What a fantastic year we had in 2022. Yes, the stock market crashed, but things still lined up in our favor. That is the magic of passive income—it helps protect you from downturns.
I started the year bullish on cryptocurrencies and still feel the same. They will be a significant part of our transition to the Metaverse and Web 3.0.
However, there are many snakes in the crypto grass, and I need time to let everything play out. In the meantime, bonds made a roaring comeback with the rise of interest rates.
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Passive income for the win. Passive income helps your income increase every year, and 2022 was no exception. All of my sources of passive income rose along with my salary.
All the rents went up on my homes, my dividends doubled, and my royalties rose sharply—what can I say? Life is good.
But this is not the time to pat myself on the back. I still have much more work to do toward my passive income: dividends, books, websites, YouTube, and rental income.
This brings the conversation to you. But that’s enough about me, what about you? Did you build any passive income during 2022? Did you create an additional stream of income?
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If you answered “no” to both of these questions, you would need to make a passive income resolution for 2023.
This new year, let’s start from the very beginning of our passive income roots. There has never been a better time to earn passive income without much risk.
No risk high reward. Interest rates are much higher than last year. We can earn a nice income from our high-yield savings accounts. This will be our first new year’s passive income resolution.
1) Passive Income Resolution #1: Earn $10/month in interest from a high-yield savings account.
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You will need $4,000 in your high-yield savings account to earn $10/month. Can you save and invest $4,000 throughout 2023? Of course, you can.
Moving a little higher up the yield curve. So investing in a high-yield savings account is child’s play for you, huh? Okay, the next step is to buy some Series “I” Bonds from Treasury Direct.
“I” Bonds had a great year, earning 6-9%. Inflation will persist for 5-8 years, so “I” Bonds will be a solid investment for everyone for the next decade.
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2) Passive Income Resolution #2: Invest in Series “I” Bonds from Treasury Direct.
How much you invest is up to you, but I recommend attempting to start a recurring monthly investment. I only invest $100/month into “I” Bonds mainly because dividends are my priority.
Dividends for the new year. Okay, so you knocked those out of the park; what’s next? Investing in blue-chip dividend-paying stocks has never been easier.
In the next step, you will open a Cash App account and pick your favorite dividend-paying company. You can dollar-cost average either weekly or monthly.
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3) Passive Income Resolution #3: Start a dividend Debit Debit Card via Cash App and invest in your favorite blue-chip company.
Here are some of my favorite companies where I invest my cash: Mcdonald’s (MCD), Verizon (VZ), AT&T (T), Mastercard (MA), Visa (V), Starbucks (SBUX), Apple (APPL), Johnson & Johnson (JNJ), and many more.
Try an index fund. Index funds offer less risk than individual stocks, at least initially. However, you should dabble with dividend-paying stocks first because they can grow in value and pay you income.
Index funds are a great way to build a nest egg you will never liquidate. Think about making a house, brick by brick.
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In the end, you won’t want to sell your house, but you can still leverage it to build wealth. I view index funds as a simple way to grow wealth. However, I invest intending never to sell.
4) Passive Income Resolution #4: Invest in Index Funds via Cash App or STASH
Luckily, you can invest in index funds through Cash App and STASH. You can buy fractional shares to invest $5/week into DIA, QQQ, SPY, or VTI.
Go all in. Finally, if you are feeling froggy, you can invest in some high-yield income. I love, love income investing. It gives me a lifestyle I could have never dreamed of three years ago.
There are many types of income products (closed-end funds, preferred shares, mortgage REITs), but I recommend a preferred bond fund first.
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They are relatively safe, and you can find them on the Cash APP. On Cash App, I use (PFF) as my preferred bond fund. You can also try a dividend ETF (SCHD) instead.
5) Passive Income Resolution #5: Purchase a preferred bond fund or dividend ETF.
Looking toward 2023. In the world of passive income, we will always need to move forward, so what’s on the horizon in 2023?
We will still have high inflation and interest rates. I will begin to invest in Treasury Interest Protected Securities (TIPS) from Treasury Direct.
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TIPS are more complex than 30-Year bonds and Series “I” Bonds, but I am up for the challenge. I also aim to monetize one of my YouTube channels in 2023.
I plan for 2023 to be an incredible year for passive income. In fact, every year is wonderful when you make money while you sleep.
Conclusion. Have you started a passive income stream? If not, what is holding you back? With inflation running high and wages turning low, you will need additional income.
The only thing stopping you is fear. There are many ways to make extra income. Do not spend the additional money; invest it.
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When you invest, your money makes money. If you do this enough, your money will do all the work for you. You can relax and collect the proceeds.
I am slowly buying my freedom from the workforce. Every day, I wake up and talk to you about my progress, hopefully motivating you.
I cannot think of a better subject to talk about than your financial freedom. When you are free, everything in life (including relationships) improves.
So have a great year in 2023, do yourself a favor, and start buying your freedom! Happy New Year’s, and Good Luck!
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Disclosure: I am not a financial advisor or money manager, and any knowledge is given as guidance and not direct actionable investment advice. I am an Amazon Affiliate. Please research any investment vehicles that are being considered. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article. All Right Reserved Military Family Investing
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