With the rising costs of living, increasing prices of commodities, and the economic fluctuations all over the world, depending solely on one source of income can prove to be lacking. It seems like the only way to cope with this demand is to juggle multiple jobs or income streams.
Fortunately, there are ways in which you can obtain this financial stability without having to break your back. Having passive income sources are becoming more popular nowadays, especially because it can be very rewarding to patient asset builders.
It may take a while before your passive income streams become fruitful, but once you have put in the work, it will only be a matter of time. Having other sources of income apart from your full-time job is not only wise, but it also serves as a safety net in the event that you lose your job or the capacity to work.
If you have no idea where to begin looking for opportunities, then you can consider these suggestions. Here are five passive and slightly complex income avenues that you can start navigating so that you can build a stable income source:
Property Ventures
Real estate investment is always a good option to create another source of income. By owning a piece of property that you can rent out or lease, you can get steady cash flow in the long haul without having to jump through hoops every time.
The more properties you can acquire and rent out, the more opportunities you can have to gain passive income. However, maintaining a rental property can take some work albeit not daily. It still poses a considerable amount of effort concerning management, but it can offer you a steady income stream.
Going into property ventures using a loan or your retirement account can be a great way to establish your entrepreneurial skills as well as how you handle your money. It will take some familiarizing to get to know the industry and market better, but once you do, you can be well on your way to becoming a real estate expert.
Dividend Stocks
The stock market is a tried and tested avenue for economic enthusiasts to grow their money passively. It provides an opportunity for the public to get company shares by buying stock options through dividends. These can then be reinvested into additional shares or withdrawn as cash.
If you consider this route to creating a passive income stream, then you’ll have to do a substantial amount of research on what companies regularly pay out dividends through a factual track record. You should also look into companies that have the potential to survive the fluctuating demands of the market.
Index Mutual Funds
Although this may be a more complex approach to creating a passive income stream through the stock market, investing in index mutual funds can be a wise decision. The reason for this is that index funds have lower fees and expenses compared to actively managed funds.
Index funds are stock or bond portfolios that are designed to mirror the performance of a certain market index. Through mimicry of index profiles, such as the entirety of the stock market, your chosen index fund will be able to match their performance as well.
So instead of investing in individual companies and managing your dividends regularly by tracking the market-timings, you can opt to invest in an index of a particular market. Fund management involves a great deal of analysis, which is what causes the fees to be expensive. But because index fund managers are only mimicking the existing benchmark index, these fees are kept to a minimum.
Peer-to-Peer Lending
This industry is also known as crowdfunding through various online platforms and websites that have their own set of requirements. Peer-to-peer lending (P2P) is basically loaning money to individuals or business entities that offer promising returns on investment.
You can get as much as 7% to 12% returns as an investor, depending on the amount you provide to fund through P2P. And because you are directly lending to other individuals, you no longer have to deal with low-interest rates in financial institutions while putting your money to good use.
The most important thing that you have to remember when building passive income streams is that it doesn’t happen overnight. Such opportunities that highlight get-rich-quick schemes are a scam because they can sabotage your finances.
The road to becoming more financially stable in terms of juggling multiple income streams may be long and winding, but it is worth it. Passive income is grown over time; you have to be in it for the long haul for it to work and be rewarding.