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Tag: Passive Income

  • Getting Social Security checks and working at the same time? Here are the new rules you must know for 2026

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    Whether by choice or necessity, a growing number of American seniors are working well into their golden years. As of 2024, 23.4% of men and 16.2% of women over the age of 65 were still employed, according to the Bureau of Labor Statistics (BLS) (1).

    Many of these seniors are also collecting Social Security benefits while at work. According to the Center for Retirement Research at Boston College, roughly 40% of individuals work after claiming benefits, often for several years (2).

    The system allows beneficiaries to earn some employment income, but only up to a certain limit. Beyond these thresholds, benefits are clawed back and withheld. If you’re in this situation, understanding how the rules work and what the threshold is for income in 2026 could be a key part of your financial plans.

    Here’s what you need to know.

    Working while collecting benefits is permitted. However, income from your work could impact your benefits depending on your age and level of income.

    If you’re below Full Retirement Age (FRA), you can earn up to $24,480 in 2026 without impacting your benefits (3). This threshold is adjusted every year and is currently 1,080 higher than the previous year. For every $2 you earn above this threshold, the Social Security Administration (SSA) will withhold $1 in benefits.

    These earning restrictions are greatly relaxed in the calendar year you reach FRA. If you reach FRA in 2026, you can earn up to $65,160 — $3,000 more than the previous year — before your benefits are impacted. The withholding rate is also more generous for beneficiaries who reach FRA in 2026. The SSA will withhold only $1 for every $3 in earnings above this threshold.

    Once you reach FRA and beyond, the income limit no longer applies. You can earn any amount without impacting your benefits.

    Read More: Vanguard reveals what could be coming for U.S. stocks, and it’s raising alarm bells for retirees. Here’s why and how to protect yourself

    Retirees probably have multiple sources of income, and fortunately, the SSA doesn’t consider all forms of income for its earnings test. Simply put, only earned income is used for the test. That means any wages, salaries or bonuses you earn from your employer. If you’re self-employed, only net income is considered for the earnings test.

    Most forms of passive income, including other government benefits, investment earnings, interest, pensions, annuities and capital gains, are not included in the test.

    In other words, if you’re primarily relying on passive income and only working part-time or on a casual basis, you’re unlikely to hit the thresholds that trigger benefit withholdings.

    If you cross the threshold, it’s important to know that the amount withheld is not lost forever and could actually boost your benefits over the long-term.

    The SSA’s earnings test is designed to withhold, not eliminate, benefits in early retirement.

    Imagine you turn 62 in 2026 and start claiming benefits. You receive $1,200 a month from Social Security and earn $29,000 a year from part-time work. Because that income exceeds the annual earnings limit by $4,520, the agency withholds $2,260 — half of the amount over the threshold. In practical terms, that’s roughly two months of benefits.

    If the same pattern continues and you lose about two months of payments each year until you reach full retirement age at 67, the cumulative reduction would add up to roughly 10 months. At that point, Social Security adjusts your benefit as though you had filed 50 months early rather than 60. The difference is noticeable: filing five years early normally yields about 70% of your full benefit, while filing 50 months early lifts it to roughly 74.2%.

    Those additional working years can also push your benefit higher if they replace lower-earning years in your 35-year wage record. The program calculates benefits using an average of your highest years of earnings, so stronger income late in your career can lift that average — and your monthly check — for the rest of retirement.

    Nevertheless, losing some of your benefits for a few years could still impact your retirement plan and budget, so make sure you account for this earnings test before you retire, claim benefits or take a new job.

    We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

    U.S. Bureau of Labor Statistics (1); Center for Retirement Research at Boston College (2); Social Security Administration (3)

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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  • His Side Hustle Earns 6 Figures a Year: 1-2 Hours of Work a Day | Entrepreneur

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    This Side Hustle Spotlight Q&A features Dennis Tinerino, 39, of Los Angeles, California. Tinerino worked in online sales when he first learned about domain names and launching websites, which helped him discover domain investing as a side hustle. Here’s how he turned the gig into a lucrative business that brings in six figures a year — with about an hour or two of work per day. Responses have been edited for length and clarity.

    Image Credit: Courtesy of Domain Smoke. Dennis Tinerino.

    When did you start your side hustle, and where did you find the inspiration for it?
    I started my side hustle in 2014 after discovering that domain names are like real estate, only online. Realizing the right ones could keep growing in value was all the inspiration I needed to dive in. My interest first sparked when I was launching a new website and came across a domain name for sale. I had no idea what the cost might be, so I filled out the form on the seller’s website. A domain broker from Afternic replied, explaining that the name was for sale and would require a six-figure minimum offer. Unfortunately, this domain was out of my budget for this project, but thankfully, they were very helpful and explained why it was valued at that price, even suggesting other names that were closer to my budget at the time. That conversation grabbed my attention and pushed me to do a deep dive into the world of domains.

    Related: These 31-Year-Old Best Friends Started a Side Hustle to Solve a Workout Struggle — And It’s On Track to Hit $10 Million Annual Revenue This Year

    What were some of the first steps you took to get your side hustle off the ground? How much money/investment did it take to launch?
    When I started, I did not know anyone personally who was doing this, so I had to teach myself. I dove into blogs, read FAQ sections on marketplaces and learned everything I could about how domains are bought and sold. Like most new investors, my first stop was GoDaddy, where I began registering domains that sounded cool or interesting. Luckily, I kept my spending in check and only bought four domains for a total of $36. One of them, LawyerBoss.com, ended up selling for $700 on Afternic less than two months after I bought it for about $8. That sale was a turning point. It was exciting to see that I could learn the process, list a name and have someone actually buy it for their business. From that moment on, I was hooked and started looking for more ways to find new domains to invest in.

    If you could go back in your business journey and change one process or approach, what would it be, and how do you wish you’d done it differently?
    If I could hop in a time machine, I’d go straight back and immediately sign up for the Domain Academy course on day one. It covers everything about domains, with resources from A to Z, and there’s nothing else like it. I could have skipped months of trial and error, saved a few gray hairs and gotten in the game faster with a deeper understanding of domains and the industry as a whole. There are countless strategies in domain investing, but before you dive in, you need to understand how domains work, what end users are looking for and the different ways to approach them. Trust me, learning this early is a lot cheaper than buying cool names and hoping for the best.

    Related: I Interviewed 5 Entrepreneurs Generating Up to $20 Million in Revenue a Year — And They All Have the Same Regret About Starting Their Business

    When it comes to this specific business, what is something you’ve found particularly challenging and/or surprising that people who get into this type of work should be prepared for, but likely aren’t?
    The hardest part for newcomers is getting the right education. Too many jump in blind, skip the basics and end up spinning their wheels. It’s like trying to fix a car without ever popping the hood. Making uninformed investments is a quick way to waste time, burn cash and get frustrated fast. Another big surprise is how much upkeep a domain portfolio requires. This is not a buy it and forget it business. You have to watch your names, keep up with renewals, follow the market and be honest when it is time to let go of names that are no longer relevant or valuable.

    Can you recall a specific instance when something went very wrong? How did you fix it?
    In my early days, I started doing outbound marketing to create interest and generate sales for my domains. I was not thinking about trademarks at the time and reached out to companies that owned marks similar to my names. That mistake earned me a stack of legal threats and cease and desist letters. Thankfully, I was able to resolve each situation on good terms by finding common ground with the parties involved. It was a valuable lesson to always check for trademarks before investing or reaching out to buyers, and I am glad I learned it early. Avoiding legal battles is high on my priority list.

    How long did it take you to see consistent monthly revenue? How much did the side hustle earn?
    It wasn’t until my second to third year of domain investing that I began to see consistent monthly revenue come in. What I noticed is that after my first year, when I started to educate myself more, build up my domain portfolio with better quality domains and then began outbound marketing, my sales accelerated, and steady monthly revenue came in. In the first year, I earned a few thousand with my first initial sales. In the second year, it was in the lower five figures, and it kept ramping up from there as I invested more time and resources.

    Related: This Couple’s ‘Scrappy’ Side Hustle Sold Out in 1 Weekend — It Hit $1 Million in 3 Years and Now Makes Millions Annually: ‘Lean But Powerful’

    What does growth and revenue look like now?
    Back in 2014, the portfolio was just a handful of domains. Today, it has grown to roughly 8,000 to 10,000 names. There were stretches where I was buying one name a day, and some days I went on a spree and grabbed 20, using profits to keep scaling and building the portfolio. Each year, I have consistently added another 500 to 1,000 names, experimenting with different top-level domains (TLDs) and country code top-level domains (ccTLDs) when I spot a trend. The real growth has come from .com domains, which remain the most in-demand with end users. What started as a few thousand dollars a year has grown into a business generating steady six-figure revenue for the past five years. That growth comes from years of research, relentless market tracking, careful portfolio maintenance and making the right moves at the right time, even when they were tough.

    How much time do you spend working on your business on a daily, weekly or monthly basis?
    On a typical day, I spend one to two hours building and managing my portfolio. Over a week, that adds up to 15 to 20 hours, and by the end of the month, it’s usually 60 to 80 hours.

    How do you structure that time? What does a typical day or week of work look like for you?
    My time is split between portfolio management, searching for fresh inventory, outbound marketing and closing deals. Each week, I set aside blocks of time to review my portfolio, adjust prices and prepare names for marketing. Once you get past a few hundred domains, daily portfolio management becomes essential. It is easy to let small tasks slip through the cracks, and that is when mistakes happen. What has saved me the most time is staying organized. It sounds easier than it is, but creating workflows, keeping detailed spreadsheets and using the right tools will save you from falling behind on your daily tasks.

    Related: These Friends Started a Side Hustle in Their Kitchens. Sales Spiked to $130,000 in 3 Days — Then 7 Figures: ‘Revenue Has Grown Consistently.’

    What do you enjoy most about running this business?
    Domain investing can get a little lonely sometimes because you have to put in the hours to stay sharp and up to date. But the thing I have enjoyed the most is the investor community. We are very active on X, and I have met incredible people from all over the world who have helped me grow as an investor, taught me a ton and become lifelong friends.

    The freedom that comes with this business is unlike anything else. You can run it from anywhere in the world with minimal tech skills. You set the rules, choose your hours, decide your prices, pick where to sell your names and choose which names you want to buy.

