It's the dream: money you can count on to keep rolling in, even while you sleep.
Passive income isn't entirely passive, of course. You'll put in work up-front to get the profits rolling, so don't relax in your recliner just yet. But with so many potential sources of passive income available to you, picking one or several will mean that the day you can finally kick back will draw steadily closer.
Rental Properties
Real estate is a tried-and-true wealth builder for a simple reason: people will always need somewhere to live. Research the market in a growing community until you know a good deal when you see it. You can maximize rent by fixing up a deteriorating property or upgrading a mediocre one. The key is to hire a property manager to do all the day-to-day landlord duties for you—and you'll need a good one. Smart investors put their profits in another property and repeat the process until they have a diverse portfolio.
A YouTube Channel
You can start a blog if you're more comfortable hiding behind a computer, but consumers are more likely to prefer video content. Post a series of “how-to" videos to answer questions about whatever you're an expert in.
You can put up any content you want, but if you don't want to commit to regularly updating it, focus on “evergreen" topics that will draw clicks for eternity. Ads will create your income, especially if your channel grows in popularity. Better yet, sign up for affiliate marketing. If you recommend a product and provide a link to buy it, you'll get a small percentage of those transactions.
Auto Advertising
If you don't mind vinyl-wrapping your car with an ad for a company, you can get cash just driving around and running your errands. Make sure you contact a reputable company that doesn't ask for any money from you; if they're the real deal, they'll evaluate your car, your driving habits, your area, and more. Bonus: the brighter the ad, the easier it'll be to find your vehicle in the parking lot.
Digital Products
What's something that people will pay for but doesn't require shipping on your part? Finding that item is what can supplement your income indefinitely. Write an e-book, charge for your cross-stitching patterns, design prints that people can digitally download, invent an app, record a “masterclass," or whatever else you want. Every time someone new discovers it, the cash register rings. With a little more effort, this is a potential source of passive income for you that can continue to grow. Once you build up a customer base, they might want more products. The good part is that it's up to you whether you wish to give it to them.
As the years go by, you'll likely need to make some large purchases here and there. Plan for these major life purchases by identifying them and saving early.
While it's possible to be frugal with many aspects of your lifestyle, there are certain events and possessions that will require you to spend a substantial amount of money. Thus, a wise course of action is to begin saving well ahead of time while thinking about your goals for the future. This way, you'll be able to maintain a stable financial state even when faced with those large expenses. The following are a few major life purchases that you should plan for.
A Wedding
Marriage is a joyous occasion that many people look forward to. However, a wedding can be quite expensive, often costing thousands of dollars. Your family and your future spouse's family will often contribute to covering this, but you should still prepare to spend a good deal of your own money on the ceremony. If you're in a serious relationship and are considering marriage, you should plan where the funds for the wedding will come from and take the necessary actions to accumulate them. It's also crucial to discuss financial matters with your partner, since your property will merge once you get married.
A New Car
Automobiles remain one of the top modes of transportation. As a result, you may want to purchase a new car at some point in your life. Although you may be fine with an old or used vehicle at present, you may one day be motivated by a desire to acquire something nice for yourself or by the practical needs that arise as you raise children. Whatever the case, obtaining a new car is a major life purchase that you should plan for.
In addition to setting aside funds to eventually put towards a vehicle, you should also aim to build you credit score. This is because your credit score will determine your available car loan options. The higher your credit score, the more you may be able to lower your interest rates on your car.
A House
Owning your own residential property is a worthy objective that you may hope to make a reality one day. Ideally, you should save about 20 percent of the total cost of a house before you buy it. This will allow you to make a larger down payment and thereafter face less interest on your mortgage.
As with acquiring a car, the mortgage options that you'll have can change based on how strong your credit score is. You'll want to increase your score as much as possible in the years leading up to buying a house so that you can get more favorable interest rates. In addition to contemplating down payments and mortgages, you must also remember that you'll need to deal with property taxes, insurance, maintenance and repair fees, and sometimes homeowners' association charges.
It's also necessary to hire a real estate agent to help you with the buying process. There are different types of real estate professionals. You should know how to distinguish between buyer's agents and seller's agents so that you can obtain favorable prices on homes as well.
Long gone are the days when the majority of Americans dreamed about owning a home with a white picket fence.
The traditional American Dream may be on its deathbed, but that doesn't mean a core component of the vision can't survive. It simply takes a diverse perspective. People can still believe they can attain their own vision of success in society with hard work, knowledge, and risk-taking. Investing in today's American Dream may literally mean investing money in our modern economy, starting with our infrastructure.
