25 Examples of Passive Income Investments
In this blog I’m going to show you 25 examples of passive income investments.
I’ve noticed that when I meet people, most of them want passive income but they have no idea how to do it.
So I’m putting this together as a guide to those who want to make passive income and don’t know where to get started!
Let’s get started!
What is Passive Income?
Most people don’t really understand what passive income is.
Passive income is money you make from money/assets that works for you.
In other words, it’s money making you money, instead of you trading your time for money.
If you’re not sure if something is passive income, then you can do the Passive Income Test.
Passive Income Test
Answer the following questions below:
1) Do you have to spend time to make the money?
2) Will the money still be made when you die?
3) If you went on vacation, would you still make money?
If you answered NO to Question #1 and YES to #2 & #3 then you have a passive income stream.
25 Examples of Passive Income
#1 High Yield Savings Account
I always recommend investors start with a high yield savings account.
It’s a place to put your money.
It makes passive income in the form of interest, and if you are in the United States and it’s backed by the FDIC, then it is insured by the FDIC up to $250,000.
I always say if you can’t handle a savings account, then how can you handle any other investment?
#2 Rental Property With a Manager
Rental Property managed by someone else is another way to earn passive income.
It’s one of the safest and most conservative investments, as property in general tends to increase or at least stay the same value (there are exceptions).
Also, people need a place to live, and not all of them own property. So there is a market for renters in certain cities and places.
You might even buy your first home, and then move out and rent it.
Or you can look around and find an investment property.
This requires at least enough money for a down payment of 15% – 40% depending on the bank.
#3 AirBnB Property With a Manager
Another passive income opportunity is to have an AirBnB or Vacation Rental Business with a manager.
If renting your property is not giving you enough income (as would be the case for a condo that we are buying in Hawaii), then you can do what we are doing next month.
Buying a property to use as a vacation rental.
Be sure it’s zoned to be a vacation rental, and be sure you have a manager, otherwise it’s not passive income anymore!!!
#4 Pinball/Game/Bubble Gum/ATM/Vending Machines
The reason I use this is because I’m reading the autobiography of Warren Buffet, and he started a business when he was only 14 yrs old putting pinball machines in the waiting rooms of barber shops.
He split the profit with the barber, and their part was to maintain the machines.
He actively ran the business with a partner, so you would have to hire a manager to make this a passive income business.
#5 Coin Laundry
I know a couple who own a laundromat business. You put a bunch of coin operated machines in a space and they do all of the work.
You would need a manager to collect the money and maintain the machines.
#6 – #10 Utility Stocks That Pay Dividends
A lot of people like investing in Utility Stocks for their dividends.
Always do your research before you invest.
I’m not make not making recommendations on buying any particular stocks, and any investment has risks of loss of your money invested.
Let’s look at what is on Google shall we? http://www.dividend.com/dividend-stocks/utilities/diversified-utilities/
After looking at the article I found from Google, I pulled out 5 examples of utility stocks.
AEE – 2.99%
AGR – 3.34%
ALE – 2.89%
AQN – 5.36%
AVA – 2.95%
These are not recommendations, always do your research!!!
#11 – #15 Blue Chip Stocks That Pay Dividends
Blue Chip Stocks That Pay Dividends are a preferred dividend yielding investment for many, because Blue Chip companies are bigger, stronger, etc…
Always do your research before you invest, I’m not make not making recommendations on buying these stocks
From my own memory, and after going on Google and finding this article with blue chip stock recommendations: https://money.usnews.com/investing/dividends/slideshows/7-of-the-best-blue-chip-stocks-to-buy-for-2018?slide=3
I list 5 examples below:
DIS – 1.6%
AAPL – 1.57%
MICROSOFT – 1.65%
Johnson and Johnson (JNJ) – 2.86%
Goldman Sachs Group Inc GS – 1.4%
These are not recommendations, always do your research!!!
#16 – #20 High Dividend Yield Stocks
High Yield Dividend Stocks may not be companies that you are familiar with.
Again, always do your research before you invest.
I’m not making recommendations on buying these stocks below, which I found in an article from a Google search – https://www.nasdaq.com/dividend-stocks/
BKEP – 17.31%
GMLP – 15.68%
USOI – 8.43%
MMLP – 14.6%
CCLP – 13.75%
These are not recommendations, always do your research!!!
#21 – #25 Real Estate Investment Trusts
Real Estate Investment Trusts that are profitable must by law pay out a large portion of their profits in dividends.
Always do your research before you invest.
I’m not making recommendations on buying these stocks.
Here’s an article I found when doing a Google search on Real Estate Investment Trusts –
https://money.usnews.com/investing/slideshows/the-10-best-reit-etfs-on-the-market
MORT – 7.93% (ETF)
REZ – 3.52% (ETF)
AMT – 2.11%
CCI 3.77%
KBWY – 7.21% (ETF)
These are not recommendations, always do your research!!!
How to Successfully Grow Your Passive Income
Now that you have 25 examples of passive income investments, it’s time to talk about how to successfully grow your passive income.
Take action and Be OK with not being perfect!
When you make mistakes, learn from them and keep going.
I remember the first dividend yielding stock I bought, and seeing it paying out dividends and being so excited!
It still pays me dividends today, but the value of it dropped in half!
However, I’m ok with that, because it’s paid me more dividends than I’ve initially invested already, and it’s still paying.
Of course, I don’t want that to happen again.
I’d rather have passive income investments that grow in value over time.
So I’m learning by trial and error, and that’s OK!
THE ONLY WAY FOR YOU TO SUCCESSFULLY GROW YOUR PASSIVE INCOME IS TO START INVESTING NOW!
Start with savings and go, go, go!!!
Free Gift To You
You’ve been great, and now I’m going to give you a gift!
Maybe your reading this article and thinking can I actually make passive income?
YES YOU DEFINITELY CAN! Here is my FREE GIVE FOR YOU =)
I have a free Map to Freedom, with lists of articles about topics like high dividend yielding Real Estate Investment Trusts, Money Affirmations, Real Estate Investing Examples…and many more
Visit http://YesFinanciallyFree.com/Map and find the information that you need.
About Mey Duldulao
Back in 2011 I had over $30,000 in credit card and line of credit debt, was living paycheck to paycheck and was stressed out over my lack of success in my financial life.
In April of 2016, I became debt free and had a monthly passive income stream. I quit my job on December 23, 2016, and started doing my dream work of mentoring others on what I did to create the freedom to quit my job.
In 2017 we bought our first condo in Waikiki, and we went on 5 weeks of vacation (including a 7 day cruise to the Mexican Riviera)!!!
I spend most of my time doing what I dreamed of for years, spending my days with my son Jordan and my husband Jomel, enjoying motherhood and being a wife. I also enjoy researching Financial Freedom and sharing what I learn with my clients and on my blog.
If you want to learn more about how I can help take back control of your money and your time, then CLICK HERE, watch the free video and get started!