    Over the years, as an investor, I found myself looking at tens of thousands of domains coming to auction or expiring every day. As great as many of those names were, I knew I could not buy them all, but I also did not want to see those opportunities go unnoticed by other investors. That got me thinking about how I could share this research and these findings with others. That is when I launched Domain Smoke, a daily newsletter sharing industry news, investment opportunities and the best domains hitting auction each day. Since its launch in 2019, it has grown to thousands of readers worldwide who read it every day.

    Based on your journey so far, what’s your best advice for someone who wants to get started with this kind of business?
    When I got started, there were a few things I would change if I could, and I hope my experience can help you find success in your own journey as a domain investor. If you are new to domain investing, here are three tips that can help you start on the right foot:

    1. Be patient with hand registrations
      This one is not easy, but you will thank me later. Try to hold back from registering new domains by hand until you have a proper understanding of domain investing. The easiest mistake beginners make is buying names that are not likely to sell. Many of them also have little or no appeal to end users. That costs both time and money you will not get back. Once you get past the learning phase, you will have plenty of time to acquire domains that actually fit your strategy. When you know what to invest in, you will be glad you waited.
    2. Invest in yourself early
      They say the more you learn, the more you earn, and that is definitely true with domains. Avoid rookie mistakes by investing in your education. One of the best places to start is the Domain Academy course from GoDaddy, which teaches the ins and outs of the business. Just like any other form of investing, there are many ways to make money, but the best way to improve your chances of success early on is to educate yourself.
    3. Keep learning and follow the data
      It is easy to get started, build up a bit of knowledge and then think you know it all. But markets evolve, trends shift, and change is constant. Stay up to date with domain blogs, industry news, eBooks, Domain Sherpa shows and forums like NamePros, which is full of free knowledge for beginners. Most importantly, follow the data. Study sales and trends using resources like NameBio, dotDB and DNJournal. These will help you understand what is actually selling, what is trending and why. That insight gives you a competitive edge and keeps you aligned with the market.

    Related: I’ve Interviewed Over 100 Entrepreneurs Who Started Businesses Worth $1 Million to $1 Billion or More. Here’s Some of Their Best Advice.

    Start small, stay consistent and give yourself time to learn. Every successful investor was once a beginner. The more you study and track sales data, the sharper your skills will become. And remember, the community side of this business matters too. The investors and connections you build can be just as valuable as the domains you own.

    Want to read more stories like this? Subscribe to Money Makers, our free newsletter packed with creative side hustle ideas and successful strategies. Sign up here.

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    Amanda Breen

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  • These Are the Top Side Hustles to Work Less, Make More Money | Entrepreneur

    These Are the Top Side Hustles to Work Less, Make More Money | Entrepreneur

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    In the best-case scenario, a side hustle could turn into a multimillion-dollar business that generates a passive income stream — but at the very least, starting a side gig could help pay some bills.

    A new survey from personal finance software company Quicken shows that almost half (43%) of Americans with a side hustle, or an extra source of income added to a primary income, make more money and clock in fewer hours overall than those without a side hustle.

    The three most popular side hustles pursued by those who work less and make more money were personal assistance (20%), cooking and baking (16%), and caregiving (16%). One in five people with side hustles said they were business owners, too, selling products online or offering services like photography.

    The majority of people with side hustles (82%) said starting a side gig helped them financially, and kept them from living paycheck to paycheck. Most with side hustles (57%) had savings equal to at least four months of living expenses.

    Related: Side Hustles Are Soaring as Entrepreneurs Start Businesses Working Part- or Full-Time Elsewhere, According to a New Report

    The survey also found that, for younger side hustlers, a way to an extra income doubles as a path to becoming more employable. 44% of Gen Z (born between 1997 and 2012) choose to start a side hustle in order to obtain skills for long-term careers, much higher than the overall 18% of Americans who started a side hustle with the same motivation.

    Quicken conducted the survey online, gathering responses from more than 1,000 Americans.

    Additional research on side hustles, released in August by NEXT Insurance, showed that three out of five people bring in less than $1,000 monthly in side income, while 22% make $1,000 to $10,000 a month, and 15% make more than $10,000.

    Related: Starting a Side Hustle Should Come With a Warning Label — Here’s What You Need to Know

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    Sherin Shibu

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  • All It Takes Is $2,500 Invested in Each of These 3 High-Yield Dow Dividend Stocks to Help Generate Over $300 in Passive Income Per Year

    All It Takes Is $2,500 Invested in Each of These 3 High-Yield Dow Dividend Stocks to Help Generate Over $300 in Passive Income Per Year

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    The Dow Jones Industrial Average (DJINDICES: ^DJI) has 30 industry-leading components that act as representatives of the U.S. economy. The index’s rich history has made it a go-to destination for investors looking for quality names that can help them generate dividend income.

    Over time, the composition of the Dow has changed to reflect the growing influence of technology on the economy, which has helped the Dow produce impressive gains in recent years. But even stodgy Dow names like Coca-Cola, Home Depot, and McDonald’s have been roaring higher in recent months and helped the index achieve a fresh all-time high on Oct. 11.

    Despite the Dow’s track record, not every component has a high yield or has been a trustworthy dividend stock. Boeing‘s slew of challenges pressured the company to suspend its dividend. Tech stocks like Microsoft, Apple, and Salesforce have yields under 1%, and Amazon doesn’t pay dividends.

    Johnson & Johnson (NYSE: JNJ), Dow (NYSE: DOW), and Chevron (NYSE: CVX) are three of the highest-yielding stocks in the index. Investing $2,500 into each stock produces an average yield of 4.2% and should generate at least $300 in passive income per year. Here’s why all three dividend stocks are worth buying now.

    A chemical plant at dusk.

    Image source: Getty Images.

    J&J has dealt with significant challenges over the last few years

    Johnson & Johnson (J&J) is a Dividend King with 62 consecutive years of dividend increases. The company has long been known as a stodgy passive-income powerhouse. But the last few years have been challenging, as reflected in its languishing stock price.

    J&J was a leader in COVID-19 vaccine developments, which was initially a boon for the company. But rapidly declining demand for the vaccine has been a drag on the company to the point where J&J now reports many of its results as “excluding the impact of the COVID-19 vaccine.”

    Another challenge has been adjusting to the spinoff of J&J’s consumer health business, which occurred in August 2023. Former J&J brands, such as Band-Aid and Tylenol, are now under the new entity Kenvue. The spinoff should help J&J be a faster-growing company by focusing on just two segments — Innovative Medicine and MedTech. However, it does remove some of the safe and stodgy parts of the business that made J&J a rock-solid dividend stock, no matter the economic cycle.

    Finally, J&J has been dealing with lawsuits that allege its talc-based products led to cancer development. J&J restructured and made a subsidiary called Red River Talc LLC, which filed for Chapter 11 bankruptcy on Sept. 20 to handle current and future claims.

    After a messy few years, J&J is finally ready to turn the corner. The business has been putting up solid results and growing at a rate that should support good, if not excellent, dividend raises going forward. J&J generates a ton of free cash flow that easily covers its dividend expense. And with a yield of 3.1%, J&J stands out compared to the S&P 500 dividend yield of just 1.2%.

    Dow is a coiled spring for economic growth

    Not to be confused with the “Dow” in the Dow Jones Industrial Average, Dow makes chemicals used in plastics, seals, foams, gels, adhesives, resins, coatings, and more. The commodity chemical company has three key segments — Packaging & Specialty Plastics, Industrial Intermediates & Infrastructure, and Performance Materials & Coatings.

    Dow’s business model is capital intensive and vulnerable to ebbs and flows in global demand and supply. Dow has been hit hard by volume declines and lower margins. In the following chart, you can see that revenue and margins surged in 2021 and early 2022 but have fallen considerably since then. Similarly, the stock price has gone practically nowhere since the spinoff.

    DOW ChartDOW Chart

    Dow has blamed macroeconomic factors as a key reason for its weak results. However, low interest rates could greatly benefit many of the company’s end markets. For example, lower mortgage interest rates could boost housing demand, which would help Dow’s polyurethanes and construction chemicals business. Lower interest rates could also boost demand for durable goods.

    Overall, Dow is well positioned to see a sizable uptick in earnings next year. Analyst consensus estimates call for just $2.26 in earnings per share (EPS) in 2024 but $3.55 in 2025 EPS. Although Dow looks expensive based on trailing earnings, it would have a far more reasonable valuation if it delivers on expectations.

    Despite the volatility of Dow’s performance, it has proven to be a reliable income stock spinning off from DowDuPont in 2019. Dow yields 5.2%, making it the second-highest yielding stock in the Dow Jones, behind only Verizon Communications. Dow hasn’t raised its payout since the spinoff, but it has incorporated stock repurchases as part of its capital return program. The company’s goal is to return 65% of earnings to shareholders through buybacks and dividends so it has enough dry powder to fund long-term investments in new production plans, low-carbon efforts, and more.

    Overall, Dow is a good value stock for income investors to consider now.

    A quality energy stock with a high yield

    Like Dow, Chevron can be a highly cyclical business whose results are heavily impacted by commodity prices. But Chevron has a strong balance sheet, a diversified upstream business that doesn’t depend on one production region, a massive refining business, and a track record for raising its dividend no matter what oil prices are doing.

    In fact, Chevron has paid and raised its dividend for 37 consecutive years. Chevron yields 4.3%, which is the third-highest yield in the Dow Jones. The company’s track record for dividend raises, paired with its high yield, makes it arguably the single best passive income play out of the 30 Dow components.

    Investors worried about declining oil prices can take solace in knowing that Chevron has a large margin for error in supporting its dividend. Chevron’s capital expenditures and buybacks are near five-year highs. If oil prices tank, Chevron can simply pause buybacks and pull back on capital expenditures. Chevron didn’t cut its dividend when oil prices crashed in 2020, so it stands to reason that it would take a prolonged downturn for the company even to consider reducing its payout.

    Chevron stands out as a balanced buy for investors looking for a safer way to invest in oil and gas and power their passive income stream.

    Should you invest $1,000 in Johnson & Johnson right now?

    Before you buy stock in Johnson & Johnson, consider this:

    The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Johnson & Johnson wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

    Consider when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $845,679!*

    Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.

