Being Selective: Key to Passive Income amid High Inflation

The article was written by Samuel Rhee and was originally published on The Strait Times.

With inflation at multi-year highs, investors are on the hunt for regular streams of passive income to supplement their take-home pay. The most common choices are dividends from stocks and yield from fixed-income bonds, while some will swear on real estate and seek out rental income or try to hunt down inflation hedges. But there is an inherent risk that people may not initially see.

There are nuances behind the passive income strategies that require further due diligence. Not all investments that seem to provide an inflation hedge can deliver it in this environment of both slowing growth and high inflation. Passive income portfolio strategies that suit others may not suit you. Investing is a deeply personal endeavour.

Hunt for passive income

Core inflation in Singapore in June rose to 4.4 per cent, breaching 4 per cent for the first time since the end of 2008. Naturally, our first instinct is to find ways to protect and preserve our purchasing power and investors are already on the prowl for more income.

However, we are in a unique situation of not only higher inflation but also slowing global growth. The International Monetary Fund expects global growth to further slow from 3.2 per cent this year to 2.9 per cent next year. China’s economic slowdown is on investors’ minds while scorching inflation has been driven by cost pressures resulting from the persistent spread of Covid-19 around the world and the Russia-Ukraine war. With recession looming, simple inflation protection strategies may not always work.

For example, high-flying commodities did well in the early stages of inflation spiking but growth concerns have seen prices collapse in recent months. Often in this type of environment, investors pile into fixed-income bonds due to their relatively defensive qualities and the relative protection they provide over more volatile assets like stocks and commodities. To be clear, bonds have gone through several difficult months but the rout is largely behind us.

Rising interest rates and slowing growth probably warrant a second look at fixed income, especially if you are a long-term investor. In a rising interest rate environment, investors can buy bonds through a laddering strategy. This effectively allows investors to earn income from high-quality credit and use the income and money from maturing bonds to reinvest into fresh bonds that will pay a higher coupon.

With rising interest rates, you can generate better yield from similar or better-quality bonds without taking as much risk. Professional bond investors do this systematically and they can also use tools such as hedging to spread out risk and reduce cost.

Bond funds also allow for greater diversification benefits by giving investors exposure to hundreds of bonds from different countries and sectors, while managers are able to reinvest the proceeds from redeeming older bonds into new instruments with higher coupon rates or better prices.

Investment amounts in such unit trusts tend to be small enough to lower the hurdle for all retail investors, whereas a single corporate bond in Singapore is typically priced in a large denomination of at least $200,000 with costly transaction fees.

In this trying time, simple strategies for passive income may not always work.

The other popular form of passive income is from dividends. IHS Markit data shows a projected 6.5 per cent growth in global dividend payouts this year. Investors have continued to pour money into dividend-linked funds because companies with a consistent dividend payout are meant to have defensive qualities. Large companies dominating with pricing power or the ones that are able to grow in an inflationary or slower growth environment stand out. Those who do well have a strong balance sheet to withstand the growth downturn while maintaining cash flow and keeping dividends stable. Because they do not need to borrow more, they are less affected by rising interest rates.

Again, being selective in this environment is key to securing steady passive income. As an example, both Singapore real estate investment trusts (S-Reits) and global Reits have been sold down amid inflationary pressures, rising interest rates and growth concerns. Reits are listed equities so when the market comes down, Reits will not be protected and will trade down together.

While they may have some defensive qualities like other dividend stocks, the sector may not do as well as some people think, especially if property prices also start coming off. Reits pay out distributions from collecting rental income and rely on both strong business activity in their specific real estate sectors and low operating costs to sustain distributions. The rapid rate hikes have hit Reits particularly hard due to the much higher interest costs. Past acquisitions were funded by cheap debt, so they will slow acquisition momentum.

Reits also face higher operating expenses for their portfolio assets due to inflation, so it is a double whammy. These may pressure some Reits to cut their distributions, especially those that did not adequately hedge their costs of borrowing to fixed rates or cannot improve their operational efficiency.

While physical real estate can potentially hedge against inflation when rents rise, similar to Reits, they will see higher interest and rents rarely keep pace with high inflation rates. Maintenance costs will also rise.

The Endowus Global Real Estate Portfolio – one of Endowus’ satellite portfolios that make up a core-satellite strategy – is invested in diverse global real estate and infrastructure companies, offering an effective hedge against inflation. It enjoys strong pricing power or even explicit long-term pricing contracts to pass the impact of rising prices to its customers.

Life stage matters

Individuals at different stages of life will have different financial priorities and goals. Retirees may prioritise more stable payouts to supplement their retirement income. But if you are part of the sandwich generation, you may be balancing more family expenditures while saving for retirement. Investors in this life stage can look for a balanced portfolio of long-term fixed income holdings and dividend-paying counters, such as the Endowus Income Portfolios managed by some of the leading global fund managers.

As for young investors, the earlier you start investing, the more time you have to grow and accumulate your wealth. Looking for passive income in this investing environment is no walk in the park. Rather than trying to find the best single stock or bond to buy, seek out diversified portfolios or funds, then commit to a regular investment plan through a dollar-cost averaging strategy. Sitting on your hands will only result in inflation eating quickly into the value of your money.

How to Earn Passive Income with Foundation Capital

If you want to generate a sustainable passive income stream, Foundation Capital is one of the most reliable organizations to invest in.  Our process has been refined, perfected, and proven over the past 12 years of renting our clients’ assets to the construction industry.

For more detailed information on how to make a capital investment in construction with Foundation Capital, as well as the terms, conditions, and risks, refer to the following FAQs and guides:

(Support) What Is Foundation Capital and How We Invest?

(Support) Construction Investments Vs. Others

(Support) Foundation Capital FAQ Library

(Support) Schedule Your Free Consultation

(Social Media) Foundation Capital Facebook

(Social Media) Foundation Capital LinkedIn

(Social Media) Foundation Capital Twitter

Looking for a Safe Investment? Try Your Best to Avoid FOMO

Beginners in investment tend to make decisions that are linked to the psychological concept of FOMO, or fear of missing out. Instead of focusing on their goals, investors pay heed to the market noises that may cause lots of damage to their investment and even mental health. If you have just stepped into the market, try your best to stay away from FOMO and start investigating more sustainable investments.

FOMO – the enemy of sustainable investment

Fear of missing out is the feeling of apprehension that one is either not in the know or missing out on information, events, experiences, or life decisions that could make one’s life better. When it comes to investments, FOMO can strike when there is a big rally or investment trend that the news or traders are talking about. Generally, it means that a trader is feeling anxiety because others are making money on an investment’s price movement, and they’re not. But the desire to be part of the bandwagon and make money off the trading strategy others are profiting from could create a retail investor or an institutional trader to enter a position before properly analyzing it to determine if it is a good investment.

The question here is despite the risk of buying high and selling low, many people joined these rallies anyway. Why? The psychology of FOMO is linked to complicated reactions of our brains that we cannot easily understand. However, they all form some typical actions and thoughts that we can realize in all traders. First, watching others make a lot of money on a particular stock or token having a massive rally may make you feel obligated to join in and get in on the gains, even if the logical part of your brain is telling you that the highest rate of interest has already been passed.

Additionally, knowing that acquaintances have already had a financial breakthrough with a particular investment can give you an unfounded sense of confidence about your investment choice, which could result in you ignoring advice from investment experts or research analysts you often take. Something deep down in your mind says that you are more likely to lose money trading than you are to profit. However, when thousands of traders talk about how they benefited from one coin/stock, the feeling of losing or being a fool for not catching the opportunities still encourages you to go ahead. It generates emotional responses; things like fear and impatience win out over discipline.

The sad consequences of FOMO

People always act out of FOMO with the wish of changes in their financial situations or early retirement. However, FOMO often brings more risks than rewards.

The common investment mandate is to buy low and sell high. But FOMO in trading often works contrary to that as it encourages investors to buy when stocks are already high. Remember that just because stocks are performing well does not mean that they will continue to do so in the near future. In fact, many investors lose money by investing in price movements or market trends right before they’ve run their course. That’s why trading does not often result in a positive return on investment when spurred by feelings of FOMO.

FOMO investment decisions often happen on meme stocks or cryptocurrencies.

Moreover, the hidden risk of FOMO is higher than just a regular investment decision. FOMO-related decisions often happen on highly hyped investments like meme stocks or cryptocurrencies. They are potentially inflated like bank savings and leave you without a dime. The volatility of meme stocks and cryptocurrencies and the speed at which their prices change make them even riskier than traditional investments. You could be distracted for less than 30 minutes and come back to see that your portfolio has cratered, or you could have a meeting at work while it goes down 40%.

Another trend of FOMO investment is buying a stock with an extremely low price, hoping it will reach its peak, and so do your life. Trends like this often happen when a high and popular stock drastically drops its price for some sudden event. People tend to spend their money on these stocks with the expectation that they will be back to the top. However, not every project has the power to return to its victory. The case of Luna, which was once considered a sustainable coin, is an example. When Luna was at its bottom, thousands of discussions, memes, and news covering its future recovery were spreading over the internet and creating a massive FOMO. Even homemakers would like to invest in it. However, it broke investors’ dreams into pieces as it kept dropping and showed no sign of recovery. Despite its hidden absurdity, it is evident that FOMO is still successfully persuading investors to destroy their investment efforts.

