Making Money While You Sleep
Warren Buffet famously said “If you don’t find a way to make money while you sleep, you will work until you die”. There are only so many hours we can work, only so much we can accomplish on our own and only so much money we can make while we are awake.
Money never sleeps, it will work 24/7/365 for you if you let. If not, you are having it work against you.
Here are 5 ways to make money while you sleep:
REIT’s (Real Estate Investment Trusts) is a type of instrument or investment vehicle that allows individuals to invest in real estate or related assets with an intention to earn income. REIT’s trade on stock exchanges and shares can easily be bought and sold similar to a mutual fund.
Periodic income from dividend stocks is a second way to earn money while you sleep. Typical stocks that do not pay dividends are considered appreciating assets meaning you hope to sell them at a future date for a higher price than you paid. Once that stock declares and starts to pay a dividend, that dividend creates a cash flow now and, in the future, which means the stock is actually paying you to hold the stock which now means the stock is no longer an appreciating asset but now a cash flow asset creating incomes streams no matter what direction the price of the stock moves as long as the dividend is still paid.
Positive cash flow from rental income is a third way to earn money while you sleep. Whereas REIT investing is more of a hands-off approach to real estate investing, self-generating the income from properties you own is a much more hands on approach. With this direct rental income approach, you are controlling both the asset and the potential cash flow from the asset. There are both potential additional rewards as well as additional risks here, but real estate investing is one of the best ways to build wealth if done correctly and not in a way that overleverages your position.
Silent Business Investment
Income from a silent business investment is a fourth way to earn money while you sleep. In this situation you are in no way involved or helping with either the management or operations of the business. Instead, you are providing investment or capital into the business for a % of the profits or a predetermined repayment amortization schedule set up and agreed upon by all parties. Once again, the other side does not need help other than capital, hence the silent business investment. Make sure you know who you are dealing with and the business is in a solid position to pay you back.
Income from an online business is the fifth way to earn money while you sleep. This is my favorite because it gives you some opportunity for passion and creativity. Follow the trends over the last couple of decades in terms of how digital disruption, technology and innovation has changed the way we live, work, engage and communicate and what types of online businesses fit that trend. Simply put, find a need that exists and fill it. Depending on your budget, or lack of budget to get started, there are several ways to enter the online business space. Make sure you like what you are doing so it does not become something you dread putting time and effort into.
Why have a long-term plan centered around a 9 to 5 every day to make money if you can earn an income doing nothing? Most ways of earning a passive income require some initial effort, but soon you’ll be earning money while you sleep.