3 Expert Tips to Begin Earning Passive Income with Just $100

Written by The Anand Market

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When it comes to building passive income with just $100, you don’t have to be a financial expert or a seasoned investor. With a bit of research and some sound advice, you can kickstart your journey towards creating a passive income stream. We’ve consulted three financial experts who shared their insights on how they would invest $100 to generate money effortlessly.

1. Low-cost ETFs

Start Small, Grow Big

John Stoj, the founder of Verbatim Financial and a seasoned financial advisor, advocates for purchasing low-cost Exchange Traded Funds (ETFs). ETFs pool multiple individual securities, such as stocks or bonds, into a single investment, providing diversification and reduced risk. Stoj suggests investing your initial $100 and continuously adding $100 whenever you can.

Stoj emphasizes the importance of patience and consistency. By contributing to your ETF for years, you can watch your investment grow over time. This gradual approach can lead to financial security, and potentially, even the ability to live off your passive income.

While past performance indicates that the 10-year average stock market returns as of September 2023 stand at 12.39%, it’s essential to note that investment returns aren’t guaranteed, and financial advisors recommend maintaining an emergency fund equal to three to six months’ worth of living expenses.

passive income
3 Expert Tips To Begin Earning Passive Income With Just $100 3

2. Real Estate Investment Trusts (REITs)

Elevating Your Passive Income

Former Wall Street professional and TikTok financial literacy educator, Vivian Tu, proposes investing your $100 in Real Estate Investment Trusts (REITs). REITs are companies that own, operate, and finance income-generating real estate properties. The convenience of user-friendly apps like Elevate.Money and Fundrise has made real estate investment accessible without the need to manage properties personally.

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Tu explains that real estate investment doesn’t always involve flipping houses. Instead, REITs offer an accessible avenue for individuals with modest financial resources to partake in real estate investments. Yieldstreet is another prime choice for those looking to explore real estate investments further.

For a comprehensive look at real estate investing opportunities, explore Yieldstreet’s offerings.

3. Website Domains

Digital Investments at Your Fingertips

Taylor Kovar, a Certified Financial Planner and the CEO at The Millionaire Marriage Podcast, offers an innovative idea: investing $100 in purchasing a website. He suggests it’s one of the simplest ways to invest money in today’s digital landscape.

When you own a website, you have the opportunity to incorporate advertising and affiliate links. With each click on your website’s links, you can earn a small commission, which accumulates into larger monthly payments. To begin, Kovar recommends visiting platforms like Flippa.com or Newsy.co to explore available websites.

These platforms allow you to filter your search based on your budget and provide estimated monthly profits for each listing. The beauty of investing in website domains is that it requires minimal upfront capital, making it an attractive option for those looking to dip their toes into the world of passive income.

In conclusion, creating passive income with just $100 is an achievable goal, thanks to the guidance provided by these financial experts. Whether you opt for low-cost ETFs, real estate investment trusts, or investing in website domains, the key is to start small, be patient, and stay consistent to see your investments grow over time. Passive income isn’t exclusive to the wealthy; with the right strategy, anyone can begin their journey towards financial security.

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