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India’s astrology business is estimated at over $7 billion, and investors are putting millions into…
People Divulge Their Best Passive Income Sources
Not all of us make enough money from our jobs to survive. That’s why the side hustle, a means of making money alongside one’s main form of employment or income, has become such a thing.
Everyone seems to have one! But you know the saying, “Work smart, not hard,” don’t you?
That’s ideal… but first you have to figure out what to do and how to do it in such a way that you don’t compromise your main source of income. Oh, and hopefully it’s steady enough that you don’t have to worry yourself too much (or devote too much time to it)!
People told us all their tips and tricks after Redditor Kenneth0233 asked the online community:
“Smart people of Reddit, what are your best ideas for passive income?”
“I’ll give you a serious answer…”
“I’ll give you a serious answer, that did me well. Goes for people learning or that know a second language.”
“Find some public domain books, translate them. You now have rights over the translation. Get it into a library. Profit.”
“Works really well if you’re from an obscure part of the world undergoing political turmoil (Georgia, Armenia, Ex-Yugoslavia) that has been talked about in the media the past 30 years. University students will need primary sources, and there is a lack of supply.” ~ AjdeBrePicko
“Put ads on your car.”
“Put ads on your car. A friend has a large sticker on their passenger side door for a local business and they give him $100 a month to just have it there.” ~ fraxinnus
“Put 15 percent of earnings…”
“Learn to manage your finances and avoid debt.”
“Always be judicial with loyalty to any employer. Blind loyalty can bite you in the ass. If times get hard you are expendable. If you get a different offer of employment don’t reject it out of current loyalties but do weigh your options.”
“Put 15 percent of earnings into investments. An easily obtained seven percent yearly average will double your input in 20 years. 40 years would be near 5 times the principal.
“More aggressive investments could be much higher. 12 percent is a reasonably attainable average and the same 40-year investment would be over 18 times the principal. $400 per month for 40 years at 12 percent will net you $3.5 million on a $200 K investment.”
“Don’t underestimate the power of compound interest. When your money makes money is when true wealth happens.” ~ Birdapotamus
“If you have a bunch of cash…”
“If you have a bunch of cash, the best vehicle for passive income is and will almost always be municipal bonds in the state where you live. Federal tax-free, almost always state income tax-free, and will net you a pretty good chunk of cash if you find the right bonds.” ~ betterthanamaster
“Buy a partnership in a business…”
“Buy a partnership in a business that is already managed. You can be a passive partner in the business, but there are some rules that apply to passive partners that don’t apply to regular partners that can make this a headache, especially if the business losses money.” ~ betterthanamaster
“Not exactly passive…”
“Not exactly passive, but very low effort: house sit. I live in a decent area, near a good-sized city with affluent suburbs.”
“I get paid for basically hanging out, keeping an eye on the place, and taking care of a few pets, which to me is enjoyable, since I love animals and can’t have them where I live. I always choose places that are convenient for me to get to and also to commute to my job.”
“I house sat as a favor to a friend of a friend, and she gave me great references and recommended me to other people in her fairly affluent circle. I end up house sitting quite a lot at certain times of the year, and in really nice places. This might not be NO effort, but it sure as hell doesn’t feel like work.” ~ saltygirltarot
“If you’re artistic in any manner…”
“If you’re artistic in any manner, digital files you put to a marketplace are a good way to make a small side income. Though usually if you are artistically inclined you’ll also spend money on the hobby and so the first few years your income will probably be put straight back into it.” ~ Daelis
“Buy real estate.”
“Buy real estate. You can use tons of low-interest debt to buy it, you get depreciation and other tax benefits, and your tenants will pay off your mortgages and build up your equity in addition to giving you cash flow.”
“There are lots of good strategies, but no need to reinvent the wheel. This one works for dumb and smart people alike.” ~ [deleted]
“Educate yourself…”
“Educate yourself and don’t be afraid of work.”
“If you’re handy, look into real estate. If you’re techy there are ways to invest in dropshipping or Amazon affiliate businesses. If you’ve got the money you can afford to lose look into paper investments and crypto.”
“If you’ve got money you can’t afford to lose but don’t need for a while, look into bond ladders. In the end, educating yourself will pay bigger dividends than asking someone else what to do and nobody can tell you what your risk tolerance or work ethic is.” ~ yanbu
“Pay someone to manage it…”
“Own property and rent it out. Pay someone to manage it for you for a small percentage of your profits and/or in exchange for living there.” ~ [deleted]
“I check for smaller businesses…”
“I check for smaller businesses struggling with their websites/non-existent websites, create one that seems to be fitting for their apparent type of line, and market it to them – if they seem to be fine with it, I give them a contract to pretty much rent the website.”
“A lot of active work goes in, but fairly priced it will pay well in a long run.” ~ lymdyxdx
And there you have it.
