Investing today gives you the opportunity to increase your future net worth and to put your dollars to work. Leaving money in your bank or in a safe these days in counterproductive. One must consider diversifying into a variety of assets to create the ultimate diversified portfolio. Some places that people park their money in is a CD, ROTH IRA, 401k, mutual fund, index fund, or high yield savings account.
Diversification helps minimize risk because your exposure to any one type of asset is limited. My four favorite investments that generate income for me every month are dividend stocks, crypto, real estate, and YouTube (social media). In addition to that I have a ROTH IRA and 401k.
Dividend stocks are a great way to generate income monthly, quarterly, semi-anually, or annually. I prefer the monthly paying dividends. You can have the dividends reinvested into the same holding or spend it as you wish. Some use dividend payout to purchase other stocks, ETFs, or investments. Check out my video below as I discus some of my favorite monthly paying dividend funds.
What is crypto? Sometimes called crypto-currency or crypto, is any form of currency that exists digitally or virtually and uses cryptography. Cryptocurrency also plays a role in blockchain. I personally invest into this space a hedge against inflation. This space is going to be worth quadrillions of dollars in the future and the current value of the total market cap at this time is only at about 2 trillion dollars. I like to invest into projects that have use case or solve real world problems. Some of my favorite crypto currency exchanges to use to buy and sell crypto are: Coinbase, Uphold, Binance, Crypto.com, and Nexo.com.
Many of these exchanges now offer staking rewards on their platform which pays investors weekly or even daily like NEXO. This means you get to experience compound interest daily or weekly. I like to set it and forget it. You can also enable automatic recurring investing to allow your investments to be on autopilot. I think once there is regulatory clarity and framework established in this space it will cause the digital assets to go parabolic. Some of my favorite projects are BTC, ETH, VET, ALGO, XRP, XLM, MATIC, CRO, NEXO, etc. Some of my favorite meme coins are DOGE & SHIBA.
Real estate income can be created by flipping or rent a dwelling. I personally have rental properties and find that it is a great way to create monthly income from rents collected. It also allows one to build equity in the investment property and create a tax shelter. Property taxes, insurance, and interest paid are tax deductibles. Imagine buying a property and you are able to make a profit after the mortgage is paid off and once the property is completely paid for your profit margin will really dramatically increase. Another great way to add real estate indirectly to your portfolio is by investing into REITs such as ticker symbol: O, LTC, EPR, STAG, etc. These funds can easily yield you 4% – 6%+.
Social media is another great passive income stream. The best thing about Youtube and other social media platforms is that there is no major cost associated with it to get started except dedicating your time. I’ve been doing YouTube since 2012 and it is a great way to get paid to create content while helping others. Most platforms pay your for views because of their advertisements displayed the platform. One of my favorite video that I’ve done on YouTube is a video on pressure washing my house with a cheap electric pressure washer. Imagine creating a video and you generate sales because it continues to play 24/7. I know lots of people that make a nice living off YouTube, Tiktok, Twitch, Instagram. etc. You can also score partnership with awesome companies and even become an affiliate member.
There are so many other ways to invest to generate passive income. Please comment below on what your favorite investments are and why.
