Financial Planners Reveal: Top 4 Passive Income Sources for Max Earnings
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- Financial advisors mentioned that property investment is a major generator of passive revenue for their customers.
- However, they also observe digital goods, blogs, podcasts, and YouTube channels earning income.
- Investing in dividends is a classic method to earn passive income that also proves effective for clients.
Generating passive income isn’t always as straightforward as it might seem—it requires initial effort and funds, with rewards not appearing instantly. However, according to financial advisors, this approach is feasible—and well worth the attempt.
To learn about various methods of generating passive income, Business Insider interviewed multiple individuals. financial advisors In 2021, who revealed their customers' primary sources of passive income?
Here's what they said.
1. Engaging in house hacking and property investment
Financial advisor and co-founder of Facet Wealth Brent Weiss mentioned that many of his clients have turned to real estate, particularly through house hacking, as a way to create passive income.
Renting out part of your property as you live in it, often referred to as house hacking, is an easy method for entering the realm of real estate investment.
When discussing passive income, 'the top topic everyone brings up is real estate,' according to Weiss. However, after talking with my clients about the requirements for investing in real estate, they often reassess their broader objectives.'
Oftentimes, investing in real estate may necessitate a larger initial deposit compared to purchasing your own residence, along with additional tasks related to tenant management.
By engaging in house hacking, you can minimize these inconveniences while simultaneously earning money. He mentioned, "Around half of my clients have started viewing real estate from a different perspective." He continued, "Now they find themselves covering only half of their mortgage expenses and adding extra income for their household."
2. Dividend investing
When you own certain stock shares, companies provide investors with a portion of their profits through periodic payments per share in cash form. Although this might not generate monthly earnings, dividends can indeed serve as a largely hands-off source of income.
"Definitely, dividend income represents a significant source of passive revenue for many of my clients," stated Akeiva Ellis, a financial advisor and the founder of. The Bemused She has observed this trend among her high-net-worth clients, but she mentioned that it’s becoming increasingly popular with her younger clientele as well.
“Certainly, people understand the appreciation and capital gains. However, picking firms that distribute consistent dividends to their shareholders adds another layer to your investment portfolio, allowing you to generate additional income,” she explained.
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3. YouTube channels, podcast shows, online sites, and applications
Alongside real estate and dividend investments, senior financial advisor Andrew Westlin specializes in Betterment noticed another pattern amongst his customers.
He told Business Insider that popular methods for earning passive income include podcasts, websites, applications, and YouTube channels that generate revenue through advertisements.
Although such forms of passive income might be less consistent and require more time compared to other strategies, they tend to be quite enjoyable.
He mentioned how amazing it has been to see clients, friends, and family members take the concepts they dedicate much of their time to and transform them into revenue streams.
4. Developing online merchandise for digital sales
Ellis mentioned that lately, she has noticed that digital goods are frequently used by her clientele as a means to generate passive income.
She mentioned that many individuals nowadays are launching new businesses focused on selling digital goods or informational products.
Typically, it involves items available for purchase online. As observed, individuals are developing digital goods. This could range from printables sold on the web, worksheets, guides, e-books, to online courses—products that one can establish initially with minimal ongoing upkeep required.
Not sure how to begin? Think about consulting a financial advisor.
Finding a financial advisor It doesn’t have to be complicated. With SmartAsset’s free tool, you can connect with up to three financially accountable advisors serving your locality within minutes. These advisors undergo scrutiny from SmartAsset and adhere to a fiduciary standard, ensuring they work in your best interest. Start your search now.
The initial publication of this article took place in June 2021.
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