• About
  • Advertise
  • Contact us
The Trending Buzz
  • Home
  • News
  • Marketing
  • Technology
  • Personal Finance
  • Lifestyle
    • Relationships
    • Health and Fitness
  • Entertainment
    • Sports
No Result
View All Result
  • Home
  • News
  • Marketing
  • Technology
  • Personal Finance
  • Lifestyle
    • Relationships
    • Health and Fitness
  • Entertainment
    • Sports
No Result
View All Result
The Trending Buzz
No Result
View All Result
Home News

Six Investment Ideas Which Can Help You Earn a Monthly Income

by Rahul Sharma
October 29, 2019
in News, Personal Finance
mothly investment
19
SHARES
265
VIEWS
Share on FacebookShare on TwitterShare on Whatsapp

Relying on a single source of income – whether it is from your day job or a business that you operate – is not a good idea at all. If your income source is cut off even for a brief period of time – if you are between jobs or if your business suffers losses – you might struggle to meet your expenses. This is precisely why it makes sense for you to invest your money in such a way that you can earn a monthly income, which can supplement your primary source of income.

Given here are six investment ideas which can help you earn a monthly income on a consistent basis.

Dividend Paying Stocks

Dividend paying stocks should be an integral component of your portfolio, as they provide consistent short-term returns (in the form of dividends) as well as long-term returns (in the form of capital gains).

While a vast majority of companies pay dividends on an annual or semiannual basis, there are many companies that pay dividends on a monthly basis as well. You can invest in these companies to earn a monthly income from your portfolio.

Before investing in any company, you should make sure that it is financially stable and has a history of paying monthly dividends for a reasonable length of time.

Exchange Traded Funds

exchange traded

ETFs, as you know, are easy to buy, easy to sell, and are a much safer investment choice compared to individual stocks. Many ETFs, especially the funds which focus on the bond segment, tend to pay dividends on a monthly basis. Many of these funds are offered by reputable firms like BlackRock and Vanguard Group and can be an excellent addition to your diversified investment portfolio.

The two key factors you should consider before choosing an ETF to invest in are dividend yield (the higher the better) and expense ratio (the lower the better).

Similarly, you can also invest in mutual funds that provide you with a monthly income in the form of dividends. Debt funds that invest in bonds and other such stable asset classes can be an excellent choice, especially if you are risk averse and looking for consistent, above-average returns on a monthly basis.

Real Estate Investment Trusts

Commonly known as REITs, these trusts invest in residential and commercial real estate properties – either in physical properties or in mortgages – and share the rental income with their shareholders. The dividends offered by REITs are typically higher compared to the returns you can get from most other types of investments, as these trusts are mandated by federal law to distribute as much as 90% of their rental income with their shareholders.

You can invest in publicly traded REITs, which pay dividends on a monthly basis, through a brokerage firm. Alternatively, you can also invest in REIT mutual funds or ETFs.

Royalty Trusts

A royalty trust is an entity which invests in companies that are involved in the exploration, production, and sale of natural resources like minerals, oil, and natural gas. In return for its investment, the trust receives royalties from the companies on a regular basis.

Similar to REITs, royalty trusts also follow a profit-sharing model, wherein they distribute their royalties with their shareholders – on a monthly, semiannual, or annual basis. So, you can look for trusts that pay monthly dividends and invest in them.

It should be noted that the dividends paid by royalty trusts tend to fluctuate from time to time – depending on production levels and commodity prices.

Bonds

Technically, bonds cannot help you earn a monthly income, since the interest is generally paid on a semiannual basis. You can, however, easily solve this problem using the laddering strategy.

A vast majority of bonds issued by the government as well as private companies pay interest at least twice a year. The payment schedule usually differs from one bond to another. For example, a bond might pay interest in January and July. Another bond might pay interest in March and September. Similarly, you can invest in six different bonds, which pay interest at six different intervals, so that you can receive interest every month from a different bond.

It should be noted that bonds generally have minimum investment requirements, so you need to invest a substantial amount of money in order to be able to buy a set of bonds and implement the laddering strategy.

Rental Real Estate

rental real estate

Investing in rental real estate is undoubtedly one of the best ways to earn a monthly income. You can get a loan to buy residential or commercial real estate properties and rent them out. You can use the rental income for the monthly mortgage payments. Once you pay off the mortgage, you can invest the rental income to build a considerable retirement corpus.

Real estate investments, however, require a substantial amount of capital, as you have to pay anywhere from 10% to 20% of the total cost of the property as down payment. This is something you need to keep in mind while looking for rental real estate properties to invest in.