    See the 10 stocks »

    *Stock Advisor returns as of October 14, 2024

    John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Daniel Foelber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Apple, Chevron, Home Depot, Kenvue, Microsoft, and Salesforce. The Motley Fool recommends Johnson & Johnson and Verizon Communications and recommends the following options: long January 2026 $13 calls on Kenvue, long January 2026 $395 calls on Microsoft, and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

    All It Takes Is $2,500 Invested in Each of These 3 High-Yield Dow Dividend Stocks to Help Generate Over $300 in Passive Income Per Year was originally published by The Motley Fool

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  • 1 Stock Yielding 8.6% vs. 1 Stock Yielding 5.2%: Which Is Better for Passive Income Investors?

    1 Stock Yielding 8.6% vs. 1 Stock Yielding 5.2%: Which Is Better for Passive Income Investors?

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    Many people are searching for investments that create passive income — assets that will distribute cash to them on a regular basis, hopefully in growing amounts over the years. You can achieve passive income from your stock market investments by buying shares of companies that pay dividends. The problem is, most stocks have fairly meager dividends today, or don’t pay them at all.

    Illustrating that point, the average dividend yield for the stocks in the broad-market S&P 500 index is only 1.35%. If you want more passive income than that, you might be better off buying short-term U.S. Treasuries or parking cash in a high-yield savings account. To build a passive income dividend portfolio, investors need to pick individual stocks with durable and high dividend yields.

    Two stocks with high dividend yields today are Altria Group (NYSE: MO) and Philip Morris International (NYSE: PM). Both are tobacco giants and, funnily enough, used to be parts of the same company back in the day. One stock yields 8.6%, while the other yields 5.2%. But which is a better passive income play now?

    Altria Group: High yield from legacy tobacco

    Altria Group owns Philip Morris USA, which is a leading tobacco/nicotine company in the United States. Tobacco stocks have been some of the market’s strongest performers over the last few decades due to how cash-generating the cigarette business is. The company has had to deal with declining sales volumes in the cigarette business, but it has counteracted the impact of that by steadily raising cigarette prices. Last quarter, Altria management estimated that industrywide, total estimated domestic cigarette industry volume fell by 9% year over year. But Altria’s revenues net of excise taxes only fell by 2.2% year over year.

    The combination of price hikes and volume declines has led to consistent earnings growth. Free cash flow per share has grown by 122% over the last 10 years. One driver of this has been Altria’s stock-buyback program, which helps juice free cash flow per share. The number of shares outstanding has fallen by 13.4% over the last 10 years, and the company has accelerated its repurchases in recent quarters.

    Free cash flow is what companies prefer to tap for dividend payments, and it has fueled the growth of Altria shareholders’ payouts. Currently, its annual dividend payment is $3.88 per share, well below its trailing free cash flow of $5.09 per share. That dividend yields an appetizing 8.6% at the current share price.

    MO Dividend Per Share (TTM) Chart

    MO Dividend Per Share (TTM) Chart

    Philip Morris International: Growth in new nicotine products

    The international part of the Philip Morris operation is owned — unsurprisingly — by Philip Morris International. The company sells cigarettes and tobacco products essentially everywhere but the United States. However, unlike Altria Group, Philip Morris is not experiencing huge volume declines in its cigarette business. Last quarter, its combustibles sales volume only shrank by 0.4% year over year.

    On top of this, Philip Morris International is the leader in new-technology nicotine products. It owns the top heat-not-burn tobacco brand, Iqos, which is growing like wildfire in Europe and Japan. In the United States, it has the Zyn nicotine pouch brand, which has grown volumes from essentially zero six years ago to 443 million cans over the last 12 months. These developments drove overall shipment volumes up 3.6% last quarter, and revenue rose by 11% due to price hikes.

    The company currently pays a dividend of $5.17 per share, which is only slightly below its free cash flow of $5.76 per share. That narrow gap is something that income investors should consider. At current share prices, the stock’s dividend yields about 5.2%.

    PM Dividend Per Share (TTM) ChartPM Dividend Per Share (TTM) Chart

    PM Dividend Per Share (TTM) Chart

    Which is the better dividend stock?

    Altria and Philip Morris International both have positives and negatives for income investors. Altria has a higher yield and more room to raise its dividend, based on its free cash flow numbers. However, it is facing faster volume declines in the United States market.

    Philip Morris International pays a smaller dividend and only has a little room to grow it based on its free cash flow. Despite this, I think Philip Morris International is the better stock to buy for dividend investors over the long term. Sales of new-technology nicotine products are growing quickly, and should start generating healthy amounts of cash flow for Philip Morris over the next few years. Cigarette consumption outside the United States is much more durable as well, which should allow it to achieve better revenue and earnings growth. This combination should lead to faster dividend growth for Philip Morris International over the long haul.

    Altria Group should do fine for investors for the next five to 10 years. But the better passive income bet that you can “set and forget” in your portfolio is Philip Morris International.

    Should you invest $1,000 in Altria Group right now?

    Before you buy stock in Altria Group, consider this:

    The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Altria Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

    Consider when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $671,728!*

    Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.

    See the 10 stocks »

    *Stock Advisor returns as of May 28, 2024

    Brett Schafer has no position in any of the stocks mentioned. The Motley Fool recommends Philip Morris International. The Motley Fool has a disclosure policy.

    1 Stock Yielding 8.6% vs. 1 Stock Yielding 5.2%: Which Is Better for Passive Income Investors? was originally published by The Motley Fool

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  • 2 No-Brainer High-Yield Dividend Stocks to Buy Right Now for Less Than $200

    2 No-Brainer High-Yield Dividend Stocks to Buy Right Now for Less Than $200

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    Investing in high-yield dividend stocks is an easy way to turn idle cash sitting in your portfolio into a lucrative income stream. High-quality income producers can provide you with a steadily rising stream of dividend income.

    Pipeline giants Enbridge (NYSE: ENB) and Enterprise Products Partners (NYSE: EPD) are no-brainers among high-yield dividend stocks. They have superior track records of increasing their already sizable payouts. With low share prices, they’re ideal for those with less than $200 to invest right now.

    Lots of fuel to grow its payout

    Canadian pipeline and utility operator Enbridge has a forward dividend yield approaching 7.5%. That implies you can earn nearly $7.50 of annual dividend income for every $100 invested in the energy infrastructure company. While U.S. investors are subject to a 15% withholding tax (unless held in an individual retirement account, or IRA), they’d likely pay dividend taxes anyway for companies owned in a regular brokerage account.

    Enbridge pays a very sustainable dividend. The company generates extremely durable cash flow (98% comes from stable cost-of-service agreements or long-term contracts) and pays out 60% to 70% of that steady income in dividends. It retains the rest to help fund expansion projects. Enbridge also has a strong balance sheet, with its leverage ratio well within its target range. That gives it additional financial flexibility to fund its growth.

    The company currently has a massive backlog of expansion projects under construction, primarily lower-carbon energy infrastructure, like gas pipelines and renewable energy projects. Enbridge also has additional investment capacity to make acquisitions. Those drivers help fuel its view that it can grow its cash flow per share by around 3% annually through 2026 before accelerating to 5% per year after that.

    That growing cash flow should give Enbridge the fuel to continue increasing its dividend. The company has raised its payout for 29 straight years, including by more than 3% late last year.

    A rock-solid income stream

    Master limited partnership (MLP) Enterprise Products Partners currently has a forward yield of more than 7%. As an MLP, its income is largely tax-deferred, making it an excellent way to generate passive income. However, there’s a caveat: MLPs send Schedule K-1 tax forms each year (often later in the filing season), which can complicate your taxes.

    The MLP’s sustainable and growing distribution payments can make those tax complications well worth it, though. Enterprise has increased its payout every year for a quarter century, including by more than 5% over the past year.

    Enterprise Products Partners generates very stable cash flow, with the bulk coming from assets backed by long-term contracts and government-regulated rate structures. The MLP currently produces enough cash to cover its high-yielding payout by a comfy 1.7 times. That enables it to retain some money to fund expansion projects. It also has a very strong balance sheet (it has the highest credit rating in the midstream sector), giving it even more financial flexibility to fund its continued expansion.

    The MLP has several billion dollars of expansion projects under construction, which should come online by the first half of 2026. It has several other projects under development as well, including a potentially needle-moving offshore oil export facility, giving it lots of visibility into future growth. The company also has the financial flexibility to opportunistically make acquisitions.

    With a strong financial profile and visible growth ahead, Enterprise Products Partners should be able to continue increasing its high-yielding distribution.

    High-quality, high-yielding dividend stocks

    Enbridge and Enterprise Products Partners have exceptional track records of increasing their dividend payments. With more growth likely, they’re no-brainer buys for those seeking to turn some idle cash into a lucrative and growing income stream.

    Should you invest $1,000 in Enbridge right now?

    Before you buy stock in Enbridge, consider this:

    The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Enbridge wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

    Consider when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $652,342!*

    Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.

    See the 10 stocks »

    *Stock Advisor returns as of May 13, 2024

    Matt DiLallo has positions in Enbridge and Enterprise Products Partners. The Motley Fool has positions in and recommends Enbridge. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy.

    2 No-Brainer High-Yield Dividend Stocks to Buy Right Now for Less Than $200 was originally published by The Motley Fool

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  • Earning Through Gaming – Top 5 Strategies for Making Money in 2024 – Southwest Journal

    Earning Through Gaming – Top 5 Strategies for Making Money in 2024 – Southwest Journal

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    The gaming market is huge these days, with a value exceeding the music and movie industries. Interestingly, eSports is now considered a real sport, with live tournaments. We will watch some popular games at the next Olympics.

    And while the main reason so many people are into video games is pure entertainment, you could turn it into income. This article explores the different ways how you can earn money by playing video games. 

    Streaming Platforms

    Digital Entertainment Platforms for Gaming

    This one makes it simple for anyone to start. You can create a page on YouTube, X, or Twitch. The best detail is that you can earn through different ways, such as:

    • Ad revenue
    • Donations
    • Paid sponsorships
    • Subscriptions

    Considering the wide range of games in different genres, you don’t need to worry about the audience. Besides the typical video games, we saw a rise in channels that stream online slots. This option is attractive because a lot of online casinos are interested in sponsoring a channel that will promote them.

    But before you start with this one, it is recommended to explore the games and learn more about their features. Using a demo version is the best way for that since you don’t have to spend real money. In that matter, check out free-slots-no-download.com.

