Top 5 Passive Income Ideas For 2021

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If you don’t find a way to make money, while you sleep, you will work until you die. You know what the number one problem is with having a job. It’S the fact that you’re only able to earn money for those eight hours per day. Five days a week in most cases, but for the other 128 hours in a given week, you’re not able to make any money at all, and this is essentially the definition of active income where you’re exchanging your time for money. So most people, if they’re looking to make more money, they think they have to work more hours, and while this is a way to make more money, it’s kind of a lousy solution to this problem, so sure you could go out there and get another part-time job On top of your full-time job – or you can work crazy over time, but the question at the end of the day here is: do you really want to be working 50, 60 or even 70 hours per week? I would say most people would answer that with a no now. I personally became obsessed with this idea of earning passive income in my early 20s and i’ve built up a couple of different passive income streams and i’m now 25 years old. So what i want to share with you guys in this video today are my top five best passive income streams to start out with in your 20s you’re in a bit of a unique situation here, because you generally have a lot of time on your hands. If you don’t have kids or a family yet, but you probably don’t have a lot of money and when it comes to earning passive income, you either have to invest your time or invest your money. So these are different. Passive income streams that work well for people in their 20s, so let’s get into number one right now, all right, so the first passive income stream to get started with in your 20s is earning interest income from your savings – and i know this sounds like a boring One here guys, but this is a very important first step, because, if you’re looking to earn passive income through other means pretty much, all these different avenues require you to have some amount of capital saved up now. The problem with most savings accounts is they’re, pretty boring investments right now, you might earn around a 0.5 apy for an online savings account, and that essentially means. If you have a thousand dollars saved up over the course of one year, you might earn about five bucks in interest. Now i actually just made an investment in a really interesting online savings account called yada, which essentially has prize linked savings so rather than earning just a basic interest rate of around point five percent or something like that, the apy is slightly lower. But you can actually win up to 10 million dollars, so how this works is for every 25 dollars that you deposit into this account you get one ticket per week into a lottery type drawing. But the difference between this and the lottery is that yada is fdic. Insured and essentially it encourages you to save money because the more money you save the more tickets you get for the weekly drawing. So if you guys want to check out yada, there’s a link down in the description below, if you use it, you’re going to get 100 bonus tickets for the first week’s drawing, and you can also use the code ryan when you sign up to get those tickets. As well and again guys full transparency, i am actually an investor behind yada. So if you do use that link, it is a way to give back to me and support this channel for putting this video together and again guys. The whole point here is not to become a millionaire from the interest in your savings account. That is just not going to happen unless you hit that jackpot, which is not very likely. The idea here is to get into the habit of setting aside money, which you will need down the road to build other passive income streams, so starting out in building up a nest egg and having money for other passive income streams and investments is the essential first Step so the second passive income stream. I recommend here is compounded 401k returns and i know what you guys are thinking you’re, probably saying what a boring way to make passive income. But it’s honestly one of the best opportunities that you have potentially available to you right now in your 20s. Now, for those who are not familiar, the 401k is an employer-sponsored retirement savings plan where you’re able to set aside a portion of your paycheck before you even touch it and invest it for retirement. But what a lot of people don’t realize is that many employers out there still offer something called a company match, and what this means is that dollar for dollar, they will often match the amount that you’re putting in, which essentially means they’re, offering you free money and Even if your employer doesn’t offer a company match, it’s still worth it to put something literally anything into your 401k and the general psychology. Here is the fact that when you take money out of your paycheck and set it aside into this investment before you have the chance to spend that money, you are far more likely to figure out how to make ends meet most people. If you give them the full paycheck and then ask them to direct money towards investments or savings, they’re not going to be able to do that, because basic psychology makes us want to spend that money on stuff, rather than putting it away and saving it. So, with the 401k you’re putting that money aside before you have the chance to spend it. So let me give you guys a scenario here of how much money you could potentially have from a 401k investment. Let’S say you started off at 20 years old and invested in your 401k from age 20 to age 65 at just 100 per week. Well, by the time you reach retirement age, you would have a 401k worth around 1.8 million dollars from just 100 per week, and that’s simply assuming you take that money and you passively invest it in the stock market, which, on average returns around eight to ten percent Per year, so i don’t care if you just do one percent of your pay into your 401k do anything at all and trust me guys it’s an easy way to make passive income and you’re going to. Thank me later. So the third source of passive income is becoming an owner-occupied real estate investor and again, as mentioned earlier, i said, a lot of these ideas are going to require you to have some money saved up, and that is why it is so important to build up savings In your 20s, which will allow you to make some of these other moves in order to earn significant passive income, so what i’m getting at here is rather than going out there and buying a single family house or renting for your entire life. You eventually want to make it the goal to purchase a two to four unit property, where you’re able to rent out those other units, while living in one of them to offset the mortgage or, in some cases, pay the mortgage and related expenses entirely. And a lot of people out there say that real estate is not passive income and you have to manage your rentals and all of that, and while i do agree with them on that point, when it comes to an