Passive income is money that requires little to no effort to generate once an initial investment has been made.
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The key advantage of passive income is that it can provide cash flow without you having to trade your time for money. With smart passive income streams, you can potentially make $3,000 or more per month.
Here are 9 realistic ideas to earn passive income and make $3,000 per month:
Dividend stocks pay shareholders a portion of the company’s earnings on a regular basis, usually quarterly. The average dividend yield for stocks in the S&P 500 index is around 2%. To generate $3,000 per month in dividends at a 2% yield, you would need a portfolio of dividend stocks worth $1.8 million.
While this may seem out of reach for many, you can start small and build your portfolio over time. Consistently investing and reinvesting your dividends can result in exponential growth through the power of compounding. Aim to build a diversified portfolio of dividend aristocrats, which are stocks that have increased their dividends for at least 25 consecutive years.
