If you want to increase your income so you can spend less time working and eventually quit your day job, you should work on increasing your passive income. As the name suggests, passive income is income that's generated without your active input. In order to create passive income streams, you'll need to put in some work upfront; once they're established, you will be able to gain money without a lot of additional effort on your part. Here are three great ways to grow your passive income:
1. Invest in a stock portfolio.
Stocks are a classic investment. A solid stock portfolio can help you build assets. Best of all, you don't need a lot of money to invest in stocks. Small investments over time can really pay off. Before you start investing in stocks, you'll want to do your research.
Find out which companies are likely to give you a good return on your investment. Your comfort with risk will also play a role in determining which stocks you should buy. Purchasing riskier stocks can lead to a higher pay off, but there is more of a chance of loss. If you're fine with slow growth, you can fill your stock portfolio with stable companies that are projected to grow at a steady rate.
2. Purchase real estate.
If you have enough capital for it, real estate is a good place to invest. People always need a place to live, and purchasing inexpensive homes in up-and-coming areas is a great investment in your future. If you're willing to put in the work to fix up a house and make the necessary repairs as they arise, being a landlord can be a viable stream of passive income. If you want to be even more hands-off during the process, you can hire a property management company to deal with renters for you. However, they will take a portion of your monthly income.
3. Put your talents to work.
If you have any talents, you can use them to make money. When looking to make passive income, it's always better to create a product rather than sell a service. When you sell a service, your time is the limiting factor. Products, especially digital products, can be reproduced for little to no money or effort. If you enjoy writing, consider writing an eBook about a popular subject. If you're an artist, you can design t-shirts to sell. Get creative and think outside the box.
Contact a professional for more advice about passive income stock portfolio investing.