One of the most popular question posed to people who have been able to venture out and live a free lifestyle by road or sea is, “How can you afford it?”. We came across this great article that might help you break the 9-5 chains and make your adventure dream a reality.
We have all heard of passive income. Sitting back and watching money roll into your bank account. A passive income should be steady, easy to maintain and fairly predictable and take little to no effort. Here a re 4 ways to make it happen.
- Strategic Investment: High dividend stocks pay dividends to shareholders every month. To do this, you do have to put in some initial effort by evaluating investments, checking price-to-earning ratios and evaluating company statements. Or, I guess you could hire someone to do that for you if that sounds intimidating. It is a bit of a risky investment strategy, if high dividend stocks are ALL you invest in, so be careful to diversify.
- Art Licensing: If you are creative consider submitting your work to print on demand companies that will sell your work on products such as t-shirts, mugs, phone cases, etc. You can also reach out to consumer facing brands and try to license your stuff to them, for additional passive income. One artist reports that he makes $9,000 per month through these two licensing avenues alone. Now, that is no chump change.
- Rent out your parking spot: Do you live in a big city? Homeowners in urban areas who are deeded parking places with their property can earn extra money by renting one or both out. One couple makes $200 per month renting out their Boston parking spot, which completely pays for their HOA dues. FREE money!
- Real Estate Investment: This is an old but well tested idea. purchasing single or mute-family homes and renting them out can bring in large amounts of passive income. You have to be careful to analyze the market in the area you plan to purchase and make sure that the rental market will bring in enough to cover your mortgage and other annual expenses. Some people buy homes at market price and immediately put them on the rental market and others look for fixer-uppers or foreclosures to save money on the purchase price. Either way, real estate is great investment. When your renters are done paying off your mortgage for you, you will have a nice little investment to sell, live in or live off of. And, if you can pay for it in cash, even better.
This is a portion of an article originally posted on Market Watch