Happy New Year 2022! (Pause) Now it’s time to get to work. This year we have a big mission to complete. You can call it a goal or a resolution—the name doesn’t matter. We will take life seriously and build a passive income stream of $100/month by the end of 2022.
“But Josh, $100/month is nothing.” Yes, it sounds small, but you have to start somewhere. I’d wager a bet that 80% of the population couldn’t create an income stream of $100/month without working a job.
However, I’m not just going to sit up here and flap my gums; I will give you solid recommendations on how to get started NOW. So, I’ll jump right into it if there are no objections or questions. Let’s begin.
Over-Budgeting: You Can Only Cut So Much Before…
Dividends. One of the most accessible ways to create a $100 income stream is through dividend growth investing. The goal of $100/month equals $1,200/year in dividends. If we divide that number by the dividend yield (1200/.03), we end up with $40,000.
Yes, $40,000 is a lot of money, but we can earn higher than a 3% dividends yield. We can add some high-yield products to our portfolio as well. If we can achieve a 5% dividend yield, then all we need is $24,000.
If we have the stomach, we can try our hand at income investing, aiming for an 8% return. Again, I don’t recommend this to beginners because you have to understand the markets deeply.
Aiming for $50/month from dividends would be reasonable. Remember, we strive for $100/month across the spectrum of passive income. We can add more revenue for much cheaper. A good starter dividend portfolio would consist of blue-chip stocks AGNC (AGNC), Phillip Morris (PM), Abbvie (ABBV), Prudential (PRU), and the total market index fund (VTI).
Real Estate. There are a few ways to earn $100/month from real estate. First, you can invest in real estate investment trusts that trade on the stock market. Some good ideas are Iron Mountain (IRM) and Medical Trust Properties (MPW). Again, they would yield around 5%, so you would need $24,000 to get our $100/month.
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Another way would be to invest in Fundrise, a privately operated REIT that doesn’t trade on the stock market. The numbers would be very similar to the stock market REITs, with a lot less volatility.
Many house-hacking techniques will net you well over $100/month, such as renting a room for $600+/month. You can also rent out storage space, parking space, or advertising space (billboards).
In all of the techniques in this year’s guide, house hacking will present the fastest, most accessible returns. The reason is that most people do not want to share their homes, so the market is high for room rentals.
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Cryptocurrencies. Cryptocurrencies can be very intimidating to outsiders. However, if you just focus on the huge income you make from interest, you can be a winner very quickly.
As you can see from the above picture, I would dive right into DOT, USDC, and VGX. Just equally buying those three would give us a yield of 9.333%. That means we only need to invest around $13,000 to reach our $100/month goal. Plus, DOT and VGX have huge upside price potential. Don’t overthink crypto; here is a guide I wrote to help you get started.
Royalties. The magic of royalties is that you can start building them without any money. I created an income stream of $50/month in royalties between January and November. It may not sound like much, but I don’t advertise or otherwise promote my books. If I started, I can increase this number.
Happy Cash Flow Retirement 2
If you started a Youtube channel, you could probably get monetized in one year (1,000+ subscribers). That would net you over $100/month in passive income.
You can also write a blog and receive $100/month in passive income using good search engine optimization techniques. I recommend starting with writing book or product reviews as the base of your blog. Then you can layer your unique content over the top of that.
Automated Business. There are many ways to make $100/month in passive income from a business. You will need to identify your time requirements before you begin. Here are a few small businesses I recommend.
- Start a rental car business
- Start an RV rental business
- Become a property manager for a couple of homes
- Harvest beneficial insects or composting worms
- Start an Automated E-Commerce business
These may sound out of the realm of reality, but once you dive into the books, they aren’t as tricky as they seem. Plus, you are only looking for $100/month. You could easily rent your vehicle out on weekends and make double that amount of money.
Don’t Gamble with Retirement 4
Putting it all together. Don’t worry about focusing on just one of these. Take the time to start one, and as it slowly builds, look into another. That’s why we want passive income—to focus on building more income streams because we have freedom of time.
If I had to allocate my income streams, this is how my final product would look.
- Dividends: $20/month (dividend growth investing)
- Cryptocurrencies: $20/month (interest on coins)
- Real Estate: $30/month (renting storage space)
- Royalties: $20/month (ebooks)
- Automated Business: $50/month (renting car)
- Total: $140/month
Conclusion. I may make it sound that easy because it is that easy. I have everything you need to get started. If you want background on all of these types of passive income, please read my book “The Biggest Book on Passive Income Ever!”
Also, don’t forget to get the companion New Year’s Passive Income Resolution Blank-Lined Notebook. You can take notes of your progress throughout the year. Come 2023; we will begin to increase our goals, so let’s accomplish our $100/month in 2022.
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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.
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