As a stepfather, your free time is slim. For some, the concept of passive income can be very attractive, especially if it means having some extra income for your family.
There are various ways to get started with passive income, from renting out your car to advertising your vehicle. While these are effective ways, below, we’ll cover four significant ways you should consider if you’re interested in generating real passive income.
Commercial Real Estate
Initially, the thought of owning and managing your own commercial real estate may not sound passive at all. On the surface, it isn’t; however, there are ways to make your investment as passive as owning stock (which we’ll cover soon).
Commercial real estate investing can be a very lucrative endeavor if you know the right way to invest for your preferences. For this particular scenario, we’d prefer to be as passive as possible. Within the industry, investors can invest in REITs or Private Equity Firms instead of outright buying property.
These companies buy, sell, manage, and invest in commercial real estate, so you don’t have to. With these companies, you become like a company shareholder, and you’ll receive dividends for your ownership.
Cryptocurrencies
Cryptocurrency can be bought and sold similarly to stocks but can be extremely volatile. In recent times, there are examples of cryptos reaching their highest highs and quickly dropping.
It requires a bit more thought and research than some of the other methods, but investing in cryptocurrency can bring in substantial income.
Stocks
Stocks are one of the most recognizable ways to earn additional income. Dividend stocks are stocks that imply ownership in a company. By design, as a company does well and makes a profit, it takes a percentage of the profit and pays it out to shareholders. This method is very hands-off; you can hold onto your shares for as long as you see fit or sell them at any time.
High-Interest Savings Accounts & Bonds
Your current savings are probably with a huge bank, but is it making you money? Some savings accounts come with an interest rate that will generate interest for you every so often, but it’s not substantial.
These interest rates are minuscule, but there are alternatives. Online, there are plenty of banks that offer high-interest savings accounts. In some cases, your interest rate can be as high as 0.55% APY compared to the national average of 0.06% for savings accounts.
Government bonds are another way to invest in interest rates. Bonds generally offer the lowest returns compared to the others on this list. Still, where they substitute returns, they add security.
These bonds are backed by the government and almost guarantee returns depending on how your bond matures. Maturity rates can be anywhere from a year to 30 years.
There are plenty of opportunities to make your money work for you without needing to put too much work into it. No matter which method you choose, we recommend doing your research and don’t be afraid to ask for help. Find out how to make extra income as a stay-at-home parent here.
