vestwell vestwell vestwell
  • About
  • Contact
  • Testimonials
  • More
    • Demographics & Advertising Rates
    • Terms & Conditions
Monday, July 4, 2022
No Result
View All Result
CALIFORNIA BUSINESS JOURNAL
  • Front Page
  • Business
  • Finance
  • People
  • Featured
  • Technology
  • Law
  • News
  • Food
  • Art & Culture
  • Human Interest
  • Education
  • Insurance
  • Real Estate
  • Health & Fitness
CALIFORNIA BUSINESS JOURNAL
money

3 Ways to Use Your Money to Develop Passive Income – and One Way You Can Do It Without Any Financial Investment At All

Passive income is a hot topic these days, but not everyone is on the same page.

by Anna Rodriquez, California Business Journal
A A
Share on FacebookShare on Twitter

The defining trait of passive income isn’t that you don’t have to work for it, and in fact, that’s false – you do have to work for it, at least at first. Passive income is really defined by its consistency. Buying a sum of cryptocurrency and then selling it later for a profit might sound like an example of passive income, but it’s not. Now, having a large enough amount of cryptocurrency on a market platform that awards you dividends for your investment is an example of passive income, and we’ll go further into that.

Passive income streams, no matter how large or small, are more than a good idea. They’re essential. The key to financial success is using your money to make more money, so that even when you’re asleep, you’re profiting, and there are passive income strategies for any budget – and even no budget. Here are five examples of ways you can build a passive income stream to augment your income.

Dividends From Stocks

After 2021’s meme-stock explosion, it’s safe to say we’re all a little more familiar with the stock market than we used to be. The stock market’s tech revolution was already going full steam by the beginning of this year, so it’s now the easiest time in history to enter the stock market on any budget. Even Cash App, the payment application now big enough to see eye to eye with competitor Venmo, allows its users to purchase fractional stocks with a few taps.

But like we said before, buying fractional stock and waiting it out for a value increase isn’t exactly passive income. What is a valid form of passive income is dividends. Dividends are payments made directly to shareholders. Usually, dividends are paid every quarter, after a company’s quarterly earnings report is finalized. Dividend payments are usually in cash, but can sometimes take the form of shares, in which case it’s usually referred to as a dividend reinvestment plan, or DRIP.

If a company pays dividends to its investors, then you most likely don’t have to own a certain amount of stock to enjoy the company’s earnings. However, since dividends are based on a percentage of stock owned, you will earn more by investing more. Dividends are also paid out to crypto holders, but in that case, they are paid by the exchange platform used to purchase and hold the crypto.

Real Estate Investments

Property has intrinsic value, and in a healthily growing economy, it usually appreciates. That’s one fundamental reason to buy property. The other is that property can be monetized and used to build passive income. By buying a piece of property, maintaining it, and renting it, you can see monthly returns on top of the property’s already increasing value. Later, when you liquidate and hopefully profit from equity, you’ll have already enjoyed (and reinvested – wink) years of passive income.

Unlike stock market investing, though, real estate requires a bit more attention. Loads more, in fact. Being a landlord and managing a property, with everything that entails – maintenance, marketing, tenant communication, evictions, and plenty more – can be so much work that you might not see how anything about it is passive.

ADVERTISEMENT

“That’s exactly why most successful landlords outsource the tougher, more time-consuming day-to-day parts of running investment properties to property managers,” says Pete Evering of San Diego’s Utopia Management. An experienced, well-staffed, resourceful property manager will more than justify the expense of hiring them, leaving you with more time and fewer headaches.

Mutual Funds

So you don’t want to deal with owning a rental property, and you don’t want to take risks by investing in the stock market. That’s understandable, and fortunately, there’s a convenient and legitimate in-between that will allow you to monetize your investment cash reliably and consistently. That’s the mutual fund. And don’t take our word about their reliability. The fact that most employer-sponsored retirement plans invest in mutual funds should say enough.

Mutual funds are pools of money invested by different parties and managed by one company, handled by someone called a money manager. Money managers can be lone wolves or work for larger firms. Mutual funds usually pay dividends annually, but some pay quarterly or even monthly, and many mutual funds will give even the most lucrative dividend stocks a run for their money.

