DO THIS To Make Passive Income With ONLY $1,000 (Passive Income Ideas)| Minority Mindset

warren buffett says that if you can't find a way to make money while you sleep you are going to work until you die this is what passive income is all about using your money as a tool to make you money without you having to physically do anything and in this video i'm going to be going over 10 ways you can earn this type of passive income with just a thousand dollars [Music] what's up everybody i am jasperin singh from the minoritymindset.com and welcome to the minority mindset passive income is the holy grail when it comes to wealth building because now you are earning money while you sleep this is what wealthy people spend all their time building they want passive income we all only have 24 hours in a day and you don't want to spend 20 of those 24 hours working you want to have your money working for you and this is what passive income is all about you take your money you throw it somewhere and now your money's out making you money 24 hours a day while you're sleeping while you're on the beach and while you're watching youtube videos once you start investing for passive income it becomes addicting like you might just start off by getting a hundred dollars in passive income one year but the next year your goal might be how do you make a hundred dollars in a month then the year after that it might be how do you make a hundred dollars a week then after that it might be how do you make a thousand dollars a month you can get this type of passive income by investing one of two things you can either invest your time or your money you can invest your time into building this money making machine like let's say a guacamole business that you can eventually walk away from that will continue to pay you or you can just throw your money into this money making machine and have other people work to grow your money and pay you obviously the easier option is just to throw money at this money making machine because now you don't have to do any of the work but you do have to put in the time to get that money in the first place one of the biggest myths that people have when it comes to this type of passive income is that you have to be very wealthy or have a ton of money in order to get passive income but that's just not true i mean if you have more money then you can get more passive income but you don't need a ton of money to start investing for passive income that's why in this video i'm going to be going over 10 ways you can start seeing this passive income in your bank account right now with just a thousand dollars the first seven ways i'm going to be going over are completely passive these are things where you can just throw your money at something and then every month or every year every quarter you're going to have money deposited into your account and the last three ways are suitable passive income which require a little bit of work up front but they can earn you a whole lot more passive income in the back end the first way you can get this type of passive income is by investing in dividend stocks when you invest in stock you are buying ownership in a company like if you go out and you buy just one share of the mcdonald's stock you are one of the owners of the mcdonald's corporation now you're only going to own like one 745 millionth of the entire corporation but you are still one of the owners of mcdonald's some companies like mcdonald's pay their owners their shareholders people like you dividends which are cash checks just for investing in their company when a company has a bunch of cash in their bank account at the end of the year there's three things that they can do with this cash they can save this money for an emergency they can invest it into their future so they can invest in more stores they can create new products or they can pay their shareholders one of the ways that they can pay the shareholders is through a dividend which is passive income for you so if you go out and you buy one share of the mcdonald's company then every three months every quarter mcdonald's is going to deposit a little bit of cash into your bank account this is your dividend your profit share check into your account just because you are one of the shareholders or owners of mcdonald's let me give you an idea of what this is actually going to look like with a 1 000 investment because i think there's a lot of misconceptions out there on how passive income works because you have all these people on instagram and facebook talking about hey here's how you can make ten thousand dollars a month and passive income by doing nothing in 60 days that's a big lie by the way so let's go over how passive income really works mcdonald's pays a 2.4 dividend yield that means if you deposit a thousand dollars into the mcdonald's company today over the next year you can expect to make about 24 in passive income from mcdonald's ibm pays a 5.5 percent dividend yield which means if you deposit a thousand dollars into ibm over the next year you can expect to make something like 55 dollars in passive income and a t at the time of me recording this video is paying a seven percent dividend yield which means if you invest a thousand dollars into a t the company they will pay you about seventy dollars in passive income over the next year now twenty four dollars or seventy dollars is not life-changing money this is not going to buy you the dream car or that fancy vacation or the private jet that everybody's talking about on social media but it's a start 24 is better than no money because if you didn't invest this money in mcdonald's and you spent this thousand dollars at mcdonald's you would be left with nothing except a very bloated stomach right but if you're investing this money into the mcdonald's company at least you make it 24 in passive income which you wouldn't have if you didn't invest it into mcdonald's plus you have to understand that you're investing into companies like you're investing into mcdonald's or ibm or at t and your goal with these investments is to see these companies grow so if mcdonald's is making more money their stock price is also going to go up which means your investment value also went up now if mcdonald's is making more money in the future then your dividends are going to go up as well which means you're going to be making more money and passive income so if you really want to win in this game