If you want to make some money, you’ll have to spend some money.
And some forms of passive income also requite some amount of active work to get going.
So what are you waiting for?
Go make that coin!
Discover How Long It Takes to Double Your Investments by Using the Rule of 72
For young workers, a paycheck and maybe even health insurance benefits are the primary reasons to get a job. But that paycheck will only take you so far if you aren’t smart about utilizing it to build more capital for the future.
Of course, investing is such a broad term that involves its own set of vocabulary that many of us simply aren’t taught in high school or college.
However, even if you’re new to the savings and investing game, it’s important that you know about how to double your money with the Rule of 72.
Start investing early! The rule of 72 works better and better the sooner you start.
— Gage Bishop (@GageBishop9) February 10, 2020
So what exactly is the magic behind the number 72?
By dividing the number 72 by the interest rate of your return, you can calculate the number of years it will take to double your investment.
This applies to all your financial accounts, including savings, money market accounts, index and mutual funds.
Photo Credit: Pixabay
Lifehacker writer Nicole Dieker utilized her personal financial figures to illustrate just how the formula works.
Dieker’s Capital One 360 savings account earns an interest rate of 0.63 percent. By dividing 72 by that paltry figure, it would take Dieker 114 years to double her money.
At least her Vanguard investment accounts are in better shape, as they earn an average rate of return of 10.3 percent. In that case, it would only take Dieker seven years to double her money.
What is an underrated piece of financial knowledge that you often use?
Mine: Rule of 72
If you divide 72 by an annual rate of return, you can get how many years it takes for an investment to double.
72/9% = 8 years to double
What about you?
— Ryan Reeves (@investing_city) May 29, 2019
Financial tips like the Rule of 72 can be critically helpful for novice investors like myself. Delving into the world of stocks, mutual funds, cryptocurrency and everything in between can be daunting for those without a strong financial background.
When it comes to the Rule of 72, percentage points matter. So take the time and do your homework on potential investments before you fully commit.
The post Discover How Long It Takes to Double Your Investments by Using the Rule of 72 appeared first on UberFacts.
This 24-Year-Old Will Have $100,000 Saved by Next Year. Here’s How
Managing our money is definitely one of the biggest struggles most of us face as we enter adulthood. It’s a skill that isn’t nearly as widely discussed/taught in school as it should be. Too many adults these days are living paycheck-to-paycheck, where any major, unexpected expense can potentially derail their entire lives.
Tori Dunlap is only 24 years old, but she recently realized she’s on track to have $100,000 in the bank by next year despite never making more than $80,000 in a year. Pretty impressive for a young person, right?
Dunlap said, “One of my biggest priorities in life has always been to save as much money as possible — and I owe much of that to my parents, who made sure I had a strong financial education at a young age.”
Dunlap acknowledges that she has some advantages that others don’t: she’s white, she comes from a middle-class family, and she graduated from college with no debt. But whether you’re as privileged as she is or not, anyone can benefit from her 5 most important money-saving tips.
1. Get on that side hustle
Dunlap said she worked an extra 15 hours per week doing social media marketing outside of her regular 9-5 job to help reach her $100,000 goal. She then invested all her money from her side job and 20% of her earnings from her full-time job.
: @oliviafrances1432. Invest early
Dunlap opened a Roth IRA after she graduated from college and she maxed it out every year. She also saved six months of living expenses in a high-yield savings account for an emergency fund.
3. Don’t fall into the lifestyle inflation trap
Dunlap lives in an expensive city (Seattle), but she tries to save money in a variety of ways. She lives in a less expensive, less trendy neighborhood than many young people in Seattle. She has prioritized saving money over having a trendy lifestyle. She has a one-hour commute to work instead of a five-minute ride on the light rail, and her neighborhood consists of mostly older people – but, again, she is saving more money than her peers by not paying an outrageous amount for rent.
4. The three-bucket budget rule
Dunlap divides her budget into three buckets. The first is living expenses (rent, bills, groceries). The second is for goals (investments, retirement, saving for a house). The third bucket is for everything else. This is the fun bucket for eating out, clothes, and travel.
The percentage of how much you put into each of the three buckets varies depending on the person.
5. Take things one step at a time and learn from your failures
We all make mistakes when it comes to saving (and spending) money. Dunlap said she took a job once simply because the money was good, even though her gut told her otherwise. The work environment ended up being extremely toxic, and she quit less than three months into the job.
Dunlap admits she felt like a failure after this experience and that it took her a while to rebuild her confidence, but in the long run she learned more about herself and what is important to her. She said, “Money is great, but unhappiness isn’t. Life is just too short.”
Do you have any money-saving tips of your own? Share them in the comments.
The post This 24-Year-Old Will Have $100,000 Saved by Next Year. Here’s How appeared first on UberFacts.