Start safe investment, and stop FOMO! 

There are a bunch of reasons why people tend to follow FOMO: they may feel unsatisfied with their current lives, they are too dependent on social media, or they have not gained enough investment knowledge. Nevertheless, the most popular reasons mainly relate to the wish to handle their financial problems. It is evident that FOMO primarily works for people interested in short-term rewards. However, even such low expectation is not always possible to achieve. Therefore, the need to resist the temptation of FOMO should be a priority in investing. The most sustainable way to do so is earning yourselves a passive income that comes with security and peace of mind. For instance, passive income from a secure investment may be the best medicine for your FOMO addiction.

Passive income is also a good choice for people who have experienced the bitterness that FOMO brings up. Ultimately, you may not be able to build a time machine to take you back in time to purchase the stock that got away or that property that would’ve made you millions. But you can take steps in the present to “recover” and reach your long-term goals safely and sustainably.

Let’s take a closer look at some of the most sustainable investment choices. They may not all be appropriate for you today, but over time, the best investments for your needs can change, and you may feel grateful when having spent time digging into them.

How to Earn Passive Income with Foundation Capital

If you want to generate a sustainable passive income stream, Foundation Capital is one of the most reliable organizations to invest in.  Our process has been refined, perfected, and proven over the past 12 years of renting our clients’ assets to the construction industry.

For more detailed information on how to make a capital investment in construction with Foundation Capital, as well as the terms, conditions, and risks, refer to the following FAQs and guides:

(Support) What Is Foundation Capital and How We Invest?

(Support) Construction Investments Vs. Others

(Support) Foundation Capital FAQ Library

(Support) Schedule Your Free Consultation

(Social Media) Foundation Capital Facebook

(Social Media) Foundation Capital LinkedIn

(Social Media) Foundation Capital Twitter

Passive Income, How To Get It Working For You

The article was written by Melissa Houston and was originally published on Forbes.

It’s the best kept secret of the rich, passive income. The goal of passive income is to get your money working for you, and the more you have invested, the more passive income you will create. But not everyone knows this.

Creating wealth does require a strategy and discipline. It’s not how much money you make that makes you rich; it’s how you manage that money. And passive income is a popular strategy used among the wealthy.

What is passive income?

Active income is where you earn wages and sales commissions, whereas passive income requires very little labor. states that passive income comes from a source other than an employer or contractor.

Passive income complements the income you are earning from your primary job. It is ideal to have several streams of passive income set up to protect your primary source of income, should you be unfortunate enough to lose your job.

How passive is passive income?

Passive income is commonly known as a way to make money in your sleep, but is that true? You see social media influencers promoting ways to make passive income by creating digital courses. You hear financial planners telling you to create passive income through your investment portfolio. Others ask you to invest in real estate and rent out that property to receive a rental income.

But what you need to understand is that passive income takes work. Some investments take more work than others, but to think that you can invest and not monitor the performance of that investment is a mistake.

The amount of work your passive income will require will depend on what you have invested. But it is misleading to think that you can check out money management, and even investment portfolios require monitoring, and passive income isn’t really passive.

Benefits of having passive income

Passive income streams can help you with early retirement plans. As the passive income comes in, you can reinvest that income into other interest-bearing financial assets that also produce passive income. Essentially you are building wealth on top of wealth.

The main benefit of passive income is that it creates financial stability in your life. Indeed, money does not buy happiness, but what money does do is provide opportunity, and when you manage your money well, it reduces financial stress.

You have more financial freedom when you have money, and it allows you to be no longer dependent on a paycheck, and you can even retire early if you manage your money well.

Creating passive income aims to create a life where you can live off the passive income made from your investments.

Popular types of passive income

There are many types of passive income that you can create for yourself, and some of the most popular methods are:

1. Rental income

When you purchase a property that you can rent out, not only are you earning money on the rental income you receive, but your rental investment will appreciate over time. When you own a rental property, you need to provide services as a landlord. However, when the money is managed well, you may be able to afford a service manager for the property, increasing the passivity level for this income.

2. Investment income

When you invest your money in bonds, you preserve the initial investment, but you receive interest payments for the money you are investing. These interest payments will depend on the terms and conditions of the contract, but there is a high level of passivity in this type of investment.

3. Dividend income

When you purchase stocks in the stock market, you will receive dividend income on that investment, depending on your buying type. According to Investopedia, dividend income is paid out of the profits of a corporation to the stockholders. When you purchase stocks that pay dividends, you will not only earn money through dividend payments, but your stock may increase in value.

4. Digital courses

Social media influencers often speak of creating digital products to sell, such as courses. There can be much work to create a course on the front end, but it is evergreen with the proper marketing and sales strategy once that course is completed. You can bring in consistent income with that course, and you will need to monitor your sales funnels to ensure they are working and consistently bringing in revenue.

5. Side hustle

Side hustles have gotten very popular in recent years. Side hustles are jobs that you work at outside of your regular 9-5 job. Side hustles supplement your primary income, and you can use that extra and invest it into other types of passive income and get that money working for you.

6. Angel investing

Angel investors are wealthy people who invest their extra money into startup businesses that need capital by providing loans. The angel investor agrees with the business owner, outlines the loan’s terms and conditions, and makes passive income off the interest payments those loans generate.

The secret that wealthy people know is that by building your investment portfolios and creating passive income, you are essentially preserving your capital investment and earning money on that money.

The bottom line is that creating passive income for yourself is a great way to build wealth and secure your financial future. The more money you have saved, the more likely it is to attain financial freedom at an earlier age, and financial independence gives you more time to do things you love to do.

How to Earn Passive Income with Foundation Capital

If you want to generate a sustainable passive income stream, Foundation Capital is one of the most reliable organizations to invest in.  Our process has been refined, perfected, and proven over the past 12 years of renting our clients’ assets to the construction industry.

For more detailed information on how to make a capital investment in construction with Foundation Capital, as well as the terms, conditions, and risks, refer to the following FAQs and guides:

(Support) What Is Foundation Capital and How We Invest?

(Support) Construction Investments Vs. Others

(Support) Foundation Capital FAQ Library

(Support) Schedule Your Free Consultation

(Social Media) Foundation Capital Facebook

(Social Media) Foundation Capital LinkedIn

(Social Media) Foundation Capital Twitter

There’s No Better Time to Start a Passive Income Business than Now

The article was written by Peter J. Burns III and was originally published on Entrepreneur.

The concept of passive income has been around forever. Since passive income does not have to be actively managed, it is much more scalable. This affords entrepreneurs even more time to pursue both active and passive income opportunities.

I’ve started many of these businesses myself over the last decade, as well as helped others. With this experience in mind, I want to share important steps in preparing to participate in a passive income stream, and what to look out for ahead of time.

Grow your credit score

Foremost to building a passive income stream is having a good credit score. This opens many doors for extensive capital, which can be surprisingly cheap. Even if you have the funds sitting in liquid investments, borrowed capital is a better option. A good credit score allows you this capital, which is the lifeblood of any venture.

You should want to maximize leverage, too, never using your own capital when you can make a profit off of someone else’s debt capital. By leveraging debt capital with suitable terms and interest, you maximize your return on select investments while your capital remains intact.

Cultivate a network

It’s important to have intellectual resources around you. Picking the right passive income opportunity is not easy. If you have cultivated a network of entrepreneurs that you trust, you can discuss your options and get their intelligent feedback.

The bigger the network, the more valuable it is, so don’t be afraid to share your great ideas with those around you. You can even share your ideas with your broker, yet understand that they may be territorial and worried that you will divert capital away from them.

Find something proven, and be patient

Proven passive income streams are aplenty in e-commerce. There is no disputing the benefits, and efficiencies, of ordering online, especially with an increasingly remote workforce. This is one example, but the truth is that the Internet and its capacity for efficiency will spawn new passive income ideas for decades to come.

Before choosing an investment, do your homework and identify others who have been successful with that particular investment before you. Then, don’t expect to be immediately successful, just because they were. It may take a few months longer than you expected, to experience that same level of success. Impatient people rarely succeed as entrepreneurs, as they’re likely to bail out at the first roadblock. To succeed, you must sometimes put in meaningful work, and that often takes more time than you’d bargained for.

Be careful

Many people are selling passive income ideas, but with limited expertise behind them. These people are tantamount to used car salesmen. Do your due diligence to determine if experts are creating the engine behind the sales forces approaching you, and whether or not they will be accessible in some form or fashion as you pursue this new venture.

You should also attempt to identify whether or not the purveyor of a particular opportunity has deep pockets. If you burn through the initial capital and have nowhere else to turn to but a traditional bank, that will not be good. Banks have a limited understanding of passive income projects, so you are better off conferring with the purveyor beforehand to make sure that you’ll have access to reasonably priced capital in the unlikely event that you’ll need it.

How to Earn Passive Income with Foundation Capital

If you want to generate a sustainable passive income stream, Foundation Capital is one of the most reliable organizations to invest in.  Our process has been refined, perfected, and proven over the past 12 years of renting our clients’ assets to the construction industry.