you got to consistently keep investing in strong companies that way you can build wealth by owning a large share of a company and that way you can make money as the company makes more money so before i go on to the second way you can make money through passive income let's make sure our expectations are clear a thousand dollar investment is not going to make you a millionaire overnight okay a thousand dollar investment is going to make you some passive income but it's better than no passive income and it's the building block to help you build that wealth that way you can get that financial freedom that you're looking for the second way you can get this type of passive income is by investing in reits which are real estate investment trusts i discovered passive income when i became a real estate investor because when i bought my first real estate investment property this property paid me something like a couple hundred dollars a month in profit every single month and this was money i didn't have to physically earn this was money the tenants had to pay me because they were living in my property i love real estate investing as a way to generate passive income but there's a couple of downfalls that come with real estate investing first you need a lot more cash because you have to buy physical real estate and second you have to deal with tenants if you're investing in real estate you're gonna have tenants that slip and fall while they're taking a shower and then they're going to sue you because they will say that the bathtub was too slippery when it was wet this has happened to me if you invest in real estate you are going to have tenants who are cutting cucumbers on their countertops and then they're going to call you crying because they miss the cucumber and they slash the countertop and they're going to demand that you buy them a new countertop that has also happened to me now you can hire a property manager that way you're not super hands-on involved in your real estate investments but if you don't want to deal with the headache of investing and owning your own real estate properties the next best thing is by investing in a reit a real estate investment trust because now you're investing in a company that invests in real estate the interesting thing about reits for you is that they are required by law to follow something called the 90 rule which says that they have to distribute 90 of their taxable income to you their shareholders through dividends what that means is now you can go out and invest in a reit on the stock market so this reit is a company that invests in real estate you invested in this company and now this company is going to invest in real estate now anytime this company makes money through their rental income they have to distribute 90 percent of their profits to you through dividends so if i diagram this out this is you i'm gonna drive you a nice mustache and if you go out and you invest in this reit this reit is a company that invests in this real estate now this real estate let's assume this is an apartment complex these tenants are going to have to pay your reit this company rent and then this reader's going to have to pay their expenses and pay their bills and then out of what money is left they're going to take 90 percent of this money and they're going to distribute this money out to people like you shareholders through dividends let me give you a couple examples so you know what to expect when it comes to returns i'm not telling you what to invest in in this video i'm just giving you examples that way you can get an idea of how this type of passive income investing works and while i'm at it with the disclaimers i should also tell you that investing has risks you are never guaranteed to make money when you invest you might even lose money so always always always do your own due diligence and never blindly listen to a random guy on youtube spg is simon property group and this is a company that invests in a lot of mixed use and major property developments throughout the united states and they are paying a six and a half percent annual yield so if you invest a thousand dollars into this reit you are going to get 65 dollars back in passive income without doing anything and you also don't have to deal with any tenant issues because your reach the company is going to deal with that headache so you're investing in a company that's investing in real estate and your company is doing all the work and all the headache and all the management stuff with the real estate you're just getting that passive income nli is anti-capital management and they do something a little bit different so they don't actually own the physical real estate properties they own the loans they invest in commercial mortgage-backed securities and they pay an 11 and a half percent annual return so if you go out and you invest a thousand dollars into noi you will make about 115 in passive income while doing nothing while this company does the work and the bigger the dividends get the more risk there is so these are things you want to keep in mind at this point what a lot of people start doing is they start googling how to find the highest dividend yielding stocks and then they just invest in companies that are paying the highest dividends as somebody who did that during his college years let me give you a little bit of a warning you should never solely make your investment decision based off of what dividend a company is paying because that dividend yield can be very deceiving let's say you want to invest in this hypothetical company that is trading for a hundred dollars a share and they're paying a five percent annual yield so if you invest a thousand dollars into this company they'll pay you fifty dollars if you invest a hundred dollars into it they'll pay you five dollars over the next year now what you want to pay attention to is how strong the actual company is because let's say this company starts to do really bad they start losing money and they're on the verge of bankruptcy and this stock tanks in price they go from 100 a share to 20 dollars a share because they're doing really bad financially at this point if they have not adjusted their dividends yet it will look as if they're still paying this five dollar annual yield right this is how much money they were paying here and assuming they haven't adjusted their dividends it will look like they're paying a five dollar