hey there Tiffany Thomas with Wealthy Tiffany dot com and in today's
video we're gonna be talking all about passive income because passive income
gives you a freedom you can spend time on whatever you would like instead of
spending time working to create money and who doesn't like that
and one of the passive income investments that you can make I have
actually used this to create one thousand seven hundred and thirty
dollars per month from this investment so I'm going to share that later in the
video so stick around now the easiest way to at create passive income is to
invest your money you could spend time creating passive income or you could
invest your money to create passive income or you could use both time and
money to do that but using your time to create passive income takes a lot of
effort and it takes a lot longer to build that passive income over time so
in today's video we're going to be talking about five different ways to
invest your money of a thousand dollars or less to create passive income today
so we can all make money while we sleep instead of spending our time working to
create that money and the last item that I want to share with you guys is going
to be very unique I don't think that you have heard of this before
so make sure and stick around - at the end of the video to hear this passive
income investment strategy so let's dive right in the first way to create passive
income through investing is by investing in what's called an ETF an
exchange-traded fund and this is a very simple investment to make you can set up
either a brokerage account or a Roth IRA and invest your money in an ETF and I
actually love Vanguard so I recommend the Vanguard total stock market ETF and
that's abbreviated vti so if you wanted to get started very simply with passive
income you can just invest in this ETF and you can buy just one share if you
would like to it's about a hundred and sixty six
dollars right now now if you wanted to use your full thousand dollars then you
could buy six shares of vti and put all of your money into this type of
investment and there's a few different reasons I like investing in this
particular ETF and one of them is that it's very simple to invest in and it
doesn't take a lot of money to get started less than a thousand dollars and
it has a great expense ratio associated with it
so almost every fund or ETF that you'll invest in has an expense ratio
associated with it and this one is point zero three percent so you are not paying
a lot to make this investment another reason I like this ETF is because it
follows the total stock market so you are in essence investing in all of the
US stocks with one ETF and you don't have to worry about switching your money
out of this ETF you can just leave your money there and continue to invest in
the same ETF over time and build up your wealth of that way build up your passive
income this ETF will rise over time because it's following the total stock
market which has gone up about 8% over time you can start to sell these shares
when you would like to and create passive income that way because you've
invested your money and ideally when you sell it'll be at a higher price than
what you bought it for so you're making a profit from investing your money and
another reason I like this ETF is because they actually pay you a dividend
so they will pay you a percentage of the money that you have invested in this ETF
and they'll pay it out quarterly so you could take out that dividend and put
that into your checking account and get paid every quarter every three months by
investing in this ETF or you could reinvest those dividends so it will make
you more money over time it's entirely up to you but when you look at it this
way it's creating you passive income either right now if you wanted to take
out those dividends or over the long term if you want to reinvest
and then slowly cash out over time and you can start to sell your shares over
time and I wanted to show you an example of how much you could earn in dividends
so if you purchased vti at 166 per share and our dividend yield is that 2.3
percent and we invested our full thousand dollars then at the end of one
year we would have a thousand and twenty three dollars so you could divide that
$23 profit up by quarters if you wanted to cash out each quarter or you could
just leave it in your account and continue to invest more money in this
ETF to create more dividends which would create more passive income for you and
this is an ETF that I actually invest in alright let's move to point number two
for passive income investments that you can make for less than a thousand
dollars and this one is investing in individual stocks I really like
investing in individual stocks although I do invest in that ETF but I have some
individual stocks that I've chosen and some of those pay dividends as well just
like the ETF does and to give you a couple of examples one of them is
Apple's stock and another one is Pepsi stock so you can buy individual
companies you can buy shares of individual companies and those will also
pay you dividends and from my experience I've seen even a higher return on
individual stocks rather than investing in a total stock market fund or ETF you
just have to make sure you pick the right stocks and do some homework on
that but that is just another way to create passive income you can collect
dividends if they are stocks that do pay dividends or you can hold onto those
stocks over time and let them increase in value and then start to sell off some
of those shares and create that passive income later on it's entirely up to you
but it's a great investment to make to start creating that passive income for
yourself and if you did want to invest Apple stock it's about 323 dollars right
now so you could buy three shares of that for about a thousand dollars and
you can have three shares of Apple and start receiving dividends from that each
quarter and here is an example for Apple so if we purchased Apple for three
hundred and twenty three dollars per share they have a dividend yield of one
percent and if we were to use our full thousand dollars and leave it in there
for one year we would have a total of one thousand and ten dollars so we would
have received ten dollars in dividends and I know this may seem like a small
amount but if you continue to invest in Apple or whatever stock your money will
continue to grow and you'll continue to create more and more passive income so
for example if we add ten thousand dollars instead of that one thousand
we'd be making an extra hundred dollars per year in just dividends that wouldn't
even include that the stock price would continue to rise over the long term and
we could eventually sell the stock and create a profit that way or you could
even buy Pepsi which is trading at about one hundred and forty three dollars so
you could buy seven shares of Pepsi right now and start collecting those
