When you buy that t-shirt at the mall, not only do you have to spend $20 to buy the shirt, but the shirt will never pay you for buying it. As soon as you swipe your credit card, your money is gone. You’ll never get to see it again.
But there are some things that pay you to buy them! What kind of sorcery is this? We’re going to find out.
Get Them Dividends
Instead of buying that t-shirt or a shiny new car – you could go out and invest in a dividend paying stock.
You can invest in companies on the stock market. When you buy one share of a stock – you become one of the owners of a company.
So if you buy 1 share of McDonalds, you become one of the owners of McDonalds. You don’t get to tell McDonalds what to do, and you don’t have to go and flip burgers. But, you get paid your share of McDonald’s profits.
But it gets even better. Some companies pay out cash distributions called dividends.
A dividend is when a company pays you just for investing in it.
Bought a share of McDonalds? Great. Now McDonalds will send you a check (or deposit the money into your account) every year just for being an owner of McDonalds.
Think of it like a thank you paycheck.
If you want to get them dividends, you can open a free brokerage account with Ally Invest to invest in stocks. There’s no minimum deposit and they have some of the lowest commissions out there.
How do you know if a stock pays a dividend?
Search it online or use Ally’s research portal after creating an account.
It does require some due diligence on your part. You’re never guaranteed to make money when you invest – you may even lose money. But like Warren Buffett says, “risk comes from not knowing what you’re doing” – so learn!
Grow Your Change
If you’re not ready to invest in individual companies, Acorns may be more to your liking.
You don’t need to do any research on individual companies because Acorns will invest your money in ETF’s which combines the flexibility of investing in individual stocks with the diversification of a mutual fund.
Don’t have money to invest? No problem.
Acorns invests your change for just $1 a month. Anytime you make a purchase with your credit card or debit card, Acorns rounds up the purchase to the nearest dollar and invests that money for you.
So, if you buy a drink for $1.65 – Acorns will round up the purchase to $2 and invest the 35 cents for you, and it’s all automated.
Better to invest that change than lose it in your car seat, right?
And because Acorns shares the Minority Mindset, they will give you $5 to get started when you use this link!
Become a Real Estate Mogul
Maybe the ultimate form of passive income is real estate.
That might sound crazy if you’re new to real estate investing. You have to deal with all kinds of stuff like busted pipes, leaky roofs, and evictions right? That’s hardly passive without a property management company working for you.
Or maybe you think you need lots of money to invest in real estate. You still live in an apartment yourself; you can’t afford to buy a house for someone else to live in.
Well, things have changed.
Fundrise has opened up real estate investing to anyone interested in real estate. Their goal is to make real estate moguls out of all of us.
Fundrise takes the concept of crowdfunding and applies it to real estate. Your money is pooled with that of other investors which gives you all access to deals you couldn’t afford individually.
For just $500 you can invest in a starter portfolio of professionally managed and diversified real estate holdings like apartment buildings, hotels, shopping centers, single-family homes, and condos.
You’re paid your portion of rental profits, interest, and appreciation – and you don’t have to deal with any of the headache. Check out some of their historical returns!
Earn While You Sleep
We all have the same 24 hours in a day, and we can only work for so many of them. So if you’re trying to earn money while you sleep, while you’re on vacation, and while you’re neck deep in a Netflix binge. That’s what passive income can do.