5 Passive Income Tips in 5 Minutes Earn Money Online
5 Passive Income Tips in 5 Minutes Earn Money Online Passive income is the best way to boost your regular salary without need to put in extra active hours, and the tried and tested methods are quite well known. Remember that trading work time for money is capped at your work hours, whereas passive income is unlimited and your money works for you 24/7 to make more money. In this video, we look at some tips that only comes from experience to try and maximize the passive income earning potential. This video was made for Australia but can apply easily anywhere in the world.
1. Earning money from banks
customer to shareholder. Now if you earn interest on your spare cash by slowly putting money into a bank account and accruing passive income through interest, you should stop now, because you are getting ripped off. What you SHOULD do is use that money to buy SHARES in that bank instead, and earning a portion of the banks profits as a shareholder. Lets see the difference it can make over a 10 year period with a leading bank. As a customer the banks will offer you around 2% savings rate including the bonus rate, IF you don’t make a withdraw, AND deposit a certain amount regularly AND whatever other rules they have otherwise the bonus rate is turned off and you’ll receive practically zero percent interest for that month. Shares on the other hand gives you dividend returns of 5%, with tax paid on that, and the shares themselves can grow another 10% average on top of all of that, based on past performance of the last 10 years. So do yourself a favor and stop being a banks customer, and start being their shareholder. You can see that you’ll end up with almost 3 times the passive returns that way compared to the best savings account on offer.
2. Investing in Real Estate
This is the obvious choice when you have enough for a deposit. Find a good agent, and your tenant will pay you around 4% return on your investment. BUT, what I wish I knew, is that to maximize growth in the value of your property on top of the rent, you should buy real estate on blocks on land. Not a cheaper, mass produced apartment that’s in oversupply, no, you want one that a family can live in. Because land is limited, but the sky is not. So we can keep building upwards and build more high-rise apartments, but we cant just create more land in the middle of a city. So by the law of supply and demand, your block of land will only get more and more expensive. and that, is where your passive income producing asset goes to increase your net worth instead, which is just as good, if not better than actual cash.
3. Invest with AirBnB in mind
Ok so if you cant afford that block of land, and you can only buy an apartment, look for traits that people like on AirBnB. Things like being close to the heart of the city, or transport hubs, or next to an tourist attraction, or has some unique interior architecture. Its those traits that help to grab AirBnB bookings and help you become a regular Host. Remember that renting out to traditional tenants lets you charge weekly, but AirBnB lets you charge DAILY, and that daily rate can get close to what a hotel charges. Sure you have spend more money to furnish the place, and if you do it well, it will help you become a Super Host, which is a privilege that lets you earn even more money. So next time you go and invest in a potential property, try and imagine if it is located well enough for tourists, and how the interior could be set up for tourists.
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4. Invest in a DSLR camera
If you are willing to put in a lot of work early on, then reap the rewards later, then the best investment you can make is an entry level DSLR camera for around $600, and this will allow you to setup important income sources in the online marketplace. We’ll talk about these each of these with more detail in another video but essentially it allows you to upload your photos to Shutterstock for a 20% commission on sales, create Youtube videos for the ad revenue money, and increase your influence on social media to be able to take advantage of affiliate marketing. I only wish that I started these earlier, but its also never too late to try.
5. Picking stocks with Director transactions
Investing money in shares is an easy way to make passive income, and we all know to diversify your portfolio to reduce the risks. But if you just want to know what is the easiest way to pick the right stocks, then try keeping an eye on the companies director’s transactions. This is published online and reported just a few days after it happens, and who better to know how well a company will do than its own directors? If you haven’t got time for the “Do your own research” disclaimer cliche, then this is probably the best way to pick the right stocks. Directors have vested interest for the companies share to grow and wouldn’t be buying shares expecting it to fall in price. So follow the their lead and enjoy the earnings as well.