She’s smiling because she knows he will outlive you.
I wish I was 18 and smart enough to desire residual income. Passive income is one of the few ways that you can become not completely dependent on a J.O.B (just over broke) and have freedom to live on your own terms. Nothing is worse than being stuck at a soul sucking job you hate.
First Things First
Most ways of gaining passive income involve investing money into something that generates income. This means a few things:
You need to make money. Get a job. Start a business. Sell old stuff you don’t care about. Just make some money!
Don’t go into debt. You want streams of income not streams of expenses. If you are going to invest you need to have plenty of money.
Have some emergency money. You are probably living at home so hopefully you don’t need much money; regardless have some accessible money for a rainy day. Why should you do this? That way you don’t have to go in debt to pay for some unexpected expense and pay a bunch of interest on something stupid.
Why You Need Money to Make Money First
Many people will point out that you can inexpensively create eBooks, blogs, and online stores. This is mostly true but to make a high quality product that people will want to spend money on will cost something. For an eBook you will need a beautiful cover, someone to edit the book, and maybe even spend a little money marketing it. Making a high quality blog or website can be more expensive; especially if you are not a proficient web developer. Of course, you can (and should) gain these skills if you are interested in having your own website but it will take time and money before you reach proficiency.
What If You Just Want to Invest?
It’s quite possible you don’t want to start a blog, write eBooks or sell things online. It takes time and knowledge to set up these passive incomes! Here are some ways you can earn passive income just through investing.
Dividend Stocks
There are stocks that will reward share holders with dividends. For example, the Bank of Nova Scotia has a Dividend stock that costs 42.00 Dollars to purchase (10/6/2020) and will give a regular dividend of .90 USD on a regular basis; you can easily purchase these on Dividends | Robinhood. At first glance .90 USD does not seem like a big deal. On a yearly basis you will receive 2.70 USD which still does not seem like a big deal. But over a 50 year period you will triple your money and if you put the returns back into the stock your return will grow even more. Keep in mind there are ETF’s that pool dividend earning stocks together to diversify risk but in doing so you will also receive less reward.
To have enough dividend earning stock to live off will cost a lot of money. If you had 40,000 dollars worth of a dividend stock earning 6.43% APY you would need 200,000 dollars invested into it to make 12,000 dollars a year. Keep in mind that you can always reinvest all of the dividends return back into the stock to help grow your passive income.
Cryptocurrency
I have been in the cryptocurrency space since 2017 and personally believe that crypto is the future of finance. However, please keep in mind that crypto is still new and risky; do not take anything I say as financial advice but as my personal thoughts and opinions.
There are many ways to make passive income with cryptocurrency; here are just three of them.
OKEx
OKEx is a cryptocurrency trading platform that allows users to:
Buy and sell cryptocurrency with different international currencies
Short trade, margin trade, futures trade and perpetual swap
Learn about cryptocurrency at the OKEx Academy.
Most of all the OKEx EARN Program allows you to invest your cryptocurrency in a variety of ways to make passive income. OKEx makes it easy to invest into several Defi projects including: Uniswap, YFII, Curve, and Compound. If you put Ether into Uniswap you would gain 18.67% APY (Annual Percentage Yield). So if you put one hundred dollars worth of crypto into Uniswap you would receive 18.67 USD at the end of the year. Please keep in mind that Defi is a new trend in cryptocurrency ad does carry significant risk; but it does give significant rewards as well. Most of all, OKEx makes it easy.
Divi Project
Divi Project is dedicated to making cryptocurrency easy to use and gaining mass adoption. They are working on making “Venmo” for crypto. With Divi you will be able to send US Dollars, Euros, Bitcoin, Divi, Litecoin and DigitByte all on the same digital wallet. Divi also has a staking mechanism that secures it’s blockchain and in return rewards those who stake the tokens.
To stake, you must put up atleast 10,000 Divi (approximately 340 USD) and have a solid internet connection (staking only works while you are online). If you stake 10,000 Divi for a year you will receive approximately 1,526 Divi (55 USD) per year. This is approximately a 15% APY which is amazing. Please keep in mind the price of Divi regularly changes and is tied to the price of Bitcoin.
Blockfi
Finally, I will introduce you to to Blockfi a platform for lending cryptocurrency and using cryptocurrency as collateral to borrow USD. You can easily make 5–8 % yearly interest off several different cryptocurrencies including: Bitcoin, Ethereum, Litecoin and others. Keep in mind, they will pay you in the crypto you put on their platform; so if you put on 1 Bitcoin you will receive .05 Bitcoin by the end of the year (this is just an example). If the cryptocurrency you put on Blockfi goes up in value you could gain a lot of money. And if it goes down in value Blockfi will ease the loss.
I hope you are able to make a large amount of money with your future passive income. Good luck!