    Share Tutorials and Insights

    Share Tips and WisdomShare Tips and Wisdom

    Even though this one is quite similar to the first model, the approach is different. You will need more than just showing your exceptional gaming skills. The goal here is to provide your followers with instructions and help on how they can become better in the same game.

    One of the best examples is Kripparrian. He has channels on YouTube and Twitch and a combined 2.5 million followers on these platforms. 

    So, his approach is quite simple. He is known as a Hearthstone player. Most of his videos are interesting combinations of tutorials but made in a fun way. You can watch him play and learn a lot about different combinations and strategies to use and rank higher in this game.

    You can do the same, just pick your favorite game, and determine a proper structure in which you will aim to inform others about winning strategies, updates, and other insights.

    Create a Blog

    This one may seem a bit old-school. Many people would rather choose the video, right? Well, not always. You can do a lot with a blog in this niche. For example, to share articles with instructions, information about the most recent changes, and more.

    The important part is that you must integrate multimedia in your posts, such as pictures, videos, and links to streams and other content. The whole point is that you don’t need to stick to only one model. 

    I mean, why would you only share a live stream, when you can do so much with additional tutorials on YouTube, and written format shared on your blog? That can significantly improve your channel, it’s called branding.

    Once you become a more recognizable face in the niche, you can expect a lot of people to be interested in paying you to sponsor them, share their platforms, and more. 

    For example, I already mentioned the streaming of slot games. Add a blog, and you will multiply the available income sources. However, starting a blog will require skills and experience, the essentials are:

    • To determine a niche
    • To write high-quality and engine content
    • To be unique

    Game Testing

    Testing GamesTesting Games

    It might seem less common. But most companies that are making video games will go through this process. So, they will hire a team of testers, and then consider their reviews and experience. 

    You can look for such opportunities on the official websites of companies. My tip – don’t just aim at those large names like Activision, Ubisoft, or Sony. Keep in mind that many smaller companies would need a tester even more, and might pay even more for testing. 

    You can find everything from indie games, and mobile games, to some more complex ones. Moreover, it could become an introduction to getting a job in some big company. The average salary for this position is over $30k annually.

    Tournaments

    I left this one to be the last for a reason. First of all, it is not as simple as it sounds. You can’t just go out there, become a member of a team, and start paying official tournaments. In most cases, it demands years of practice, dedication, and hundreds of hours spent while playing a particular video game. 

    The interesting fact is that the most popular tournaments are for the games that have been around for over 20 years, like Dota and Counter-Strike. But these players are on a whole new level. If you think that you are good enough, the first step is to find a team. And that can be challenging.

    The most important features of a good team are:

    • clear communication
    • proper strategy
    • preparation
    • ability to work together and resolve various challenges

    For example, if you are playing Dota 2. There are 124 heroes, each one with a unique abilities. Some may have a serious advantage over another one. For instance, a carry would easily deal with a support hero. However, that all changes in a 5vs5 game where the right strategy will prevail.

    The reason why I am so focused on Dota 2 is because it has the biggest tournaments at the moment. When we look at the top 10 list of highest-paid events, the first 7 places are Dota 2, 8th is Fortnite, and then we have Dota 2 again. The biggest prize pool is over $40 million, while all of those in the top 10 are over $15 million. 

    I also have to mention Player Unknown Battlegrounds, Arena of Valor, Overwatch, Call of Duty, and Rainbow Six Siege as the games known for high prize-pool tournaments, all exceeding $3 million.

    The Bottom Line

    As you can see, the models I mentioned provide a lot of flexibility, and you can easily adjust according to your skills and experience. 

    And for the first 4, the essential part is to focus on building a brand. That is the only way to retain followers and create a group of loyal ones. So, just pick your favorite game, and start sharing interesting content. 

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    Petar Senjo

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  • 5 Dividend Stocks Yielding Over 5% to Buy Now for a Potential Lifetime of Income

    5 Dividend Stocks Yielding Over 5% to Buy Now for a Potential Lifetime of Income

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    The S&P 500’s dividend yield is currently around 1.4%, which isn’t very attractive if you desire to collect passive income. However, many stocks offer much higher yields, with several presently paying dividends yielding 5% or more. Here are five stocks with payouts above that level that should generate income for their investors for years to come.

    Agree Realty

    Agree Realty (NYSE: ADC) yields 5.3% these days. Even better, the real estate investment trust (REIT) pays a monthly dividend. Those two characteristics make it great for those seeking to collect passive income.

    The REIT supports that dividend with a portfolio of income-producing retail properties. It focuses on owning properties net leased or ground leased to financially strong national and super-regional retailers resistant to disruption from e-commerce. It therefore collects very durable and stable rental income. It pays out about 75% of that income in dividends and uses the rest to help fund new acquisitions. Its steadily expanding portfolio has supplied it with the rising income to grow its dividend at a 6.1% annual rate over the last decade. With a strong balance sheet and long growth runway, Agree Realty should be able to continue increasing its dividend in the years ahead.

    Clearway Energy

    Clearway Energy (NYSE: CWEN)(NYSE: CWEN.A) offers a 7.7% dividend yield. The clean power producer backs that payout with very stable income generated by selling electricity to utilities and large corporate buyers under long-term contracts.

    The company expects to increase its already attractive payout by 5% to 8% annually over the long term, with growth likely toward the upper end through at least 2026. Clearway has already secured the funding and investments to deliver on that target. It sold its thermal assets in 2022, which gave it the cash to invest in several high-return renewable energy acquisitions. Those deals will close over the next few years as the projects enter commercial service. Meanwhile, Clearway should have ample power to continue growing its portfolio and payout in the future, given the country’s massive need for new renewable energy investment.

    Oneok

    Oneok’s (NYSE: OKE) dividend yields 5.9%. The pipeline giant supports that payout with steady cash flow backed by long-term, fee-based contracts. The company aims to increase that payout by 3% to 4% annually.

    Acquisitions and organic expansion projects will fuel that growth. Oneok closed its needle-moving acquisition of Magellan Midstream Partners last year, which will help fuel double-digit earnings growth this year. It has the financial flexibility to make more deals as compelling opportunities arise. On top of that, the company has several organic expansion projects under construction and in development to support the country’s growing oil and gas production. Those projects will grow its cash flow as they come online. While the country is slowly transitioning to lower carbon energy, it will need fossil fuels for decades, which should give Oneok plenty of fuel to continue paying dividends.

    Vici Properties

    Vici Properties (NYSE: VICI) pays a 5.7% yielding dividend. The REIT focuses on gaming and experiential properties net leased to high-quality operators. That allows it to collect very stable rental income to support that payout.

    The company has increased its dividend in all six years since its formation, including by 6.4% last September. Acquisitions are its main growth driver. It invested nearly $2 billion across various transactions last year, including its first international investments and several new experiential categories. It has continued to secure new investments this year, including funding the development of a Margaritaville Resort in Kansas City, which includes options to buy that resort and other experiential properties developed in the city by the operator. The company continues to extend its growth runway by expanding into new categories and developing new relationships with operators. Given its strong balance sheet and access to capital, Vici Properties should be able to continue expanding its portfolio and dividend for years to come.

    Verizon

    Verizon (NYSE: VZ) pays a 6.7% dividend yield. The telecom giant supports that payout with stable and recurring cash flows as customers pay their broadband and wireless bills.

    The company is a cash flow machine. It produces enough cash to invest in its network, pay a growing dividend, and strengthen its already solid balance sheet. The company’s investments in 5G should help increase its cash flow in the coming years. Meanwhile, cost-cutting efforts (Verizon aims to shave $2 billion to $3 billion in operating costs by 2025 while reducing capital expenses by over $5 billion from its peak) and debt reduction will enable it to produce even more free cash flow. That will allow Verizon to continue increasing its dividend, which the telecom company has done for 17 straight years. While Verizon won’t grow its payout at blazing speeds (it has averaged about 2% annually in recent years), its high-yielding dividend should continue to rise gradually.

    Growing income streams

    Agree Realty, Clearway Energy, Oneok, Vici Properties, and Verizon all pay dividends yielding more than 5%. Those companies should be able to sustain and grow their high-yielding dividends over the long haul. That makes them great stocks to buy for a potential lifetime of dividend income.

    Should you invest $1,000 in Agree Realty right now?

    Before you buy stock in Agree Realty, consider this:

    The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Agree Realty wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

    Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.

    See the 10 stocks

    *Stock Advisor returns as of March 21, 2024

    Matt DiLallo has positions in Clearway Energy, Verizon Communications, and Vici Properties. The Motley Fool has positions in and recommends Vici Properties. The Motley Fool recommends ONEOK and Verizon Communications. The Motley Fool has a disclosure policy.

    5 Dividend Stocks Yielding Over 5% to Buy Now for a Potential Lifetime of Income was originally published by The Motley Fool

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  • Want $750 in Annual Passive Income? Buy 90 Shares of This Super-Safe Dividend Stock

    Want $750 in Annual Passive Income? Buy 90 Shares of This Super-Safe Dividend Stock

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    Fool.com contributor Parkev Tatevosian suggests a way for passive income investors to capitalize on an excellent dividend stock.

    *Stock prices used were the afternoon prices of Jan. 10, 2024. The video was published on Jan. 12, 2024.

    Should you invest $1,000 in Home Depot right now?

    Before you buy stock in Home Depot, consider this:

    The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Home Depot wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

    Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.

    See the 10 stocks

     

    *Stock Advisor returns as of January 8, 2024

     

    Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Home Depot. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

    Want $750 in Annual Passive Income? Buy 90 Shares of This Super-Safe Dividend Stock was originally published by The Motley Fool

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  • 7 Internet Based Home Businesses to Start in 2024 | Entrepreneur

    7 Internet Based Home Businesses to Start in 2024 | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    It is no secret that many people are struggling to get through these current economic times, but with just a laptop, webcam, strong internet connection and some effort, you can earn some extra money working from home. Creating and owning an Internet home business is not new, but most people overlook that these types of businesses have no real overhead. You don’t have to have a fancy office or employees. Your desk or kitchen table and a strong internet connection are all that is needed.

    Related: 4 Super Simple Side Hustles That Could Replace Your Regular Wage — Fast

    1. Build a sales funnel website and landing page

    There are so many small to medium-sized businesses out there that don’t have sales funnel websites or landing pages. These websites capture customer information when they click on a company website or ad. They’re also used on social media ads to incentivize customers to enter their information, such as a coupon, discount code or free eBook.

