The NO BS passive income video! Everything mentioned is realistic for everyday people like you!
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Chapters
00:00 Start Here
01:03 Index Investing
02:17 Dividend Payments
04:09 Evergreen UKposts Videos
06:21 Employer 401 Match
07:50 High Yield Saving Accounts
08:49 Frugal Living
There are two types of ways people generate income in life. The first way is called "Active Income," which is when the money you earn is directly tied to your time and labor. The second way is called "Passive Income," which is when the money you earn is not tied to your time and labor. In this video, I share six realistic sources of passive income that everyone can do.
1. Index Investing
Index investing is the truest form of passive income. If you simply choose to invest in a low cost index fund that tracks the SP500, in the long term, you can generate a 10% return each year. For example, if you have $10,000 invested, you might generate $1000 in passive income, which will compound over time. Investing has its risks so do your research before making a decision, but index investing is a great source of passive income.
2. Dividend Payments
Many companies that are traded in the stock market will give dividend payments to their shareholders, which are a percentage of the earnings. There are two ways people go about receiving dividends: the first is an active strategy by creating a portfolio of stocks that offer high dividends; the second way is a passive strategy of simply investing in index funds. Both strategies have their pros and cons, but I personally choose to get dividend payments through index funds because it's easy and effortless. Regardless over the strategy you choose, dividend payments are another great source of passive income.
3. Evergreen UKposts Videos
UKposts is not as passive as many people say it is because in order for your channel to perform well, you have to constantly be putting out new videos and most of those videos will not produce much income after the first week. However, there is a way to generate passive income on UKposts and that is by creating "Evergreen Videos," which are videos that are always relevant. If you set out to bring value into people's lives and choose video topics that are always relevant, those videos will continue to generate passive income; however, it is an extremely hard thing to do.
4. Employer 401k Match
Many employers offer a 401k match that is basically like free money to their employees (or passive income. The only thing you need to do on your part is to contribute your portion in order to receive the match. At my past job, I received a 10% match, which was like getting a 10% bonus every year. Making the most out of your employer 401k match is another great way to generate passive income.
5. High Yield Saving Accounts
Most banks are lying when they say that their savings account is "High Yield" because the interest you earn is often less that .5%. Certain banks like Ally or PNC offer savings accounts with interest rates that are over 4%, which can add up to about $500 on a $10,000 account. If you take the time to park your money in a bank that has a high yield savings account, it is a great way to generate passive income.
6. Frugal Living
Many people will say that living a frugal life is not passive income because by saving money, you're not generating money; however, you actually are. By keeping your living expenses low, you make you money last longer so you do not need to earn as much and you are able to invest more, which grows your money quicker. The easiest way to increase your pay is simply by spending less. The truth about money is that it is very hard to make $1, but very easy to save $1. If you focus on living a frugal life, you can double how far your money will go without even increasing your pay!
**I am not a financial advisor. The ideas presented in this video are for entertainment purposes only. You are responsible for the financial decisions that you make. Links above are affiliate links where if you click and order, I will receive a commission at no cost to you. **