In this day and age, it is sometimes not enough to rely on salary alone. Having to take on more and more bills and expenses, most people need a way to generate some extra income.
If you are thinking of generating a passive income stream, here are 5 ways that you can use to accomplish that.
Australian Real Estate Investment Trusts (A-REITs)
Using this method of income, you basically purchase a share within a real estate company. Investing in A-REITs allows you to earn dividends from the trust’s income, which has been generated from the investment in the real estate. Dividends are basically portions of the company’s profit and what you receive will constitute a passive income.
Given the boom in the Australian real estate market, investing in real estate has never been a more attractive option.
Property Investment
In order to generate passive income, you need to have property to invest in. The more properties you have, the more money you will make. In order to generate passive income from property investment, you should set a certain amount of money aside that you can use to buy properties. But, if you do have to work with a limited amount of properties, there are things you can do to still guarantee that it will keep generating income.
You can even choose to buy a property that is in foreclosure or up for auction. That way, you can grab the property cheaply, and then try to re-sell it for a higher price. This is a way to add more properties to your roster, and to potentially make some money off of it as well.
Bonds or Fixed Income Investment
Some people choose to generate passive income by investing in bonds and fixed income investments. These tend to be more stable, and more consistent. Generally, you are going to get about a 4 percent interest, but the interest comes in the form of a semi-annual check.
These are good for people who want to generate passive income and want something safe, reliable, and easy to access and use. You can use this extra income to put towards paying off debt and other bills.
Market Shares
Investing in shares is a bit riskier. There are a variety of different shares that you can invest in, and it all depends on what kind of risk level you are comfortable with. If you can afford to lose money, then you can invest more in riskier stocks.
This is something that you definitely want to do before you retire. That way, you will have a nice nest egg to help you once you are living off of your investments.
Low-Input Business
You can also generate passive income by having a low-input business. These tend to require very little work to keep going, and can provide you with money that you can use to help you get by. You can write a book and sell it on Amazon, or publish an eBook on a subject of your choice. Or, you can even create an online video course about a subject that you are knowledgeable about.
Conclusion
Passive income is something that you can work towards once you have the basics in place. Remember that the more properties you have, the more money you will make. Try to invest in as much as you can, and do not be afraid to diversify your investments. You do not have to wait until you are retired to start making passive income. You can start now and it will not only help you with your current finances, but it will help you with your future goals.
New Wave Financial Planning gives you the best financial advice in Gold Coast on how to build your own financial plans and strategies with passive income. We offer a range of services including investment planning, retirement planning, superannuation planning, debt management and more. Let us be your financial planning expert for your turn of financial success. Schedule an appointment with us today!
