How To Creatively Earn Money While Sleeping
HowTo Creatively Earn Money While Sleeping
How to creatively earn money while sleeping. The secret tocreating a wealth generation focuses on the identification of income streamsthat generate returns for you. It requires some creative thinking but remainspossible. These income opportunities allow you to create funds even when you indreamland. If you keep investing your savings, your money grows while youexperience a good night sleep. So let us look at some of the most common waysto create passive income.
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1. Can We Invest Savings in Stocks?
This is one of the most common ways to earn passive income.If you have savings and some knowledge about how the stock markets work, youmay invest in companies listed. Remember, you need some knowledge to understandhow the process function. Maybe read about it first. The other options includethe appointment of a financial broker to assist you, but they charge fees fortheir professional advice. Investing in shares can create a passive incomestream that grows. You need to show some patience if you are interested instock market investments. Also, keep in mind the risks, if companies struggleduring economic declines.
How To Creatively Earn Money While Sleeping
Overall stocks help you earn money in two ways. First, moststocks carry an annual or periodic dividend. A dividend is the annual share ofprofit the company gives out to all shareholders. The more shares you have, thehigher your dividend income will be. Second, shares help you grow your wealth throughcapital appreciation. You sell the shares and cash out to benefit from capitalappreciation.
How To Creatively Earn Money While Sleeping
Source: www.macrotrends.net
The graph shown above illustrates the share value trend forAmazon. Amazon has a policy of not paying any dividend. So why do people stillinvest in the shares of Amazon? Because the company reinvests all the profitback into product research and development, and this increased the shareholdervalue over the years. You can see, at the start of the millennium the sharevalue of Amazon was around $200 and now it reflects $2150.
The share value of Amazon increased by over 970%, this meansthat investors who invested in Amazon, in the beginning, must have seen theirwealth increase by over 970% over the last two decades!
This is how shares can make you earn money as you sleep, butit is extremely important to invest smartly. It remains critical to invest indifferent stocks and not place your funds in one basket. A good investmentstrategy is to divide your investment into risk categories. Invest some inhigh-risk shares, others in medium risk and some in low-risk shares.
2. Attempt to take part in Peer-to-Peer Lending.
You can also invest your savings into P2P lending platformsand earn a steady rate of income over your investment. P2P lending has beenaround since at least 2006, it is a way to bring together investors andborrowers without the intervention of any bank as a financial regulator. Thisallows borrowers to find investors willing to lend to them regardless of theircredit score, and it allows investors to earn a higher rate of income ascompared to banks.
Surely, if there is no bank to regulate the whole process,does it make investing in P2P risky? No, because the P2P lending platformsconsist of their own control measures in place to prevent loss for theinvestors.
When you invest your money on any P2P platform and sign up,then all of your investment is not credited out to single investors, instead,they loan the money out to multiple borrowers in a series of micro contracts.This significantly reduces the risk of loss because even if one or twoinvestors default on the payment, the loss will be minimal. Furthermore, manyP2P platforms reserve funds in place to compensate investors for their loss.
How To Creatively Earn Money While Sleeping
Some P2P platforms allow investors to choose the borrowersor the risk category they want to be assigned to, so you choose a loan outoption aligned with high-risk or low-risk loans. High-risk loans carry a rateof return up to 9%-14% whereas low-risk loans consist of a rate of return froma modest 3%-4%. This makes P2P lending a safe form of investment where you canearn money as you sleep, literally.
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3. Invest in REIT stocks.
Real Estate Investment Trusts (REIT) are companies that ownor provide finance for real estate that generates rental income. They listREIT’s in stock exchanges like any other company, but they have a differentbusiness model. By investing in a REIT, you receive a direct claim to therental income of that REIT proportionate to the number of shares you haveinvested in. Thus REITs allow investors to own a stake in real estate. RealEstate has a very low-risk profile compared to shares of companies, and REITstocks are a separate class of assets on their own. So REIT stocks are yetanother way to use your savings to earn passive income.
4. What about Banking your Savings?
Bank deposits are probably the least risky way of earningpassive income on your investment, but you most probably will experience slowgrowth. It depends on the rate of interest prevalent in your country. USA, UKand New Zealand, for example, display a very low rate of interest right now andthus in a country where interest rates are moderate, keeping your investment inthe bank to earn interest become counterproductive. It gives you easy to earnand a higher rate of interest by investing your savings elsewhere.
If, however, you live in a country with a high rate ofinterest, like many countries in Africa and South Asia, then you earn a returnas high as almost 16% on your investment.
Central banks use monetary policy as a tool to manipulateinterest rates. Meaning a high rate of interest suggests that the governmentwants people to store their savings in banks so it can receive more money,whereas a low rate of interest suggests that the government wants to boostinvestment spending.
How To Creatively Earn Money While Sleeping
5. Let us Invest in Gold.
Most people will not recommend this to earn passive income,but the opportunity exists. Gold is an option for protecting your investmentfrom economic shocks. All the above options except for bank deposits are atrisk when looking at the economic impacts.
Economic shocks or impacts are events that have thepotential to make the markets go into a free fall. The stock market crash of2008 presented a major financial crisis. One needs to show some care.
Gold has the tendency to keep its value in times of economiccrisis.
We can clearly see that the value of gold in the last twodecades increased from $400 to almost $1600. Roughly estimating, this comesclose to a 400% increase in value. Thismeans that if anyone invested in gold at the start of the millennium and heldtheir investment, then their wealth inflated by almost 400% during this time.
Thus, while gold can protect your investment from economicshocks, it can also increase your wealth while you sleep. The only condition isthat you must have the patience to hold your investment for the long term. You can still make a profit in the short termby liquidating your investment when the gold touches a high value, but doing sowill not result in massive wealth creation undefined.
Conclusion
How to creatively earn money, we conclude this, that earningmoney requires some skill and creativity, especially in the world we livetoday. But these opportunities allow you to grow your funds while you sleep.What you need is the ability to find opportunities and grasp them. Many peoplespend their lives without understanding the opportunities that come their way.
So be on the lookout for opportunities, manage your financeswisely, save money and invest it into profitable investment options. Alwaysexecute proper due diligence before investing your money. Never invest yoursavings blindly into an option just because it appears good. Hopefully, thisarticle assists you to make an informed choice.
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