For more detailed information on how to make a capital investment in construction with Foundation Capital, as well as the terms, conditions, and risks, refer to the following FAQs and guides:

(Support) What Is Foundation Capital and How We Invest?

(Support) Construction Investments Vs. Others

(Support) Foundation Capital FAQ Library

(Support) Schedule Your Free Consultation

(Social Media) Foundation Capital Facebook

(Social Media) Foundation Capital LinkedIn

(Social Media) Foundation Capital Twitter

Passive Income Is All The Rage: Here’s How You Can Take Advantage in 2022

The article was written by Rachel Layne and was originally published on CBS NEWS.

With inflation at a 40-year high, prices on just about everything are up for Americans. Even if you have enough to pay the bills, you may be concerned about how to earn enough for retirement, or just having a buffer.

Enter passive income. That’s a stream of funds that – once you set things up – typically needs little regular effort to maintain. You may have heard the phrase “earn money while you sleep.” That’s passive income, whereas active income involves trading time for money.

“In this modern world, where even if you have a salary, it’s still good to have multiple sources of income,” says Cynthia Meyer, a certified financial planner (CFP) with Real Life Planning in Gladstone, New Jersey who works with real estate investors.

Are you interested in earning some extra income? Here’s what you need to know about how to earn passive income – including how to get started.

8 passive income ideas

There are dozens of kinds of passive income streams. You should be able to keep your day job while generating passive income.

In need of a passive income idea? Here’s a quick list.

  • Regular interest from a certificate of deposit (CD), U.S. savings bond or high-yield savings account may be beneficial as interest rates rise
  • Dividends from stocks or other investments
  • Royalties from a creative endeavor like a book or website
  • Affiliate marketing, earning cash for running advertisements or posting monetized links on your website or social media account – or even wrapped around your car
  • Make money online activities like starting a blog, taking surveys or testing apps (you can get set up with a free blog easily – just follow these simple steps)
  • Money from a rental property
  • Renting out your home short-term
  • Selling items on marketplaces such as eBay or Amazon

“They’re all not necessarily passive. They might involve some activity, But once that kind of side-hustle is up and running, it may require not too much effort,” Meyer notes.

How to set up a source of passive income

In some cases, such as buying stocks or property, you need upfront cash. Others, such as affiliate marketing, take setup time and plenty of sweat equity. You should also weigh risks against the likelihood of regular income. Lending money can be riskier than buying dividend-bearing stocks or a savings bond, experts note.

A dividend, for example, “provides a decent return on investment and is very reliable, with zero effort,” says Erin Hadary, a CFP with Denver-based Moneta Group Investment Advisors. “However, you need a lot of money to earn money. $100 [per] month would take roughly $40,000, invested in a 3% dividend stock basket.”

Are there some types of passive income that require little money to start?

Yes, but be prepared to put in “sweat equity” – your time. Activities like affiliate marketing or renting out your home take some initial setup and may require maintenance to produce a steady stream of cash.

Royalties from intellectual property like books, patents or music can also offer passive income. You should always thoroughly research your idea before jumping in.”Most people severely underestimate how difficult it is to consistently make money from books,” says Hadary. Other categories can “require some upfront money.”

How much up-front time will I need to invest to earn passive income?

Setup varies depending on the kind of income stream. Take real estate. Unless you’re in the real estate business as a profession, like real estate agents, the Internal Revenue Service (IRS) generally considers these kinds of investments passive income, Meyer says. Be sure to check the IRS website for details on passive income, like renting out property.” Practically speaking, it’s both passive and active,” Meyer says. “It’s passive in the sense that you’re getting rents every month, but you still have to run your real estate like a business. That would be the caveat there. “If you own property and are renting to tenants, for instance, there might be work up front to set everything up as well as regular maintenance.

“Whether or not the tenant pays the rent, you still have to pay the mortgage, the property taxes and insurance and things like that,” adds Meyer. Some investors hire management companies to take care of those details, making the investment more passive, Meyer notes.

Can you earn enough with passive income to make a living?

In some cases, yes, experts like Meyer say. But it takes time to build.

“To live off your real estate, you’re looking for positive cash flow,” Meyer says. “So even in an environment like now where the rents are generally going up – it takes a while to build up any compound return. It takes a while to get to the point where you’re like, ‘Oh, wow, that’s really a lot of money.'”

Depending on the passive income mechanism, setting up an income stream can be daunting (or even temporary). Instagram accounts and blogs can lose popularity, for instance. And remember, most passive income streams require some serious exploration and work to set up. Still others can be risky, experts note. “Unfortunately, it’s next to impossible to find a true passive option,” Hadary says.

How to Earn Passive Income with Foundation Capital

If you want to generate a sustainable passive income stream, Foundation Capital is one of the most reliable organizations to invest in.  Our process has been refined, perfected, and proven over the past 12 years of renting our clients’ assets to the construction industry.

For more detailed information on how to make a capital investment in construction with Foundation Capital, as well as the terms, conditions, and risks, refer to the following FAQs and guides:

(Support) What Is Foundation Capital and How We Invest?

(Support) Construction Investments Vs. Others

(Support) Foundation Capital FAQ Library

(Support) Schedule Your Free Consultation

(Social Media) Foundation Capital Facebook

(Social Media) Foundation Capital LinkedIn

(Social Media) Foundation Capital Twitter

How to Neutralize Inflation with Passive Income

Under the circumstance of inflation rising to record rates worldwide, the need to neutralize such acceleration is on every investor’s mind. The look for secure investments becomes essential for those who of us wish to earn a sustainable stream of passive income to maintain our living standards. And it might be easier than one might think.

The Upsetting Rise of Inflation 

There have been multiple drivers of the inflation surge at the current. On the one hand, the fourth pandemic wave is accompanied by high inflation levels, which have rocketed to nearly 8% in many countries. This is followed by noticeably higher prices of essential goods. On the other hand, the outbreak of the Russian invasion in Ukraine in February 2022 brought higher fuel costs, leading to manufacturers increasing prices. These facts and figures make us face an unavoidable truth: the inflation pressures in 2022 will undoubtedly keep increasing.

For the record, the annual inflation rate in the US had already accelerated to 8.6% in May of 2022. This has been the highest since December 1981, compared to market forecasts of 8.3%. Many households have faced the trouble of covering higher monthly costs with the same income when the prices of essentials have increased unexpectedly and have not shown any sign of stopping. According to the Bureau of Labor Statistics, energy prices rose 34.6%, the most since September of 2005, due to gasoline (48.7%), fuel oil (106.7%, the most significant increase on record), electricity (12%, the most significant 12-month increase since August 2006), and natural gas (30.2%, the most significant since July 2008). Food costs surged 10.1% – the first increase of 10% or more since March 1981. Significant increases were also seen in the prices of meats, poultry, fish, and eggs (14.2%). Other increases were shown in the cost of shelter (5.5%, the most since February 1991), household furnishings and operations (8.9%), used cars and trucks (16.1%), and airline fares (37.8%) while the cost of new vehicles eased slightly (12.6% vs. 13.2%). Meanwhile, the core inflation rate slowed for a second month to 6%, compared to expectations of 5.9%.

Passive income is a sustainable way to fight the rising inflation.

Passive Income from Safe Investment: Best Decision to Maintain Living Standard

People tend to combat rising inflation in 2 primary ways: tighten their belts or increase income.

For the first one, you need to review all your bills, then consider and cut off lots of stuff you don’t need. You may also shop for the best price or negotiate for the lowest spending. But it’s not accessible or sustainable when you have to lower your living standard for a long time. It is unarguable that living in long-term deprivation conditions is not our life’s purpose.

The second does seem better, but only if you do it correctly. Some people choose to improve their income by trying to find a new job, freelance jobs, or get a promotion which gets them under another type of extreme pressure. The inflation may go up after some unexpected events in a week, but the same thing does not happen to their salary when not everyone can be offered a better new job or increase their pay overnight. Moreover, the unemployment rate in some countries has nearly returned to pre-pandemic levels, and many businesses are struggling with recruiting strategies. Many households show their problem management skill by making extra money outside of their job by selling things they are not using on eBay, Facebook Marketplace, Craigslist, or other local social groups… But this seems to be unsuccessfully providing them with the regular income needed.

Still, there is always a proper way to fight inflation that you may or may not have tried before: improve your passive income by investment. Bank saving may always be your first thought when hearing the term “investment.” However, considering the current interest rate, which is far below inflation, other types of investment should be preferred. But whether these different types of investment make sense depends on how experienced and intelligent the decision you make and when you need to access the money. For people who have not yet learned to be an investor, where to put their possessions also creates major headaches. Additionally, there is always the risk they suffer when things happen out of the blue, making all their savings evaporate in a week or even a day.

So, is there any way to neutralize inflation that is safe, sustainable, and offers a high return? Good news: at Foundation Capital, we can provide you with the service you may have been searching for far too long.

