Passive Income Investments: Key To Financial Freedom
It is not much of a secret at this point, but passive income investments are crucial in achieving financial freedom. Yet millions still go their entire lives without even trying it out.
Billions sit in banks every day void of any real growth potential. As that money sits there, all of that money that could be multiplying for it's owners, it is just sitting their letting inflation rot away at it.
Passive income is exactly as it sounds, income that accumulates as time passes without any effort. Passive income sources can be anything from a business you own, to dividend paying stocks, to a self published e-book.
Other than their initial investment, passive income investments require no additional time or financial commitment. You simply set up the investment, and watch the profits drip in.
Traditional investments are the first, and most obvious, form. Stock dividends are the most well known along with bonds, but services such as peer to peer lending as well as crowddfunded real estate. Any business owned but not operated would fall under this category as well as rental properties, real estate, etc.
For those looking at diversifying your investment portfolio, passive investments are great not only because of the returns that can be funneled back in and compounded, but because the underlying investments. Not only do they offer significant yearly payouts, but also offer a great long term growth potential.
Now before you get ahead of yourself understand most passive investments offer small returns in and of themselves. Usually between 1-8%. However when combined with other such investments, or reinvested, it can become a substantial monthly income when managed properly.
Not all passive income comes in the form of traditional investments. The internet has opened up a plethora of new revenue streams that require very little work once up and running. Digital product offerings such as e-books, blog posts, and youtube videos all are forms of passive income once the projects are completed.
Passive income is all around us, you just need to be willing to reach out and take it. The best part is you can start for as little as one dollar. There are stocks offering for pocket change that pay dividends. Now they won't make you a millionaire, but its a start. There is no reason not to at that point.