Money expert Jaspreet Singh, host of the YouTube show Minority Mindset, often talks about putting your money to work for you. Instead of spending money on things, invest your money to make more money, he often says.
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By creating passive income streams, you will gain not just money, but more time. You might even be able to quit your full-time job, gaining the ultimate in freedom and flexibility.
Here are passive income streams that have been shown to outperform hourly wage work and other traditional jobs.
CDs or High-Yield Savings
With the best CDs earning as much as 5.75% APY in May 2024, if you have any amount of extra cash, you might want to consider investing in a certificate of deposit, or a CD.
CDs have terms that start at one month but can go as long as 5 years (or more). If you’d prefer not to tie up your cash for any length of time, you can also find interest rates of 5% or more with some of the best high-yield savings accounts.
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Dividend Stocks
Investing in dividend stocks can put money in your pocket on a quarterly or monthly basis. To help your money grow faster, and avoid taxes on your investment income, you can reinvest the dividends automatically. Otherwise, you can cash them in and live off your earnings.
Remember that investing in stocks always carries risks, but if you invest in legacy, dividend-yielding companies with a solid history, you can reduce that risk substantially.
Rental Properties
If you have upfront capital to invest, you can earn money through rental properties. You can rent a vacation home as an Airbnb or Vrbo — or become a landlord and rent homes year-round. Whether you’re a full-time landlord or a vacation property host, you’ll need to put in some work marketing and managing the property. This isn’t fully passive income. But for those who learn the tricks of the trade, you can earn good money as a real estate investor. Plus, when you sell the property, you can earn money from appreciation.
Passive Real Estate Investments
If being a landlord or Airbnb host doesn’t appeal, you can still profit from real estate investments and earn passive income. Platforms like Arrived Homes, a new app launched by Jeff Bezos, allow you to invest in fractional shares of real estate with other people.
Brian Davis, cofounder of SparkRental.com, recently told GOBankingRates that he has earned an average of 4.2% in dividend yields from his investments on the platform.
Create and Share an Online Course
Do you have knowledge and expertise in a niche area? What’s the one thing you could talk about for hours straight? If you are an expert in any field, from home organization to using AI, you can create and sell an online course to share your knowledge.
Of course, you’ll need to put in some work upfront creating the course — and then will have to market it. Platforms like Udemy make it easy to sell your course online and collect passive income every time someone buys it.
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This article originally appeared on GOBankingRates.com: 5 Passive Income Streams That Outperform Traditional Jobs
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