I don’t plan to work forever so I’ve identified easy passive income for beginners that you. I’ll review 4 “make money while you sleep ideas” that you can explore ASAP! If you're anything like me, you don’t want to work forever and are constantly searching for new passive income ideas to explore in 2023. You want to find new ways for the money you’re making (on your job or in your business) to make money for you.

In today’s economy, having one income stream is not enough. Most of my money still comes from my 9-5 but I am using it to invest in other streams that will make me money. The goal for me is to retire early and to do so, I have to constantly explore “make money while you sleep” ideas. 

For me, the biggest opportunity has always been real estate but most of us don’t have 20% laying around to invest in real estate properties. So that’s where passive income comes into play. Each dollar that I make from my passive income is then reinvested into investments and/or saved for future bigger investments (i.e. rental properties.). These real estate properties are going to be the main source of passive income I need to retire early.

Let’s talk about the 4 ways that I make money passively and you can too!

1. REITs (real estate investment trusts)

A REIT (real estate investment trust) is a company that owns and typically operates income-producing real estate or related assets. Think of these as stocks that you would own of Apple, Google, Facebook, etc. but the difference is that they are properties - which can range from residential (such as the homes we live in) to commercial properties (which are office buildings, malls, etc.). What I love most about REITs is that 90% of their revenue is required to go to investors (such as me and hopefully you). 

And the way that they earn this revenue is by renting out these properties and then sending that revenue to investors as quarterly dividends. If you invest in Nike or Target, you should be familiar with dividends. But essentially, these are dollars that each shareholder gets based on how much they’ve invested.

REITs are available on the traditional stock market but I personally like to invest in private REITs through Fundrise. I’ve been investing since 2018 because they make it so easy for newbie investors. It may feel a little daunting picking a random REIT to invest in on the stock market. But with Fundrise, they create your portfolio based on your goals. When I first started, I needed more money so my portfolio was heavily dividend-focused. Now, I’m more interested in equity, and that comes from the appreciation of these properties. I have tons of videos on my experience with Fundrise on my YouTube channel but start with this one.

2. High-yield savings accounts (HYSA)

I wish I started investing in high-yield savings accounts sooner. It’s literally a no-brainer because I’ve had a savings account for half of my life. And it was doing absolutely nothing for me financially. And when I say nothing, I mean it wasn’t generating any money from letting these banks hold my money. But with my high-yield savings account, I do. I’ve been earning between $100-$200 in 2023 from the balance that I leave in my Marcus account. This is due to their higher annual percentage yield (APY). Think of that as a percentage. All savings accounts have one but most are less than 1%. This means that you are owning earning less than 1% on the money you leave in that account. Pennies basically. 

But Marcus offers a 3.75% APY. This means that every month, I’m earning 3.75% in interest on whatever balance I leave in that account. 

It’s not an investment like Fundrise. It’s not the stock market. I didn’t have to research a bunch of funds. I just chose the high-yield savings account that made sense for my scenario. I wanted to make more money on the money I let these banks borrow. I wanted to take the money out whenever I needed to and not be penalized for it. And I wanted to go with a bank that I was familiar with. And Marcus is a Goldman Sachs bank. 

I’ve been a fan for so long that I’m now helping others open their accounts. If you use my referral code, you can get an additional % back in interest (your money). So that 3.75% APY is now 4.75% when you open a new high-yield savings account.

3. Dividend-paying stocks 

Similar to REITs, there are tons of public companies that pay their shareholders for investing in their brands. This has been around forever. I invest in individual stocks such as Nike, Target, and Coca-Cola. But I also invest in ETFs (exchange-traded funds) and index funds which usually hold a variety of stocks in one bucket - based on their industry. The latter is my favorite and I invest in these with my own brokerage account as well as through my financial advisor. He’s helping me accomplish these “retire early” goals. He’s already done it.

4. Compounding interest

Compounding interest is how investors make more on the money they initially invested. This is attractive to investors because it means you not only earn a return on the initial amount of your investment but also earn a return on your earnings. On the flip side, though, it also means that if you borrow money, you're charged interest on your interest.

I have a full blog on this already with examples, so check that out here.

Ultimately, the final decision of what you decide to do is up to you. I started small with REITs and stocks and worked my way up to high-yield savings accounts and compounding interest in my retirement account.

In this video, I’ll tell you about each of them. This is very much a “passive income for beginners” style flow so I’m confident that you’ll be able to execute quickly! Comment below with any questions you have and I’ll be sure to provide more context.

I started investing with $500 (Fundrise review: https://youtu.be/BghTOB5mJkI) and also use my referral code (https://fundrise.com/invitation-program/welcome?inviteKey=n3yooe&utm_medium=invite-link&utm_source=fundrise&utm_campaign=investor-invitation) to get $50 credited to your new account. This means you are starting with $550, instead of $500. You’re welcome!

Resources:

[VIDEO] My debt free journey: https://youtu.be/C0Tyt3n7PCY

Biggest mistake I made in my homebuying journey: https://youtu.be/Yn-LsYujGtA

First time homebuyer loans: https://www.maximizedmoney.com/first-time-homebuyer-loans

Instagram (we have lots of fun over here):

 https://www.instagram.com/maximized.money

Ready to find the right real estate agent for you? Download my free checklist for questions to ask:

https://www.maximizedmoney.com/homebuyers-checklist

Want to get your finances together for your big home purchase? Join my free Homebuyer Goals Challenge:

https://www.maximizedmoney.com/homebuyer-goals-challenge

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