3 Quick Examples Of Passive Income That Require A Smaller Upfront Investment

Finance & Money Blog

Maybe the salary you are bringing home with your regular work is just not enough to get you financially where you want to be, but you don't necessarily want to work more to make more money. These are the reasons people start their search for passive income options. Passive income is defined as income that is made without any real participation in whatever it is that is making you money. There are quite a few options to consider if this whole idea sounds attractive to you, but some options take a lot of upfront money to get you started. Here is a look at some of the passive income options that don't require a lot of money up front. 

Consider joining a peer lending platform. 

Peer-to-peer lending is a relatively new thing that involves everyday people borrowing money from other everyday individuals. You can get in on peer lending programs without a lot of money to put into a platform. One person may technically be getting a large lump sum of money as a loan, but the funding source can actually be multiple peer lenders. When the loan is paid off, you get your share of interest from that loan depending on how much you provided to start with. Over time, you can build a steady stream of payments from the interest being paid back from multiple loans you helped to make happen. 

Consider investing in a stock portfolio. 

Another investment option is a passive income stock portfolio. You can start building a stock portfolio with as little as a few hundred bucks to spare, and you can slowly build a good passive income stream over time. When stocks mature, dividends may be paid out so the more you have in your portfolio, of course, the more dividends you will reap. However, starting small with only a few stocks or stock portions is perfectly doable for most people, and it is easy to build up that portfolio over time. 

Consider investing in joint rental property. 

Joint rental properties are bought by multiple parties who then own an equal share of that property. When the property is rented, all investors get a share of the profits. For example, if you act as an investor with 10 other people and buy an apartment complex, you will get a tenth of the profits that property earns when rental payments are made every month. Initially, the profit will be used to cover what you paid for the investment, but eventually, the income will be pure profit. Believe it or not, it is possible to buy in on these properties even if you have very little money; some properties are divided amongst a large group of individuals. 


19 August 2019

Investing In The Right Home

When I started thinking about putting an end to my rental days and investing in a home, I realized that it was going to be a serious stretch from where I was at. I didn't know that much about paying for a house or working with a lender, and I was nervous about making the wrong decision. Fortunately, a friend of mine helped to walk me through the financial aspects of home ownership to get me on the right track. I was able to invest in the perfect house, and my investment paid off with generous returns over the next few years. Check out this blog to find out more about finance and money.