Foundation Capital – Your Best Companion to Secure Investment 

Based in Hong Kong, Foundation Capital offers investment services focusing on Lease and Buyback investments in the construction field. The company has been operated with the mission to enable investors to realize and get substantial gains from the fast-moving and highly lucrative construction investment opportunity. With nearly 15 years of contribution, we can assure investors:

  • Simplicity: Unlike other high-return investments, the premise of Foundation Capital is quite simple and easy to catch up with: you invest in the equipment and technology that are the foundation of all megastructures and are owned by Foundation Capital. We then lease that equipment to those businesses which are managing the projects and earn you a leasing fee each month. At the end of five years (or longer), you get your money back by selling the asset at the price you paid.
  • High returns: Of all the investments you are considering to maintain high standard lives during inflation, Foundation Capital can promise you a monthly passive income that helps you wake up every morning satisfied that you are handling the situation well. Why? because we are trusted by investors worldwide, and in 2019, our investment solutions rewarded that trust by delivering a 24.76% return. You can choose between a fixed 14% return or a floating rate return which historically has delivered higher income.
  • Safety: Strict business relationships and strategic partnership between Foundation Capital and the construction companies that lease our equipment will help to verify their creditworthiness through a rigorous audit process and protect your investment. In addition, your assets are insured at all times.
  • Sustainability: Megastructure projects require huge amounts of construction equipment which is why construction companies have an ever-increasing dependency on rental and leasing agencies to complete their projects. The demand will undoubtedly keep rising in the situation that more and more megastructure projects are rising all over the world. Not just your choices of investment package but your interest can also be optimized and maintained.

For more credit, you can check out our project partners here. Put your faith in Foundation Capital; we will provide you with a sustainable source of passive income with 100% capital preservation.


How to Earn Passive Income with Foundation Capital

If you want to generate a sustainable passive income stream, Foundation Capital is one of the most reliable organizations to invest in.  Our process has been refined, perfected, and proven over the past 12 years of renting our clients’ assets to the construction industry.

For more detailed information on how to make a capital investment in construction with Foundation Capital, as well as the terms, conditions, and risks, refer to the following FAQs and guides:

(Support) What Is Foundation Capital and How We Invest?

(Support) Construction Investments Vs. Others

(Support) Foundation Capital FAQ Library

(Support) Schedule Your Free Consultation

(Social Media) Foundation Capital Facebook

(Social Media) Foundation Capital LinkedIn

(Social Media) Foundation Capital Twitter


How to Build Passive Income

The article was originally posted on HSBC Hong Kong.

The right type of investments may pay you a regular income in addition to – or even in place of – your full-time job. Sound like a far-fetched and impossible dream? Well, it isn’t! Let’s take a look at how you can start generating passive income.

What is passive income?

Passive income is money that regularly goes into your bank account with little effort on your part, no matter how the market performs. Unlike growth investments, where you’re hoping your wealth grows over time, passive income gives you a more stable cash return. Passive investing also will save you from worrying about market volatility and macroeconomic uncertainty, all of which could impact the performance of growth investments directly.

Some experts have called passive income an “infinite potential income stream” because of the myriad of possibilities where you could generate this sort of income. Let’s explore some examples of passive income you could consider for your investment portfolio, so you may receive steady returns, literally even while you sleep!

What kind of investments can help create passive income?

Now that you understand the fundamentals of passive investing, the next question you’ll likely have is: what passive income ideas are there to explore? Passive income is usually generated from investments that carry lower volatility, such as dividend stocks, bonds /certificates of deposit and life insurance plans .

Revenue streams and income flow on these types of investments are relatively stable and more predictable as they’re less volatile than other investments – they don’t go up and down in price as much. This makes them a relatively stable part of your portfolio; you don’t need to spend as much time monitoring them.

They’re also more suited for long-term investing, so you don’t face as much stress over having to ‘time’ the market accurately, buying when the price is at its absolute lowest and selling at the top. If you’re the sort of person who really values peace of mind and who doesn’t want to be kept awake at night worrying about market volatility, investments that generate passive income are likely to be a great fit for you.

Why is it good to start building passive income early?

1. You’ll get a shot at achieving financial freedom

Passive income can come from investments that pay you dividends and interest you earn from your share holdings. For instance, if you’ve identified strong investments with dividends that grow by 15%, 20% or even 25% annually, then the passive income generated from you staying the course longer term with these holdings is probably going to be more than sufficient to sustain your living expenses. That could give you the financial freedom you need to leave your day job or main source of income and pursue other personal dreams, if that’s what you’re aspiring to do.

2. Reap the benefits of compound interest

And speaking of these dividend or interest payouts? You can take these payouts in cash, but if you re-invest it instead, you can start to benefit from compound interest as well – a win-win situation for you.

Your new dividends and interest will be based on the new total, so every time you re-invest these funds, you may earn more interest and more dividends, allowing you to grow your portfolio balance.

Are there risks involved in building passive income?

Although passive income investments are less volatile, just like all investments, there’s still a risk that you could lose the money you invest, or that you might not have the revenue stream you had expected.

There are many reasons for uncertain outcomes. A company you own shares in could be hit by a scandal that causes its stock price to plummet, political and social events happening all over the world could have an impact on the value of your investment, and even currency fluctuations could affect performance.

To manage risk optimally, don’t put all your eggs in one basket. It’s a good idea to consider putting your money towards a range of investments, in order to diversify your revenue streams. A good example is considering unit trusts, where you’ll see your investment spread over a number of securities, instead of just one. That way, if you lose money on one, it could be balanced out by your other investments.

Another way you may mitigate investment risk is to consider including endowment plans in your portfolio. An endowment plan is a type of life insurance that is able to provide guaranteed returns (in the form of a lump sum payment) even over a short timeframe, and yet is less impacted by market volatility, so it’s a great way to generate passive investment income for you, without requiring you to constantly worry over how the economy is performing. There are usually different maturity tenors attached to endowment plans, so you can choose the time period that suits your needs best.


How to Earn Passive Income with Foundation Capital

If you want to generate a sustainable passive income stream, Foundation Capital is one of the most reliable organizations to invest in.  Our process has been refined, perfected, and proven over the past 12 years of renting our clients’ assets to the construction industry.

For more detailed information on how to make a capital investment in construction with Foundation Capital, as well as the terms, conditions, and risks, refer to the following FAQs and guides:

(Support) What Is Foundation Capital and How We Invest?

(Support) Construction Investments Vs. Others

(Support) Foundation Capital FAQ Library

(Support) Schedule Your Free Consultation

(Social Media) Foundation Capital Facebook

(Social Media) Foundation Capital LinkedIn

(Social Media) Foundation Capital Twitter

20 Passive Income Ideas to Help You Make Money in 2022

The article was written by James Royal and originally published on

Passive income can be a great way to help you generate extra cash flow, whether you’re running a side hustle or just trying to get a little extra dough each month, especially as inflation rages throughout the economy. Passive income can help you earn more during the good times and tide you over if you suddenly become unemployed, if you voluntarily take time away from work or if inflation keeps chipping away at your purchasing power.

With passive income you can have money coming in even as you pursue your primary job, or if you’re able to build up a solid stream of passive income, you might want to kick back a little. Either way, a passive income gives you extra security.

And if you’re worried about being able to save enough of your earnings to meet your retirement goals, building wealth through passive income is a strategy that might appeal to you, too.

What is passive income?

Passive income includes regular earnings from a source other than an employer or contractor. The Internal Revenue Service (IRS) says passive income can come from two sources: rental property or a business in which one does not actively participate, such as being paid book royalties or stock dividends.

“Many people think that passive income is about getting something for nothing,” says financial coach and retired hedge fund manager Todd Tresidder. “It has a ‘get-rich-quick’ appeal… but in the end, it still involves work. You just give the work upfront.”

In practice, you may do some or all of the work upfront, but passive income often involves some additional labor along the way, too. You may have to keep your product updated or your rental property well-maintained, in order to keep the passive dollars flowing.

But if you’re committed to the strategy, it can be a great way to generate income and you’ll create some extra financial security for yourself along the way.

Passive income is not…

  • Your job. Generally, passive income is not income that comes from something you’ve been materially involved in such as the wages you earn from a job.
  • A second job. Getting a second job isn’t going to qualify as a passive income stream because you’ll still need to show up and do the work to get paid. Passive income is about creating a consistent stream of income without you having to do a lot of work to get it.
  • Non-income producing assets. Investing can be a great way to generate passive income, but only if the assets you own pay dividends or interest. Non-dividend paying stocks or assets like cryptocurrencies may be exciting, but they won’t earn you passive income.
Earning a sustainable stream of passive income is crucial when inflation continues to rise.

20 passive income ideas for building wealth

If you’re thinking about creating a passive income stream, check out these 20 strategies and learn what it takes to be successful with them, while also understanding the risks associated with each idea.

1. Create a course

One popular strategy for passive income is creating an audio or video course, then kicking back while cash rolls in from the sale of your product. Courses can be distributed and sold through sites such as Udemy, SkillShare and Coursera.

Alternatively, you might consider a “freemium model” – building up a following with free content and then charging for more detailed information or for those who want to know more. For example, language teachers and stock-picking advice may use this model. The free content acts as a demonstration of your expertise and may attract those looking to go to the next level.

Opportunity: A course can deliver an excellent income stream, because you make money easily after the initial outlay of time.

Risk: “It takes a massive amount of effort to create the product,” Tresidder says. “And to make good money from it, it has to be great. There’s no room for trash out there.”

