Yahoo Finance The Best $500 You Can Spend on Passive Income Ideas To Make More Money
Sometimes a big investment pays off substantially — especially if you’re a savvy investor. Spending $500 on passive income ideas can lead to big rewards, experts say. Fortunately, there are countless ways to make those invested dollars work for you.
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Here are some of the best options for spending $500 on passive income ideas that help you generate more money.
Invest In High-Quality Content for Your Personal Brand
According to Dayten Rynsburger, chief revenue officer at Niche Capital CO, the best way to spend $500 would be any way that helps cultivate more traffic to either your social media, website, YouTube channel, etc.
“Traffic is king and probably the best way to make passive income,” said Rynsburger. “Run a blog with ads on it, or run a social media and get affiliate sponsorships, etc.”
Additionally, he recommends taking your $500 and using it to fund a photo shoot for your Instagram.
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“Take multiple photos in different locations and with different clothes on; that way, you have a plethora of content,” said Rynsburger. “Use that $500 to fund a day trip for your YouTube channel. Spend $250 on travel for a short road trip and $250 on an editor to make it look amazing. The goal is to leverage your 500 to create high-quality content in order to gain attention, aka traffic.”
Lastly, he said you could use your $500 to hire a guest writer for your blog.
“Writers are gifted and very good at what they do,” Rynsburger said. “Hire one to guest-write a great long-form blog for your website or blog that helps get you traffic for your site, which, as we know, traffic equals money and with a passive asset like social media, YouTube, or websites, you can put the work in upfront and reap the benefits once you’re finished. Invest your $500 in high-quality content for you or your personal brand, it’s that simple.”
Buy and Sell Domain Names
Alec Kellzi, licensed CPA at Kellzi Group, said one avenue to explore when generating passive income with $500 is buying and selling domain names.
“With some savvy and patience, one could use that starting capital to purchase potentially lucrative web domains and then sell them later at a markup to those seeking online real estate for their businesses or projects,” Kellzi said.
He said it requires identifying domains that may rise in value. “But successful domain flipping can yield healthy profits.”
Peer-To-Peer Lending Accounts
Another option, according to Kellzi, is investing that $500 into interest-bearing peer-to-peer lending accounts.
“One’s capital gets dispersed across many different loans, with borrowers paying a premium interest rate above what typical banks offer,” Kellzi said. “As borrowers make their monthly payments, the interest accrues in one’s account creating a passive income stream that compounds over time with able account management.”
Melanie Musson, a finance expert with Clearsurance, recommends peer-to-peer lending.
She said, “You can lend $500, earn more interest than you would with other investment options, reinvest your initial principal with your interest, and watch your money grow.”
Cryptocurrencies
“Another opportunity to consider is thoroughly researching and investing $500 into promising cryptocurrencies or other blockchain-based assets that provide incremental rewards for those who hold the currencies long term,” Kellzi said.
He said this emerging field provides unique passive income avenues but requires deep due diligence to identify and safely invest in viable long-term blockchain projects.
Dividend-Paying Stocks
“Consider investing in dividend-paying stocks of stable companies or in penny stocks,” said Dan Kroyter, CEO of Tailored Pay. “Dividends provide a regular stream of passive income, and with $500, you can purchase shares of dividend-paying stocks through brokerage accounts or investment platforms like Robinhood or M1 Finance.”
He said to look for companies with histories of consistent dividend payouts and sustainable business models.
Refurbish a Spare Bedroom
“With $500, you can easily refurbish a spare bedroom in your home and list it for rent, either to long-term tenants or on Airbnb or similar services,” said Martin Orefice, CEO of Rent to Own Atlanta. “While this does require a little more labor than many passive income schemes, it also brings in much more money, especially if you live in an area with high housing prices or lots of visitors.”
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