If you want to enjoy financial freedom, investing in passive ventures is one of the most reliable ways to achieve that. Passive investments will also give you enough time to pursue other ideas you are passionate about, further boosting your income. We are lucky to be living in an era where there are plenty of passive income investment opportunities that require very little capital to get started.
In today’s blog post, I will discuss some of the most reliable investment ideas that you can get started with to earn passive income. Let’s dive in!
Buying stocks
One of the ways you can invest your money is by buying stocks of public companies. Investing in public companies such as Facebook, Microsoft, or Apple has never been easy than it is today. By using a stockbroker, you can choose to invest in any of these companies with just a few clicks. However, you need to do some research regarding their performance in order to choose the right companies to invest your money in.
S&P 500 index funds
This is one of the safest ways to invest your money in 2022. S&P too index funds give you the opportunity to invest in all the top 500 American companies. So, instead of investing in only one company, your money will be split across 500 companies, which minimizes the risk compared to investing in only one company. Index funds have an annual return of about 10%. You can get started by choosing from any of these index funds.
Buy Cryptocurrencies
The cryptocurrency market is very volatile compared to the first two investment options we have shared. However, as an investor, you can take advantage of this volatility to your advantage, especially if you choose to do crypto trading. You will need to create an account with a crypto exchange platform like Binance or Coinbase to buy cryptocurrencies such as Bitcoin, Ethereum, or Litecoin.
Buying government treasury bills
Different central banks all over the world allow citizens to lend money to their governments by buying treasury bills. A treasury bill refers to a short-term government debt obligation backed by the Treasury Department, which matures in a year or less. In simple terms, buying treasury bills simply means lending money to the government.
The procedure for buying Treasury bills varies from country to country. You can find out the procedure for your country by visiting the official website of your central bank.
Short term corporate bond funds
One of the ways corporations raise money is by issuing bonds to investors. Bond funds are funds that invest in hundreds of corporate bonds on behalf of the common people. These investments usually last between 1 to 5 years, so you need to be ready to wait for at least a year to earn your interest. You can choose from any of these corporate bond funds to get started.