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Heres a list to get you started down the street of passive income. #passiveincome #investing Click to tweet 4. Bond InvestingWhen you invest in bonds, you are purchasing the debt owed by governments or other entities, meaning you have in impact loaned money to the entity in exchange for interest payments and also the guarantee of repayment in a future timethe maturity date.In general, bonds are more conservative investments than stocks.
Both of these financial services companies promise a 5 percent annual return to investors who purchase their bonds.Your money is then loaned to small business owners in a higher interest rate. You can feel good that you're helping a little business to growand Street Shares in particular works to lend to veteran-run small businesses, which makes your financial aid especially meaningful.Your $10,000 investment in a bond that provides a 5% annual return will provide you $500 in passive income each year.Average Yield: MediumLiquidity: LowRisk Level: Low5.
In peer lending lending, borrowers and lenders bypass the banks, and a middle-man company manages loans out of individuals to other people.Money is lent, money is borrowedmoney is repaid. And borrowers are more likely to repay their loans since they know they're paying back individuals and not some faceless bank.As a lender, you determine how much money you want to invest, build a portfolio of loans (small amounts spread across many loans), and sit back and rake in the returns.There is some risk involved however, so be clever about how much money you invest here.
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Real Estate CrowdfundingReal real estate crowdfunding is where a group of investors can pool their money in a project and share the profits. This resembles real estate syndication, where groups of investors pool their money to provide the down payment on a property.Since its technically illegal to advertise partnerships and jobs, it can be difficult to find partners for syndication.Thats where real estate crowdfunding has come in.
Equity CrowdfundingEquity crowdfunding is a relatively new strategy for generating passive income. This kind of crowdfunding allows upstart businesses to fund their business idea with a tiny, unregistered public offering, using a number of accredited investors.In addition, certain crowdfunded businesses can take on investors other than the traditionally defined accredited more investors, as long as those investors fulfill these principles:They invest not more than $2,000 or 5% of the net worth or income annually if their net worth or net income is less than $100,000They can only invest $10,000 in a period not to exceed $100,000 annually if their net worth or net income is higher than $100,000. The potential returns on this kind of passive income flow have a vast range of possibilities, from complete losses to eye-popping gains.After all, 50% of startups fail in the first year.
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Money from Credit Card RewardsCredit card companies offer all kinds of cash back benefits, so why not use them to make a passive income stream for yourself There are a number of methods for creating income using credit card benefits:Use gift cards to shift your spending.Lets state you own a credit card offering 6% cash back at grocery stores.
You can just buy gift cards for your purchases you will already be making and rake in the money back.Maximize that your bonuses.Signup bonuses are one of the most effective ways to earn rewards quickly.However, to be eligible you usually need to spend a certain amount on your card within the first few months.
If you cant achieve the brink, youve lost your chance to receive the signup bonus.Before signing up, review your planned spending during the signup period. Dont make additional purchases simply to get points, particularly if you cant pay off the balance when the bill comes.Take advantage of directory business rewards cards.Can you apply for a business credit card even in the event that you dont have a business Sure you can!Simply enter your Social Security number for your Tax ID number and use your name as the company name, as any sole proprietor would.
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Leasing Your Own StuffAnything you own can become a source of passive income. Have a vehicle, home, desired parking space, professional-grade digital camera, tuba, weed wacker, or other assets you could rent (i.e. rent out) to someone else Then dont let those things just sit. Have them make some money for you!Platforms such as Turo, Airbnb, CurbFlip, and Fat Lama, can help connect you with people who want to rent everything you have.Generally, these kinds of systems charge a small commission to help get you the renters who will provide you with ongoing passive income.Average Yield: LowLiquidity: LowRisk Level: LowRelated: 37 Most Reputable Money Making Websites (No Investment Needed)10.