Real estate investing in particular is a lucrative method that can boost income and secure a better financial future for many. There's always risk involved, but the payoffs can far outweigh the uncertainty. Selecting solid financial investments is about confidence and competence. If you're looking for some advice on this kind of investment, here are a few savvy tips for new real estate investors.
Stick To a Specific Strategy or Niche
Real estate is a challenging sphere of the business world, one that requires several key skills: groundwork knowledge, networking, perseverance, and organization. True knowledge of the real estate market will come with time and experience, but it's a smart idea to select one area of the market and stick to it. This is the best way to attain in-depth familiarity with your specific niche.
First, choose a geographical area close by and then a niche strategy within it, such as house flips, rental rehabs, or residential or commercial properties. By doing so, you can become aware of current inner working conditions in the market and you'll have a better idea of how these trends may change in the future.
Be Vigilant About Viable Financing Options
While it takes money to make money, you don't have to use all your own money. A common misconception about real estate investing is that you must be wealthy to start off. This isn't straight fact, however. A majority of people can test the waters of real estate investing without a lot of initial cash in their pocket.
Aside from traditional financing options from banks and institutions, private lending options can be worthy solutions. Hard money lenders are popular, reasonable choices, and they tend to have fewer qualification requirements upfront. However, be sure to strategically choose a hard money lender to find the best possible fit.
Master the Art of Finding Good Deals
There may be hundreds of thousands of available properties for sale on the current market, but the bulk of them will never amount to the final money-making result you desire. Another great tip for new real estate investors is to use good math to estimate profit. Taking risks is part of the process, but you have the ability to analyze properties and use networking sources to find the greatest deal. You can't win every deal, but you can steadily work towards a thriving financial future.
Retiring, changing jobs, or wanting a change of scenery are all excellent reasons to sell your house and move.
However, executing the plan is often more complicated than you might think, especially if you are in a hurry. If you want to move, follow all crucial steps to take when selling your house to ensure a successful sale. You'll make a profit and watch your home fly off the market as fast as you listed it with these tips.
Research When to Sell Your House
Most people's top priority when selling their houses is to maximize their profit. To do this, you'll want to pay attention to whether you're in a buyer's or seller's market. The market changes with supply and demand, and if you can wait until it's a seller's market, you could get a better offer on your listing. When the thought of selling your home starts to cross your mind, remember your motivation for moving. Consider the pros and cons of giving up your home, and decide how long you are willing to wait for the right market to come around.
Pro Tip: Accurately priced homes sell promptly! Don't be afraid to ask for guidance from real estate agents to calculate your home's worth.
Decide Who Will Sell Your House
Once you've decided to sell, consider whether you want to sell your home by yourself, which is known as “for sale by owner" (FSBO), or hire a real estate agent. Agents offer a wealth of resources and advice about marketing and promotion. With FSBO, you will be responsible for marketing your listing, showing your home to prospective buyers, and all legal aspects of the sale. It is a lot of responsibility, and most people find that it's worth the cost to hire an agency.
Prepare Your House for Sale
Complete Home Improvements to Sell Your House
It is hard enough to sell a home, let alone one that is in disrepair. Any real estate agent will tell you to fix obvious damage that reduces the curb appeal of your home. If you've been skipping important exterior home repairs, take a walk around your property, and look for loose siding or missing shingles. Your home may only need a few touches of paint or a new window.
Stage Your Home
One of the most crucial steps to take when selling your house is to set it up like a furniture store showroom display. You want the space to look generic but lived-in enough that it is inviting. If you have any overcrowded rooms, it's best to begin moving pieces into storage or to your new space, if you have bought it already.
Pro Tip: While staging a home can be one of the most daunting parts of selling it, this process makes the photos for the listing look stellar. Your listing photos can make or break your chances of selling your home in a timely manner.
How to Market Your House
Good marketing is essential to getting your home off the market. Start by identifying your house's selling points. If you are working with an agent, they will create a marketing plan that you'll then be able to approve. Most strategies will include high-quality photos to go with your listing. You will want to saturate the internet with images of your house to let everyone know when it is officially for sale.
For some, the sale will come quickly, while others may take their homes on and off the market before finding the right buyer. If you're following these crucial steps to take when selling your house, your time will come. In the world of real estate, patience is the key.
