Hey guys so today I’m sharing with you seven sources of passive income
Hopefully you guys find this post very helpful. I’m going to give you an inside look into finances, and growth on this blog. Now let’s just begin with my favorite source of passive income and that is dividend growth investing.
now if you guys don’t know what that is it’s basically, you get paid for owning certain types of companies that are called Blue Chip stocks. These are companies that include Walmart Disney Coca Cola, Apple, you name it, really mature companies that are generating so much cash. They’re like “guys, we don’t know what to do with all this money, Here you go”, and they just pay me back for just owning a percentage of the company. Now you don’t have to sell any of these stocks, you can just collect them on a monthly, quarterly basis.
Now again, it’s like my favorite way of investing, but the downside is that you actually need quite a lot of money to make any significant source of income which is great for me because it encourages me to save as much of my money and then invest it rather than spending it on things I don’t need.
So that’s why I love it but for the month of October, I actually got paid, $437, and 94 cents from 21 of the 100 companies that I own. And again, some of them pay me monthly some of them pay quarterly, and if you do want to start this kind of investing. Don’t chase the dividend yield as it’s called, don’t chase the monthly factor.
It’s like saying, Would you rather get paid at $100, once per year, or split, two times or 12 times, whatever it is, it doesn’t matter because the total amount will still be the same no matter how many different ways, it gets split up.
I’m tracking all of these 100 stocks through my Google Spreadsheets otherwise there is no way I’m going to be able to keep track of it, it tells me all of my schedules all of my dividends and everything I need to know and I’m getting the same stock market data provider, as the ones that Robin Hood and all these other major brokerages are using as well. So for example, I know that out of that $437 I know that 20% of it is coming from the real estate sector, and another 15.8% is coming from the consumer staples industry. And if you guys are not familiar with what that is. That’s an industry where it’s always going to have similar or growing demand based upon the population so people are always going to need to buy food, water, shampoo cigarettes toilet paper, which is always embarrassing to buy and check out, it can be the only one, so consumer staples is that sort of stuff.
The number two source of passive income that I really enjoy is royalties. Now this one is pretty rare. Most people don’t have this as a source of passive income but anyone can have it. If you’re not familiar with what royalties are royalties are something that you get paid as an artist from 8% of the gross sales on a product that another company has produced. which sounds really really complicated but it’s really simple. It’s how your favorite music artists get paid when they pitch a song to a record label company, they’ll come along, they’ll produce this song and put it up on iTunes or wherever it is Spotify, and then they’ll pay the artists, a certain percent of the sales of this song. Now for most people, including myself, I’m not a singer or songwriter, so my royalties are coming from sales which are going to be.
My third source of passive income is actually Amazon links and for some people this source of income is absolutely huge. And if you’re somebody who likes to buy things and then review them, you can make your own YouTube channel where you review these products and if people like them, they can click your link below each video that you make, and if they buy that product, you will make a small, tiny percent of each sale but if you want it to make money with Amazon links.
Anyway, A fourth stream of passive income could be from selling products on Shopify. Now these could be actually products that you make yourself with a friend, where you guys do a Kickstarter campaign, where you sold videogames which is super cool. The money is held in a joint account where you are accumulating money and then reinvesting it to create more of your own products.
A fifth source of passive income is through affiliate links. And this is where I can leave a link below each post to, let’s say, a brokerage that I’m using like if you fund your account $100, you will get a free stock valued at up to $1,000.
A sixth stream of passive income can be through Patreon page, If you are a content creator on Youtube this is gold. You will only be eligible to be paid if you’ve met the $100 threshold, and you’ll only get paid once on the 20th of each month which is such a weird time with a month to get paid, in contrast with Patreon, where you will get paid once on the first of each month which makes a lot more sense because that’s actually when all of the bills are due.
So as a content creator, you can use Patreon to make your community, make more content for them, or give exclusive sneak peek and early access to your content.
You can go into a slightly different direction where you can use that money to reinvest it into creating tools, where we as investors can use to get immediate value out of it to providing financial transparency by sharing with you exactly when I’m buying and selling my stocks.
So to me that’s really important and I’m sure I can make a lot more money, but I don’t want to stretch myself out so thin to where I’m over promising and under delivering because I value my time, but the older I get the more I’m reminded just how short life is and whatever time I have left, I would rather give it to the people that I love spending with the most and the money is nice but it’s not everything.
Even though it is tempting to take this money and just buy stocks which buys me my time.
Consequently, another passive income opportunity is ad revenue. Now financial education blogs have some of the highest ad rates in the entire industry, and that’s because you the one who’s reading right now, probably has the education and the job, and the disposable income to spend on things that banks, credit cards brokerages they all want access to.
They want you. That is why you are so valuable to them and that is precisely why I’m so picky. And so selective with what I talk about because the last thing I want to become is a mouthpiece for those corporations or just be one of those people who just gives you time share presentations.
Because sometimes I’ll read a post and then halfway through I’ll realize, Oh, this person doesn’t really care about educating me on how to build my credit score.
They just want me to sign up to this credit card because they’ll get the certain percent of money. They don’t even have this credit card.
Okay Guys that was it for this post. Hope this helped. Make sure you leave a comment below the post an like and or subscribe.