dividends and here's our example of Pepsi if we purchase that for 143 per
share they have a dividend yield of 2.6 9% if we invested our full thousand
dollars then after one year we would have a total of 1,000 $26.90 so we would
have made 26 90 from our dividends and I haven't even talked about the fact that
there is compound interest if you were to leave the dividend amount in your
account then you would continue to earn interest on that amount which would
continue to grow exponentially over time creating you more passive income over
the long term or just pick a really good stock that you would like to invest in
and hold on to it for the long term and create that passive income later and if
you are curious on how to buy stocks I do
have a course called fire first stuck in 48 hours so I'll leave the link below
only if you're interested no pressure whatsoever and the third passive income
investment that you can make for under $1,000 is something that I'm really
passionate about and I do a lot of this is to rent out a room and maybe you're
thinking I don't want to live with a roommate but this is the strategy that I
have created one thousand seven hundred and thirty dollars and passive income
every month so I run out three of my bedrooms in my place and I live in the
fourth bedroom so we all have our own rooms but I love this strategy so much
because you can just rent out an empty room and start creating passive income
immediately you don't even have to use a thousand dollars to get started with
this investment strategy and maybe you're renting but you do have an extra
bedroom you can check your lease to make sure that it's okay to rent out that
extra bedroom first but if it is okay then you can immediately start renting
out that extra bedroom and creating passive income and maybe you're living
in a one-bedroom so honestly consider moving into a two-bedroom place and
getting a roommate renting out that extra room so that you can pay less in
your housing because housing is the highest cost that people pay out of all
of their expenses so the more we can reduce that then the more income that we
can have and this is a really easy way to create passive income maybe you're
thinking well I'm married and I have kids that's not really possible not so I
have an old roommate actually that is now married and her husband before they
got married he actually lived with a married couple
that had children and he just lived in their spare bedroom that they had and he
would actually help out like babysitting and she would make dinner for their
family for her family and him so it turned out to be a really great
situation this can be a really good way to create that passive income so really
really consider that because I've seen that super high returns by doing this
investment strategy I was to buy a place anyway so renting out my
other rooms I'm able to create a lot of passive income and I also have rental
properties but that's gonna be a little more than a thousand dollars so we're
not going to talk about that today but seriously consider renting out a
bedroom in your place or even turning a living room area into a bedroom I've
heard of that before so you can set up a temporary wall and
create a little bedroom maybe do Airbnb or VRBO
and create a little extra income that way so something to think about all
right the fourth passive income investment strategy for it less than a
thousand dollars is to invest in a CD a certificate of deposit now this won't
get you a really high passive income amount but if you are looking to use
that money within the next year or the next maybe three to five years then you
may want to keep that somewhere safe but make a little extra money on it so I
actually looked at to see what the rates are for CDs right now and the highest
that I saw was two point one five percent so you could stick your thousand
dollars into a CD for a year and you do have the option with some of these CDs
to have that interest paid to you monthly that you would be earning on
your thousand dollars or you could leave that interest in there and let it build
over time it's up to you but that is another way to create passive income and
it may seem like a really small amount but if you have zero dollars in passive
income right now then a really small amount a couple of dollars is a big
improvement from that and you can just scale up and grow that passive income
from that small amount but it just takes that first step of getting started and
then you can start to expand your passive income and this brings us to the
fifth passive income investment strategy that you can use for a thousand dollars
or less and I'm excited to share this one with you guys because it's not
really talked about it's kind of a newer thing that's happening and I
haven't done this one personally but I have been looking into it a little bit
so I might be doing it later on down the road and if I do I'll definitely do a
follow-up video but I wanted to share this information with you guys you can
actually sign up for our Cadia power and I have signed up with them I'm using
them currently and they essentially link your current power company to their site
and they are all about clean energy so that's what they promote and it's a free
account that you can set up and part of what they do is kind of a solar panel
community so you can actually sign up to buy solar panels not for your own house
but for the community for someone else and then they give you a discount on
your power bill so if you are paying a power bill whether you're renting or
your home owner you can sign up with them and you can actually buy solar
panels and get that credit on your statement each month on your power
statement and when I logged into my account and I said 2 by 10 solar panels
so that would equal $1,000 that would be your thousand dollar investment I was
getting an average of 10 dollars a month credit on my power statement so that's
kind of a little different way to create passive income because you're saving
this ten dollars on your power your power bill that you're going to be
paying anyway so you can do whatever you would like with this ten dollars that
you're saving by investing these solar panels so I thought this was really
fascinating and I'm sure there's a lot of other little hacks or tricks out
there like this but let me know what you think of this investment strategy
investing in solar panels which is positive for the world that means we are
using cleaner energy by using solar panels and you're helping other people
to do that and then you're assuming your credit on your power statement because
you've helped to do this so I wanted to share that with you guys and those are
the five passive income investment strategies for a thousand dollars or
less so you can get started in today so you
start creating that passive income so you can stop always trading time for
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next video