annual dividend for a 20 share price of the stock that is what a 25 return on your money so people might look at this and say wow this company is amazing they're paying 25 a year on my money but what you don't understand is that this company might be on the verge of bankruptcy so yeah you might make a little bit of dividends but then next thing you know this company could go bankrupt or if they don't go bankrupt they can also cut their dividends to zero and now you are owning a company that is not really doing anything this is why it's very important before you start investing in companies for the dividends that you're analyzing their financials and you're analyzing the fundamentals of a company that where you're investing in a company that you want to own that is going to be more profitable in the future than it is today and if this is very overwhelming or if you don't want to do this or if you don't know how to do this then you might want to consider looking at three index funds with an index fund now you don't have to find the perfect company to invest in you can invest in a fund or a group of stocks which give you exposure to a bunch of different stocks and now if you're investing for dividends as passive income you can invest in a fund that is giving you this passive income there's a few ways you can go about this one thing you can do is invest in a fund like voo that's going to give you exposure to the general stock market so voo invest in the top 500 companies in the stock market so if you invest in boo you're getting exposure to the top 500 companies in the stock market at the time of me recording this video voo is paying a 1.75 dividend so if you invest a thousand dollars into vo today over the next year you can expect to make something like 17 18 and passive income from dividends again this is money you're making by doing nothing except just throwing your money into this fund and you also have exposure to the top 500 companies in the stock market so the goal is also this year thousand dollar principal your investment go up in value as well vnq is the vanguard index fund for reits so if you want to invest in wreaths and get exposure to real estate but you don't want to do all that work to find the best read to invest in and risk your wreath going bankrupt one thing you can do is invest in vnq because this fund gives you exposure to a whole bunch of different reits at the time of me recording this video vnq is paying 3.85 a year in dividends vym is the vanguard index fund that gives the exposure to high dividend yielding companies so if you want to invest in companies that are paying high dividends and you don't want to go out and find all these companies you can just invest in a fund like voim which invests in high dividend yielding companies at the time of recording this video vym is paying 3.62 percent a year in dividends again these are not life-changing amounts if you just invest a thousand dollars but it's the foundation to building wealth that way you can create a whole new passive income stream because this is money you're making without doing anything you just throw your money into these funds and then your funds are investing in companies which are doing the work to earn your money and this is what you're making without doing anything if you are interested in learning how you can grow this type of passive income even quicker stay tuned because i'm going to be talking about how you can amplify these things by doing something called pseudo-passive income investing but i'll get to that in just a little bit also if you ever want to learn more about how to invest in stocks or passively invest your money we have articles on this on our website the minoritymindset.com and i'll also link it for you in the description below the fourth way you can get passive income is by investing in crowdfunded real estate investing in crowdfunded real estate is similar to investing in a reit where you're investing in a company that invests in real estate but now with crowdfunded real estate you're actually investing into a fund that gives you direct exposure to the real estate itself you can't invest in crowdfunded real estate on the stock market you have to go through a third party platform which gives you exposure to these real estate investments this would be using something like fundrise and on their website it says that the historical returns for the last number of years has been something like 8 to 12 a year now this eight to twelve percent figure is not just the amount of passive income you're getting this is the passive income you're getting through dividends and it's also depreciation in the property so the way this works is you are investing directly into a fund and this fund mimics the returns that a real estate property or a group of real estate properties is getting so if these real estate properties go up in value your fund goes up in value and if these real estate properties make money through rent then you make some money through rent as well this is what your dividends are again with this type of crowdfunded real estate you're not the one going out and finding real estate deals you're not the one going out and finding tenants you're not the one managing tenants or paying the bills you're just investing into a fund that gets exposure to this real estate and there's other people that are doing all the work and as these real estate deals make money so do you so this is an easy way for somebody to get exposure to real estate and get passive income from real estate without actually going out and spending hundreds of thousands of dollars or millions of dollars buying physical real estate investments if you are interested in learning more about how crowdfunded real estate works and how you can invest in real estate we have articles on this on our website the minoritymindset.com and i'll also link it for you in the description below the fifth way you can earn passive income is by being a banker without actually being a bank the way this works is you find people who want to borrow money maybe they don't want to go to a bank to borrow money or they can't qualify to borrow money from a bank and so you can lend money to these people and in exchange for them borrowing your money they will pay you interest every single month just like you have to pay the bank interest if you borrow money from the bank the interesting thing about this is that if somebody can't