Increasing your income without effort or time may sound too good to be true, but that is the promise of income.
Financial expert Dave Ramsey emphasizes that real income requires some upfront work but can generate income for years with a little continued effort.
Here’s a look at Ramsey’s top recommendations for building income.
1. Make Money in Real Estate
Owning real estate allows you to earn rental income, but Ramsey suggests a cautious approach. He recommends paying off your own home first and buying investment properties with cash to avoid debt.
You don’t need to stick to investing in residential properties. Industrial properties tend to have higher capitalization rates, which means higher returns after expenses. Ramsey also advises on investing in the property and working with a property management company to streamline operations.
Pro tip: Investing in real estate does not mean buying a property. Fundrise allows you to invest in real estate starting at just $10.
2. Turn Your Hobby into an Income Stream
Do you have a skill or passion that others want to learn? Create online courses on platforms like Udemy, where you can earn money every time someone signs up. Writing a book to sell on Amazon or posting educational YouTube videos are other ways to monetize your knowledge.
Your hobby can turn into a steady source of income with some upfront effort.
Pro tip: If you’re starting a side gig, use Lively HSAs to save on health care costs with a high-deductible health plan.
3. Find Custom Product Designs
If you’re creative, try designing products for sites like Zazzle or Teespring. These platforms handle printing and shipping while earning a cut of each sale. Create unique designs for mugs, t-shirts, or posters, and let the platform handle the editing.
However, remember that success in this space may take time. Many creators on these platforms report low wages, but some earn income by persevering with attractive designs.
4. Invest in REITs
If you like the idea of real estate income but want to avoid property management, consider real estate investment trusts (REITs). These trusts own and manage a portfolio of income-generating properties, and you can invest by buying shares.
REITs generate income by selling rents and properties and offering dividends to investors. Publicly traded REITs are listed on a stock exchange, making them an affordable way to diversify your portfolio.
Pro tip: If you have $100,000 or more to invest, SmartAsset can match you with a fiduciary advisor to create a strategy that fits your goals.
5. Grow Wealth With Low Volatility Exchange Rates
Low yield mutual funds offer a way to grow your money over time. Managed by professional fund managers, these funds maintain a stable portfolio with limited buying and selling activity.
This strategy can result in less capital gains tax and long-term growth. It is an excellent choice for those who want their money to work for them without constant management.
Start Building Passive Income Today
Income isn’t a get-rich-quick scheme—it requires upfront effort that pays off over time.
Whether you’re investing in real estate or making money from your skills, these strategies can help you earn more while focusing on what’s most important. Start small, stay consistent, and watch your financial independence grow.
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