Tresidder says you must build a strong platform, market your products and plan for more products if you want to be successful.

“One product is not a business unless you get really lucky,” Tresidder says. “The best way to sell an existing product is to create more excellent products.”

Once you master the business model, you can generate a good income stream, he says.

2. Write an e-book

Writing an e-book can be a good opportunity to take advantage of the low cost of publishing and even leverage the worldwide distribution of Amazon to get your book seen by potentially millions of would-be buyers. E-books can be relatively short, perhaps 30-50 pages, and can be relatively cheap to create, since they rely on your own expertise.

You’ll need to be an expert on a specific topic, but the topic could be niche and use some special skills or abilities that very few offer but that many readers need. You can quickly design the book on an online platform and then even test-market different titles and price points.

But just like with designing a course, a lot of the value comes when you add more e-books to the mix, drawing in more customers to your content.

Opportunity: An e-book can function not only to deliver good information and value to readers, but also as a way to drive traffic to your other offerings, including audio or video courses, other e-books, a website or potentially higher-value seminars.

Risk: Your e-book has to be very strong to build up a following and then it helps if you have some way to market it, too, such as an existing website, a promotion on other relevant websites, appearances in the media or podcasts or something else. So you could put in a lot of work upfront and get very little back for your efforts, especially at first.

And while an e-book is nice, it will help if you write more and then even build a business around the book or make the book just one part of your business that strengthens the other parts. So your biggest risk is probably that you waste your time with little reward.

3. Rental income

Investing in rental properties is an effective way to earn passive income. But it often requires more work than people expect.

If you don’t take the time to learn how to make it a profitable venture, you could lose your investment and then some, says John H. Graves, an Accredited Investment Fiduciary (AIF) in the Los Angeles area and author of “The 7% Solution: You Can Afford a Comfortable Retirement.”

Opportunity: To earn passive income from rental properties, Graves says you must determine three things:

  • How much return you want on the investment
  • The property’s total costs and expenses
  • The financial risks of owning the property

For example, if your goal is to earn $10,000 a year in rental cash flow and the property has a monthly mortgage of $2,000 and costs another $300 a month for taxes and other expenses, you’d have to charge $3,133 in monthly rent to reach your goal.

Risk: There are a few questions to consider: Is there a market for your property? What if you get a tenant who pays late or damages the property? What if you’re unable to rent out your property? Any of these factors could put a big dent in your passive income.

And economic downturns can pose challenges, too. You may suddenly have tenants who can no longer pay their rent, while you may still have a mortgage of your own to pay. Or you may not be able to rent the home out for as much as you could before, as incomes decline. And home prices have been rising quickly due in part to relatively low mortgage rates, so your rents may not be able to cover your expenses. You’ll want to weigh these risks and have contingency plans in place to protect yourself.

4. Affiliate marketing

With affiliate marketing, website owners, social media “influencers” or bloggers promote a third party’s product by including a link to the product on their site or social media account. Amazon might be the best-known affiliate partner, but eBay, Awin and ShareASale are among the larger names, too. And Instagram and TikTok have become huge platforms for those looking to grow a following and promote products.

You could also consider growing an email list to draw attention to your blog or otherwise direct people to products and services that they might want.

Opportunity: When a visitor clicks on the link and makes a purchase from the third-party affiliate, the site owner earns a commission. The commission might range from 3 to 7 percent, so it will likely take significant traffic to your site to generate serious income. But if you can grow your following or have a more lucrative niche (such as software, financial services or fitness), you may be able to make some serious coin.

Affiliate marketing is considered passive because, in theory, you can earn money just by adding a link to your site or social media account. In reality, you won’t earn anything if you can’t attract readers to your site to click on the link and buy something.

Risk: If you’re just starting out, you’ll have to take time to create content and build traffic. It can take significant time to build a following, and you’ll have to find the right formula for attracting that audience, a process that itself might take a while. Worse, once you’ve spent all that energy, your audience may be apt to flee to the next popular influencer, trend or social media platform.

5. Flip retail products

Take advantage of online sales platforms such as eBay or Amazon, and sell products that you find at cut-rate prices elsewhere. You’ll arbitrage the difference in your purchase and sale prices, and may be able build a following of individuals who track your deals.

Opportunity: You’ll be able to take advantage of price differences between what you can find and what the average consumer may be able to find. This could work especially well if you have a contact who can help you access discounted merchandise that few other people can find. Or you may be able to find valuable merchandise that others have simply overlooked.

Risk: While sales can happen at any time online, helping make this strategy passive, you’ll definitely have to hustle to find a reliable source of products. Plus, you’ll have to invest money in all of your products until they do sell, so you need a robust source of cash. You’ll have to really know the market so that you’re not buying at a price that’s too high. Otherwise, you may end up with products that no one wants or whose price you have to drastically cut in order to sell.

6. Sell photography online

Selling photography online might not be the most obvious place to set up a passive business, but it could allow you to scale your efforts, especially if you can sell the same photos over and over again. To do that, you might work with an organization such as Getty Images, Shutterstock or Alamy.

To get started, you’ll have to be approved by the platform, and then you license your photos to be used by whomever downloads them. The platform then pays you every time someone uses your photo.

You’ll need photos that appeal to a specific audience or that represent a certain scene, and you’ll need to tease out where the demand is. Photos could be shots with models, landscapes, creative scenarios and more, or they could capture real events that might make the news.

Opportunity: Part of the value of selling or licensing your photos through a platform is that you have the potential to scale your efforts, especially if you can provide pictures that will be in demand. That means you could potentially sell the same image hundreds or thousands of times or more.

Risk: You could add hundreds of photos to a platform such as Getty Images and not have any of them really generate meaningful sales. Only a few photos may drive all of your revenue, so you have to keep adding photos as you search for that needle in the haystack.

It may require substantial effort to go out and shoot photos, then process them and keep up with the events that may ultimately drive your revenue. And motivation could be hard to maintain: Every next photo might be your lottery ticket, though it almost certainly won’t be.

7. Buy crowdfunded real estate

If you’re interested in investing in real estate but don’t want to do a lot of the heavy lifting (management, repairs, handling tenants and more), then another option is using a crowdfunding platform to invest in property. An experienced investing team picks out the real estate, and then you can decide to invest in it and how much you’re comfortable with.

You’ll pay an annual management fee to the real estate platform and have minimum investment amounts that could range from ten dollars to tens of thousands of dollars.

Opportunity: You can get access to private real estate deals that may be attractive, and they’ve been preselected by knowledgeable investors. You can check out the returns on the platforms, so you’ll have some idea of what level of returns you can expect and over what time frame. Real estate investments can also help diversify your portfolio, helping to smooth your returns.

Some platforms invest in equity (stock), while others invest in debt. Generally, stock offers high returns in exchange for more risk, while debt offers lower returns in exchange for less risk. Some platforms require you to be an accredited investor, with a certain minimum income or assets. Popular platforms include Fundrise, Yieldstreet and DiversyFund.

Risk: You’re on the hook to make your own investments on many crowdfunding platforms. So while past returns may look good, they’re no predictor of future success. And you’ll have to make the judgment call about what to buy. That means you’ll need to read the prospectus for every deal you’re interested in and understand the pros and cons.

In addition, real estate is typically funded with high levels of debt financing, making it more susceptible to any economic downturn. You’ll also want to understand how long your money will be locked up in the investment and when you can access it, especially in an emergency.

8. Peer-to-peer lending

A peer-to-peer (P2P) loan is a personal loan made between you and a borrower, facilitated through a third-party intermediary such as Prosper or LendingClub. Other players include Funding Circle, which targets businesses and has higher borrowing limits, and Payoff, which targets better credit risks.

Opportunity: As a lender, you earn income via interest payments made on the loans. But because the loan is unsecured, you could end up with nothing in the event of a default.

To cut that risk, you need to do two things:

  • Diversify your lending portfolio by investing smaller amounts over multiple loans. At and LendingClub, the minimum investment per loan is $25.
  • Analyze historical data on the prospective borrowers to make informed picks.

Risk: It takes time to master the metrics of P2P lending, so it’s not entirely passive, and you’ll want to carefully vet your prospective borrowers. Since you’re investing in multiple loans, you must pay close attention to payments received. Whatever you make in interest should be reinvested if you want to build income.

Economic recessions can also make high-yielding personal loans a more likely candidate for default, too, so these loans may go bad at higher than historical rates when the economy worsens.

9. Dividend stocks

Shareholders in companies with dividend-yielding stocks receive a payment at regular intervals from the company. Companies pay cash dividends on a quarterly basis out of their profits, and all you need to do is own the stock. Dividends are paid per share of stock, so the more shares you own, the higher your payout.

Opportunity: Since the income from the stocks isn’t related to any activity other than the initial financial investment, owning dividend-yielding stocks can be one of the most passive forms of making money. The money will simply be deposited in your brokerage account.

Risk: The tricky part is choosing the right stocks.

For example, companies issuing a very high dividend may not be able to sustain it. Graves warns that too many novices jump into the market without thoroughly investigating the company issuing the stock. “You’ve got to investigate each company’s website and be comfortable with their financial statements,” Graves says. “You should spend two to three weeks investigating each company.”

