Hey guys, Today I'll share with you 5 passive income tips in 5 minutes.
Number 1, Earning money from banks, customer to shareholder.
Now if you earn interest on your spare cash by slowly putting money into a bank account
and accruing passive income through interest, you should stop now, because you are getting
ripped off.
What you SHOULD do is use that money to buy SHARES in that bank instead, and earning a
portion of the banks profits as a shareholder.
Lets see the difference it can make over a 10 year period with a leading bank.
As a customer the banks will offer you around 2% savings rate including the bonus rate,
IF you don't make a withdraw, AND deposit a certain amount regularly AND whatever other
rules they have otherwise the bonus rate is turned off and you'll receive practically
zero percent interest for that month.
Shares on the other hand gives you dividend returns of 5%, with tax paid on that, and
the shares themselves can grow another 10% average on top of all of that, based on past
performance of the last 10 years.
So do yourself a favour and stop being a banks customer, and start being their shareholder.
You can see that you'll end up with almost 3 times the passive returns that way compared
to the best savings account on offer.
Number 2, Investing in Real Estate.
This is the obvious choice when you have enough for a deposit.
Find a good agent, and your tenant will pay you around 4% return on your investment.
BUT, what I wish I knew, is that to maximize growth in the value of your property on top
of the rent, you should buy real estate on blocks on land.
Not a cheaper, mass produced apartment that's in oversupply, no, you want one that a family
can live in.
Because land is limited, but the sky is not.
So we can keep building upwards and build more high-rise apartments, but we cant just
create more land in the middle of a city.
So by the law of supply and demand, your block of land will only get more and more expensive.
and that, is where your passive income producing asset goes to increase your net worth instead,
which is just as good, if not better than actual cash.
Number 3, Invest with AirBnB in mind.
Ok so if you cant afford that block of land, and you can only buy an apartment, look for
traits that people like on AirBnB.
Things like being close to the heart of the city, or transport hubs, or next to an tourist
attraction, or has some unique interior architecture.
Its those traits that help to grab AirBnB bookings and help you become a regular Host.
Remember that renting out to traditional tenants lets you charge weekly, but AirBnB lets you
charge DAILY, and that daily rate can get close to what a hotel charges.
Sure you have spend more money to furnish the place, and if you do it well, it will
help you become a Super Host, which is a privilege that lets you earn even more money.
So next time you go and invest in a potential property, try and imagine if it is located
well enough for tourists, and how the interior could be set up for tourists.
Number 4, Invest in a DSLR camera.
If you are willing to put in a lot of work early on, then reap the rewards later, then
the best investment you can make is an entry level DSLR camera for around $600, and this
will allow you to setup important income sources in the online marketplace.
We'll talk about these each of these with more detail in another video but essentially
it allows you to upload your photos to Shutterstock for a 20% commission on sales, create Youtube
videos for the ad revenue money, and increase your influence on social media to be able
to take advantage of affiliate marketing.
I only wish that I started these earlier, but its also never too late to try.
Number 5, Picking stocks with Director transactions.
Investing money in shares is an easy way to make passive income, and we all know to diversify
your portfolio to reduce the risks.
But if you just want to know what is the easiest way to pick the right stocks, then try keeping
an eye on the companies director's transactions.
This is published online and reported just a few days after it happens, and who better
to know how well a company will do than its own directors?
If you haven't got time for the "Do your own research" disclaimer cliche, then this is
probably the best way to pick the right stocks.
Directors have vested interest for the companies share to grow and wouldn't be buying shares
expecting it to fall in price.
So follow the their lead and enjoy the earnings as well.
And that's my 5 tips for passive income.
Hopefully this gives you a new way of thinking about investing for passive income.
Remember that trading work time for money is capped at your work hours, whereas passive
income is unlimited and your money works for you 24/7 to make more money.
So lets get started today, keep your investments healthy and see you in the next video.