Passive Income

The long hours you put in day in day out, the dedication you put towards your patients deserve a return. That return is your paycheck. You’ve worked hard for your earnings and now it is time for you to make your money work hard for you. There’s only a finite number of hours that you are able to work. For the majority of us its about 8-12 hours per day. But what happens for the other 12 hours of the day? How can you maximize earning potential when you’re not working? Enter passive income.

In the post we will discuss 4 passive income strategies that are truly passive, to earn extra money on your already hard on dollars while you sleep.

Low risk, Low reward

The most passive and lowest risk method to earn some extra monthly income is a HYSA or high-yield savings account. These days, online savings accounts offer yields between 3-and 4%. Your initial capital is guaranteed, and each month you get a guaranteed paycheck. For example, each month you put a set amount of your paycheck into a HYSA and at the end of the year, you’ve been able to accumulate 100k. That 100k will earn you 3-4k / yr for doing absolutely NOTHING. Your cash is always accessible and guaranteed. On a monthly basis you will earn approximately $300/month! This can be enough to cover your monthly coffee runs are any subscriptions you may have an interest in.

Dividendology

Yes, you read it right. Dividendology, the art of dividend stock investing. These types of stocks typically pay out on a monthly, quarterly, or yearly basis. Payouts can range anywhere from 1-4%. The added benefit you have in this over a HYSA is that there is always potential upside to the stock itself. Meaning, the stock can increase in value in addition to the dividends you are earning, making this a two-fold way to increase your wealth. Similar to the HYSA, no management is required; you keep investing the money and watch your wealth grow.

Real estate

As we move through these options, they are still passive but do require some upfront work. In real estate, you have to acquire the right property, get the right manager in place, and have the correct tenants. It does require more effort to get it going, but once you have the correct systems, it can work autonomously without your input. However, there is a learning curve, and I would only recommend this if you’re interested or passionate about it. This can turn into a semi-passive income stream if you have the right players on your team. It might be difficult to do this if you’re still working your full-time physician job. However, if it’s something that you’re drawn to, I’m sure you will be able to find the time and bandwidth to get it done.

Your dollar works for you

Your income is your leverage. Every dollar you make has the ability to grow and generate more dollars, depending on how you choose to deploy it. Choosing any of the above vehicles is better than choosing nothing at all. Leverage what you can when you can.

A.K, MD