Please share suggestions of whats worked for you and what hasnt
Ask HN: Passive Income Suggestions?
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Re: Ask HN: Passive Income Suggestions?
#2Buy either a larger multi bedroom house or a multi family home with 5% down payment and get roommates.
Charge roommates for rent who mostly cover either all or 50%+ of your mortgage.
Live in it for a year (you have to reside for a year because 5% down gets you owner occupied financing), then buy a 2nd place, move out of the first place, and backfill your bedroom with another tenant.
Repeat every year for 3-5 years, and you'll have 3-5 properties with tenants. if you do it right, you'll cash flow right away.
Re: Ask HN: Passive Income Suggestions?
#3Buy VT or a similar broadly diversified equity index fund, it can't get more passive than that. I have all my savings invested that way.
Re: Ask HN: Passive Income Suggestions?
#4A couple of suggestions:
- Affiliate websites. These are basically content websites with built in affiliate links. You try to rank your content for certain keywords in search results
- Real estate. I've been a real estate investor since 2008 and I can say that it's probably the most well known way of building passive income. Simply put, you buy a house, rent it out and continue the process. However, it's a long term game because of the amount of starting capital required to buy. I wouldn't recommend it if you don't have much money to start because of the repairs and maintenance you will be responsible for as tenants continue renting.
I hope this helped. Let me know if you have any questions.
Re: Ask HN: Passive Income Suggestions?
#5Buy VT or a similar broadly diversified equity index fund, it can't get more passive than that. I have all my savings invested that way.
what happens when you need to pay for $TragicLifeEvent and are forced to liquidate your ETF position in a downturn?
Re: Ask HN: Passive Income Suggestions?
#6Buy VT or a similar broadly diversified equity index fund, it can't get more passive than that. I have all my savings invested that way.
what happens when you need to pay for $TragicLifeEvent and are forced to liquidate your ETF position in a downturn?
I should have probably said that I also keep 6-9 months of living expenses in a traditional savings account for emergencies. It didn't even occur to mention it since it's a minuscule portion of my net worth (< 2%), compared to the amount that's invested in the market, but that's definitely a good observation and I should have specified that to begin with.
Re: Ask HN: Passive Income Suggestions?
#7DeFi apps like https://compound.finance
Re: Ask HN: Passive Income Suggestions?
#8DeFi apps like https://compound.finance
Not really good idea if you don't have much money because of low interest rates.
Re: Ask HN: Passive Income Suggestions?
#9Earlier quoted context omitted.
what happens when you need to pay for $TragicLifeEvent and are forced to liquidate your ETF position in a downturn?
I should have probably said that I also keep 6-9 months of living expenses in a traditional savings account for emergencies. It didn't even occur to mention it since it's a minuscule portion of my net worth (< 2%), compared to the amount that's invested in the market, but that's definitely a good observation and I should have specified that to begin with.
>6-9 months of living expenses in a traditional savings account for emergencies
Geez seeing comments like this make me wonder if I'll ever be debt free enough to have nearly a year of living expense to fall back on. I've barely got enough in my savings account for 2 months of bills and loan payments.
Re: Ask HN: Passive Income Suggestions?
#10Earlier quoted context omitted.
I should have probably said that I also keep 6-9 months of living expenses in a traditional savings account for emergencies. It didn't even occur to mention it since it's a minuscule portion of my net worth (< 2%), compared to the amount that's invested in the market, but that's definitely a good observation and I should have specified that to begin with.
>6-9 months of living expenses in a traditional savings account for emergencies Geez seeing comments like this make me wonder if I'll ever be debt free enough to have nearly a year of living expense to fall back on. I've barely got enough in my savings account for 2 months of bills and loan payments.
If it makes you feel any better, I had to travel 6k miles from my home country to Silicon Valley in order to reach this level of financial stability, so I had to do some significant sacrifices (e.g. not being able to stay close to friends and aging parents, ...).