owner-occupied property, it is pretty passive and i Can speak from my own personal experience because you already reside on the property you already have to mow that lawn or have it mowed for you and plow that driveway all you’re doing is adding some additional units and additional revenue streams to this property that you’re already Maintaining so i do this with my property personally, i actually have a three unit property, which also has a cottage, and i live in one of the units and i rent out the other units and the cottage – and i would say i spend on average about one Hour per month at most managing these rentals and taking care of random odds and ends for my tenants. So it’s very passive and essentially has allowed me to eliminate my mortgage by earning rental income from these tenants which pays for the mortgage and other expenses. But again, like i said, you’re going to have to save up a lot of money. In order to do this, i was able to use the fha loan, which was a much smaller amount of money out of pocket, but i still had to come up with 22 000 in order to close on this property and get my foot in the door. So again, that is why it is so crucial to begin saving money for this type of purchase, so the fourth passive income stream on my list here is earning passive income from dividend stocks, and this is honestly one of my favorite methods for earning passive income and That’S because you can potentially get paid in two different ways from dividend stocks. First of all, you can buy a stock at a certain price and sell it for a higher price down. The road also known as asset appreciation and the second way to get paid from dividend stocks is those quarterly or annual cash payments, and i love the fact that there’s two potential ways to make money with these stocks and the reason i’m bringing these up here for People in their 20s is a lot of people, make very risky investments at this age, whether it be options, trading or futures or forex. Things like that, and while this does work for some people for the majority of people, making these yolo type bets means you’re going to essentially blow up your account and lose all of your money. So i would encourage you if you do have money to invest. Think about a strategy like dividend, investing or blue chip stock, investing and rather than buying into these highly speculative high risk investments, consider something like dividend, stocks that are going to be a much safer return. So i actually started out a dividend portfolio earlier this year. Utilizing m1 finance, which is a commission free brokerage, and i do have a lot of surplus income from my different business ventures. So i was able to direct a lot of money towards this account. But since then, i have built this up to a 100 000 dividend stock portfolio which now just from that portfolio and me doing nothing at all. I earn around three thousand dollars per year in dividend, income and essentially, what i do is i take those dividends and i reinvest them back into the portfolio which allows me to earn compound interest where my dividends are earning me more dividends. And again. This is not me, investing in highly risky stocks or anything like that. I own companies like 3m and mcdonald’s and intel which are time-tested, durable companies that are profitable and consistent and just may not have crazy growth, but they pay consistent and reliable dividends which allows me to earn relatively safe returns and again guys. It’S not realistic to think that you’re going to be able to build a 100 000 dividend portfolio overnight, unless you have a lot of money to work with, but getting started with. Any amount of money is all that matters here and with m1 finance. Specifically, you can open up an account with them with as little as 100. So if you guys want to check that out, i will have a link down below to m1 finance and full transparency guys i am affiliated with them. So i may earn a small commission in the process, and i will also link up to my video series documenting exactly how i built this one hundred thousand dollar dividend stock portfolio. So the fifth and final passive income stream here to start in your twenties, is what i’ve done, which has allowed me to earn the majority of my money and that is building different online businesses. So i have my channel here on youtube that i’ve been working on since 2016 and i’m also the co-owner of a personal finance blog called investing simple. Where, basically, on both of these platforms, we create different content, which we monetize through ads and affiliate links and different things like that and again. This is something where you don’t necessarily have to invest a ton of money or any money at all. It just requires a large investment of your time up front and you generally don’t make very much money in the first year or so with most businesses that you start. But now i’ve been doing this for coming up on four years and i earn mostly passive income from the different content. I have out there on the internet. So, for example, one of the pieces of content that makes money for my channel is an audible review, which is essentially a audiobook service offered by amazon. So i made this video reviewing audible and it took me about four hours total to make the video edit it and upload it, and in the last nine months this video has gotten tens of thousands of views. However, i am affiliated with audible and for every free trial. I refer to them. I earn a five dollar commission and so far in 2020 alone, i have earned four thousand sixty two dollars total from these amazon, bounties or free trials, and i’ve done a couple of different ones like audible and amazon, prime and things like that, but all together, i’ve Made around four thousand dollars from these videos that took me a couple of hours to put together, and so all i’ve done with my online businesses is do exactly that, but on a much larger scale by having dozens, if not hundreds, of different pieces of content, all Making me money and the idea here is you create this piece of content once and it continues to make you money 24. 7 365, which is the definition of passive income. So anyways guys there you have it. Those are my top five favorite passive income streams. To start in your 20s again you’re not going to get there overnight if your goal is to make a thousand dollars a month or whatever it is, but the point is just to start, because what you do have on your side. Right now is a heck of a lot of time which can allow you to earn those compounded returns year after year. If you enjoyed this video guys make sure you drop a like subscribe and hit that bell for notifications, and as mentioned, if you want to check out yada the lottery based or prized based, savings account or m1 finance for dividend. Investing those links are down in the description below, but thanks so much for watching guys, and i will see you in the next video

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Read More: 11 Ways I Make $19,000/Month in Passive Income

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