How to maximize your passive income

How to maximize your passive income

Investments

Veronica Aquino

Veronica Aquino

27 Feb 2019, 13:59 — 4 min read

Today's market is highly volatile; stock market price moves unpredictably and dynamically causing concerns for investors.


While there are many ways to generate passive income, it is important to further diversify your portfolio and look for alternative vehicles to earn more money. Passive income is earnings derived from a rental property, limited partnership or other enterprise in which a person is not actively involved; whereas, active income refers to income received from performing a service. This includes wages, tips, salaries, commission, and income from businesses in which there is material participation.


To get you started in maximizing your wealth, here are the five passive income opportunities for you:

 

1. Time Deposit
This is a bank product wherein your money is placed in a bank account and it cannot be withdrawn until the specified maturity date. Time deposits also earn higher interest rates compared to savings and checking accounts, but it depends on the term and amount placed. The higher and longer you put your money in time deposits, the higher the interest rates will be.


2. Bonds
Bonds are loans offered by corporations, cities, and governments. In exchange, there is a written and signed promise to pay a certain sum of money on a certain date and condition. If you want to minimize risk and maximize returns, choose funds that assets are going up in value.


3.
Stocks
Stocks are ownership shares in a company. Also known as shares or equity, it represents a claim on the company's assets and earnings. Companies need money to finance their business so they earn it by either borrowing or sharing stocks. Once you invest in the stocks of a company, you become one of its “owners”. The best time to buy stocks is when the market is down. If you're planning to buy stocks, do it during Mondays than any other days of the week because the stock market has a tendency to drop during this day. Friday is probably the best day to sell stocks because stocks tend to have a higher price during this day.


4.
Mutual Funds
A mutual fund is one of the most common types of passive income that is operated by money managers who create portfolios for investment with the pool of money from investors. To invest, you can buy through a mutual fund company, bank, or brokerage company that is also similar from stocks. The best time to purchase your own mutual fund and save money is as soon as possible because this is a long-term investment.


5. Buying Invoices
It is now possible to do receivable discounting through Acudeen! As an Acudeen funder, you can earn fixed income as high as 2.5% per month! Buying invoices through Acudeen is convenient because transactions happen online. It’s also secured because all sellers and invoices for sale are verified by Acudeen, and it's fast because the funds are deposited directly to your e-wallet after the collection of funds on the invoice maturity date. To start buying invoice through Acudeen, you can click here.


To explore business opportunities, link with me by clicking on the 'Invite' button on my eBiz Card.


Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views, official policy or position of GlobalLinker.  

Posted by

Veronica Aquino

Acudeen is an online marketplace for receivables discounting where SMEs can sell their invoices to our network of buyers and receive cash within 5 days.<br /><br...

Recommended articles for you

Got an inspiring story?
Get featured on SME inspirations

Already a member?

Log in

Other articles written by Veronica Aquino

View All

UnionBank GlobalLinker - GET THE BIG BUSINESS ADVANTAGE

Visit mobile site