qualify to borrow money from a bank they're gonna have to pay you higher interest to make up for this higher risk there's a couple ways you can go about doing this i mean you can find somebody who wants to borrow a thousand dollars but then you're gonna have to create all the paperwork and manage the investment which is a lot of time and a lot of paperwork which isn't very passive or you can use an online lending platform out there like lending club they're not paying me to say this i'm just giving you an example these are the return numbers i just pulled off their website to give you an example of how this type of lending works so they say the average return the average interest rate is 14 so this is the money the borrowers are going to pay to borrow money now out of this 14 you're not going to get all this money because some people are just not going to pay their loans and other people are going to pay their loans off early if you pay a loan off early you pay less interest so this is less interest than you get so they say to apply an 8 factor of loss either from people not paying their loans or from people paying off their loans early and then they apply another 1 fee for their commission now after these fees you are left with something like a five percent return and so this is money you're making monthly through interest and you're also getting a little bit of principal back every single month and so you just lend this money out let people use your money and then they're gonna have to pay you interest to use your money the sixth way you can make money is by renting out some of your home when i was in college my roommate would talk a lot about business ideas and one idea that we came up with was on weekends that we weren't in the apartment we could sublet our apartment out to other people who wanted to stay in our city and our campus when we weren't there it's an easy way to make money because if you're not in your home for a weekend you can have someone else stay there and they'll pay you rent for that weekend back then it was really hard to do because there was no such thing as airbnb or if there was airbnb i had never heard of it if you're not at your home for a weekend or if you have extra space like a basement or an extra room you can put this on airbnb for weekends that you want other people to stay there or the alternative if you're cool with other people living in your property is if you have extra space in your home maybe it's a basement or a guest room or an in-law suite if you have this extra space you can rent it out to somebody else and they will live there and then they're going to pay you rent every single month for using your property and you don't really have to invest that much extra money because you already have the space and it's sitting there vacant and now someone's going to use it and pay you passive income every single month for using your space that you're not using depending on where you live that can be an extra 200 to a thousand dollars a month every single month in passive income and you don't even have to invest a thousand dollars to do that if you have the space the seventh way to get passive passive income is by investing in municipal bonds earlier on in this video i was talking about how you can get passive income by investing in stocks to get dividends now when you invest in stocks you become one of the owners of a company with bonds it's a little bit different because now you're not becoming an owner of anything you are just investing your money by giving loans and you're getting paid with interest if you didn't already know cities and states love spending money that they don't have so this might be used to build schools or build roads or build police systems and so in order to fund this they need to borrow money one of the ways that local governments borrow money is by issuing bonds to people like you investors this is what a municipal bond is a municipal bond is when you are loaning money to a local government this might be your city or this might be your state and now you are loaning your money to the city or the state and the city or state is going to pay you back with interest so every single month you're going to get paid with a little bit of interest and at the end of the loan this is called the maturity date you're going to get your thousand dollars your initial investment back there's a couple things that make municipal bonds very interesting one is they tend to be very safe because nobody thinks that cities and states are going to go bankrupt and second they can be tax-free investments if you lend money to the government they are federally tax-free that means you're not going to have to pay any federal taxes but there's also a second layer of tax called state taxes so places like new york and california have very high state taxes but if you invest in a new york municipal bond or a california municipal bond and you live in new york or california then you also don't have to pay any state taxes on the income but in order to avoid paying the state taxes you have to live in the state where this bond is located so if you are investing in a new york municipal bond and you don't live in new york then you're going to have to pay state taxes on your income but if you live in new york and you're investing in a new york municipal bond then you're not going to have to pay any federal taxes on your income and you also don't have to pay any state taxes on your income people are always debating over tax rates because the more money you make the more taxes you have to pay and so if you're making a lot of money and passive income you might be subject to really high taxes this is where municipal bonds can come in handy because if you make a lot of money you can invest in a municipal bond and make money without having to pay taxes one example of this is f y qx this is a fund that invests in new york municipal bonds and it has a 1 000 minimum investment requirement so if you invest in this fund with a thousand dollars this fund will pay you just about 2.5 percent a year and interest on your money this is where things get really interesting because it's two and a half percent that you're earning is tax free so if you are a really high income earner then this two and a half percent that you're earning tax free is actually something like five percent that you would have been earning before taxes so as you start to generate your passive