If you’re not making enough money, or simply want a chance to make money to make more room in your budget, you don’t have to look for a high-paying job. Instead, says financial expert Tony Robbins, “work smarter, not harder.” One way to do this is to create passive income-generating streams in a variety of ways, including real estate investments, trusts, REITs, and others.
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Passive income is money you earn with minimal sustained effort in your spare time after completing the initial setup process. As Robbins wrote post on his websiteThe main reason for setting up a passive income strategy is to have a second, reliable source of income that takes less work than a traditional job.
Here are 10 passive income strategies to consider – all approved by Tony.
1. REIT
Real Estate Investment Trusts – aka REITs – are a way to invest in real estate without directly owning the property. Robbins recommends it as a low-risk option for beginners because you don’t need a lot of money to get started. With as little as $500, you can invest in REITs by purchasing shares in a publicly traded real estate portfolio.
2. Rental Properties
While owning a property involves some work, Robbins said it can be a great semi-passive source of rental income. Once tenants move in, rental income can come with limited oversight – especially if you can find it in your budget to hire a property management company.
If you want to try earning some rental income on a small scale, you can first start by trying to rent out your spare room on a long-term or short-term basis. This will help subsidize your housing costs so you can save or invest in other areas.
3. Money Market Accounts
a high yield savings account Options like money market accounts are a safe way to generate passive income, and they don’t require much time or effort to set up. They offer higher interest rates than a traditional savings account, and some of the features of a checking account, such as check-writing ability and a debit card.
Robbins called money market accounts “great money-making machines for beginners.” This can be a good first step towards financial freedom before investing in dividend stocks or other areas of the market.
4. Index Fund
Index funds provide an easy way to invest in the stock market, as they track the performance of a market index, offering diversification without the need for active management. This makes them a good option for those seeking a stable passive income source. Robbins also recommends exchange-traded funds.
5. Dividend Stocks
Investing in dividend stocks allows you to regularly earn a portion of a company’s profits. Although these require a little more research upfront, they’re a great way to grow your wealth over time, according to Robbins. Many people keep dividend stocks in their retirement accounts because they are considered a reliable long-term strategy.
6. Invest in a business
If you have extra capital, consider becoming an equity partner in an existing business. Although it is a high risk-based passive income investment, it can come with high returns.
This type of investment can provide regular income, often without the need for day-to-day involvement. Another suggestion from Robbins is to start your own semi-passive income business, like a laundromat or vending machine business.
7. Create and sell digital products
Robbins encouraged using your knowledge or expertise to create products like online courses, guides or instructional videos to make money literally while you sleep. You create your digital product and list it for sale, and then people can buy and download it around the clock without you having to lift a finger.
Note that, unless you already have a following, you may have to put in some effort to market your product or course, especially when you list it for the first time.
8. Take advantage of your creativity
What if you could turn your creativity into cash? If you have artistic skills, Robbins suggests monetizing them through passive income streams such as selling stock photos, music licensing or writing an e-book.
9. Affiliate Marketing
Affiliate marketing involves promoting products online and earning commission for each sale. The problem is that you must have an existing website or blog and traffic. However, if you find yourself successfully comfortable with the platform you’ve created or your social media accounts, it can be a lucrative way to earn passive income.
10. Rent out your property
According to Robbins, whether it’s renting out part – or all – of your home, your car or your RV, sharing your property can provide you with reliable passive income. Platforms like Airbnb make it easy to rent out your space, while other services, like Turo or RVShare, allow you to rent a vehicle.
You already have property, so why not let it make money for you?
The power of building the right mindset
Robbins believes that success passive income venture It’s as much about mindset as it is about strategy. He wrote, “Business is 80% psychology and only 20% skill.”
To really make passive income work for you, Robbins recommends first overcoming your limiting beliefs, eliminating your fears, and improving your negotiation skills.
Cynthia Meesom contributed to a previous version of this article.
This article was provided by MoneyLion.com For informational purposes only and should not be construed as financial, legal or tax advice.
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