5 Ways To Make $500 Per Month In Passive Income

SO $500 per month without doing a lot of work, “passive” is a good amount of of money. When I use to make $8.75 an hour, that would be the same as working 57 hours in one month, that’s a full 40 hour week plus 17 hours.

Now lets say you’re not a broke college student like I was, and you make $20 an hours, that’s still 25 hours of work, that you don’t have to work, its like going part time for one of your working weeks.

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Investing into the S&P 500 via a Roth IRA, 401k or Brokerage account

I have to say, I hear a lot of sales people, telling people that this is stupid and its not fast and you have to wait 400 years

That the best strategy Is taking on a lot of debt and buying rental property

I think those people are just trying to sell you somethinig, and they think wealth is having more, and to me wealth is financial independence



Simple math says this: to make $500 per month the same as $6000 a year

The S&P 500 has returned a low average of 8% (I am using a lower number )

Is the same as investing $75,000 and letting that money work for you

You may say thats a lot of money, but a lot of people buy $30k cars and switch every 5 years



How to:

If you make $50k a year and invest half your money and live and haf

In 3 years you have $87k

The same as $580 bucks per month



Tip: only take 4% of your earning, this way the money can keep growing and you don’t run out ( so the number would actually be closer to 150k but you can do that in 5 years of investing )



Real Estate Cash Flow

now this is a lot different from what you hear other people say

because I am not talking about buying and having someone else pay your mortgage

I’m telling you either buy in cash or house hack or you buy your hme and pay it off and save that shelter money



So Buying in Cash ( this takes a long time )

To make $500 a per month in cash, if you can make 8%

That would mean finding a property that worth about 75k

We know that beucase its very simliar to the stock example, except you actually get the cash per month



House Hack:

Let’s you buy a duplex, that fits your budget

You can put down a good downpayment, and eventually once the home is paid off

That money can become cash flow, but until its paid for, I would use all extra payments towards paying it off faster ( 33% on 15 year mortgage )



High yield Savings Account

My friend make about $600 per month

This is one of the worst ways to make passive income.

And his only doing this, because he doesn’t have anything to do with the cash



Here it is:

Current rates are aboiut 3.60%

So to make $500 per month you would need a total off $166,666k

It’s a bad deal for passive income, because your money is lossing value

But it’s a good deal while you wait for something better to with your cash



Peer to Peer lending

Lending Club

Prosper

Upstart

This obviously has risk involved but it’s a valid way to make passive income.



REITs ( real estate Investment Trust )

My favorite is VNQ althoug I stopped investing into it

Beucase I was doing it for diversification but I know what I want

So I don’t need to diversify

You can expect to make

Since 2004 its gone up about 284%

It pays about 3.50% div ( 171k required )

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*Some of the links and other products that appear on this video are from companies in which Tommy Bryson will earn an affiliate commission or referral bonus. Tommy Bryson is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. I'm an Accountant but I'm not your Accountant, always review information with your Accountant/CPA and your Financial Advisor.