passive income investments are an incredibly attractive option for anyone looking to build wealth and establish financial freedom in the long-term. With a little bit of effort upfront, passive income can be extremely lucrative, providing a steady stream of income for many years to come. If you’re looking to make over $10k/mo in passive income by 2023, there are several key steps that will help you do just that.
Research Markets & Invest Now
The first step to making serious money from passive income is researching potential markets and investing now. While this may seem obvious, it’s important to take your time and do research before plunking down any money. Look into options like rental real estate, stocks, bonds, index funds, and peer-to-peer lending. The more research you put in, the better informed decision you’ll be able make on which vehicles will be most profitable.
Find Reliable Sources of Funding
Finding reliable sources of funding is crucial when it comes to building up a substantial passive income stream. You don’t need to have lots of savings or venture capital to get started – there are plenty of other ways to fund your investments. For example, consider crowdfunding platforms such as FundRise and AngelList to secure investments from angel investors. You can also look into angel investment groups, where experienced investors often provide access to large amounts of capital.
Create a Diversified Portfolio
Once you have the necessary resources, diversifying your portfolio should be your next priority. Diversification is essential for reducing risk and ensuring a steady income stream in the future. Instead of putting all your eggs in one basket, look into investing in different types of assets like real estate, stocks, bonds, and peer-to-peer loans. This way, if one of your investments doesn’t perform as well as expected, the rest of your investments will hopefully make up for it.
Utilize Tax Strategies
Utilizing effective tax strategies can go a long way towards helping you maximize your gains from passive income. To start, look into retirement accounts like 401(k)s and IRAs, which offer significant tax advantages. Additionally, understanding how capital gains taxes work can give you greater insight into how to legally lower your tax burden. Consulting a financial advisor may also be beneficial if you’re unsure about which strategies are best for your particular situation.
Stay Patient & Recycle Capital
Building up your passive income stream won’t happen overnight – you’ll need to be patient and persistent to see it through. It’s also important to remember to recycle your capital, meaning reinvesting some of your profits into your investments. This will not only help you generate more income, but also reduce your overall risk by diversifying your portfolio.
Outsource Financial Tasks When Necessary
Finally, if you find yourself overwhelmed with the complexity of your investments, it might be worthwhile to hire a financial advisor, accountant, or lawyer to handle certain aspects of your finances. Outsourcing these tasks can give you peace of mind that everything is being taken care of correctly, so that you can focus on growing your passive income and reach your financial goals by 2023.
With a solid strategy and commitment, it is entirely possible to make over $10k/mo in passive income by 2023. By doing your research and implementing the tips outlined above, you can build up your passive income stream and experience the rewards for many years to come.
