Passive income is income that is acquired with minimal effort. This income can help an individual pay down debt, pay off their car, or build their emergency fund more quickly than if they relied solely on their employment income. Passive income is usually taxed at the same rate as salaries from employment. Investments like stocks and bonds, rental properties, and high-interest CDs can provide passive income, and so can side hustles. When a person is passionate about photography, baking, or graphic design, for example, they can enjoy their hobby while earning extra money.
Amateur photographers can license their work on stock image websites where marketing firms, businesses, or individuals can purchase the images to use on websites, social media posts, brochures, etc. Bakers can monetize their passion by selling to friends and neighbors and utilizing social media. Focusing local will make delivering baked goods convenient and cost-efficient. Graphic designers can sell templates on Etsy or merchandise their creations via social media platforms.
Owning rental property will take a little effort in the beginning to ensure a consistent stream of passive income. Screening tenants thoroughly is the key finding reliable long-term or short-term renters. Then maintaining the property in between guests will keep the property desirable. Another investment for passive income is a high-interest CD and getting one is as easy as going to your bank or logging on and filling out the forms. Investing in the stock market and creating a diversified portfolio can provide passive income and help you achieve long-term financial goals. Call 800-689-3935 to schedule an appointment with Alloy Investment Management.