Tired of working for a boss? Want to take control of your financial future? If you act strategically, you can build great wealth without relying on traditional employment.
Grant Cardon says passive income is the key to building wealth: Here's his best way to earn it
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We spoke to experts for their top tips on entrepreneurship, passive income, and investing to help you get rich your way. A combination of some of these strategies can put you on the path to financial freedom.
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invest in real estate
“In my opinion, the quickest way to make a lot of money without having a boss is to start a real estate business,” says Signature Properties' Doug Green.
He explained that real estate allows him to earn a “great” salary while being his own boss.
Green pointed out that real estate investing requires very little initial capital. You can start making money right away by sourcing great deals for other investors first. Then, use a borrowing strategy to purchase and renovate your own property. Although it takes work, real estate offers higher upside potential than other options such as stocks or product inventions.
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acquire an existing business
Kevin Henderson, founding partner of SMB Law Group, recommended entrepreneurship through acquisition. “The quickest way to build wealth and become your own boss is with ETA: buying an existing business rather than building one from scratch.”
Baby boomers are leaving the business, creating a huge opportunity to buy instead of starting from scratch. Henderson pointed out that grants and government programs can make financing easier for first-time buyers. Acquiring an established business is a fast track to success.
invest in dividend stocks
Building a portfolio of dividend stocks allows you to earn regular passive income and generate considerable wealth over the long term. The key is to reinvest your dividends through a dividend reinvestment plan (DRIP) to buy additional shares and continue to add new capital when possible.
Even a modest initial investment reinvested in dividend-growing companies over several decades can snowball into a diversified six- or seven-figure portfolio. With a DRIP, you can easily grow your stock holdings on autopilot without having to actively trade stocks or time the market.
Although not as exciting as starting a business, dividend investing requires minimal effort and provides recurring cash flow that is resistant to inflation. The combination of an initial lump sum investment and compounding dividends and growth over many years makes this a powerful wealth building vehicle.
Try peer-to-peer lending
Peer-to-peer lending platforms like LendingClub allow individuals to invest directly in consumer loans. When the borrower repays the loan, they receive principal and interest payments and a steady income. P2P's historical average return has been between 5% and 7%, comparable to bonds and CDs, but with higher upside potential.
Due to its online nature, this is completely passive income. Simply build a diversified portfolio based on criteria such as loan grade, terms, and borrower profile. The platform handles the collection of repayments and distribution to investors. No manual work required.
Although slightly more risky than traditional bonds, peer lending offers returns that exceed inflation. The key is to spread capital across many loans to reduce defaults. This set-and-forget approach generates consistent cash without any active involvement.
Enter a turnkey rental property
Turnkey real estate takes the hassle out of hands-on landlord management. Companies like Roofstock buy properties in popular rental markets, renovate them, and lease them to verified tenants. Investors can earn profits by simply purchasing turnkey rentals.
These companies facilitate everything from due diligence to tenant placement. This eliminates the heavy lifting of rehabilitation and tenant management. Turnkey rentals provide passive income with less effort than traditional rentals because there are no midnight repair calls. Every month, you sit down and collect your rental income. Although the returns aren't very high, the 7% to 10% net yield provides good diversification from stocks and stable monthly cash flow.
become an online entrepreneur
“Becoming an online entrepreneur is one of the best ways to increase your wealth,” said Nicole Nicolette of business advice blog Let's Make Life Great.
She said you can grow your online business on the side while still working your day job. Once you have enough income, switch to being a full-time online entrepreneur.
Nicolet outlined some of the major online business models.
blog
One of the most affordable online businesses to start, blogging can generate millions of dollars annually if successful. Good for writers and people with expertise to share.
online course
Once you create a course, you can sell it for ongoing profit. Perfect for people who like teaching people and helping them solve problems.
affiliate marketing
We recommend products and receive commissions when users buy through our links. You need some kind of marketing strategy.
Membership/Coaching
Earn recurring revenue from your subscribers by offering exclusive content and one-on-one support. Ideal for more practical work.
digital products
Items such as PDFs, music, and photos require minimal initial investment and can yield huge returns.
GOBankingRates Details
This article originally appeared on GOBankingRates.com: 10 Top Ways to Get Rich Without Working for Anyone
