Affiliate Note: This articles contains affiliate links. If you open an account through these links, we receive a small commission at no additional cost to you. This helps us continue to provide you with high-quality content.
How I Invested My First $100 Online to Generate Passive Income
As a freelancer, earning the first dollar online is a significant milestone. After earning my first $100, I wondered how I could best invest this money to generate passive income. In this blog, I want to share the steps and considerations that helped me turn this $100 into a foundation for financial independence.
1. Education and Knowledge Expansion
Amount Invested: $20
The first and perhaps most crucial step was to invest in my own education. Knowledge is the foundation of any successful investment, especially when it comes to generating passive income.
Why Education?
By investing in education, I learned how to invest my money wisely. The knowledge I gained from books and online courses helped me understand the various options for generating passive income and make informed decisions.
Recommended Resources:
- Online Courses: Platforms like Udemy offer courses on financial planning, investing, and passive income, often at discounted prices. One course that particularly helped me was “Investing 101: A Beginner’s Guide to the Stock Market.”
- Books: Classics like “Rich Dad Poor Dad” by Robert Kiyosaki or “The Intelligent Investor” by Benjamin Graham are great foundations for understanding investing.
With an investment of $20, I was able to acquire valuable resources that would help me make informed financial decisions in the long run.
2. Investment in Stocks or ETFs
Amount Invested: $50
The next step was to invest a portion of my money in the stock market. Even though $50 isn’t a huge amount, it’s still possible to start building a small portfolio with it.
Why Stocks or ETFs?
Stocks and ETFs offer the opportunity to share in the profits of companies and generate passive income through dividends and capital appreciation. ETFs are especially suitable for beginners as they provide diversification and minimize risk.
How Did I Invest?
I chose the platform Robinhood because it offers commission-free trading and access to a variety of stocks and ETFs.
- ETFs: I chose a broadly diversified ETF like the Vanguard Total World Stock ETF (VT), which covers global stocks.
- Dividend Stocks: I invested in dividend stocks like Coca-Cola, known for its regular dividend payments.
These investments might seem small, but they are the beginning of long-term wealth accumulation.
3. Starting a Blog or YouTube Channel
Amount Invested: $20
In addition to financial investments, I invested part of my money in starting a blog. A blog or YouTube channel can be an excellent source of passive income if done right.
Why a Blog or YouTube Channel?
A blog or YouTube channel can generate passive income through advertising, affiliate marketing, and sponsored posts. Additionally, it provides a platform to share my knowledge and experiences with others and build a community.
Read my Blog post: "Is Rumble the better YouTube for beginners?"
How Did I Start?
- Domain and Hosting: I invested $10 in a domain and hosting with a budget-friendly provider like Bluehost.
- Equipment: The remaining $10 was spent on basic equipment like a microphone for better audio quality in YouTube videos.
Read my Blog post "How to become a small budget Content Creator"
Choosing Topics:
I chose topics I am knowledgeable about and enjoy, such as financial education, personal development, and freelancing tips. This helped me create authentic and valuable content.
4. Micro-Investment Platforms
Amount Invested: $10
Another way to invest small amounts is through micro-investment platforms like Acorns or Raiz. These platforms round up your purchases and invest the spare change.
Why Micro-Investment Platforms?
Micro-investment platforms are ideal for beginners as they don’t require large investments but still provide the opportunity to invest small amounts regularly. Over time, these small amounts add up and can grow into a substantial sum.
My Experience with Acorns:
I deposited $10 into my Acorns account and started using the automatic roundup feature. Acorns invests these small amounts in a diversified portfolio, helping me invest continuously without much effort.
Summary and Long-Term Goals
With my first $100, I tried various strategies to generate passive income. The key steps were:
- Education: Invested $20 in courses and books.
- Stocks and ETFs: Allocated $50 to small investments.
- Blog or YouTube Channel: Spent $20 on a domain, hosting, and equipment.
- Micro-Investment: Put $10 into micro-investment platforms.
These investments are just the beginning. The key to success is to keep learning, invest small amounts regularly, and be patient. Over time, these small steps can lead to significant passive income.
I hope my experiences and strategies can help other freelancers take their first steps towards financial independence. No matter how small the amount you can invest, it’s never too early to start laying the foundation for passive income.
More MakingMoneyTipps right here
Add comment
Comments