Contractors of every magnitude work hard, but it is especially the case in healthcare. The demands are higher and it is assumed that you know what you are doing. The workloads are greater but that’s okay because you are compensated. It is not to say that all contracting is the Gig economy, but if we look at the basics of the position, it is temporary, sometimes has benefits, and the pay flows with market demand. However, there comes a time when you need to look at the numbers and gain some passive income.
Passive income, as defined by Wikipedia, is income that requires minimal labor to earn and maintain. It is progressive passive income when the earner expends little effort to grow it. Let’s just call it “other ways your money is making you money”. It is not guaranteed income, so you need to take precautions to avoid taking a loss or wasting time.
We all watch the stock market. It can yield good passive income. If you like looking at numbers and researching corporations, you can do it on your phone. Different platforms and apps do a good job of getting you onboard and showing you how to invest.
Real estate is also a solid source of passive income. The barrier to entry can be expensive with a lot of red tape, but it is a tangible product. There are options to own and flip properties that you can manage for the long and short-term. It is not always easy as the market will see downturns; plus, real estate comes with the burden of high customer service. But the long term rewards are fruitful.
Starting or investing in a business is a learning process, but it has multiple benefits. Of note, 70 % of all small business do not make it, according to Fundera It is a statistic you cannot avoid and one that has to be taken into account whenever you look at opening a business as an investment.
As we look to generate smart money, we must look at alternate streams of income. If you decide to get involved in any level of passive income – whether from the financial markets, real estate, or corporations – seek out an expert. Get a good attorney, look to your CPA and financial advisor for good advice and take the time to learn about the opportunities at hand.
By Dane Flanigan