As an active-duty military member, you’re always on the lookout for ways to make extra money. You know that passive income is the ideal way to do it – but how?
Fortunately, there are several potential sources of passive income for active duty military members.
In this article, we’ll look at some of the most profitable ones and discuss how you can get started with them.
We’ll explain what they involve, what kind of returns you could expect, and any risks associated with each option.
Let’s get started!
Table of Contents
1- Invest In Real Estate
Investing in real estate can be a great way to make passive income for active duty military members, and according to the National Association of Realtors, 22% of recent home buyers were veterans.
As an active duty military member, you’ve got access to special mortgage programs, such as VA Loans, which offer advantages like no down payments and lower closing costs.
Additionally, you may be eligible for grants from organizations dedicated to helping veterans become homeowners.
Real estate investment can seem daunting for beginners, but don’t let that feeling discourage you. Army veteran Andrew Davis took the initiative to purchase rental properties while serving and has since become a full-time real estate investor. Today, he generously shares his top tips for success.
You must conduct thorough research on the local housing markets before taking the plunge into this type of venture.
Knowing what properties are worth in your area is essential for finding good deals and evaluating potential return on investment (ROI).
It’s also important to consider all associated costs, like taxes, insurance premiums, repairs, or renovations that could arise during the course of your ownership.
Once you’ve found the right property and negotiated a fair price point, there are several ways to generate passive income for active duty military members with real estate investments:
- renting out your property as a landlord,
- becoming part of a long-term lease agreement,
- or flipping properties by buying low and selling high.
Whichever route you decide upon, being aware of market trends will help ensure that your investments yield profitable returns now and in the future.
2- Trade Forex Or Stocks
Trading forex or stocks can be a great way to earn extra cash. Active duty military members have many benefits that other investors may not possess, allowing them to enter the stock and currency markets with greater ease.
The lifestyle of active duty members makes it easier to be disciplined in managing their investments despite a demanding schedule.
Although there are some risks associated with trading stocks and currencies, an informed investor can reduce their exposure by doing diligent research on potential investments.
When it comes to investing in any market, creating and following a plan is essential for long-term success.
It’s important to create a strategy that fits your needs as well as your goals before entering any type of investment endeavor.
Establishing clear parameters for when you should buy or sell will help keep emotions out of the equation and ensure that you’re making rational decisions based on facts rather than feelings.
It’s also important to track your progress so you can identify trends in order to make educated decisions about when it might be beneficial to adjust your portfolio accordingly.
In order to maximize returns while minimizing losses, active duty military members should take advantage of resources such as online tools like brokers or financial advisors who specialize in trading stocks and currencies.
These services offer guidance that can prove invaluable when navigating the often overwhelming world of investing.
Keep in mind that investing is not a get-rich-quick scheme; rather, it takes patience and dedication in order for long-term success – but done right, trading forex or stocks could provide consistent passive income for active duty military members over time and allow for more financial freedom down the road.
3- Peer-to-Peer (P2P) Lending
With a market size that was valued at US$ 83.79 billion in 2021 and expected to hit over US$ 705.81 billion by 2030, P2P lending is an increasingly popular way to make money.
As a military member, this strategy can be particularly attractive as it requires minimal upfront investment and offers high returns on investments if done correctly.
P2P lending involves connecting lenders like you directly with borrowers who are looking to borrow money for various reasons such as starting a business or consolidating debt.
When considering this passive income stream, it is important to research the different platforms that offer P2P loans and choose one that best fits your financial goals and risk tolerance.
The most popular platforms have specific criteria when choosing borrowers, including credit scores, loan amounts, and interest rates.
Once you have chosen the platform and established parameters for investing, you will need to decide how much money you want to invest in each borrower’s loan request and select the loans you wish to invest in.
After making these decisions, your capital will be lent out automatically by the platform according to your criteria.
You can monitor your investments through regular reports provided by P2P lenders that keep track of payments made by borrowers on their loans.
You will also receive periodic payments from borrowers’ monthly loan repayments which can be tracked easily online or through mobile apps depending on the platform used.
It is important to factor in any fees associated with using P2P lending platforms before committing funds as they can significantly reduce potential returns on investments.
With careful selection of borrowers and proper monitoring of investments, however, P2P lending can prove a lucrative source of passive income for active duty military members looking for additional revenue streams.
4- Buy And Sell Cryptocurrencies
As an active duty military member, you’ve got the potential to make a significant passive income from trading cryptocurrencies.
With proper education and research, you can tap into this market with confidence.
To get started, create an account with one of the many reputable cryptocurrency exchanges available today.
You’ll be able to use your account to purchase digital coins or tokens using your credit card, bank transfer, or even PayPal.
Once purchased, you can store them in your own secure digital wallet or keep them on the exchange itself for safekeeping.
Crypto trading is not without its risks and rewards – it’s important to understand the basics before putting any money into play.
Make sure that you fully understand how markets work and what factors influence price movements before entering trades.
It’s also wise to read up on any news related to the currencies you’re considering investing in as well as staying up-to-date with market trends and events that could affect their prices in either direction.
With a solid understanding of crypto markets under your belt and access to reliable resources, you can begin building out strategies for making profits from cryptocurrency trading.
Whether you prefer short-term scalping techniques or long-term investments in specific coins or projects, having a plan will help increase your chances of success while minimizing risk exposure along the way.
Just remember that no matter how much research and preparation goes into it – never invest more than you’re comfortable losing!
Passive Income For Active Duty Military Members Wrap-Up
There are many options available to earn passive income for active duty military members.
As with any endeavor in life, creating systems to make passive income requires patience, you also need to adopt an entrepreneurial mindset to push the limits of what you can achieve with these sources of passive income.
So take the first step, and get started today!