Many people I know have been complaining about their job situations. They either hate the job itself or complain about the pay. I imagine this encompasses the majority of Americans today. In my opinion these people don’t have the right to complain. Reason being, most are taking little to no action to alleviate their situation. They fail to look for another job. They may spend too much and/or build up debt. And of course, they fail to create passive incomes!
If you’re reading this blog you’re probably in the process of building an alternate income. You invest in a stock and receive both dividends and capital gains. If you write covered calls on your stock, you can further augment your earnings. So you’re probably on the right track! Remember, the majority of millionaires have SEVEN different sources of income. Below is a comprehensive list of some of the most common passive income streams:
2. Capital gains
3. Interest & P2P lending
4. Rental properties
6. Freelance business
7. Affiliate marketing & advertising
I wanted to touch on this subject because many of us have idle capital. Going all-in with the stock market is risky, especially during a short period of time. Therefore, it makes sense to put your idle capital to work while you dollar cost average into the market. The first three on the list are self-explanatory. You buy stocks, bonds, or CDs. You then earn dividends, interest, and capital gains. Another option is real estate. I found this to be quite complex so I invested in REITs as an alternative.
If you have a passion you might want to look into 5, 6, and 7. You can sell photos or music you create for royalties. The more people buy the more you earn! Furthermore, a side business can be a great way to generate additional income. As an example, I have a friend who started a business fixing computers and designing web sites. He had a skill and monetized it. Finally, you can engage in affiliate marketing. This blog has affiliates. I write about a topic I love and earn passive income on advertisements and book sales (see bookstore). If you build an audience through blogging or YouTube, you could make money selling another company’s products.
Again, millionaires typically have seven different streams of income! Relying solely on a salaried “job” is almost a surefire way to end up broke. Wealthy people build up assets. Doing so involves putting your money to work. Therefore, if you have some idle capital, look into the list above. Investing can be great. But why not ALSO start a business or perhaps monetize one of your skills? There are a lot of opportunities out there. So get to work!