Saturday, October 17, 2015

How to Invest With Your Passive Income

Let's face it. If you are just getting started in creating a passive income, your earnings aren't going to be high. So what should you be doing with your meager earnings? Investing.

Putting Passive Income to Work

For the record, I am not a financial advisor. I do not know all the ins and outs of investing. Instead, I am learning from my mistakes and successes and I am sharing them with you.

Just like everyone else, I have some great money makers and I have low performers, but it is all money. Passive income is the best money to play with because it will continue to roll in, month after month.

The concept that I recently adopted is putting my money to work for me. It does me no good if it is sitting in a checking or savings account, especially if it can be earning a higher interest rate in some other way. So, I have been exploring, and this is what I am now doing.

Peer to Peer Lending

I jumped into peer-to-peer lending because it allowed me to invest as little as $25 at a time. allows people to request loans and invest in loans. You choose your own risk, from investing in people with stellar credit ratings to investing in people with low credit ratings.

I like LendingClub because it was easy to register and get started. I can also take a measly $50 check and invest it into two different loans. Over time, all those little investments add up, and so do your returns.


I am not crazy about CDs, but they do force me to save a large stockpile of money over a period of time. If you have a passive income source that brings in $1,000 a month, plunk it into a 1-year cd. At the end of a year, you will have $12,000 saved and tucked away.

You can also set up a CD ladder where you invest $1,000 for one year, $1,000 for two years, and so on.

Buy Gold and Silver

Visit the and begin buying gold, silver, and platinum. With small payouts from passive income, you can begin buying 1 gram bars of gold, 1 ounce silver bars, and you can even start investing in gold and silver coins. These are investments that you hold onto and only sell when the need is great and the prices are at an all-time high.

Of course, you could always simply pan for gold.

Online Business

You can always take your passive income earnings and invest them into starting a small, online business. This way, you are once again putting your money to work for you.

Don't know what kind of online business to start? Do an online search for small online business ideas. Explore different ideas and do the research.


Invest your passive income into equipment that will help you earn more money online. For example, take your writing earnings and invest them into a new digital camera. Use your camera to take photographs for your articles. You can also start selling your pictures and generate yet another source of passive income.

Another idea is to invest your passive income into a camcorder. Use that money to start making videos for a YouTube channel and to create Udemy courses. Both of these places will generate even more passive income for you.


Investing in yourself and your education is about the best gift you can give yourself. Get yourself certified for something at your local community college. Build a new offline career. Write about your experience, blog about it, write article about it, and build upon your passive income platforms while you are in the process of learning.

Invest in a Blog

If you haven't invested in a blog yet, you are missing out on a wonderful way to build another stream of passive income. With just $50, you can purchase a domain name and a few months of hosting. With $100, you can also start buying a few posts on Kindle for your blog.

The more you can put your money to work for you, the more you can invest, the more your monthly earnings and overall wealth increases.

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