    The customer and their information then get added to a company email list for future email blasts or email drip campaigns. The upside is that once you build a great sales funnel, it’s easy to duplicate for other clients. The key will be pitching it to business owners to purchase.

    Related: She Started a Furniture-Flipping Side Hustle to Pay Off a $10,000 Dental Bill. It Surpassed Her Full-Time Job’s Income Within a Year — Earning Up to $37,000 a Month.

    2. Monetize your social media accounts with video

    Social media platforms YouTube, Instagram and TikTok pay creators to create video content through Reels, Shorts and TikTok. Each platform is different, and the same goes for how to get accepted as a creator, but if you’re great with video and have a niche, you could be raking in the money.

    The narrower the topic, the better the audience will be. Example: Watching you describe and play video games versus watching you describe and play Dungeons and Dragons. The upside is you’ll have consistent income if you post every couple of days. The key will be creating enough content for viewers to consume and posting consistently.

    Related: He Started a Side Hustle in His Dorm Room With ‘a Bunch of Ingredients From Amazon and a Crockpot’ — Now It’s a $56 Million Brand in Walmarts Nationwide

    3. Monetize a podcast

    Having a podcast is nothing new. According to Exploding Topics, over three million podcasts are out there as of September 2023. After recording and publishing the podcast, the trick is to turn around and chop up the video to make Reels, Shorts and TikToks. The downside is you’ll need to record multiple podcast episodes to keep people returning for more. The key is interviewing popular people with a large following as guests.

    Related: His Side Hustle Solved a Common Problem for Homeowners. Now the Business Brings in $3 Million a Month During Peak Season.

    4. Retail and online arbitrage

    This one will take some overhead for the correct software, and you’ll need money to purchase the inventory of products to sell, but it’s easily a great way to earn some cash. Sites like Amazon FBA and eBay are where you sell the products. The downside is you’ll need to source the products to sell on the sites, which takes time. The key is investing in the correct software to ensure a big enough margin to make sense purchasing the item to sell.

    5. Create and monetize a popular local news Instagram page

    Most people’s attention is on Instagram, so why not create a business with it? It’s pretty simple: create a new Instagram channel and post local news from your town or city — news on car accidents, crime, sports, recent restaurant locations, events, etc. People will share and subscribe to your posts because it has local news and is not biased television news.

    Once you get enough subscribers, you can start charging local businesses to post on the page. You can monetize stories, reels and posts. The larger the subscriber base, the more you can charge. Don’t overdo it; no one likes ads or being sold to. Building your audience will take time. The key is to find and post unbiased local news worthy of someone stopping scrolling to view it.

    Related: He Launched His Creative Side Hustle Out of a Garage. Now It’s Worth $225 Million.

    6. Video editing

    Video is one of the most popular ways to communicate and market today, and it is used on multiple social media platforms to earn money. Many creators don’t have the time or just aren’t skilled at video editing. This is where you come in. Start direct messaging (DM-ing) influencers with published videos and offer video editing services.

    A great way to get their attention is by editing one of their current videos for free and sending it to them. If your video edits are great, you’ll get their business. The downside is video editing is time-consuming. The key is having multiple influencers that want your editing services so you no longer need to spend time directly messaging more influencers and can focus just on editing video.

    7. Create online courses

    Do you have knowledge or a skill that can be taught to others through video? It can be anything from selling luxury homes, onboarding new staff as a Human Resources (HR) Director, or baking an award-winning apple pie. People will purchase online courses if you can capture the audience’s attention and produce multiple videos in a series on the subject.

    These video courses can also be chopped up as teaser clips, reels, shorts and TikToks. The key is storyboarding and scripting the content beforehand for a seamless video series. The downside is that it will be a time-consuming project if you wish to publish a quality product.

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    Chris D. Bentley

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  • Anyone Can Start a Passive Income Side Hustle For Easy Money — But Only If You Know These 5 Essential Tips First. | Entrepreneur

    Anyone Can Start a Passive Income Side Hustle For Easy Money — But Only If You Know These 5 Essential Tips First. | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    A new year is a great time to turn over a new leaf and gain more control over your financial future. Those looking to supplement income and gain more control over their financial future may want to consider starting a passive income side hustle.

    A side hustle is any activity or business venture that allows individuals to pursue their passions and earn extra money outside of their primary job or career. A side hustle that generates passive income requires minimal effort or doesn’t require active participation at all. The rise of digital automation technology has made starting a passive income side hustle easier and more accessible than ever before.

    Passive income side hustles provide a variety of financial, personal and professional benefits. They can help people supplement income, pay off debts, put kids through college, save for vacations, establish a safety net and build generational wealth. Additionally, side hustles allow individuals to explore their passions while gaining valuable entrepreneurial experience and developing skills that can be beneficial to other areas of life and work. Here are five steps to help you start a passive income side hustle.

    Related: 3 Traits That Turn a Side Hustle Into Wealth

    1. Let your skills, talents and passions guide you

    Determining which passive income side hustle to pursue is the obvious first step, but it’s not necessarily as easy as you might imagine. Before pouring time, energy and money into a side hustle, think hard about what you like to do, what you’re good at and what people value. To maximize your chances of success, you must check all three boxes off before embarking on your journey.

    If you’re a great writer but hate writing, becoming a freelance writer may lead to procrastination, frustration and burnout. Alternatively, tweaking it into a more passive venture, such as maintaining a blog with ads and sponsorships, may be more sustainable. Similarly, suppose you are great at something and like doing it, but people do not value it. In that case, it may be a great hobby, but it won’t provide you with the supplemental income you’re looking for unless you can adapt the idea into something that people are willing to pay for. Conversely, you may love photography but lack the proper skills to produce quality and marketable results. However, if you’re ready to put effort into learning to become really good at taking photos, you can sell them to stock photography websites that can provide a source of passive income.

    Combining solid skills or natural talent with activities that bring you joy and fulfillment and add value to others is ideal for creating a successful side hustle. Possible ideas for side hustles that generate passive income include renting property, affiliate marketing, stock photography, YouTube automation, investing in dividend stocks or exchange-traded funds (EFTs), and creating an online course or ebook. The opportunities are endless.

    2. Conduct market research

    Once you’ve identified a suitable passive income side hustle, it’s important to research its market segment to understand its unique characteristics and gauge the demand for your products or services. Consider what similar businesses are offering and charging in that space and how you might be able to differentiate yourself. This will help confirm there is a viable market for your side hustle idea and ensure you realize what it will take to succeed.

    Conducting due diligence research will also ensure you know any laws, regulations, and taxes that may apply to your new venture. For instance, if you’re earning a more significant amount of income, be sure to read up on the IRS tax filing requirements or consult a tax professional for help and advice.

    Likewise, study up on local, state and federal laws that pertain to your industry to ensure your side hustle complies with any laws or regulations. Any side hustle may require forming a legally recognized business entity, and there are seven business structures to choose from. It’s essential to understand how they function, especially pertaining to tax implications and personal liability, in order to make an informed decision about which one is right for your side hustle. You may even want to consult an attorney and consider purchasing insurance for added protection.

    3. Consider time commitment and earning goals

    Balancing a full-time job and family obligations with any side hustle can be challenging, even one that is considered passive. Therefore, practice effective time management by creating schedules and allocating blocks of time to work on your side hustle. Keeping track of your schedule for a couple of months can help you identify patterns and determine when you can devote time to your side hustle and how much time you will be able to commit to it. Setting realistic goals and prioritizing important tasks is essential to make the most efficient use of your time.

    It’s also essential to think about your earning goals. If you don’t have a clear idea about how much money you’d like to make, consider why you’re starting a side hustle in the first place. If you’re looking for extra income to pay off student loans, for example, make a budget to determine how much extra money you’ll need to achieve that goal. Once you have a general idea of your financial goals, research the average amount of money you might make from your side hustle. Remember to compare earning potential to the amount of time you’re willing to commit to your new venture. That way, you can set realistic earning goals to start. Once you get into the swing of things, you can always adjust your earning goals.

    Related: The 8 Best Online Side Hustles of 2023

    4. Build a thorough (business) plan

    A side hustle is a business — and just like any other business, it requires a viable plan to be successful. Depending on the type of passive side hustle you choose, building a solid foundation for your venture will require developing a thorough plan, at the very least, or a formal business plan if you’re setting up a legal entity. To varying degrees, both plans should identify goals, set a pricing strategy, define target audiences, outline marketing strategies and capture financial projections. Putting your plan in writing will help you envision it holistically, develop it more fully, and discover any areas that may be weak or nonexistent.

    First, write an executive summary that articulates a clear vision and mission for the business and includes short and long-term goals, purpose and value propositions for the intended market(s). Next, provide detailed descriptions of the products or services to be offered, detailing specific features and benefits. It is essential to highlight any unique qualities that differentiate your business from its competitors and explain how your offering solves specific problems and fulfills specific needs. Finally, provide pricing, projected revenue, expenses and cash flows, as well as a breakdown of any required funding or investments.

    Once those basics of the business plan are well defined, you can begin building marketing personas. These are descriptions of the types of customers who may benefit from and be interested in your offerings and how you can find and appeal to these customers to build your business. Word of mouth may be effective at first, but you may eventually need to build a marketing plan to attract more customers. Leverage social media to create free business accounts and begin building a following. Ask your friends and family to support your business and help you spread the word.

    5. Start small, but plan big

    It’s admirable to have big dreams and shoot for the stars. Remember that accomplishing such goals can only be done with scalable operations. Constantly question how you are spending your time when working on your side hustle and look for ways to automate manual tasks. The first goal in starting a business is going from zero to one — getting the first customer that values and pays for your work. However, scaling from one to many more requires a non-linear relationship between your time and sales made.

    Whether your side hustle is real estate, YouTube automation, stock photography, or blogging, the right software and business operation can help you ensure that you are prepared to scale your side hustle without scaling your time commitment along with it. With thoughtful planning and effective time management, you can increase your chances of success as a side hustle entrepreneur.