Intellectual Property Royalties

So far, we’ve discussed three examples of financial investments, or ways you can take one sum of money and use it to seed passive income via entitlements. But what if you want to develop passive income without contributing seed money? That’s understandable. Maybe you don’t have the money to invest, but you have the time. And maybe you’re the creative type. In that case, you should probably think about monetizing your ideas.

If there’s one thing musicians, writers, and amateur programmers have in common, it’s that they often don’t even realize their ideas can make them money. That, or they’re too preoccupied with the numbers themselves, discouraged by the amount of money paid out by Spotify in return for one streaming play, the ad money you get from one podcast, or the amount paid by Amazon every time someone downloads their novela. It’s true, you can’t make money on your intellectual property like you used to, but you still can make money. Even if a bad programmer can publish their app to Google Play and skim royalties from downloads every month.

The key to making money from intellectual property is output. The more you release, the more you’ll take home in profit. One app may sell for a dollar and earn you pennies per download, and even one hundred downloads won’t amount to much, but thousands of downloads on ten apps? Now you’re in business. Eventually, you may be fortunate enough to land lucrative contracts and increased market attention that more than justify the time you’ve put in, leading you to even more profitable royalty structures.

Related Posts

Money-Management Tips if You're Newly Self-Employed
5 Money-Management Tips if You're Newly Self-Employed
Beginner-Friendly Ways to Create a Passive Income Stream
Beginner-Friendly Ways to Create a Passive Income Stream
Delaware Statutory Trusts1
Commentary: How Californians can utilize DSTs to avoid capital gains tax and diversify their portfolios
Options Trades
How OnlyOptionsTrades Opened the Stock Market to a New Demographic
streaming for money
How Streaming For Money Became a Useful Career Move
444
Is Virtual Financial the Future of Financial Services?
The Economics of Real Estate Brokerage
The Economics of Real Estate Brokerage
new-york-stock-exchange
The Importance of Diversification: Weathering a Market Downturn When Retired or Nearing Retirement
Financial Health
Three Major Strategies to Take Full Control of Your Financial Health
2 equity-investment
What Is Equity Investment and How Does It Work?
Tags: AmazonappapplicationcasecompanyconvenientcryptocryptocurrencyEstatefinancialhomeintellectual propertyinvestinginvestmentleavingmakingmanagerpassive incomeplansprogrammerpropertiesreal estaterentingretirementSanstock marketvalue
ADVERTISEMENT
Anna Rodriquez, California Business Journal

Anna Rodriquez, California Business Journal

Related Posts

Delaware Statutory Trusts1
Commentary: How Californians can utilize DSTs to avoid capital gains tax and diversify their portfolios
streaming for money
How Streaming For Money Became a Useful Career Move
Financial Health
Three Major Strategies to Take Full Control of Your Financial Health
Money-Management Tips if You're Newly Self-Employed
5 Money-Management Tips if You're Newly Self-Employed
Options Trades
How OnlyOptionsTrades Opened the Stock Market to a New Demographic
Beginner-Friendly Ways to Create a Passive Income Stream
Beginner-Friendly Ways to Create a Passive Income Stream
2 equity-investment
What Is Equity Investment and How Does It Work?
new-york-stock-exchange
The Importance of Diversification: Weathering a Market Downturn When Retired or Nearing Retirement
The Economics of Real Estate Brokerage
The Economics of Real Estate Brokerage
444
Is Virtual Financial the Future of Financial Services?
advertisement
1REALTOUR-SAN DIEGO-WEB DESIGN

Commercial Relationship Manager 3, Wells Fargo Bank, N.A., Los Angeles, California:

Represent the bank in developing and maintaining client relationships within middle market and mid-corporate banking.

Position requires a Bachelor’s degree in Business Administration, Finance, or related field and 3 years of experience. Requires up to 20% travel.

To apply, send resume to recruiter_inbox@wellsfargo.com and reference Requisition # 000329 in the subject line.

