5 Strategies to Make Passive Income

(This article is NOT investment advice)

Not every investment advice on the internet is worth following. Not everyone who talks about passive income actually has it. And simple paths to wealth rather do not work. Building passive income is all about long-term strategy. The sooner you start, the better. If you want your money to work for you and provide for you comfortable retirement, you have more options to accomplish this.

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1. Investing in real estate — a classic that works

Real estate has long been one of the most stable ways to build passive income. However, not everyone can afford to buy an apartment just for investment. If you don't have millions in your account, there's a solution -- crowdfunding a.k.a group investment in loans secured by real estate.

This allows you to participate in the financing of real estate projects starting from a few thousand crowns and earn regular returnswithout having to deal with tenant management or property maintenance.

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2. FIRE — Financial Independence and Early Retirement

You may have heard of the FIRE (Financial Independence, Retire Early) movement. His supporters are trying save as much as possible, invest and live so that they can retire at age 40. The key is a combination of low costs and smart investing. The more money you can put aside and invest regularly, the sooner you will achieve financial independence.

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How much money do you need for a comfortable retirement?

‍FIRE is based on the so-called 4% rule. If you want to withdraw 4% per year from your portfolio and be sure your money will last, you need to invest 25 times your annual costs.

• Do you want to have 40,000 CZK per month, i.e. 480 000 CZK per year? You will need approximately CZK 12 million.
• If you need 30 000 CZK per month, it will be 9 million CZK.

Those are big numbers. But the sooner you start investing, the easier it will be to reach the necessary amount.

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3. ETFs and dividend stocks - long-term growth

If you venture into the capital markets, you can look at ETF (Exchange Traded Funds) or dividend shares. ETFs allow you to invest in a wide range of stocks at once, while dividend stocks can bring you regular payouts of passive income.

The strategy is simple: invest regularly into well-chosen stocks or funds and let your portfolio grow. When you endure for a long time, compound interest will do his.

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4. P2P loans — higher return, but also risk

Other options are P2P Loans, that is, lending money to other people or companies through specialized platforms. Investors earn interest on them on loans, but it's important to think about the risk of default. Therefore, it is recommended to spread investments among multiple loans and carefully select platforms.

TIP: Do you lose yourself in investment terms? Take a look at our Glossary of important investment terms.

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5. Automated investing — passive income without worries

Want to invest but don't want to watch the markets every day? Some investment platforms offer automated investing. You set your parameters, load money into your wallet, and the platform invests for you as soon as an opportunity arises that matches your ideas.

In this way, it also works Autoinvest from Investown — a feature that allows your own money to be invested according to pre-set parameters in new projects. It is an ideal way for those who want passive income, but do not have the time or desire to devote themselves to investments every day.

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Start ASAP!

Passive income is not about miraculous methods, but about systematic investing. The sooner you start, the better chance you have of building a comfortable future and financial independence.

If you are looking for a stable way to create a regular income from real estate, Investown can be a great choice. Start with small amounts, set Autoinvest and watch your investments appreciate.