I have yet to meet a person who didn’t want to start earning passive income. Who doesn’t want to turn their money into more money while doing no actual work?
It’s the first step to creating a passive income empire, with diverse investments that will eventually generate hundreds, then thousands of dollars per month.
And yet, the first $100 per month is often the hardest. Investing is hard, especially for someone without much experience. Putting your savings in harm’s way is scary. What if you lose money? What if it’s all a giant scam?
To get over that fear, think about investing logically. Yes, there is a chance everything except government-backed GICs could lose money. But there’s also a much greater chance an investment will go up in value.
Diversifying can really help to minimize risk. That means more than just buying a basket of stocks through an ETF. It’s best to diversify into other asset classes that move inversely versus the stock market, like bonds or preferred shares.
It also helps to think of investing as a lifetime endeavor. Losing 20% of an investment worth $10,000 is a big deal when all you have is $10,000. But as the years go by and more capital is put to work, it becomes increasingly meaningless.
Finally, set an attainable goal. We’d all like to make thousands per year in passive income from our portfolios. It’ll take years to get there, however. Start with a more realistic goal of $100 per month. Then up it to $200, $500, and so on. $100 is enough to make a difference in anyone’s life, yet is very achievable.