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    Ryan Barone

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  • Warren Buffett Is Expected To Rake In Over $6 Billion In Dividends In The Next Year – Here Are His 3 Biggest Income-Producing Stocks

    Warren Buffett Is Expected To Rake In Over $6 Billion In Dividends In The Next Year – Here Are His 3 Biggest Income-Producing Stocks

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    Warren Buffett, the venerated investor and CEO of Berkshire Hathaway, is set to amass over $6 billion in dividend income in the coming year, with a significant portion of this windfall emanating from just three stocks. This substantial income stream underscores the effectiveness of Buffett’s investment strategy, one that favors profitability and long-term value.

    Top Dividend Earners in Buffett’s Portfolio

    Buffett’s predilection for dividend-bearing stocks isn’t just a matter of preference; it’s a testament to his investment acumen. Among his top dividend earners, Bank of America Corp (NYSE:BAC) stands out, with expected dividend earnings of approximately $991.5 million. A leading financial institution, BofA has thrived in the higher interest rate environment, seeing a substantial increase in its net-interest income.

    Don’t Miss:

    Occidental Petroleum Corp (NYSE:OXY) follows closely, with Berkshire poised to earn around $964.2 million, including dividends from preferred stock. This significant holding stems from Berkshire’s strategic move in 2019, where it invested $10 billion in Occidental preferred stock at an impressive 8% yield, to support Occidental’s acquisition of Anadarko.

    Apple Inc (NASDAQ:AAPL), known for its robust capital returns, is another major contributor to Buffett’s dividend income. The technology behemoth, with its consistent dividend payouts and aggressive stock buyback program, is expected to add approximately $878.9 million to Berkshire’s dividend coffers.

    Buffett’s investment in dividend stocks aligns with a broader market trend that favors consistent and growing payouts. A decade ago, JPMorgan Chase’s wealth-management division highlighted the outperformance of dividend payers over non-payers, with the former achieving annualized returns of 9.5% from 1972 to 2012, compared to just 1.6% for non-payers. This data supports Buffett’s approach, demonstrating the potential for stable and significant returns through dividend investing.

    Trending: Elon Musk has reportedly bought 6,000 acres of land just outside of Austin. Here’s how to invest in the city’s growth before he floods it with new tech workers.

    The Retail Investor’s Advantage Over Buffett

    While Buffett’s dividend strategy is lucrative, retail investors should approach with caution. Investing in the same stocks as Buffett does not guarantee similar success. Each investor’s financial situation is unique. What works for Berkshire may not align with the individual goals and risk tolerance of retail investors.

    There’s also an intriguing twist in the narrative: retail investors might have an edge over giant funds like Berkshire Hathaway in certain aspects of investing. This seeming paradox stems from the inherent limitations that come with managing a behemoth fund.

    Decades ago, Buffett remarked on his extraordinary returns in the 1950s, noting, “I killed the Dow. You ought to see the numbers. But I was investing peanuts back then. I think I could make you 50% a year on $1 million. No, I know I could. I guarantee it.” This statement underlines a critical point: smaller investment scales can maneuver and capitalize on opportunities that are off-limits to larger funds.

    The reality for Berkshire Hathaway, a company valued at hundreds of billions of dollars, is that investing in small-cap companies – often ripe for explosive growth – poses significant challenges. A modest investment in such a company, while potentially yielding high returns percentage-wise, would barely make a dent in Berkshire’s overall portfolio. Conversely, a substantial investment would necessitate Buffett becoming a “beneficial owner,” bringing regulatory complexities and constraints.

    This scenario is where retail investors can shine. They have the flexibility to invest in small-cap stocks or alternative investments, which, despite their volatility and risks, have greater potential to outperform larger companies over time. This flexibility is a potent advantage, allowing retail investors to tap into high-growth opportunities that are impractical for mammoth funds like Berkshire.

    While Buffett continues to accrue substantial dividends from major names, the chance at high-percentage gains in smaller ventures remains a retail investor’s playing field.

    Don’t Miss:

    “ACTIVE INVESTORS’ SECRET WEAPON” Supercharge Your Stock Market Game with the #1 “news & everything else” trading tool: Benzinga Pro – Click here to start Your 14-Day Trial Now!

    This article Warren Buffett Is Expected To Rake In Over $6 Billion In Dividends In The Next Year – Here Are His 3 Biggest Income-Producing Stocks originally appeared on Benzinga.com

    .

    © 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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  • Teacher Shares Her Six Figure Super Easy Side Hustle | Entrepreneur

    Teacher Shares Her Six Figure Super Easy Side Hustle | Entrepreneur

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    There are very few things you can create once and then sell thousands of times over. Most businesses aren’t a fish and loaves situation. But then, Lisa Fink is an evangelist of sorts. Only she’s not promising miracles.

    Six years after starting a fully remote side hustle — one she was dubious would make even a few hundred dollars — she’s made a million in revenue, and retired 20 years early from teaching middle school.

    Now, Fink teaches courses showing people how to follow in her footsteps. “I want others to feel the relief I felt when passive income began rolling in,” she says. “There’s absolutely enough room for everyone.” Here, she shares her key insights.

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    Frances Dodds

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  • 6 Ways to Make Passive Income Through Rental Properties | Entrepreneur

    6 Ways to Make Passive Income Through Rental Properties | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    One of the oldest and easiest ways to create passive income is through rental properties. Luckily for investors and entrepreneurs, the property rental market remains strong and continues to grow. Based on data from the U.S. Census Bureau, more than 35% of households in the U.S. rent homes. Additionally, RentCafe reported that multifamily construction in 2022 reached a 50-year high nationwide, and according to Axios, “one million rental units are slated for completion through 2025.”

    Additionally, a recent GoBankingRates survey revealed that 14% of Americans don’t believe they will ever be able to afford a home, and 27% have no interest in buying a home, contributing to the demand for rental housing options. This is due to a variety of factors, including a low inventory of homes for purchase, barriers to homeownership such as high prices and high-interest rates, and a growing nomadic workforce that doesn’t want to be tied down to one location.

    Although rents appear to be stabilizing, demand for rental properties is still high and on-time rental collection rates recently rose above pre-pandemic levels. That means now may be a good time to rent out property, which may be easier than you think.

    Here are six types of rental properties that can help you earn passive income and even begin building generational wealth.

    1. Traditional investment properties

    Traditional investment properties have long been a popular choice for those seeking to generate passive income through rentals. It’s a rather simple concept: purchase a property, find tenants to rent it out and collect monthly rental income. Investors have the opportunity to decide whether to invest in long-term, mid-term, or short-term (vacation) rentals.

    Long-term rentals offer stability in rental rates and cash flow with a reduced risk of vacancies, while vacation rentals and short-term stays allow for higher rental rates with a higher risk of vacancies. Vacation rentals are also less passive, requiring more work to clean and ready the property in between stays and find tenants on a much more frequent basis. But the returns on investment can be much higher.

    There’s also a “mid-term rental” investment option, where the lease lasts for more than one month but less than one year (college student housing would fit into this category). Mid-term rentals require a bigger time investment than long-term properties but aren’t as demanding as short-term rentals. Some investors may want to diversify their rental property portfolio by owning a mixture of long-term, mid-term, and short-term rental properties, while others may commit to whichever style best suits their preferences.

    2. The accidental rental

    Investing in a new property isn’t always necessary to become a rental property entrepreneur. There are instances where you may already own extra property, such as a vacation home, a newly inherited property or perhaps you recently got married and both you and your spouse own your own home. Instead of selling these extra properties, you may consider renting them out.

    Sometimes, it’s more beneficial to hold on to a property over the long term rather than collecting a quick payout. Retaining properties for rental purposes cannot only help you build more real estate equity, but it can bring in a significant amount of passive income as well (and you may benefit from tax savings, but consult a tax professional on that). Combining the extra income with long-term equity gains can contribute to building generational wealth.

    3. House hacking

    Another strategy that has gained traction in recent years is “house hacking.” House hacking involves renting out a portion of your own home. If you own or purchase a property that is bigger than your housing needs, and you’re looking for a way to earn some extra cash, rent out a room (or several rooms).

    House hacking allows you to significantly reduce or eliminate your own housing expenses by using the rental income from renting out extra rooms to help pay down your mortgage and/or offset utilities and other costs of homeownership. House hacking can be a great way to start building passive income without the need for a large initial investment.

    4. Built-for-rent

    A growing trend in real estate is the “built-for-rent” market. Built-for-rent homes are built by companies that specifically design their properties for rental purposes only. These properties are often strategically located in desirable areas, ensuring high demand and consistent occupancy rates, and are marketed to people looking to maximize their returns on investment in the real estate industry.

    Investing in built-for-rent properties has become one of the most lucrative ways to generate a steady stream of passive income. By purchasing residential properties specifically designed for rental purposes, you can benefit from a consistent monthly income with minimal involvement. Typically, the built-for-rent company handles all aspects of property management, including finding tenants, handling maintenance and repairs, and collecting rent. This enables you to sit back and enjoy your rental income without the stress and time commitment associated with traditional real estate investments.

    5. Mixed-use properties

    A mixed-use property is a real estate asset that combines both commercial and residential spaces. This provides a unique opportunity to rent out both residential and commercial units. Leveraging the potential of these properties can lead to a sustainable and reliable passive income source, but there are several strategies to consider.

    One effective strategy for generating passive income through mixed-use properties is maximizing rental yields. This can be achieved by strategically curating a mix of commercial and residential tenants that complement each other. For example, having a retail shop on the ground floor of a residential building can attract more tenants and increase rental demand.

    Another strategy is to focus on choosing the right location for your mixed-use property by conducting thorough market research to identify the most profitable locations. For example, investing in areas with strong growth potential, high foot traffic, and a good mix of commercial and residential demand can increase the value and attractiveness of your property.

    In addition, look for other shared space opportunities like coworking spaces that provide short-term or flexible rental options that cater to the evolving and increasingly nomadic habits of modern workers. By taking an innovative approach to offering mixed-use rental spaces, you can tap into a variety of rental markets and maximize their passive income potential.

    6. Storage units

    When you think of rental properties, storage units usually don’t come to mind. However, renting out storage space can also generate passive income streams. There is a high demand for storage space, and fulfilling this need can help you earn money effortlessly by maximizing unused space. In addition to renting out traditional storage units, people can also rent out space in garages, basements, attics, and spare rooms. By getting creative and marketing effectively, you can effectively turn your empty spaces into profitable assets.

    Regardless of what kind of property you decide to rent out, technological advancements have streamlined property management, making it a more efficient and attractive endeavor. Property management tools and software automate many routine, time-consuming tasks such as listings, tenant screening, rent collection, and maintenance requests. This means you can spend less time on administrative duties and focus more on more important life activities, all while maximizing your passive income.

