Do you know the slick way to gain financial independence?
I will give you 10 seconds to guess
ITS PASSIVE FRICKIN INCOME!!!
Here are 5 awesome ways to build your Passive Income
1. Peer to Peer Lending
Just like it sounds Peer to Peer lending is like being a bank. You and a whole bunch of other people provide small dollar loans ($20 – $200) to an individual or a business at a reasonable interest rate. Think of it as crowdfunding a loan.
There are three big advantage of Peer to Peer lending.
A. First it allows you to spread your risk. You can for example give out 10 loans at $20 a pop. If one goes bankrupt you only lose the $20 dollars and you still have $180 dollars still providing a return
B. There is a low barrier of entry. You only need minimum $200 to invest as opposed to $40,000 dollars that you need to buy a rental in Greater Vancouver
C. the high rate of return is another advantage. Depending on the risk of the loan you can earn anything between 8% – 19% in interest. Not bad for doing no work!
One great peer to peer lending website to check out in Canada is Lending Loop. For those who are American who are bit spoiled you got a lot of options so google it yourself
2. GET OUT OF FRICKIN DEBT
This is as easy as it sounds. Get out of debt! Pay off that high interest credit card (19% geez weez louise what were you thinking???) and reduce that student loan to smithereens.
One way to pay off that pesky credit card is to transfer the balance to a lower interest credit card or even line of credit that has a lower interest rate. This will save you a lot of interest.
(Buyers beware: LOC interest is calculated daily so you might end up paying interest even if you pay off your LOC but do not worry its like 8 dollars not 800 dollars)
3. Real Estate Crowdfunding
If you live in a city with expensive real estate (I live in Vancouver) investing in physical real estate can be difficult. That is where Real Estate Crowdfunding comes along. Like peer to peer lending you along with others can invest in an actual house by pooling together your hard earned dollars. Not only do you protect yourself from the risk of a housing bubble burst but you do not have to worry about pesky tenants, broken down appliances, and lousy stratas(that is if you live in a condo or townhome)
4. Open a High Interest Savings Account
This one is easy way to build a passive income slowly. Here are the five step you need to take advantage of this passive income stream
1. Go to EQ (2.3% interest rate where else can you find that?)
2. Open up a High Interest Savings Income
3. Set up automatic payment that equates 20% of your biweekly or monthly income 4. Forget that you even had a High Interest Savings Account
5. Enjoy the compound interest baby!!!
If you hate stocks and self directed investing like the Grinch hates Christmas then this one is for you. Robo Advisors are AI portfolio investment platforms that make it easy to invest and build up wealth with out even lifting a finger. Depending on your age, retirement goals and risk tolerance and for a low management fee the Robo Advisor will invest your hard earned cash into a mix of bonds, stock, cash, GICs, debt securities and many more!!! Two Robo Advisors to check out right now are Wealthbar and Wealthsimple. If this is not passive investing then I do not know what is