passive income is an attractive way to bring in income without actively putting in man-hours. By making wise investments, you can create streams of passive income that will begin to increase over time. While passive income may not be easy, with the right plan and dedication, it is possible to make more than $10k per month by 2023.
Start Investing Now
The earlier you start investing your money, the better. The sooner you start, the more decades of compounding interest you’ll have supporting your goals. Put your money in a diverse portfolio of mutual funds, stocks and bonds, or in other lower risk investments like certificates of deposit (CDs) and money market accounts.
Max Out Retirement Savings Accounts
Maxing out a retirement savings account such as a 401K or IRA is one of the best ways to build up passive income for future years. Contributing the maximum yearly allowed to these accounts allows you to take advantage of employer 401k matches as well as the tax savings from traditional and Roth IRA plans. This can help you grow your investments faster than most people.
Real Estate Investments
Another great way to generate reliable passive income is through real estate investments. You can purchase rental properties and become a landlord, or look into purchasing vacation rentals or timeshares. You can also invest in REITs, also known as Real Estate Investment Trusts. These are basically investments in a company that invests in real estate ventures.
When investing in real estate, you’ll want to make sure to pay attention to current market trends and do your research into the area where you’re purchasing property. Additionally, consider hiring property management to help handle the everyday obligations of being a landlord.
Creating a Side Hustle
A side hustle is a good way to create extra income and save for investing in other business opportunities. Consider creating a blog about a topic you know a lot about, or even starting a YouTube channel talking about something you’re passionate about. You can monetize these activities with affiliate links or advertisements.
You could also freelance in your free time, offering services on sites like Fiverr, Upwork or Freelancer. From graphic design, to writing, to web development, there are plenty of freelance gigs available. You can set your own rates and work as much or as little as you’d like.
Put Your Money to Work
Once you’ve saved some money, you can put it to work. There are many online platforms that offer low-risk investments with decent returns. You should always do your research and choose investments based on your comfort level and financial goals. Popular options include peer-to-peer lending, which allows you to lend money to borrowers, and dividend stocks, which offer regular payments back to the investor.
With the right strategy and dedication to growing passive income, it’s entirely possible to make more than $10k per month by 2023. Start investing sooner, max out your retirement savings accounts, explore real estate investments and create a side hustle. All of these tactics can help you build up passive income over time.