Creating a steady passive income with $10,000 requires careful planning and strategic decision-making. While you might be tempted to go for low-risk options like high-yield savings accounts, treasury bills, notes, and bonds, you can rack up a much higher return with the right planning.
However, the long-term return depends on the amount of time, risk, and research you are willing to put into it. Having said that, here are 7 smart investment strategies to turn your $10,000 into a passive income machine.
Invest in a High-Dividend Mutual Fund
Mutual funds have been a popular investment choice for many. They are managed by professional fund managers, providing a hands-off investment approach. One of the great benefits of mutual funds is their accessibility to individual investors with various budget sizes.
A small (but increasing) mutual fund investment focusing on high-dividend stocks can be a good option for passive income.
Start a Dropshipping Business
Dropshipping isn’t a “get-rich-quick” scheme, but still a viable business strategy in 2024. It’s pretty much like an online eCommerce store, where you sell products without handling inventory or shipping.
The best part of dropshipping is you can start with a small capital. But you have to put your effort and time into developing your site, finding good products, listing, and optimizing them.
Invest in a REIT (Real Estate Investment Trust)
In the history of investments, real estate investing has proven time and time again to produce more millionaires than any other type of investing.
With $10,000, you can surely finance a real estate deal for rental income or to flip. But it is not a pure passive income game until you have a portfolio and the means to support a management team. However, REITs allow you to invest in real estate without having to own or manage properties directly.
Purchase a Blog or Website
With a blog or website, you can earn passive income through ads, affiliates, or product sales. Instead of putting lots of effort into building a blog around a niche you are passionate about, you can buy blogs or content sites that are already generating revenue.
Don’t know where to find one? Here are a few popular websites flipping marketplaces: Empireflippers, Flippa, and Motion Invest.
Invest Using an Offshore Brokerage Account
Did you know you can open an offshore brokerage account and start trading with leverage? The good part? You only need $1,000 to start. Some offshore brokers like CMEG allow you to trade with leverage with less than the $25,000 needed to trade stocks with leverage in the US.
However, you must find a reputable offshore brokerage with a good track record, transparent fee structures, and solid customer service.
Lastly, Invest in Yourself
The best thing to do with $10K is to invest in yourself. Use it to learn a new skill or gain a new experience that will put you on a path to earning more in the future. Learn to fix something- cars, trailers, water heaters, clothes- anything you like. Buy it cheap, fix it, sell for more.
Remember to conduct thorough research and consider seeking advice from financial professionals to ensure that any investment aligns with your financial goals and risk tolerance. Passive income opportunities can vary in terms of risk and return potential.
