Best Ways To Make Passive Income 2018
Best Ways To Make Passive Income 2018
What is Passive Income?
Passive income is income that requires little to no effort to maintain. Examples of passive income sources include rental properties, online businesses, and dividend stocks. Creating a passive income stream is a great way to build financial freedom and increase your monthly income. In this article, we will explore some of the best ways to make passive income in 2018.
Rental Properties
Rental properties are one of the most common ways to generate passive income. You purchase a property and rent it out to tenants. The rental payments generate a steady stream of income and can be used to cover the cost of the mortgage, property taxes, and other expenses. Rental properties are an attractive investment as they can generate a steady income without much effort on the part of the owner. However, it is important to understand that rental properties can be a substantial investment and require careful planning.
Online Businesses
Online businesses are another great way to generate passive income. With an online business, you create a product, such as an ebook, video course, or software, and sell it online. You can then use the profits from the sales to generate a passive income stream. It is important to understand that online businesses can require a substantial amount of time and effort to get off the ground. However, once established, they can generate a significant income with minimal effort.
Dividend Stocks
Dividend stocks are another way to generate passive income. Dividend stocks are stocks that pay out a portion of their profits to shareholders. These payments are usually made on a regular basis, such as quarterly or annually. Dividend stocks can be an attractive investment as they can generate a steady income with minimal effort. However, it is important to understand that dividend stocks can be volatile and the income generated may not be consistent.
Real Estate Investment Trusts (REITs)
Real estate investment trusts (REITs) are another way to generate passive income. REITs are investment vehicles that allow investors to pool their money and invest in real estate. REITs are a great way to invest in real estate without the hassle of managing individual properties. REITs pay out dividends to their investors, which can be a great source of passive income. However, it is important to understand that REITs can be volatile and the income generated may not be consistent.
Peer-to-Peer Lending
Peer-to-peer lending is another way to generate passive income. With peer-to-peer lending, you loan money to individuals or businesses through online platforms. The borrowers make payments on the loan, which generate a steady stream of income for the lender. Peer-to-peer lending can be an attractive investment as it can generate a substantial income with minimal effort. However, it is important to understand that peer-to-peer lending can be risky and the income generated may not be consistent.
Conclusion
There are many ways to generate passive income in 2018. Rental properties, online businesses, dividend stocks, REITs, and peer-to-peer lending are all great ways to generate passive income. It is important to understand that passive income can be volatile and the income generated may not be consistent. However, if you are willing to take the risk, passive income can be a great way to build financial freedom and increase your monthly income.
