5 Ways To Earn Passive Income With $1,000 | How To Make Passive Income

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Passive income the two words that those
looking to build a fortune love to hear let's face it most methods of making
money do require some level of effort whether it's by you or someone you hire
however there is a unique sense of satisfaction than making money while you
sleep offers that earning active income simply doesn't and when you have some
cash to use say a thousand dollars there are a plethora of different ways you can
make money while you're on vacation going for a run or even sleeping
therefore boss in this video I will share with you five ways during passive
income with a thousand dollars and if you're new to the channel then hit the
subscribe button below for more life-changing content now for those who
don't know what passive income is let me give you a simple definition passive
income is the type of income a person earns while he or she sleeps the income
stream does not require you to work all the time to earn rather it requires you
to do the major work once and the work done will keep bringing in funds for you
a good example of passive income is rental income you buy the rental
property once and it keeps bringing you a steady flow of cash in the form of
rent all you are required to do after buying a rental property is to maintain
it regularly so it will remain habitable for tenants another example of a stream
of passive income is to publish an ebook the major work required is to write and
promote the e-book after that you can sit back and earn money from the sales
of the book the work has been done all that's left is to route the benefits
over time without doing any more work that is there are so many ways to earn
passive income some require large investments while others do not and
these are the following five passive income strategies I recommend if you
have a thousand dollars to invest number one REITs
when you put your money into income generating real estate you can secure a
means of earning passive income both in the short and long term don't be scared
I know the thought of real estate investing can be scary being that it may
cost hundreds of thousands of dollars to buy a residential commercial property
however you can team up with other and not-so-rich investors such as yourself
and invest in commercial property as a group rather than as an individual
through the use of REITs REITs are also called real estate stock
and they are companies that owned and managed several portfolios of
real estate properties and mortgages basically any individual can buy into a
publicly traded rate even you with REITs you can receive earnings from real
estate ownership without actually being a landlord companies like fundraisers
allow you to invest as little as five hundred dollars therefore without a
thousand dollars you have you can start making passive income with real estate
today number two dividend stocks dividend
stocks are stocks bought from large companies that pay regular dividends to
their shareholders they are a share of the company's profits shared among
investors usually on a quarterly basis guess what you don't need millions of
dollars to invest in a dividend stock as little as $1,000 investment will do it's
a great possible come option for those who don't have a large sum of money to
invest and can really accumulate your wealth over time the major reason why
dividend stocks are a great option is compounding when you keep reinvesting
the money you receive in dividends this shares you own keep growing as your
shares grow the amount of money you earn in dividends will also keep increasing
you can call it the snowball effect where the ball keeps getting larger as
it keeps rolling down the hill according to reports by Santa Barbara asset
management over 40% of the average yearly total return of the S&P 500 came
from dividend reinvestment in America and many other countries around the
world dividends come in the form of cash payments issued by check or wire
transfer the number of shares you on with the company will determine the
amount of money you were entitled to in dividends you may wonder why companies
pay dividends while paying dividends to shareholders is a sign that the company
is doing well financially this is also a tactic which companies used to attract
more investors and eventually shoot up the share price when operating expenses
and business reinvestments have been taken care of
the money left over is what is paid as dividends to shareholders well
established companies do not require so much capital reinvestment which makes
them the most likely companies to pay dividends these are the types of
companies you should invest your $1000 into as a young person you may not need
the dividends now since you are probably earning a steady income already but
constant dividend reinvestment will have you sitting on a larger portfolio in the
future number three peer-to-peer lending the process
appeared a peer lending involves an individual taking a loan from another
individual to be repaid with interest this process cuts out the financial
institution as the middleman over the years peer-to-peer lending has grown in
popularity as an alternative means of lending and it is another way you can
invest your thousand dollars entered some passive income here's how peer to
peer lending works there are peer to peer lending websites which connect the
borrower directly to the lender for each peer to peer lending website you will
find terms of transactions and rates and the terms differ between the different
websites the credit worthiness of the borrower could be used to determine the
interest rates he or she will have to pay the better the applicants
creditworthiness the lower the interest rates and vice versa so basically an
investor ie the lender sets up an account with a peer-to-peer website and
deposits a certain amount of money which of course is meant for disbursement of
approved loans from the applicants and he or she will set up a financial