income and you build your wealth and you have the high income municipal bonds are things that you can think about using as a way to kind of shield yourself against taxes now the next three ways that you can make passive income so numbers eight nine and ten are what i call pseudo-passive income these aren't things where you can just throw your money at something and then walk away but these are things where you invest your time and your money and if you do this the right way then you can eventually create this new passive income stream where you're making money a whole lot faster than if you just threw your money into something and walked away the simplest example of this is number eight making videos i can tell you from first-hand experience that you can start a great youtube channel with less than a thousand dollars like we started this minority mindset youtube channel with my cell phone in front of a white wall we didn't have any fancy equipment any editing software any sound equipment i literally just started this with the cell phone that i had and i was recording videos on a tripod in front of my white wall i probably spent like 50 or 75 dollars to getting this channel started and now we have kind of evolved into a full media company from a very small investment here's the caveat making youtube videos is hard and being consistent is even harder but if you work really hard at this and you make your videos and you constantly try to improve and you work very hard at constantly putting out content that people want to watch eventually youtube will see that and youtube will share your content with other people now if that happens the videos that you produce six months ago and a year ago and two years ago and five years ago will continue to generate you revenue today if you put in that work initially to build that youtube channel you can build a consistent revenue stream of at least a thousand dollars a month if not a thousand dollars a week or maybe even a thousand dollars a day that is very possible with youtube if you stay consistent and you keep putting in that work to produce quality content but it's not going to happen overnight this is why i call it pseudo passive income because it takes a whole lot of work in the beginning but if you put in that work in the beginning you can create a new passive income stream because all those videos that you created over the life of your youtube channel will continue to generate your revenue for years into the future nine is affiliate blogging every company on the internet wants more sales and one of the ways that companies can attract more sales is through affiliate marketing affiliate marketing is when you promote somebody else's product and anytime somebody buys that product through your link on your blog then you are going to get paid a commission now if you like working out then one thing that you can do is create a blog where you teach people how to work out and how to burn fat then within these articles you can link to your favorite supplements using your affiliate link that way anytime people read your article about how to burn fat and they click on your affiliate link and they buy the supplement you will get paid a commission the cool thing about this is it's very inexpensive to start you don't have to pay any money to start doing this type of affiliate marketing because you can just reach out to your favorite companies and say hey can i promote your products as an affiliate and they're going to give you a special link that anytime somebody buys their products with your link you will get paid and we're in the digital age where you can start a brand new website with literally zero dollars because there are so many free website builders out there that you can use and you can start writing articles on these websites and then when people come to your website and they click on that link you will get paid well they have to click on the link and actually make a purchase but you get the idea this brings me to number ten you can be an influencer now not everybody wants to be a celebrity like kim kardashian and you don't have to be to make money as an influencer when i say become an influencer essentially what i mean is you become an influencer on social media either as your personal self or through a business brand page it costs you zero dollars to go out and create an instagram page and if you go out and create an instagram page and you start producing content so this is going to take your time but you produce content that people want to see and they want to engage with and you start to build a following you can sell advertisements on your instagram page once you get to something like 10 000 followers then you can charge somewhere between 10 and 100 per post that you put on your page every single time you post something on your page the amount of money that you can charge per post is going to depend on a few factors it depends on what type of niche your page is what type of product you're promoting and what demographic your audience is but once you build that audience based on instagram which is not easy to do it takes time but if you put in that work to build that audience now you can continually sell advertisements and keep putting out instagram posts because once you have the audience it is very inexpensive and very easy to make a new instagram post and you can charge brands a lot of money to do that if you enjoyed this video here's the video that i think you'll love and while you're at it subscribe to our youtube channel and join our free finance and business newsletter and as always keep hustling you can start with five dollars a day or five dollars a week or twenty dollars a week whatever you have you just got to make these small incremental investments that way you can buy these assets and build your wealth faster

Channel: Minority Mindset

Views: 966,754

Keywords: minoritymindset, minority mindset, jaspreet singh, how to get passive income, how to get passive income from stocks, how to get passive income online, how to earn passive income, how to earn passive income from 1000, how to get passive income with $1000, top 10 passive income ideas, 10 passive income ideas, top 10 passive income investments, passive income ideas, passive income investments, passive income, earn passive income, get passive income, make passive income

Id: nGa53uNPNMM

Length: 25min 35sec (1535 seconds)

Published: Sat Nov 21 2020