Passive income is a ticket to creating wealth. Whether you are in the Army, Navy, Air Force, or Marines, making passive income provides you with financial stability and even paves the way for a successful post-military career. But the question is, do you know the passive income streams you can explore? What are the ways how to make passive income while in the military?
Reasons to Earn Passive Income While in the Military
It is undeniable that when you are serving in the military, you would need to have a stable income. Taking into consideration the nature of work and the demands of military life, it is challenging to find additional ways to earn money. It is almost impossible to start and side hustle and make it be successful since you would not be available to manage or even keep a close eye as most of the time you would be away. This is where passive income comes in.
Unlike active income, which necessitates you to trade your time for money, passive income allows you to earn money while you are doing other things. Perhaps, as many people say, while you sleep. Some of the benefits of earning passive income while in the military include:
- Financial stability – Passive income provides an additional income stream, one that greatly assists you in building financial stability. Such an income stream covers unexpected expenses, allows you to save for the future, and provides a safety net during times of transition.
- Flexibility – As a military service member, you have limited control over your schedule. With passive income, you get the freedom and flexibility of earning money on your own terms, without interfering with your military duties.
- Post-military transition – When you eventually transition out of the military, having an established passive income stream would provide a smooth transition into civilian life. It bridges the gap between your military income and your post-military career.
Key Takeaway
Despite the demanding military life, it is possible to build passive income streams. The common ways how to make passive income while in the military are investing in stocks and Exchange-Traded Funds (ETFs), peer-to-peer lending, investing in real estate, renting out assets like rental properties and Airbnb, selling online courses, and self-publishing eBooks.
Among these, the most recommended is investing in stocks and ETFs due to the long-term growth and dividend income and investing in real estate due to the appreciation nature of real estate. This does not mean the other ways are not viable, they are and are great income streams once a person has mastered them.
Different Forms of Passive Income Streams
Passive income is generated from multiple/diverse sources. The common streams that can be considered by military personnel include:
1. Real Estate Investing
Whether through rental properties, real estate crowdfunding, or real estate investment trusts (REITs), investing in real estate can be a lucrative way to earn passive income. Investing in real estate comes with the potential for long-term cash flow and appreciation because the real estate market is always in an upward trend.
You can even consider renting out your property to fellow military members or individuals in areas with a high demand for rentals – Airbnb.
Related Article: Can You Make Money Renting Your Timeshare
2. Stock Market Investing
As a way of getting passive income, military personnel can invest in stocks, bonds, and other securities. This is an option that provides passive income through dividends and capital gains. With careful research and a long-term investment strategy, the stock market is a reliable source of passive income. The good thing is that there is no limit to how much you can make since it depends on your investment capital.
Also, you can invest in dividend-paying sticks or funds that distribute a portion of their earning to shareholders.
3. Online Businesses
Starting an online business like an e-commerce store, a blog or a digital product business is also another viable way to make passive income while in the military. With the right marketing strategies and automation tools, you would get to earn money while focusing on your military responsibility. The key aspect of this form of business is that you would need to choose a niche that you have a passion for. This is because you might choose a niche that you do not have passion for due to its demand and end up losing interest or giving up easily.
Read About: How to Start an Online Business and Find Success
In case you have a passion for writing or creating videos, consider starting a YouTube channel, blog, or vlog. After getting traffic (people following your content) you would then monetize the content through advertising and sponsored posts. You can even decide to place your own digital product in the blog and get to earn from it.
4. Peer-to-Peer Lending
Peer-to-peer lending platforms like Kiva, Prosper, and Upstart enable one to lend money to individuals or small businesses in exchange for interest payments. By diversifying your lending portfolio, you would get to earn passive income from the interest earned on your loans.
Read More: Best Peer-to-Peer Lending Websites for Investors
5. Affiliate Marketing
Also on the list of how to make passive income while in the military is affiliate marketing. This strategy entails promoting other people’s products and earning a commission for each sale made through your referral. By leveraging your online presence and social media platforms, you would be able to earn passive income by sharing your unique referral links and getting people to purchase a product or complete a certain action.
6. Self-Publishing
This applies if you have expertise in a particular field or a unique story to share. You will need to write a book and publish it. Platforms like Amazon Kindles Direct Publishing make it easy to publish and sell books online. In return, you would be able to earn passively when people purchase the book.
7. Creating an Online Course
If you have specialized knowledge or skills, consider creating an online course. Platforms like Coursera, Udemy, and Teachable make it easy to create and sell courses to a global audience. After uploading the course, all you will have to do it to update it if necessary as you wait for people to purchase and get paid.
Management of Passive Income
While serving in the military, it is challenging to manage passive income if you lack proper planning and organization. Some tips to assist you in effectively managing your passive income include:
- Setting realistic expectations – Get to understand that managing passive income requires time and effort, especially in the beginning. Be realistic about what you are able to attain and accordingly adjust your expectations.
- Staying organized – Keep track of your income, expenses, and investments. Use tools like spreadsheets or financial management apps to stay organized and monitor your progress.
- Seeking professional advice – Consider consulting with a financial advisor or tax professional specializing in passive income. Talking to them would provide you with valuable guidance on maximization of earnings and minimization of tax liabilities. As a way of reducing your overall tax liability, contribute to retirement accounts like a Roth IRA or a Solo 401(k).
- Reinvesting and growing – As your passive income stream starts generating consistent cash flow, consider reinvesting a portion of the earnings to further grow the income. Doing this would accelerate your journey towards financial independence.
Conclusion
While in the military, making passive income gives you the freedom and flexibility to pursue your financial goals and take control of your future. Keep in mind that earning consistent passive income requires effort and dedication. Hence, be prepared to give what is necessary. The best part of it is that it is always worth it at the end when you make the money you once wished for.