profile which will be assigned a risk category the person applying for the
loan has the Liberty to review own offers and choose the one that favors
them the most the applicants can split the requests among lenders and accept
different loan offers the peer-to-peer web sites are responsible for handling
the payments and repayments and the process is usually automated there are
specialized peer-to-peer sites that cater to unique types of borrowers some
cater to small business owners while there are some that connect doctors who
offer financial programs to patients as a prospective lender you should consider
default rates the same way the traditional banks do it is also
advisable to check the fees charged per transaction if the fees are reasonable
then this may be another solid way for you to start making some passive income
number 4 bonds bonds are another means of earning passive income with an
investment as low as $1,000 it is another form of borrowing where the
investor also learnt some interest on their investment for beginners who don't
know a bonds work here's a basic explanation when you the investor buy a
bond you're basically lending the purchase
price to the issuer for a stipulated period of time the issuer then makes
regular interest payments to you the investor hadn't agreed upon rate
these interests will be continuously paid until the bond is due upon which
you will be repaid your principle for instance you could buy a ten-year bond
worth a thousand dollars at a three percent interest rate the issuer will
pay you interest on your thousand dollars every six months and at the end
of the ten year period return your initial investment of a thousand dollars
simply put you can invest a certain amount to receive regular interests on
it and a refunded your initial investment after the bond has matured
now you can make money off bonds in two ways first you can hold on to the bonds
until they reach maturity at this point you'll have collected several interest
payments which are typically paid twice a year secondly you can make money off
bonds by selling them for an amount that's higher than the amount you bought
them for for instance if you buy bonds worth a thousand dollars at face value
and you sell them for thirteen hundred dollars when their market value
increases you will make an extra three hundred dollars on your investment some
investors would rather see at the bond until maturity especially if they bought
it for the sake of earning positive income the only good reason to sell your
bond before maturity is if there is a reasonable increase in market value or
you desperately need the money for something else
number five digital assets the world has rapidly taken a turn to the digital side
of things online content has become gold over the past decade or so this is
another way you can use your thousand dollars to make some decent passive
income you might be wondering what type of digital assets you can invest in with
a thousand dollars well there are many these include the following podcasts a
podcast is an online series where the podcaster discusses different issues
usually centered around a particular niche
it could be politics Fitness food or fashion the list is quite endless so how
do you invest and make passive income from it as for the investment itself you
will need to buy some recording equipment some podcasts are an audio
format while some are facilitated through video if your podcast is going
to be an audio format you will need to invest in audio recording tools these
include a computer with audio recording and editing software a microphone a set
of speakers and a small mixer you can buy a full set of used equipment for
a thousand dollars if your podcast is going to be in video format then you
will need to invest in a decent camera that can deliver good picture quality
you might also need to invest in a decent backdrop that's if the room you
are using doesn't seem presentable enough so how do you make money off
podcasts well you need to first deliver quality content to your listeners and
work to increase your fan base when you have a decent followership brands and
other businesses can be compelled to advertise their goods and services on
your platform they may pay per episode or strike a season-long deal with you
you can also use your podcast to advertise your merchandise that is if
you decide to sell some it could be t-shirts mugs etc it is also a means to
advertise the services you render with the aim of getting your listeners to do
business with you the next digital asset are blogs
similar to podcasts blogs can also a new passive income and you won't need a ton
of money to get started the process to make money through a blog is quite
similar to a podcast you have to deliver quality content to your readers on a
regular basis and build your followership when this is done you can
attract advertisers and sell your goods and services using this platform setting
up a blog can be done with the budget well under $1,000 there are actually
websites that allow you to set up blogs for free WordPress is one of such
websites if you want a customized website you can hire a good web designer
to do that for you you will also have to pay for a domain name and hosting
finally there are ebooks this is another digital asset you can invest $1,000 a
lesson to enter and some good passive income one of the best aspects of
e-books is that you don't have to spend money printing hard copies this is not
to say that you won't spend any money at all you might need to hire the services
of a writer or editor you will also have to hire someone to proofread your book
before it is published a graphics designer will also be needed to give
your book a great cover design whichever you choose digital assets can make a
fine choice if you are looking to start making passive income thanks for
watching if you want to go from the life you have to the life you deserve then
hit the subscribe button now you

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