Everyone these days is looking for ways to generate more income. This might mean working extra hours, or getting a second job, but the best way to do this is to find ways to generate a passive second income.
For those who have some money to invest there are many options. Here are a few of the most popular and proven for you to consider.
Purchase Stock
Over the last seven or eight years, one of the best ways to make passive income is to invest in the stock market. During that time the stock market has paid high single digit returns on investments annually. If you had focused on specific Industries like the tech industry, your returns would be more than 20% during some years. And if you bought the tech high flyers like aapl stock, your returns would almost have been double that amount.
As technology continues to be at the center of business, social, and our private lives, there is no doubt that this industry will be one of the most popular and successful ones in stocks. The key is to focus on successful companies like Apple Computer that have a proven history in providing great returns to investors.
Buy Real Estate
Real estate is one of the oldest and most proven investment categories. In fact, it beats every other investment in terms of total return over time. The reason is simple, everyone needs a place to live, and millions of businesses need places to house their offices, storefronts, factories, and warehouses. Investing in real estate can be very hands-on, or an investment that is totally passive.
The passive way to get involved in real estate investing is to invest in a real estate fund that purchases or leases out homes. There are many of these REITs available and investors can participate at a level that is comfortable for themselves. Return for these type of Investments often are a consistent 5 to 10% annually.
Invest in Cryptocurrency
If you really feel adventurous and are the type that can stand the ups and downs of a volatile market, then perhaps you should consider investing in cryptocurrency. Over the past four years, cryptocurrency has provided the greatest return on any investment with many cryptocurrencies returning more than one thousand percent during this time.
However over the last year, the market has fallen drastically and then remained flat. Some cryptocurrency investors believe that the market works on 4 year cycles, with the next boom cycle coming in the middle of 2019. They expect the market to run several hundred percent over an 18-month period.
Although no one can predict market movements, if they are correct, cryptocurrency would provide an amazing return for investors. However some industry analysts say that the market could actually fall further continuing cryptocurrencies history of extreme volatility.
A third group of experts say that the way to play the market is to dedicate only a small amount of your investment funds in cryptocurrencies and this way you can participate on any upsides yet not be heavily exposed if things go in the other direction. Proceed cautiously or you could lose some or all of your investment in a short period of time.
Whatever passive investment choice you make, do your homework and learn about the risks.
Comments(4)