The profits that require little effort to earn and maintain are called passive incomes. These earnings help in improving financial security. Gone are the times when relying on the only job for income is enough. We always get encouraged to save and have a pension but we rarely talk about the importance of having more than one form of income. As a doctor, you may face situations like illness, disability, suspension, bankruptcy, and more where you will be unable to work. Reasons like earning extra for a holiday, learning something new, covering your debts, and saving for something big are good enough to seek passive income sources. In this article, we have mentioned some ideas to earn passive income for dentists.
List of Passive Income ideas for doctors
All the ideas discussed below will require some initial amount of time to get set up but will benefit you massively in the future.
Peer to Peer Lending
You can lend money to your friends or colleagues at an interest rate. Whether you lend money to a trusted friend or a relative, make sure to get a written agreement. You can join various peer-to-peer lending platforms that connect borrowers directly to the investors. These websites have a set of terms, conditions, and fixed rates for loans.
• High-yield savings account
High-yield accounts are like financial records with higher interest rates. These interest rates are about twenty to twenty-five times higher than the regular ones. Banks demand higher deposits, minimum balance, and fees in exchange for the lower rates. You need to open up the account with no effort and generate money by making it a truly passive income source.
• Real Estate Investment Trusts
Real estate investment trusts help you take passive benefits from the real estate market. They purchase and maintain income properties using the shareholder money. Although you do not get cash, there are benefits of having income property. Examples of income properties include apartment buildings, data centers, and offices. You do not have to maintain any assets or pay a mortgage. You can also include them in your investment portfolio.
• Dividends
Dividends are a great source of passive income. To receive them, you first need to purchase stock in a company that distributes them. The company should have a profitable fiscal or quarter year, which will reward you by paying a profit share in the form of a dividend. Although receiving them requires some setup, all the steps after purchasing the dividend stock are fully passive.
• Investing in stocks and shares
Stock investments are becoming a popular source of income these days. To start, you will need knowledge, patience, and an eagle eye. It is not as passive as the ideas mentioned above, but with time you will benefit a lot. Also, you will get to learn various new things in the process.
• Writing
Writing requires a lot of work in the initial stage, but the efforts will slowly diminish once you can also hire someone to write for your blog. You can also share your medical knowledge with the people on the internet who you think can benefit from it. Not just clinical, you are also free to share your social views. After the pandemic, people are curious to know about doctors’ lives and perspectives towards the world. Apart from blogs, eBook writing can also be a nice passive income for dentists. It will, however, consume a lot of time and maybe some money too. So think before you start writing.
• Affiliate Marketing
Affiliate marketing is another outstanding source of income for bloggers today. It is common for websites, blogs, and social media influencers. You have to recommend a product to your audience and get a cut whenever someone buys the product you recommend. Being a doctor, you will surely recommend products that are safe to use, so building trust among your readers will be hassle-free. Isn’t it easy money?
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