potential to build to $3000 a month!
Passive Income Ideas
Real Estate Investing
You may think that investing in real estate will take a lot of time, money and knowledge. Well, in the past it has. In modern day, real estate investment apps such as Fundrise allow every man to invest for themselves.
You can invest in real estate straight from your smartphone without ever having to leave your couch. Simple and effective.
Peer to Peer Lending
Peer to Peer Lending can seem overwhelming and complicated but it is actually rather simple. In its simplest form, you are lending capital to an individual or business, they pay you back but with interest.
In technical terms, both you and your borrower create accounts with a company such as the Lending Club. You (investor) purchase the debt of the business or individual.
The borrower then makes monthly payments to you and all of your earnings are stored in your Lending Club investment account.
This is a simple way to create passive income, however, does pose more risk as you are relying on your borrower to be able to make the payments.
Invest in CDs
No you won’t be investing in any music stock. CDs are certificates of deposits and are a great way to earn passive income.
Savings accounts with a catch are comparable to CDs. Before they mature, which is determined by the time limit you specify when you start the account, you are not permitted to touch your money. Months to years can be included in that time frame.
You just have to be clued up on the best CD rates and ensure you buy your CD with an FDIC-insured financial institution. The financial institution will pay greater interest on CDs with longer terms.
Invest in a Business
If you find investing in the stock market to be too much of a risk, invest in a business which has tangible assets. Investing in small businesses will allow you to see and understand as your money grows over time.
You can simply provide the business with the capital they need to grow their business without having to make any large decisions or invest any real time.
Final Thoughts
Generating healthy passive income is a great way to begin preparing for your future financial security. And it can be simple to do.
If you have some capital to begin with you may find it useful to jump straight in and invest in real estate or CDs. But if you don’t, a great way to start building capital is to open a high-investing account
Check out our ways that you can begin investing today!