Investing for a Monthly Income – What You Need to Know

There are two key things you need to keep in mind when it comes to investing for a monthly income.

Due Diligence

The importance of due diligence cannot be overstated when it comes to investing for a monthly income. Do not invest in a random fund or trust just for the sake of getting higher returns. In most cases, the risks associated with such investments tend to outweigh the benefits by a wide margin. So, make sure the company, fund, or trust that you invest in is financially strong, has excellent credit ratings, and has a history of paying interest or dividends on a consistent basis.

Saving for the Future

saving for future

The monthly returns you get from your investments are meant to supplement your main source of income. It does not, however, mean that you should spend all of it on your day-to-day needs. It is important to save and reinvest it so that generate long-term wealth and achieve the goal of financial independence.

 

Images source: Pixabay

Tags: Investing Monthly IncomeInvestment IdeasReal Estate Investment TrustsRental Real EstateSaving For Future
Share11Tweet3Send
Rahul Sharma

Rahul Sharma

I am Rahul Sharma a freelance Creative Writer. The work that I do is the love of my life. I am not just passionate about Trending and Tech Stuff but in fact I am totally into it. The idea and conception of this blog came to me as a part of my quest to find the latest updates going around the web. Follow me on Twitter @Im_RahulSharma

Related Posts

Apps For Gen Z In 2023

The Best On-demand Apps For Gen Z In 2023

by Rahul Sharma
June 23, 2023
0

The digital world is evolving because of younger generations. Since there are now more apps for Gen Zers, apps have...

Raj Jagatsingh Featuring Ragi Jan2

Om Namah Shivay: A Magnificent Music Video by Raj Jagatsinh Featuring Ragi Jani

by The Trending Buzz
May 19, 2023
0

Raj Jagatsinh, a renowned writer and director from Gujarat, has collaborated with the talented Gujarati actor Ragi Jani for his...

The Most Useful Websites For A Job Search In 2023

The Most Useful Websites For A Job Search In 2023

by Rahul Sharma
April 16, 2023
0

Job search websites are helpful for job seekers since they offer a centralized location for searching for job opportunities. In 2022, 80% of...

Load More

Follow us

Tweets by TheTrendingBuzz
  • Trending
  • Comments
  • Latest
Racist Stereotypes

Modern Family Is Not So Modern! It is Filled with Clichés and Racist Stereotypes

July 2, 2018
Haunted by Your Ex

What to Do If You Are Haunted by Your Ex? New Trend in Dating

March 13, 2020

The Best Kept Secret Small Business Ideas That Can Make Serious Money

June 21, 2022
Cloud Storage Services Startups

The 5 Best Cloud Storage Services for Startups in 2019

April 15, 2019
Top Secrets of Maximizing Your Website’s Value before Selling It

Top Secrets of Maximizing Your Website’s Value before Selling It

13

How To Make Yourself Smarter With Delicious Food

5
Partnerships

Introducing The Eighth ‘P’ In Marketing: Why Partnerships Are Now A Vital Piece Of The Puzzle

4

Cool Summer Foods and What to Do with Them

2
Apps For Gen Z In 2023

The Best On-demand Apps For Gen Z In 2023

June 23, 2023
Raj Jagatsingh Featuring Ragi Jan2

Om Namah Shivay: A Magnificent Music Video by Raj Jagatsinh Featuring Ragi Jani

May 19, 2023
The Most Useful Websites For A Job Search In 2023

The Most Useful Websites For A Job Search In 2023

April 16, 2023
Muskaan Bamne music video Amit Mishra's song

Muskaan Bamne debuts In Music Video With Amit Mishra’s Song

February 26, 2023

At The Trending Buzz, we create and curate premium news content to keep our readers informed about the key happenings around the world.
Contact us: rahul@thetrendingbuzz.com

Categories

  • Home
  • Marketing
  • Technology
  • Personal Finance
  • Lifestyle
  • Relationships
  • Health and Fitness
  • Sports
  • Entertainment
  • Press Releases
  • Tips & Tricks
  • Uncategorized

Newsletter



  • About
  • Advertise
  • Contact
  • Who is Behind The Trending Buzz
  • Press Releases
  • Privacy Policy

COPYRIGHT © 2020 THE TRENDING BUZZ. ALL RIGHTS RESERVED.

No Result
View All Result
  • Home
  • News
  • Marketing
  • Technology
  • Personal Finance
  • Lifestyle
    • Relationships
    • Health and Fitness
  • Entertainment
    • Sports

Copyright © 2020 The Treanding Buzz. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.