Of course investing is a terrific way of building up your long term wealth
. However it is also a great way to get some extra passive income.
If you invest your money wisely it can not only be a terrific way to build wealth, but also a terrific way to get some passive income and achieve financial freedom.
Here are actually 4 ways of creating some extra income through your investments.
1. Buying Stocks
Buying and holding stocks is a long term investment strategy. However it does also offer a short term reward. Top dividend paying stocks pay their shareholders money over a regular basis making owning stocks just like owning a money tree.
It is a great way to get some passive income. The only problem is that you are going to have to invest a lot of money to see any good cash flow coming in this way. So, there are better options out there.
2.Trading
Trading takes a lot of work and a lot of learning. But once you have it down it can be a nice way to bring in some extra money from any market that is tradable, stocks, forex, commodities, etc.
The great thing about trading the market is that it allows you to make a lot more money than you would if you had simply held stocks and profited off of the dividends. In other words you do not need to invest $1 million dollars to make a sizable income from your investment.
3. Investing In Real Estate
One other way of investing for an income is to become a real estate investor. Real estate investors are people who buy houses and then rent them out. Anyone can become a real estate investor and if you do your research and buy in good neighborhoods it can lead to a lot of extra cash flow.
The best part about real estate investing is that it is a long term approach and as you pay down the mortgage over time you make more money.