Facebook Twitter LinkedIn LinkedIn Instagram
C B J   LOGO  SVG-01
  • About
  • Contact California Business Journal
  • Testimonials
  • Demographics & Advertising Rates
  • Terms & Conditions

Categories

  • Art & Culture
  • Business
  • Daily Updates
  • Editor's Choice
  • Education
  • Featured
  • Finance
  • Food & Dining
  • Health & Fitness
  • Human Interest
  • Insurance
  • Law
  • Marketing
  • Medical
  • News
  • Newsletter
  • People
  • Popular
  • Real Estate
  • Social Media
  • Technology
  • Uncategorized

CBJ Partner Firebrand Media

Laguna Beach Independent Newspaper
 Laguna Beach City Guide
 Newport Beach Independent Newspaper
Newport Beach Country Club Magazine
  Montage Magazine
 Omni Escapes Hotel Magazine
 Bespoke Concierge New York
 Evans Hotels
 Laguna Beach Magazine
 On The Menu Laguna Beach
 Newport Beach Magazine
Coastal Real Estate Guide (NB,LB, CDM)
Monarch Beach Resort Magazine
 Pacific Coast Magazine (SoCal)
Sea Island Life Magazine
Salamander Hotel & Resorts Magazine
 View our entire portfolio

 

Most Viewed

  • Gavel, scales of justice and law books

    Lawsuit Basics: How Much Does It Cost to Sue Someone?

    0 shares
    Share 0 Tweet 0
  • The Impact of Covid: Racing to Buy Second Citizenships

    1 shares
    Share 0 Tweet 0
  • NFL Paychecks: How Do NFL Players Get Paid?

    0 shares
    Share 0 Tweet 0
  • What to Do When an Online Casino Refuses to Pay Out Your Winnings

    0 shares
    Share 0 Tweet 0
  • Five Reasons Why The Government Does Not Like Bitcoin

    0 shares
    Share 0 Tweet 0
  • New Study: California’s 10 Universities That Produce the Most CEOs

    0 shares
    Share 0 Tweet 0
  • How to Start a Telecommunication Business: A Step-By-Step Guide

    0 shares
    Share 0 Tweet 0
  • Best Crypto Faucets You Can Try In 2021 and 2022

    0 shares
    Share 0 Tweet 0
  • The Only Way

    0 shares
    Share 0 Tweet 0
  • Is Virtual Financial the Future of Financial Services?

    0 shares
    Share 0 Tweet 0

Latest Articles

Growing Cannabis in a Garden Shed

The Growth of Outdoor Grow Sheds for Cannabis

Law Library

What are the Pros and Cons of Being a Freelance Lawyer?

the many uses of silicone

When you think of silicone, what comes to mind?

Glass bong. Image by Weedmaps

Medicinal Marijuana Files: How to make a homemade bong using a glass and plastic bottle

Is It Worthwhile to Learn MongoDB?

Is It Worthwhile to Learn MongoDB?

How To Invest in Uranium Using Stocks and ETFs

How To Invest in Uranium Using Stocks and ETFs

The real estate market in Las Vegas and surrounding cities like Summerlin is scolding hot

News Report: Las Vegas Real Estate Has Appreciated by 235. 99% Over The Last Year

self-storage unit

How Does Self Storage Work?

revenue growth

Tips to Help Your Business Revenue Grow

construction-accident

3 Ways to Improve Safety Precautions on Your Construction Site

California Business Journal | California Business News, California News Media, California business articles | Orange County, Los Angeles, San Diego, Inland Empire, Northern California, San Francisco | Huntington Beach CA 92649 | (949) 648-3815
ALL RIGHTS RESERVED BY CALIFORNIA BUSINESS JOURNAL.
Site Design by 1REALTOUR

No Result
View All Result
  • Front Page
  • Business
  • Finance
  • People
  • Featured
  • Technology
  • Law
  • News
  • Food
  • Art & Culture
  • Human Interest
  • Education
  • Insurance
  • Real Estate
  • Health & Fitness

California Business Journal | California Business News, California News Media, California business articles | Orange County, Los Angeles, San Diego, Inland Empire, Northern California, San Francisco | Huntington Beach CA 92649 | (949) 648-3815
ALL RIGHTS RESERVED BY CALIFORNIA BUSINESS JOURNAL.
Site Design by 1REALTOUR