That said, there are ways to invest in dividend-yielding stocks without spending a huge amount of time evaluating companies. Graves advises going with exchange-traded funds, or ETFs. ETFs are investment funds that hold assets such as stocks, commodities and bonds, but they trade like stocks. ETFs also diversify your holdings, so if one company cuts its payout, it doesn’t affect the ETF’s price or dividend too much. Here are some of the best ETFs to choose from.

“ETFs are an ideal choice for novices because they are easy to understand, highly liquid, inexpensive and have far better potential returns because of far lower costs than mutual funds,” Graves says.

Another key risk is that stocks or ETFs can move down significantly in short periods of time, especially during times of uncertainty, as in 2020 when the coronavirus crisis shocked financial markets. Economic stress can also cause some companies to cut their dividends entirely, while diversified funds may feel less of a pinch.

Compare your investing options with Bankrate’s brokerage reviews.

10. Create an app

Creating an app could be a way to make that upfront investment of time and then reap the reward over the long haul. Your app might be a game or one that helps mobile users perform some hard-to-do function. Once your app is public, users download it, and you can generate income.

Opportunity: An app has huge upside, if you can design something that catches the fancy of your audience. You’ll have to consider how best to generate sales from your app. For example, you might run in-app ads or otherwise have users pay a nominal fee for downloading the app.

If your app gains popularity or you receive feedback, you’ll likely need to add incremental features to keep the app relevant and popular.

Risk: The biggest risk here is probably that you use your time unprofitably. If you commit little or no money to the project (or money that you would have spent anyway, for example, on hardware), you have little financial downside here. However, it’s a crowded market and truly successful apps must offer a compelling value or experience to users.

You’ll also want to make sure that if your app collects any data that it’s in compliance with privacy laws, which differ across the globe. The popularity of apps can be short-lived, too, meaning your cash flow could dry up a lot faster than you expect.

Earning passive income can ease financial pressures.

11. Rent out a parking space

Do you have a parking space that you’re not using or that could be used by someone else? You could trade that spot for some cash. It could be an even better set-up if you have a larger area that could fit several cars or that would be useful for multiple events or venues.

Opportunity: In particularly high-demand areas or during high-demand times (for example, during a concert or sporting event), your parking spot could be worth real money. For example, if you live near a place that has frequent commuters but that is strapped for parking spots, you might have a money-maker on your hands. You might have the best chance of turning a profit by renting to someone who needs the spot on a daily basis, rather than for one-off events.

Risk: This idea might not be particularly risky, but you do want to make sure you aren’t violating any restrictions from your place of residence or other entity by renting out a parking space. It’s probably worthwhile having a disclaimer of liability as a condition of parking in your spot, too.

12. REITs

A REIT is a real estate investment trust, which is a fancy name for a company that owns and manages real estate. REITs have a special legal structure so that they pay little or no corporate income tax if they pass along most of their income to shareholders.

Opportunity: You can purchase REITs on the stock market just like any other company or dividend stock. You’ll earn whatever the REIT pays out as a dividend, and the best REITs have a record of increasing their dividend on an annual basis, so you could have a growing stream of dividends over time.

Like dividend stocks, individual REITs can be riskier than owning an ETF consisting of dozens of REIT stocks. A fund provides immediate diversification and is usually a lot safer than buying individual stocks — and you’ll still get a nice payout.

Risk: Just like dividend stocks, you’ll have to be able to pick the good REITs, and that means you’ll need to analyze each of the businesses that you might buy — a time-consuming process. And while it’s a passive activity, you can lose a lot of money if you don’t know what you’re doing. Like any stock, the price can fluctuate a lot in the short term.

REIT dividends are not protected from tough economic times, either. If the REIT doesn’t generate enough income, it will likely have to cut its dividend or eliminate it entirely. So your passive income may get hit just when you want it most.

13. A bond ladder

A bond ladder is a series of bonds that mature at different times over a period of years. The staggered maturities allow you to decrease reinvestment risk, which is the risk of reinvesting your money when bonds offer too-low interest payments.

Opportunity: A bond ladder is a classic passive investment that has appealed to retirees and near-retirees for decades. You can sit back and collect your interest payments, and when the bond matures, you “extend the ladder,” rolling that principal into a new set of bonds. For example, you might start with bonds of one year, three years, five years and seven years.

In a year, when the first bond matures, you have bonds remaining of two years, four years and six years. You can use the proceeds from the recently matured bond to buy another one year or roll out to a longer duration, for example, an eight-year bond.

Risk: A bond ladder eliminates one of the major risks of buying bonds – the risk that when your bond matures you have to buy a new bond when interest rates might not be favorable.

Bonds come with other risks, too. While Treasury bonds are backed by the federal government, corporate bonds are not, so you could lose your principal if the company defaults. And you’ll want to own many bonds to diversify your risk and eliminate the risk of any single bond hurting your overall portfolio. If overall interest rates rise, it could push down the value of your bonds.

Because of these concerns, many investors turn to bond ETFs, which provide a diversified fund of bonds that you can set up into a ladder, eliminating the risk of a single bond hurting your returns.

14. Sponsored posts on social media

Do you have a strong following on social media such as Instagram or TikTok? Get growing consumer brands to pay you to post about their product or otherwise feature it in your feed.

You’ll need to keep filling your profile with content that draws in your audience, though. And that means continuing to create posts that grow your reach and engage your followers on social media.

Opportunity: Leveraging your social media presence is an attractive business model. Draw eyeballs and clicks to your profile with strong content and then monetize that content by setting up sponsored posts from brands that appeal to your followers.

Risk: Getting started here can be a Catch-22: You need a large audience to get meaningful sponsored posts, but you’re not an attractive option until you get a meaningful audience. So you’ll have to focus a lot of time first on growing your audience with no guarantee that you’ll be successful. You can end up spending tons of time following the trends and building content, in the hopes that you eventually get the sponsorship that you’re aiming for.

Even when you’ve got the sponsored posts you’re looking for, you’ll need to keep posting to draw in your audience and remain an attractive option for advertisers. That means committing to more time and monetary investment, even if you do have a lot of autonomy on exactly when to do it.

15. Invest in a high-yield CD or savings account

Investing in a high-yield certificate of deposit (CD) or savings account at an online bank can allow you to generate a passive income and also get one of the highest interest rates in the country. You won’t even have to leave your house to make money.

Opportunity: To make the most of your CD, you’ll want to do a quick search of the nation’s top CD rates or the top savings accounts. It’s usually much more advantageous to go with an online bank rather than your local bank, because you’ll be able to select the top rate available in the country. And you’ll still enjoy a guaranteed return of principal up to $250,000, if your financial institution is backed by the FDIC.

Risk: As long as your bank is backed by the FDIC and within limits, your principal is safe. So, investing in a CD or savings account is about as safe a return as you can find. However, while these accounts are safe, they’re returning less these days than before. And that return can pale in comparison to inflation, which hit mid-single digits last year, hurting the real purchasing power of your money. Nevertheless, a CD or savings account will yield better than holding your money in cash or in a non-interest-bearing checking account where you’ll receive nothing.

16. Rent out your home short-term

This straightforward strategy takes advantage of space that you’re not using anyway and turns it into a money-making opportunity. If you’re going away for the summer or have to be out of town for a while, or maybe even just want to travel, consider renting out your current space while you’re gone.

Opportunity: You can list your space on any number of websites, such as Airbnb, and set the rental terms yourself. You’ll collect a check for your efforts with minimal extra work, especially if you’re renting to a tenant who may be in place for a few months.

Risk: You don’t have a lot of financial downside here, though letting strangers stay in your house is a risk that’s atypical of most passive investments. Tenants may deface or even destroy your property or even steal valuables, for example.

17. Advertise on your car

You may be able to earn some extra money by simply driving your car around town. Contact a specialized advertising agency, which will evaluate your driving habits, including where you drive and how many miles. If you’re a match with one of their advertisers, the agency will “wrap” your car with the ads at no cost to you. Agencies are looking for newer cars, and drivers should have a clean driving record.

Opportunity: While you do have to get out and drive, if you’re already putting in the mileage anyway, then this is a great way to earn hundreds per month with little or no extra cost. Drivers can be paid by the mile.

Risk: If this idea looks interesting, be extra careful to find a legitimate operation to partner with. Many fraudsters set up scams in this space to try and bilk you out of thousands.

18. Create a blog or YouTube channel

Are you an expert on travel to Thailand? A maven of Minecraft? A sultan of swing dancing? Take your passion for a subject and turn it into a blog or a YouTube channel, using ads or sponsors to generate your income. Find a popular subject, even a small niche, and become an expert on it. At first, you’ll have to build out a suite of content and draw an audience, but it can create a steady income stream over time, as you become known for your engaging content.

Opportunity: You can leverage a free (or very low cost) platform, then use your great content to build a following. The more unique your voice or area of interest, the better for you to become “the” person to follow. Then draw sponsors to you.

Risk: You’ll have to build out content at the start and then create ongoing content, which can take time. And you’ll need to be really passionate about the product, since that can help you maintain the motivation to continue, especially at the start as your followers are still finding you.

The real downside here is that you can outlay a bunch of your time and resources, with little to show for it, if there’s limited interest in your subject or niche. Your area of expertise may be too niche to really draw a profitable audience, but you won’t be sure of that until you experiment.

