Best Passive Income Alternatives
This is an article “Best Passive Income Alternatives” by Marc Primo
During these difficult economic times, many are trying to create more income to stave off debt. This means that many of us, from this generation and perhaps even the next, need to take on multiple jobs for passive income to somehow stay afloat financially or even achieve financial freedom.
With or without the pandemic, we all need to earn as much as we can to be able to enjoy today’s standard of living, no matter where we are. Aside from taking on worthy investments that will pay off with large dividends in time, you could also check out various job postings online to add to your savings and get yourself closer to going debt-free or retiring at a younger age.
Now, if you’re wondering what age is most ideal to embark on a search for the passive income holy grail, the correct answer will always be ‘right now’. Here are some good ideas on how you could earn more money through passive income.
When it comes to earning more money via interest, peer-to-peer lending continues to be one of the best alternatives and has been since the mid-2000s. This type of personal business entails granting binding loans to borrowers who are denied by banks for lower rates. It is fully regulated and promises good ROI of about 5% to 7% per annum in the long term.
One thing you should take note of, however, is the importance of drawing a business model that will help you avoid borrowers who are prone to defaulting or running away with your money. Review your policies well and make sure you won’t be on the losing end as these instances are very prevalent in the world of lending.
As proven time and again, investing in physical real estate is one of the best asset classes to build wealth on. Among its advantages is the fact that it doesn’t take rocket science to understand how it works, has lower chances of depreciation, and offers great tax benefits for a tangible asset.
If you already have an extra property you can rent out, then passive income and financial freedom is already within your reach. You stand to earn as much as $10,000 net profit (after tax) if you rent out a house that’s worth more than $50,000 with a 20% net rental yield. That is if you are able to properly manage tenant and maintenance issues.
Carefully pick out who you rent your place to and get lawyers to look into your leasing contracts. Some renters are easy to talk to about keeping your property in tiptop shape, so establish a good connection with them and find out just how long they plan to rent out your property. On the other hand, problematic tenants can give you a run for your deposit money if they cause more damage and cost repairs to your property or furnishings.
Sell your creativity
When your creativity is the product, you might just be able to create a steady cash flow while holding on to your day job. Freelance ventures such as writing eBooks, holding online tutorials, or offering your graphic design services are just some of the many lucrative passive income jobs you can take right now if you have a knack for them.
Using social media and other online platforms to sell your products and connect with a wider audience almost always work out for more passive income. Invest in learning and making yourself a brand to reckon with, then cut a slice of your budget for good digital marketing to land more clients.
Today, there are over 1.1 billion freelancers all over the world offering services and the numbers continue to rise because of client demand. If you want to create passive income, tapping into your innermost passions and sharing them with others may just be the key to giving yourself financial freedom.