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    Ryan Barone

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  • How This Seller Makes $12,000 a Month of Passive Income on Etsy | Entrepreneur

    How This Seller Makes $12,000 a Month of Passive Income on Etsy | Entrepreneur

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    When Christina Umerez first began drawing pet portraits, she had no idea it would replace her day job and give her the freedom to work just six hours a week.

    But that’s precisely what happened. Christina opened up a profitable Etsy shop through hard work and effective strategy, using a combo of print-on-demand, audience targeting, and specific market research.

    Today, Christina’s shop generates passive income, requiring her to work only a few hours weekly for business maintenance and fresh designs.

    She recently chatted with Pat Flynn on the Smart Passive Income podcast to share how she made it possible.

    A pet passion project

    Umerez had extra time on her hands when quarantine began, so she started researching side hustles to generate additional income while exploring a new creative outlet. This led to painting pet portraits for her friends. Eventually, the response was so positive that Umerez began selling custom prints on Etsy, the online shop for creative artists.

    During the holiday season, Umerez had so many orders that she was overwhelmed and struggled to meet the escalating demand. She knew if she wanted to keep her new business afloat, she needed to pivot.

    The print-on-demand solution

    Umerez did her research and discovered print-on-demand, the process of outsourcing the printing and shipping of products through an external supplier.

    She started implementing this system with her Etsy shop, allowing customers to print custom pet portraits on different products. Umerez immediately saw an increase in profits but still received more orders than she could fulfill. Then, she had an idea that changed everything.

    Umerez eliminated the customization and started premaking generic designs (outside of pet portraits) for her customers. She would then send them to her supplier to have them printed and shipped for her, significantly reducing her workload while she continued to generate revenue.

    “I remember just sitting there, and I was like, wait, I don’t have to do anything,” she says. “I got an order, and there’s just nothing I have to do. You just have to pay your supplier, but there’s no work.”

    Leaving her day job

    By switching to print-on-demand and identifying her niche audience, Umerez watched her revenue rise from a consistent $300 to an impressive $12,000 per month. She decided to leave her day job, embracing the freedom and potential her pet portrait shop made possible.

    Mastering Etsy

    Here’s what Umerez learned about building her business on Etsy.

    1. Find your niche. Umerez’s Etsy sales skyrocketed once she discovered her niche market with limited competition and a dedicated, passionate following. She initially tried marketing to ten to 20 different audiences to find the perfect fit. Once Christina pinpointed where she’d have the most success, she expanded into various sub-niches. This led to customers purchasing multiple related products, further increasing her revenue.

    2. Pick the right supplier. The first step in establishing a print-on-demand business is finding a supplier to print and ship the products. Several different suppliers are available, including Printful, Teespring, and Apliiq. To ensure the smooth operation of her business, Umerez utilizes Printify as her print-on-demand supplier.

    To streamline the process, Printify is linked directly to her Etsy store. When an order is placed, they handle creating and shipping the product. Umerez only has to step in when a customer complaint arises. Even then, Printify promptly issues a reprint or a refund so that Christina is not left financially responsible for any complications.

    3. Stay ahead of the curve. To get inspired, Umerez spends time researching other best sellers on Etsy. She looks into what makes a good design, including exploring different fonts and colors that she can apply to her designs. She even utilizes ChatGPT to generate engaging content and witty sayings that she can incorporate into her designs.

    Umerez also notes the importance of standing out by curating a high-quality listing: an enticing photo and a compelling and relevant title.

    “What do you think someone is going to type in the search bar? And that if your product came up first, they would be like, yes, this is exactly what I was looking for,” she says.

    4. Utilize Etsy-specific analytics and pricing strategies. Umerez optimizes her business through data analysis and strategic pricing. Her recommended approach is to include the cost of shipping in pricing—that way, potential customers aren’t discouraged by unexpected expenses.

    Umerez also takes advantage of Etsy’s advertising to determine the performance of new designs. Analyzing the featured picture, product type, and design of a successful listing can provide valuable insights.

    Financial freedom

    Generating nearly $100,000 in profit in 2022, Umerez’s store is now almost entirely passive, only requiring about one hour daily to manage the business and create fresh designs.

    Her journey from a pet portrait side hustle to a thriving Etsy shop has given her the financial freedom and flexibility to pursue her passion for travel and other life goals. Her current focus is guiding others to replicate her success and achieve financial freedom.

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    Smart Passive Income

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  • Passive Income 101: A Beginner’s Guide to Building Wealth on Autopilot | Entrepreneur

    Passive Income 101: A Beginner’s Guide to Building Wealth on Autopilot | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    In the realm of financial stability and freedom, passive income reigns supreme as a powerful tool for beginners seeking to build wealth effortlessly.

    By understanding the nuances of passive income and its vast potential, budding entrepreneurs can pave their way toward financial independence. This comprehensive guide aims to decode the world of passive income and equip you with the knowledge and strategies necessary to embark on a wealth creation journey on autopilot.

    Understanding passive income

    Passive income refers to earnings generated with minimal effort and ongoing involvement once the initial setup is complete. It is a powerful wealth-building tool that allows individuals to earn money on autopilot, providing financial stability and freedom.

    Understanding the key characteristics of passive income is crucial for aspiring entrepreneurs looking to establish sustainable income streams.

    The following key attributes characterize passive income:

    • Limited active participation: Passive income streams require less active involvement than traditional income forms. While some initial effort is necessary to set up the income stream, the ongoing maintenance is minimal, freeing up time for other pursuits.
    • Continuous cash flow: Passive income generates regular and consistent cash flow, allowing individuals to earn money even when they are not actively working. This steady income stream helps build financial resilience and provides security.
    • Scalability and leverage: Passive income has the potential for scalability, meaning that the income stream can grow over time. Moreover, it allows individuals to leverage their resources, skills or assets to multiply their earnings without significant additional effort.

    Now let’s discuss the various ways that you can attain passive income.

    Related: 10 Proven Passive Income Ideas for 2023

    Real estate investing

    Real estate investment, particularly rental properties, has long been recognized as a viable avenue for generating passive income. Understanding the benefits, risks and considerations associated with rental properties is crucial for beginners looking to embark on their real estate investment journey.

    REIT investment

    Invest in a real estate investment trust (REIT) traded on the stock exchange, such as VNQ for U.S. properties or VNQI for international properties.

    With this approach, you can earn an average of 8% annually, with 4% coming from dividends and 4% from annual growth. These returns are comparable to those of the S&P 500.

    Pros

    • Worry-free investments.
    • Diversification.
    • No additional capital calls.
    • Market downturn resilience.
    • Liquidity.
    • High dividends.
    • Simplified taxes.

    Cons

    • Lower returns.
    • Tax implications.

    Fund or syndication investment

    Invest in a fund or syndication that pools money from multiple investors to invest in one property or a portfolio of properties.

    The expected annual returns can range from 8% to 25%, but a thorough evaluation of such investments is crucial.

    Pros

    • Higher returns.
    • Trustworthy partnerships.
    • Tax savings.

    Cons

    • The illusion of exclusivity.
    • Market volatility.
    • Trusting the investment.
    • Managing K-1 forms.

    Related: 17 Passive Income Ideas to Increase Your Cash Flow in 2023

    Online investment fund

    Crowdfunding platforms such as FundRise (residential) or Cadre (commercial) allow investors to own a small portion of a diversified portfolio, typically yielding 10-12% annual returns.

    Pros

    • Professionalism and experience.
    • Transparency and reporting.
    • Ease of liquidity.

    Cons

    • Low liquidity.
    • No tax benefits.
    • Medium-level returns.

    Peer-to-Peer lending and crowdfunding

    Peer-to-peer (P2P) lending and crowdfunding platforms have emerged as alternative passive income sources.

    P2P lending involves lending money to individuals or businesses through online platforms, bypassing traditional financial institutions.

    Crowdfunding platforms, on the other hand, allow individuals to invest in various projects or businesses by pooling their resources with others. These platforms provide opportunities for investors to earn returns on their investments while borrowers or project owners gain access to funding.

    Pros

    • Accessibility.
    • Potentially high returns.
    • Diversification.
    • Direct connection.
    • Transparency.

    Cons

    • Risk of default.
    • Lack of regulation.
    • Illiquidity.
    • Platform risk.

    Related: 7 Ways to Earn Passive Income From Work You Have Already Done

    Affiliate marketing and niche websites

    Affiliate marketing involves promoting products or services on behalf of a merchant and earning a commission for each successful referral or sale.

    Niche websites, on the other hand, focus on a specific topic or target audience and provide valuable content or resources related to that niche. Affiliate marketing and niche websites can work hand in hand, offering a pathway to passive income.

    Pros

    • Low startup costs.
    • Flexibility.
    • Passive income potential.
    • Scalability.

    Cons

    Creating and selling digital products

    Creating and selling digital products has gained significant popularity in generating passive income.

    Digital products include e-books, online courses, software, templates, graphic designs and music.

    These products can be created once and sold repeatedly, allowing entrepreneurs to earn passive income from their expertise or creative endeavors.

    Benefits

    • Low production costs.
    • Scalability.
    • Automation.
    • Global reach.

    Once you begin your journey, you will undoubtedly face some challenges, and learning how to overcome them is very important. Let’s discuss this in the next section.

    Overcoming challenges and pitfalls

    When pursuing passive income, beginners often encounter common obstacles that can hinder their progress. Some of these challenges include:

    • Lack of knowledge: Insufficient understanding of the chosen passive income stream or investment vehicle can lead to poor decision-making and suboptimal results.
    • Financial constraints: Limited initial capital or resources may restrict the ability to invest in certain passive income opportunities or delay progress in wealth-building endeavors.
    • Fear of failure: Fear and uncertainty can discourage beginners from taking necessary risks or exploring new ventures, limiting their potential for success.
    • Time management: Balancing passive income pursuits with existing commitments or responsibilities can be a challenge, requiring effective time management and prioritization.

