Investing has become a large part of my life the last few years. I would say I got serious about it about 2 or 3 years ago and since then it’s literally changed my life. While I am still a newbie to most I truly believe there are only about 3 core places to actually invest your time and money that are really worth it for maximum results.
- Please note this is my own opinion and is for entertainment purposes only. Please seek professional advice before investing.
With the legal junk out of the way lets dive into what I feel are the 3 core places to invest your time and money.
Number 1 – Stocks and Bonds
Stocks and bonds are one of the quickest but also risky ways to make money. I would advise not bother getting into this if it is not of interest to you. You will need to do some research on each company and figure out for yourself if you feel it is a good decision to invest your money with that company or not.
For me nearly all of my investments are dividend income investments. Dividend stocks pay out either on a month, quarterly or yearly basis. For myself I pretty much stick with the monthly and quarterly ones to produce a constant supply of money which I can then invest into more stocks or the other two areas I will go over soon.
One of the biggest things to keep in mind when investing into a dividend stock is if the dividend is a qualified dividend or not. A qualified dividend at the moment will have a much lower tax percent on it then a non qualified tax. For me this is roughly a 9% difference and what that means to me is I can invest 9% less money and get the same amount of income from it then a non qualified dividend. This can make a large difference to you come tax season when you look at your income and how much goes back out back in taxes.
Numbers 2 – Real Estate Income
For me I just don’t want to get involved with the large amount of real estate in terms of managing it, taking care of it etc. This is why I turned to sites like Fundrise which allows me to put month into it money or as a lump sum and have them manage and build the projects. I also get to pick what type of portfolio I want such as supplemental income (high dividend earning over appreciation) Balanced (splits me between high dividend and long term growth) and Long-term (with is mostly about appreciation. For myself at the moment I went Supplemental income. Just something about dividends always gets me to invest in that manner.
Number 3 – Alternative Income
This one is more of a time factor then money like the above to. I lumped a number of things into alternative income such as my Youtube Channel / Affiliate earnings / Course creating. Pretty much everything that takes my skills and knowledge and puts it into some type of content that others can absorb be it free or a paid course. Most of these items do have a shelf life but for the amount of time invested the yield on it can be massive.
So there you have it my core 3 ways to make passive income that I feel are worth the time and effort. Everything else I have tried either took too much money or too much time for example CD’s or savings accounts (yes you should have some savings for a rainy day don’t expect it to ever make you anything) P2P lending (With about 5%-6% return it’s simply not worth the risk and it also gets taxed at a normal tax bracket rate your money could be better used elsewhere).