Passive income is the best way to generate extra cash to better your financial situation. The economic turmoil caused by the Covid-19 pandemic showed us how easily so many lives and finances could be affected in a matter of months.
To make sure your finances stay on track and continue working towards your goals, you need a steady passive income. Passive income is any income you earn without putting too much effort or work into a task.
Let’s look at the best passive income investments you can make in 2022!
Real Estate
When you think of investing in real estate, you think of sky-high prices that most of us can’t really afford. The best way you can afford to invest in real estate is through crowdfunding or real estate investment funds. These options don’t just make these investments cheaper and more affordable, but they also get rid of all the hard work needed to earn a return!
The company or fund handles the purchasing, renovating, maintaining, selling, and renting out of the property. You don’t have to bear all the risk of property rates falling, and you continue earning dividends through your investment. These funds let multiple small investors pool their money together and allow them to make investments they wouldn’t be able to do alone.
Dividend Stocks
Stocks have been the number one passive income investment for as long as we can remember, and they are still one of the easiest ways to earn a passive income. The only hard part is researching and choosing the right stock to buy. Invest into a few stocks and earn a dividend as long as the company you invest into keeps returning a profit! There is always a risk when investing in stocks, and dividends can change significantly from period to period.
Robo-advisors
A robotic financial advisor might be the most effortless passive income investment. What it does is right in the name! You just set up an account, add in your info, set your financial goals, and the ‘robot’ will do the rest. Robo-advisors make investments and completely manage your portfolio for a small percentage fee off of your returns. Some popular robo-advisors are Wealthfront and Betterment.
Selling Digital Products
You can sell almost anything on the internet, and digital products are everywhere! Any product you can’t touch, like an eBook, newsletter, or PDF, can be sold online. This investment requires some effort initially, but the good thing about this is that you only have to make a product once. Once it has been designed and made, it can be sold an infinite number of times without storing, recreating, or shipping it.
For example, if you are an expert on any subject or niche, you can make guides or how-to eBooks and market them online. A good eBook or a guide can be a source of income for years to come! You can also update and change it up as time goes on and continue making steady money from a few products.