    Related: There’s No Better Time to Start a Passive Income Business Than Now

    To mitigate these risks and minimize failures in the pursuit of passive income, consider the following strategies:

    • Education and research: Invest time in learning and understanding the chosen passive income streams or investment options. Stay informed about industry trends, best practices and regulatory requirements.
    • Risk management: Conduct thorough due diligence and risk assessments before investing. Diversify your portfolio to spread risk and avoid overreliance on a single income stream.
    • Financial planning and budgeting: Develop a comprehensive financial plan and budget to manage resources effectively and allocate funds towards passive income endeavors.
    • Start small and scale: Begin with smaller investments or ventures to gain experience and confidence. As you become more comfortable and knowledgeable, gradually increase your involvement and scale your passive income activities.
    • Seek professional advice: Consult with financial advisors, mentors or experts in the specific passive income field for guidance and support. Their insights can help you make informed decisions and navigate potential pitfalls.

    Passive income holds immense potential for beginners seeking to build wealth on autopilot.

    By understanding the various passive income streams and implementing the strategies discussed in this guide, you can take steps toward financial independence and stability.

    Remember that building wealth on autopilot is a marathon, not a sprint, and every step you take brings you closer to achieving your financial goals.

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    David Bitton

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  • How to Diversify Income Streams for Long-Term Financial Growth | Entrepreneur

    How to Diversify Income Streams for Long-Term Financial Growth | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    The financial landscape is fickle. The age-old adage “Don’t put all your eggs in one basket” has taken on renewed significance, driving individuals and businesses alike to explore the strategy of diversifying income streams as a potent means to achieve lasting financial prosperity.

    For entrepreneurs, diversifying streams of income is crucial. Doing so enhances financial stability, mitigates risks and unlocks the potential for sustained growth. Relying solely on a single source of revenue exposes entrepreneurs to significant vulnerabilities — market fluctuations, changing consumer preferences and unexpected disruptions can all jeopardize your business’s viability. By diversifying income streams, you can reduce their reliance on any one source, spreading risk and ensuring a steadier cash flow even in uncertain times.

    Moreover, this approach fosters adaptability and innovation as you explore new avenues, products or services, potentially tapping into previously untapped markets. With numerous streams of income, entrepreneurs not only fortify their financial foundation but also create a dynamic ecosystem that positions them for resilience and prosperity in the long run.

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    Jonathan Herrick

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  • 10 Proven Passive Income Ideas for 2023 | Entrepreneur

    10 Proven Passive Income Ideas for 2023 | Entrepreneur

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    There are many ways to generate passive income and change your financial future. Whether you want to earn just an extra $1000 per month on the side or go into something full-time and replace your current salary, different passive income ideas require different work and time.

    Upfront work is required, so don’t expect to get rich overnight, but with a plan in place and the right kind of motivation, you can see success much sooner than you think.

    1. Start an Online Business

    Starting an online business is the best way to generate revenue on autopilot.

    Why?

    1. You don’t need a ton of cash upfront.
    2. You have a lot of room to make mistakes, and
    3. It’s one of the most fulfilling life adventures you could ever be on.

    I started my first online business in 2008 after being laid off from an architecture job I loved. My website helped architects pass a difficult exam, and people paid me for study material I created to help them prepare.

    How much money did this business make?

    In one year, I generated over $200,000, more than double what I earned as an architect.

    2. Affiliate Marketing

    Affiliate marketing allows you to generate passive income simply by recommending existing products to other people. If you’ve ever recommended something to a friend, you know how to do affiliate marketing already.

    Affiliate marketing has been my most significant single source of revenue, bringing in over $4 million since 2009.

    So, how does affiliate marketing work, exactly?

    With affiliate marketing, you recommend other people or company’s products and services to your following. You can talk about it on YouTube, a website, in an email, or even just with your social following. And, when someone purchases from your recommendation, you’ll receive a commission from the sale.

    One of the most popular and accessible ways to get started is through the Amazon Affiliate Program. People already know and trust shopping from Amazon, and you’ll have a massive range of products to select from.

    Just be sure only to choose products that you can stand behind, and that will serve your audience well, and be sure to always be upfront that a link you promote is an affiliate link.

    To be successful with this, you’ll need to put time into building an audience who trusts that you’ll always steer them in the right direction and then follow through on that.

    Related: 12 Myths and Misconceptions of Affiliate Marketing

    3. Start a YouTube Channel

    Starting a YouTube channel is an excellent option for making passive income online; it’s free to get started, and if you create videos that people want to watch, you can generate revenue from ads, sponsorships, and even promoting your products.

    Recently, I started a new YouTube channel all about Pokemon cards called Deep Pocket Monster. In two years, this new channel has grown to over 500,000 subscribers, and it generates revenue from ads, sponsorships, and even affiliate marketing by promoting card shops and binders on my videos.

    4. Open a Paid Membership Business

    Like signing up for a gym membership, people join online memberships and pay recurring fees for the sense of community and value it brings them. In fact, we have a couple ourselves:

    • Our SPI All-Access Pass is a community of up-and-coming entrepreneurs who get access to all of our courses, workshops, community events, and even guides to help them through the material.
    • SPI PRO is our higher-level community of established business owners who want to network, connect, and share ideas with growth in mind. We require an application to get into this paid community.

    Both of our communities require a recurring payment (quarterly or annual), but people are happy to continue to pay that because they’re getting more value in return.

    With a membership business, you may need a platform to host your community. Circle is our top choice because it’s easy to use and familiar to users who join. This is our affiliate link for Circle in case you’d like to check it out and give it a run!

    5. Make Print-on-Demand Designs

    If you have a keen eye for design and current trends and know how to use design software, selling print-on-demand designs could be a great option to create passive income.

    With print-on-demand, you don’t have to buy any inventory ahead of time, so it’s a low-risk business model.

    You’ll work with a print provider, like Printful or Teespring, to sell merch (t-shirts, mugs, bags, etc.) customized with your designs and sold per order.

    When someone buys one of your designs, the print provider fulfills, prints, and ships the order on your behalf.

    The trickiest part is making unique, high-quality designs that inspire your people to purchase them.

    6. Offer Software as a Service (SaaS) Business

    Another potentially lucrative option for passive income is to create an app or software that you can offer as a subscription service—also called software as a service (SaaS).

    To do something like this requires coding knowledge or the funds to hire someone who knows how to code, but there are many resources available to find people who can do that kind of work for you, like Upwork.

    Remember that this is one of the more time-consuming options; it will take a good chunk of time to plan and get things up and running.

    Also, you will have to create and offer a truly valuable solution—and market your solution effectively—to make passive income with this, which isn’t exactly easy.

    This is a challenging route., but it can be rewarding.

    Related: How to Successfully Launch a Product in Under 90 Days

    7. Create an Online Course

    Everyone has a skill they can teach, so why not monetize yours AND help others by creating an online course?

    Making an online course isn’t too difficult either, but it will take a lot of time and effort to ensure it’s useful. We host our online courses on both Teachable and Circle, and it’s an amazing way to package information into a place where people can experience a transformation or solve a problem.

    Once you’ve created the content and have everything set up, it can be an incredibly profitable source of passive income.

    There are several platforms, like Udemy or Skillshare, that you can choose from to host your course and facilitate getting your course paid viewers.

    However, I always recommend using your website to give you greater control and true ownership.

    8. Create No-Code Apps

    Did you know you can reap the benefits of creating an app without knowing how to code? Apart from hiring an expensive developer, that is.

    Yep, you can control the process and create an app through development platforms like Zapier, Appy Pie, or Bubble.

    There are a lot of apps out there, so to be successful with this, you’ll need to search and identify a need and fill that need with your app.

    If you set your objectives ahead of time and know exactly which problem you’re trying to solve—and who you’re solving it for—you’ll already be a step ahead of the competition.

    With this, you can earn high passive income through downloads, subscriptions, ads, etc.—depending on how you model it.

    9. Publish an eBook

    Selling eBooks online is a very accessible method of making passive income.

    The idea of creating a whole digital “book” might still sound intimidating to you, but I promise it’s actually simple to do.

    Your book’s content can be informative or entertaining, and it can be as short and simple as a 5-page PDF.

    You don’t have to be a pro writer or even an expert on your eBook’s topic. Just be sure to provide high-quality, well-designed content that resonates with your audience.

    You can even hire a freelance ghostwriter and graphic designer to help you out.

    All you have to do is self-publish it to Amazon or Apple Books and promote it to your audience.

    Writing an eBook gives you a vehicle to benefit your existing audience with helpful information, further strengthening your relationship with them.

    It’s also a great tool to augment your audience to new levels and boost traffic to your website, podcast, and other channels—growing your brand.

    10. Write a Book

    Writing a physical book is a great way to generate passive income, not just from the book’s potential sales, but how it may promote other services and products you have to offer.

    I’ve written and published three books myself, and although it’s a tough route, it’s super rewarding, and the residual income, if you continue to market the book (or it takes off on its own)can be plentiful.

    My self-published book, Will It Fly, has generated a total of $459,341.00 (between 2016 and 2019)

    If you’d like to join a community of people just like you who are building their businesses right now, please check out our All-Access Pass. We’ll guide you across our entire course library to ensure you give yourself the best chance to earn an additional income.

    You got this!

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  • Learn How to Earn Passive Income for Your Business With This $40 Investment Education Bundle | Entrepreneur

    Learn How to Earn Passive Income for Your Business With This $40 Investment Education Bundle | Entrepreneur

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    Disclosure: Our goal is to feature products and services that we think you’ll find interesting and useful. If you purchase them, Entrepreneur may get a small share of the revenue from the sale from our commerce partners.

    A 2022 report by the U.S. Bureau of Labor Statistics says 20% of businesses fail in the first two years and 45% fail in the first five. If you want to secure your business against shifts in the market and other potential risks, then you may want to look into earning a passive income by investing.

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  • Learn to Generate Passive Income for Your Business in This $30 Bundle | Entrepreneur

    Learn to Generate Passive Income for Your Business in This $30 Bundle | Entrepreneur

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    Disclosure: Our goal is to feature products and services that we think you’ll find interesting and useful. If you purchase them, Entrepreneur may get a small share of the revenue from the sale from our commerce partners.

    The United States Bureau of Labor Statistics reports that only one in 10 startups is successful. There is no singular reason why so many fail, which means you as a business owner have a diverse set of tasks to accomplish to see that your business is successful.

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    Entrepreneurs can learn how to grow an engaged following for their online business in this bundle.

    For a limited time, get the 2023 Build a Passive Income Online Business from Scratch Bundle for $29.99 (reg. $1,200).

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