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In this video, I’ll show you how to make passive income with $1,000 (6 ways). I’ve even added 2 more bonus ideas at the end of the video, perfect for those who just want to get started in 2020, immediately.
High Effort = More than 24 hours/ month to make it work
Low Effort = Less than 24 hours/ month to make it work
#1 Dividend Shares | LOW EFFORT
The FIRST way is a KEY component of how I am making most of my passive income currently, and that’s using the $1,000 to purchase dividend shares.
Essentially, when you use your $1,000 to buy shares, you now own a small piece of that company. And because you’re a small owner in the company, you’re entitled to some of their earnings. Dividend payouts are usually done quarterly or half-yearly.
For the Aussies out there, some companies actually pay a tax credit along with their dividend payments. And since the government already taxed the company on that div income, the tax credit is used to prevent the government from taxing on the same income twice. This is called FRANKING CREDITS.
#2 Index Funds | LOW EFFORT
Now the SECOND way to make passive income with $1,000 is Index funds. (LOW EFFORT)
Index funds are just a portfolio of shares that track a financial market index. For example, instead of buying one of every single stock in the ASX300 (which would cost you a fortune and a lot of time), you can buy an index fund that tracks the ASX300 for $86 dollars and own a very small percentage of everything. That way, not only are you getting the diversification of owning shares in multiple industries, you’re also entitled to dividends.
And the COOLEST thing? They tend to outperform professional money managers paid to pick out individual stocks.
The above ways are some of the EASIEST way to start making passive income with $1,000, and if you’re open to putting in a bit more extra effort, here are a few more lucrative passive income ideas.
#3 Courses | HIGH EFFORT
Courses are the THIRD way to make passive income with $1,000. For some people, this stream of passive income is absolutely massive. That $1,000 can be invested in things like camera, microphone equipment, and just a place to host your content (something like kajabi). After that, you just have to focus on selling it.
#4 YouTube | HIGH EFFORT
The ROI on a $1,000 invested YouTube can absolutely be ENORMOUS, if you’re willing to put in the work. It’s ACTIVE in the sense that, YouTube likes consistency, and will reward you for it. Meaning that you’re going to have to put out some high-quality content regularly. But when your body of work is on YouTube, there’s no limit on how much you can make. For a lot of YouTubers, they’re still making money off videos they made a few years ago.
#5 Blog | HIGH EFFORT
To make passive income off blogs, you’ll need to write content people love coming back for. And as more and more people visit your website, you can sell placements on your website to advertisers using google Adsense, use affiliate links for additional revenue, or start a small monthly membership with Patreon. With $1,000, you can easily start a website using Squarespace and start blogging.
#6 Affiliate Marketing | HIGH EFFORT
You’re essentially spending time selling someone else’s product, and get a % of the sales you bring in for them. This is not necessarily low effort only because you need a source of traffic to push those products. That $1,000 can be used to build up a YouTube channel, start an Instagram profile or start blogging.
BONUS ideas on how to make passive income with $1,000
High-Interest Rate Saving Accounts | LOW EFFORT
Bonds | LOW EFFORT
The key with all these passive income ideas is consistency! After my first dividend payment, I got literally hooked. So with every paycheque I receive, I move 30% of it straight to my trading account, and invest that straight away. I knew that the more I invest, the more I’d earn in the future.
#davidquan #financialindependence #passiveincome
Seicho (FREE Marketing Tutorials/Hacks) – http://bit.ly/2SAVyuE
Suggested reading:
Unshakeable – https://amzn.to/39g0avY
My Camera & Equipment:
Sony a6400 body – https://amzn.to/374vRqc
Sony f4 10-18mm Wide-Angle Zoom Lens – https://amzn.to/2tNb2kJ
Rode Lightweight Mic – https://amzn.to/2QcSCl2
Neewer 18inch Ring Light – https://amzn.to/2QhjSij
Hope you enjoyed this one guys! (I’m getting less camera shy but I had a ton of fun) How did YOU develop passive income for yourself? Let me know in the comments below!
Great video! I'm aiming for financial independence too so this is much appreciated 🙂
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