Passive income is money you earn without having to work continuously. As opposed to active income where you trade your time for money, like a regular job, passive income only needs some amount of initial work or investment. Hence, building passive income is like earning financial freedom and security.
One way to look at it is you have multiple streams to make 100k passive income that reduces your dependency on a single job. This type of income can be beneficial during times of economic downturns or emergencies.
A great option for earning passive income could be through self-storage facilities. Self-storage allows people to store their belongings in specially dedicated units for their personal use. In this blog, we’ll look at strategies and ways to make 100k passive income in today’s world.
Ready to dive into some specifics? Let's kick things off with investment strategies.
If you want to make an informed decision to build your passive income, it is entirely possible with the right strategies and investments.
Real estate is a tried-and-tested method to make 100k passive income. When you invest in rental properties, you earn money through the rent paid by tenants. You must choose properties in locations with high demand and stable rental markets. For example, you can consider investing in residential or commercial properties in bustling urban areas.
Additionally, you must consider diversifying your investment portfolio with self-storage. The self-storage sector has seen significant growth due to increasing demand for storage space. This is because, unlike traditional rentals, self-storage requires less maintenance and can offer higher profit margins.
Companies like Wigwam Storage Management specialise in this sector, making it easier for you to enter the market.
Certificates of Deposit (CDs) are a safe investment option to make 100k passive income. CD laddering involves purchasing multiple CDs with different maturity dates. Using this strategy, you can benefit from higher interest rates on long-term CDs. plus you also get paid through the shorter-term CDs as they mature.
For example, if you have $100K, you could invest in five CDs with $20K each. Let’s say they mature in 1, 2, 3, 4, and 5 years. As each CD matures, you can reinvest the principal and interest into a new 5-year CD. This provides a steady, stable, and predictable income.
Another effective way to make 100k passive income is investing in dividend stocks. Dividends are payments a company makes to its shareholders from their profits. If you want to earn a steady passive income without having to sell your shares, find well-established companies with a history of paying consistent dividends to invest in.
You also benefit from capital appreciation and regular income. To boost your passive income over time, try reinvesting your dividends.
Fixed-income securities, such as bonds, are another great way to make 100k passive income. When you purchase bonds, you lend money to the issuer (government or corporation) in exchange for regular interest payments over a specified period.
You receive the bond’s value after maturity. Diversify your bond investments across various issuers and maturities to balance risk and return. Fixed-income securities are a reliable and stable source of passive income.
If you're looking to generate $100K a year in passive income, self-storage can be a highly effective strategy. But how? Let’s see.
Self-storage offers many benefits over other types of real estate investments. It mainly requires lower initial capital, less maintenance, and minimal effort to generate steady income.
Read this blog: What Is A Self-Storage Business? [Complete Details]
Also Read: Basics of Self-Storage Investment: Everything You Need to Know
Are you sitting on a goldmine of underutilized space? Wigwam Storage Management is actively seeking prime locations across the UK to transform into state-of-the-art self-storage facilities. You only need to lease your land or building to us, and we handle the rest.
A well-thought-out plan helps you manage risks, set realistic goals, and ensure that your investments align with your financial objectives. Here’s how you can develop an investment plan to make 100k passive income.
Risk tolerance refers to your ability and willingness to endure market fluctuations. If you have a lower risk tolerance, you might prefer safer investments like bonds or high-yield savings accounts. Whereas, if you have a higher risk tolerance, you might invest in stocks or self-storage, which offer higher returns but come with greater risk.
Clearly define your financial goals. Are you saving for retirement, buying a property, or creating a steady income stream?
Aim to save three to six months’ worth of living expenses to cover emergencies like medical bills, car repairs, or job loss. Keep your emergency fund in a liquid account so you can get it quickly when needed.
Schedule periodic reviews of your investment portfolio, at least annually. Check how each investment is performing and whether it aligns with your financial goals.
Financial advisors can help you navigate complex investment options, tax strategies, and retirement planning. They can provide insights based on your unique financial situation and goals.
Read Reasons to Invest in Self-Storage and learn how it can help you generate income potential.
By assessing these points, you can develop a solid strategy that increases your chances of success. To truly enhance your passive income strategy, take professional advice. Wigwam Storage Management helps you make 100k passive income through self-storage.
Using Wigwam’s help, you can develop a customised investment plan for your self-storage facility that considers your risk tolerance, financial goals, and current market conditions. Plus, you get regular meetings to help you stay on track with your investment plan and make necessary adjustments.
If you're intrigued by the idea of turning your land or property into a passive income machine, Wigwam Storage Management can be your ideal partner. Visit our website or contact us to learn more and take the first step towards financial freedom.