19. Rent out useful household items

Here’s a variation on renting out an idle car: Start even smaller with other household items that people may need but that may be collecting dust in your garage. Lawnmowers? Power tools? Mechanics tools and tool box? Tents or large coolers? Look for high-value items that people need for a short period of time and where it might not make sense for someone to own the item. Then put together a way for clients to discover your inventory and a way for them to pay for it.

Opportunity: You can start small here, and then scale up if there’s interest in a particular area. Do people suddenly want a tent for weekend camping when the weather gets warmer or cooler? Figure out where the demand is, and then you could even go buy the item, rather than having it right on hand. In some cases you might be able to recoup the value of the item after a few uses.

Risk: There’s always the possibility that your property is damaged or stolen, but you can mitigate this risk with contracts that allow you to replace the item at the client’s expense. If you start small here, you’re not exposed to much risk, especially if you already have the item and you’re not likely to need it in the near future. Pay particular attention to liability issues, especially if you’re renting out equipment that has the potential to be dangerous (e.g., power tools.)

20. Sell designs online

If you have design skills, you may be able to turn them into a money maker by selling items with your printed designs on them. Businesses such as CafePress and Zazzle allow you to sell items such as T-shirts, hats, mugs and more with your own designs.

Opportunity: You can start with your own designs and see what the market is interested in, and expand from there. You may be able to capitalize on surging interest in a current event and design a shirt that captures the spirit of the times or at least a snarky take on it. And you can also set up your own web storefront through a site such as Shopify to market your goodies.

Risk: Printing partners allow you to ship items without directly investing in the merchandise yourself, avoiding one of the biggest risks of tying up your capital. But you may be able to get better pricing if you invest in some of the inventory yourself. Another big risk here is that you could invest a lot of time with little payoff, but this avenue might be interesting if you’re already doing the design work for another purpose, such as personal interest.

Choosing a suitable method to earn passive income is extremely important.

Which passive income source is best?

The question of which passive income source is best depends on several factors, but some of the most important include the amount of money you have to invest, the total opportunity size, your interest and ability in the area, the amount of time you need to invest and the potential to succeed. Typically, the lower the barriers to entry, the more crowded the field of competitors and the lower likelihood of success.

So you’ll need to weigh the opportunity against these factors and see which passive income strategy works best for you. But it can be helpful to have natural ability and an interest in your target area, because these can help motivate you in the early days when things are likely to be tougher.

There are passive income opportunities for people who are starting out with some money and even those who have no money to start.

How can I make passive income with no money?

If you have little or no money to start, you’ll have to rely mostly on your own time investment to power you through, at least until you build up a little money. That means focusing on passive income sources that take advantage of the following traits:

  • An area where you’re an expert. Here you can build your expertise out into a useful product or service for consumers, e.g. design, software coding and others.
  • An upfront work-heavy opportunity. You’ll need an opportunity that requires a time or work investment, such as creating a course, building out an influencer profile or other options.

In effect, you’re substituting your time for your lack of capital, until you can get enough capital to expand your set of opportunities.

How can I make passive income with money?

Money can provide you with more passive investment opportunities. If you have money to invest in a passive opportunity, you have not only the opportunity set above but a new range, too. Money is a prerequisite for taking advantage of the following passive income areas:

  • Investing in dividend stocks or REITs. Investing in stocks means you need money upfront, but you’ll receive some of the most passive forms of income around.
  • Save with bonds or CDs. Other purely passive activities include buying bonds or CDs.

Here you can use your money to make money with little or no effort on your part, if that’s what you’d like to do. Of course, you could pair your money with a lot of time investment to move into an even more lucrative niche, too.

How many income streams should you have?

There is no “one size fits all” advice when it comes to generating income streams. How many sources of income you have should depend upon where you are financially, and what your financial goals for the future are. But having at least a few is a good start.

“You’ll catch more fish with multiple lines in the water,” says Greg McBride, CFA, chief financial analyst at Bankrate. “In addition to the earned income generated from your human capital, rental properties, income-producing securities and business ventures are a great way to diversify your income stream.”

Of course, you’ll want to make sure that putting in effort into a new passive income stream isn’t causing you to lose focus on your other streams. So you do want to balance your efforts and make sure you’re choosing the best opportunities for your time.

Passive income ideas for beginners

  • High-yield savings account. A high-yield savings account can be an easy way to get an extra boost on your savings beyond what you’d receive in a typical checking or savings account. It won’t be much, but it’s a simple way to get started with passive income.
  • Certificates of deposit. CDs are another way to generate some passive income, but your money will be tied up more than it would be in a high-yield savings account.
  • Real estate investment trusts. REITs are a way to invest in real estate without having to put in all the effort that comes with managing properties. REITs typically pay out the majority of their income in dividends, making them an attractive option for investors looking for passive income.

Minimize your taxes on passive income
A passive income can be a great strategy for generating side income, but you’ll also generate a tax liability for your effort. But you can reduce the tax bite and prepare for your future, too, by setting yourself up as a business and creating a retirement account. This strategy won’t work for all these passive strategies, however, and you’ll have to be a legitimate business to qualify.

  1. Register with the IRS and receive a tax identification number for your business.
  2. Then contact a broker who can open a self-employed retirement account such as Charles Schwab or Fidelity.
  3. Determine which kind of retirement account might work best for your needs.

Two of the most popular options are the solo 401(k) and the SEP IRA. If you stash the cash in a traditional 401(k) or SEP IRA, you can take a tax break on this year’s taxes. The solo 401(k) is great because you can stash up to 100 percent of your earnings into the account, up to the annual maximum. Meanwhile, the SEP IRA allows you to contribute only at a 25 percent rate. In addition, the solo 401(k) permits you to make an additional contribution of up to 25 percent of your profits in the business.

If you’re thinking of going this route, compare the differences between the two account types or look at the best retirement plans for the self-employed.


How to Earn Passive Income with Foundation Capital

If you want to generate a sustainable passive income stream, Foundation Capital is one of the most reliable organizations to invest in.  Our process has been refined, perfected, and proven over the past 12 years of renting our clients’ assets to the construction industry.

For more detailed information on how to make a capital investment in construction with Foundation Capital, as well as the terms, conditions, and risks, refer to the following FAQs and guides:

(Support) What Is Foundation Capital and How We Invest?

(Support) Construction Investments Vs. Others

(Support) Foundation Capital FAQ Library

(Support) Schedule Your Free Consultation

(Social Media) Foundation Capital Facebook

(Social Media) Foundation Capital LinkedIn

(Social Media) Foundation Capital Twitter

Best Secure Investment in a Chaotic World

There have been times during these past 3 years the world dramatically spins out of our control, leading investors to question how best to position their investment with the lowest risk. If you are one of them, maybe it’s time for you to take a step back and adjust your investment portfolio for a more sustainable profit.

Secure investment within upside-down circumstances

We face Covid. We face environmental disasters. And suddenly, rumors of war are not just rumors since Russia launched its blitzkrieg against Ukraine. Consequently, inflation is rising worldwide, leading to potential economic downturns. From Feb 19 to March 23, 2020, the S&P 500 Index finally hit bottom and lost about 34% of its value, showing us that the stock market suffered from unpredictable losses due to the pandemic. Investors came to Cryptocurrency as an attractive investing method, but Luna made a red flag when dropping 99.7% in under a week, causing its investors to face a severe depression. These ups and downs constantly threaten our income, regardless of investment channels.

We cannot deny that the world has changed and will continue to change out of our control. Various concerns are compounding in investors’ minds regarding financial decisions, preventing us from a restful sleep at night. That leads us to the question: “What is the point of investment if you have to live your life under the fear of “losing all” after a day?” If crises keep happening for reasons we have never thought of, can we have the ability to forecast where to put our money?

For investors who can’t afford more risk, putting your possession on high potential (and, of course, high risk) seems not a good choice now. The world economy may become more stable, but it is the future’s story. The most necessary thing they need to do now is to navigate this financial maelstrom to build a risk-adjusted saving and investing strategy. That’s why a more sustainable investment strategy is now needed more than ever.

Secure investment by Lease and buyback investments – what to expect?

There are always multiple ways for investors to get a monthly profit without sudden dramatic loss. We have high-yield savings accounts, dividend-paying stocks, money market accounts, fixed annuities… But if these ways don’t sound promising or sustainable to you, Lease and Buyback investments are a smart option.

Lease and Buyback is a form of investment that generates constant “passive” or “unearned” income. The premise is simple: you own something useful and rent it to somebody else. After that, all you need to do is to sit back and receive cash payments into your bank account every month as a leasing fee.

Secure investment in Megaprojects generate a sustainable stream of passive income in the current economic downturn.

