Passive income—money that flows in without constant hands-on effort—sounds like a dream, but it’s achievable with the right approach. Whether you’re looking to supplement your salary, fund a passion project, or inch toward financial independence, earning $1,000 a month passively is a realistic target. The catch? It often requires upfront work, capital, or a willingness to take calculated risks. Let’s explore five practical methods to make this happen, each with its own blend of rewards and challenges.
1. Dividend Stocks: Let Your Money Pay You
Imagine your savings handing you a paycheck every quarter. That’s the essence of dividend stocks—shares in companies that distribute a portion of their profits to investors. The math is straightforward: a stock with a 3% annual dividend yield pays $3 for every $100 invested. To hit $1,000 a month, or $12,000 a year, you’d need about $400,000 invested at that rate. For a smaller portfolio, say $40,000, you’d pocket $100 monthly—not bad for a start.