One of the more sustainable assets for safe investment is construction equipment as the construction of megaprojects is growing all over the world. Despite the current economic situation, megaprojects are still being constructed worldwide, such as The Grand Ethiopian Renaissance Dam, which values at up to 5 billion USD, Dubailand with an estimated cost of around $76,000,000,000 or California High-Speed Rail in California with $98,000,000,000 for the budget and so on…

It’s simple to understand why investors believe in a sustainable demand from leasing their equipment. Lease options vary but are typically for a year or even more. It also involves less upfront cost as you usually don’t have to make a down payment and allows contractors to try a new model every couple of years. That’s why construction agencies nowadays choose leasing instead of owning equipment due to its outstanding features that combine the benefits of renting and buying. However, not everyone can afford a whole pack of equipment or machine, and that’s why the idea of dividing equipment into many assets for investors was brought up. Specifically, investors can buy machinery and equipment as an asset, then lease that asset back – via trustable leasing partners – to those firms managing the building developments. This innovative and secure investment allows investors to earn a high return percentage each year. In a stage where you can go from all to nothing after a night, dividend equipment leasing may assure you a nice sleep at night with a more sustainable return daily.

Start your secure investment with Foundation Capital.

Foundation Capital is one of the initiatives in lease and buyback investments regarding construction equipment. We provide investors with investment choices between a fixed 14% return or a floating rate return. Moreover, our investment policy includes “the buyback choice,” which means you can sell your assets at any time and get all your initial investment back. We have accomplished our mission of assuring a sustainable income for our customers by partnering with bunches of mega projects worldwide. Water Diversion Project, Craziest Engineering Projects in China, Al Maktoum International Airport in Dubai, etc…..… are some of the names we have been working with. You can be the investors in these megaprojects and profit safely from them, as long as you put your faith in us.

Getting paid monthly in cash with a straightforward strategy, keeping your capital protected by a guaranteed buyback policy, and receiving high returns with advice from our consultant is what Foundation Capital can commit to you. No more staying in the mood of sensing market risk; let us help to optimize your “safe investment.”

For more information on how Foundation Capital invests, please visit the links below. We are here to bring you a secure investment that helps you to enjoy life in the best physical and mental condition.

How to Get Started with Foundation Capital

If you want to generate a sustainable passive income stream, Foundation Capital is one of the most reliable organizations to invest in.  Our process has been refined, perfected, and proven over the past 12 years of renting our clients’ assets to the construction industry.

For more detailed information on how to make a capital investment in construction with Foundation Capital, as well as the terms, conditions, and risks, refer to the following FAQs and guides:

(Support) What Is Foundation Capital and How We Invest?

(Support) Construction Investments Vs. Others

(Support) Foundation Capital FAQ Library

(Support) Schedule Your Free Consultation

(Social Media) Foundation Capital Facebook

(Social Media) Foundation Capital LinkedIn

(Social Media) Foundation Capital Twitter

The Importance Of A Passive Income And How To Achieve It

Is there anything more appealing than making money with little effort? As farfetched as it might sound, it is more than possible to achieve such a goal once investors find a sustainable way to make money work for them. Most notably, you invest your money in a product that will generate a stream of earnings, often referred to as a passive income. 

Generally, passive income is money that flows in regular intervals without the need to put in a considerable amount of effort to create it. The ease of generating passive income has turned the concept into one of the most talked-about and sought-after elements of personal finance. Nevertheless, not every passive income stream comes with sustainable and rewarding returns. This article explains why passive income is important and how to build a passive income stream successfully.

Why is passive income so important?

In a nutshell, passive income is important because it provides financial stability, security, and freedom. Furthermore, it can positively impact investors’ potential to accumulate wealth in just about any financial situation as it is not constrained by time and effort. Here are four reasons why passive income is important:

  1. Passive income improves financial stability: Financial stability is one of the most important milestones on every investor’s road to wealth. It allows investors to weather financial storms such as inflation, crisis, or pandemic. As a steady flow of cash, passive income can cover investors if they lose a regular income stream or need to handle an emergency. At the same time, with passive income, investors can count on money coming in without having to grind for every dollar they earn. It allows investors room to maneuver and look at the big picture. Thus, you are able to make better financial decisions, which, in turn, enhances your financial stability.
  2. Passive income creates room for financial freedom: While financial freedom has different meanings to different people, a sustainable passive income stream can practically fulfill every need for such a concept. For instance, passive income can enable investors to work towards the goal of eliminating debts. At the same time, it can help build long-term saving goals or even early retirement. In other words, the more passive income you develop, the easier it becomes to stay free of issues in your financial life.
  3. Reduced anxiety and stress: Stressing over money is often cited as the main source of stress, even more than politics, work, or family. It also can lead to mental and physical problems and impacts everyday life. Passive income can prevent such issues by providing security and alleviating the fear of not being able to process payments. It brings financial support and long-term stability. Thus, passive income allows investors to manage themselves, their time, and their assets more effectively. The anxiety and stress over the future financial situation are also reduced.
  4. More freedom to pursue your passions: A sustainable stream of passive income helps investors escape the paycheck-to-paycheck lifestyle. When investors are no longer under the pressure of maintaining undesirable jobs to make ends meet, thanks to having a steady passive income stream flowing into their finances, they are allowed to have options. These options include more freedom to pursue their passions or dream careers or even opportunities to make more robust and meaningful connections with the people and the world.
Investing in the real estate and construction industries is a reliable way to generate high reward passive income.

How to create a sustainable stream of passive income?

As promising as it might sound, finding a viable passive income stream might not be simple. Earning a sustainable passive income does not only take an investment of either money or time upfront but also requires investors to have suitable lifestyles and skills. Moreover, not every passive income stream can generate sustainable and rewarding returns. Here are four possible options to consider:

  1. Buying cash-flowing assets: This is probably the most common passive income stream where investors can earn financial returns produced by their assets. Examples include industries such as real estate and construction or investing in stocks. Investing in this passive income stream can generate sustainable and high rewards, yet it can take a lot of time to learn how to make it a profitable venture. Thus, investors should consider hiring a management company to monitor the property and communicate with renters.
  2. Building assets: By creating their products or services, investors can also earn passive income. Popular examples of this stream include offering online courses or digital products such as e-books and information guides. While investors can earn promising residual income with the method, it also requires a significant commitment to the initial investment of time and effort. Moreover, this method might not apply to all investors from different walks of life as it demands specific skillsets and know-how.
  3. Sharing or selling assets: This method relies on the ability of the investors to turn whatever they own into income-producing capital. Typical cases include renting out properties or selling investments. This method also requires an initial investment in physical objects and investors’ extra time and skills. Though the level of investment needed might not be too complicated, the rewards are hard to convert into a sustainable stream of income.
  4. “Reverse” passive income: This method does not necessarily involve ways to earn more but instead focuses on reducing spending. By cutting existing monthly expenses, passive income can be acquired to be invested or spent on personal necessities. This method could add to investors’ existing income by a few simple financial changes or refinancing decisions, yet the rewards might not be too promising.
Without a reliable management firm, it is more difficult to capitalize on the investment opportunities in cash-flowing assets such as construction equipment rentals.

Why Foundation Capital is a reliable option for sustainable passive income

As indicated, investing in cash-flowing assets promises higher yields than other methods. Nevertheless, it is also more complicated to get into, especially in competitive industries such as construction and equipment rentals. Management firms such as Foundation Capital can help investors choose viable investment options, monitor investments, and assure income is generated more gratifyingly. Here are four reasons why Foundation Capital is a reliable option for more significant earnings from passive income:

  1. Foundation Capital provides a gateway to the highly lucrative construction industry. The global construction industry is currently more coveted for its explosive growth potential. Thus, investing in construction equipment is and is continuing to be a reliable option, in both terms of security and returns, for passive income. With a proven track record working across many megastructure projects, Foundation Capital possesses the contacts, the know-how, and the reach to enable investors with significant monthly earnings from passive income streams.
  2. Foundation Capital makes investing simple for investors. Foundation Capital organizes a straightforward investing premise in which investors invest in the machinery and technology that is the foundation of all megastructure builds. The firm then leases the equipment to those businesses managing the projects, earning investors a monthly passive income. At the end of the contract (five years or longer), investors can get the money back by selling the asset at the original price.
  3. Foundation Capital offers rewarding monthly income. All lease and buyback investments with Foundation Capital deliver monthly payments with returns of up to 26% per annum. There are also options for investors to consider, such as choices between a fixed 14% return or a floating rate return which historically has delivered higher income. In addition, Foundation Capital maintains strict business relationships with the companies that lease the equipment. We make sure their creditworthiness can be verified through a rigorous audit process.
  4. Foundation Capital secures your investments. Foundation Capital protects your investment with strict policies to have assets insured at all times. Moreover, investors are also ensured of simple exit strategies with no hidden terms and conditions or fees.

How to Get Started with Foundation Capital

If you want to generate a sustainable passive income stream, Foundation Capital is one of the most reliable organizations to invest in.  Our process has been refined, perfected, and proven over the past 12 years of renting our clients’ assets to the construction industry.

For more detailed information on how to make a capital investment in construction with Foundation Capital, as well as the terms, conditions, and risks, refer to the following FAQs and guides:

(Support) What Is Foundation Capital and How We Invest?

(Support) Construction Investments Vs. Others

(Support) Foundation Capital FAQ Library

(Support) Schedule Your Free Consultation

(Social Media) Foundation Capital Facebook

(Social Media) Foundation Capital LinkedIn

(Social Media) Foundation Capital Twitter

This website uses cookies. For more information on cookies and how your data on our site is used, read our Privacy Policy.