What's up you guys sasha here, let's talk about the one thing that is the epitome of winning in life and the ultimate financial goal of anyone who is into investing into running their own business or anyone who wants to gain financial independence. Let's talk about the one thing that allows you to earn money as you sip, a mojito by the beach or maybe, while you sleep, it's called passive income. The concept is amazing, whether you're earning just a few bucks or millions from your passive income source, because you're able to go and earn that money without having to actually do anything, except here, is a catch in this video. We're talking about making money in passive income from 1 000 and the likelihood is you'll, still have to go and put in some kind of effort and some kind of work to get that initial 1000 from somewhere.

So there is that i will start by talking about some methods of earning passive income from your initial 1 000 that require pretty much no time or effort spent, except for the very first few minutes of putting your 1 000 to good use, but make sure you Keep on watching because, further on in the video, i will talk about some other methods that allow you to earn way way more, but they will actually require a bit of work and a bit of effort now, just before i start i'm going to mention a few Things that i will not talk about in this video, although some people might expect me to cover them - i'm not going to be talking about any weird and wonderful alternative, extremely high risk and extremely volatile options in this, and i'm also not going to be talking about Savings accounts or current or checking accounts that pay some kind of interest, and i'm not going to talk about bonds and the reason i'm not going to talk about any of those options. Although a lot of people like talking about them is because i don't see them as ways of actually earning passive income in most cases, all of these options will be earning you barely enough to just pay for inflation, so in essence, you're not really making money you're. Just preventing the money that you already have from losing value over time now i do know that there are some unique cases and there are some high yielding bonds, but this video is not for talking about the relative risks of going into that space. So i'm gon na cover that at another point also in this video, i will not be talking about anything that will claim to double your money every single month or promise some completely ridiculous results.

And i am not going to pretend that you're going to be able to make huge amounts of money by just taking a thousand dollars. The point here is that i explained to you what the options are and how you can get started with that original one thousand dollars and if you then go and continue applying these over time and putting more money and perhaps in some cases more time and effort. In you'll be able to scale that income over time to something that actually earns a lot more with. That said, let's go straight into the first option and it is investing in index funds.

This is certainly one of the most popular options. It is very common. A lot of people go and do it and they do it for very good reasons. This is a way for you to go and take your money and invest it in the stock market, but without having to actively manage your investments without having to think which companies do you want to have your money in or not and every single month, managing that And maybe changing the ratios, and actually you don't have to really know that much about the world of investing and still be able to make a return of money in a safe and a relatively consistent way.

Now a couple of points here: first, investing in a stock market will never actually make you rich. It will certainly grow your money once you do have money, so you're able to go and make a passive income once you have that one thousand dollars in the first place, but it is not something where you can go and put in a small amount of money And suddenly become a millionaire overnight, despite what some people will lead, you to believe. The other really important point to note is that some of the world's most famous financial gurus will tell you that you can earn something like 12 by investing in index funds of things like the s p 500, and that is just not true. So make sure you don't listen to numbers that are just not accurate in any way, because if you look over the long term, the results are definitely nowhere near the 12 return mark.

In fact, even if you take the most financially advantageous period over the last several decades and you picked the lowest possible point, which was just after the last financial crisis in february 2009, the rate of growth from that point to today was just under 12. And if you take inflation into account, it was actually lower at about 9.8 percent. In fact, although it is great over the long term, investing in index funds doesn't quite return, the sort of levels that some people will tell you. If you look at the last 75 years, so if you go right back to just after the second world war, finished you'll notice that the average rate of return from that point to today was only about 3.4 percent.

That's not actually that much! That's 3.4! After inflation, which is really important because if you're investing over long periods of time, then inflation is a really key criterion. That is really important to understand and bake into your calculations, because in 10 to 20 years time, the money that you're going to be earning at that point is just not the same money as the money that buys you, your goods and bread and milk and eggs And pays for your bills today, so it is really important to understand how inflation affects these things. However, if you do look at averages over time, it is probably somewhat reasonable to assume that you will make somewhere between seven to eight percent. If you invest in some of the better types of etfs, like the s p 500, that i already mentioned, which probably would yield you around five to six percent after inflation is taken into account.

So if you had a thousand dollars a thousand pounds, a thousand euros, a thousand anything to go and invest in the stock market, you would expect to earn somewhere between 70 to 80 dollars per year as a return on that before inflation, which would equate to 50 To 60 after inflation, now it's really important to note that you will have to pay tax on this money in the us and the uk. You have to pay capital gains tax and there's various different brackets. I'm not going to get into the depths of that, although if, in the us you invest through a roth ira or a 401k or in the uk, if you invest through an isa account, you cannot have to pay any tax at all on the benefits that you Get and the growth in value and the dividends being earned from these investments so make sure you go and check those options out if you're in some other country make sure you go and check out what options are available to you there as well, while i'm on That point, if you live in uk or one of the european countries where this also applies trading to one two offer an account where you can go and invest either in this isa, account that i mentioned or a general investment account completely for free. There are no commission fees, there are no trading fees, there are no annual management fees or foreign exchange fees, there's literally no fees whatsoever, and if you go and use my link in the description below, you will be able to go and get a free share.

On top of that, so if that sounds interesting and you want to go and investigate that option, make sure go and use that link and you'll get a free share and i'll get a free share in return for sending you their way as well. Now the second option is to invest in dividend stocks instead, and this is a quite different option and you can either manually pick these stocks yourself or go for an etf that goes and picks specifically stocks that pay high dividend yields it's up to you, but the Options here are slightly different and some people prefer this, because you don't rely on the value of the companies to grow over time in order to make your money. So here the company that you're investing in may not grow in terms of its share price at all. But every single year you're going to be able to get some kind of revenue, because these companies pay high amounts of dividends every single year, if you're, investing in the s, p, 500 or growth companies or some other ets likelihood, is only a very small proportion of Your total gains comes from dividend yield, whereas with these types of companies you're, relying primarily on companies paying those dividends every single year in some cases for many many years in a row.

Although there are some companies that pay as much as seven or eight percent or even higher in some cases in terms of dividend, yield, the majority of good quality, robust long-term payers are going to be paying up to about six percent returns. And if you have a balanced portfolio that spreads your money and your risk between different companies, the likelihood is you will, on average, earn something like four percent returns from your dividend: investment portfolio. This doesn't leave a huge amount of value after you account for inflation, but some people just prefer the robustness of receiving regular payments for your investments and being able to decide what to do with them and maybe reinvest them over time. So, if that's you, that might be a decent option, i personally am not a huge fan of investing in dividend stocks.

I prefer investing in grace stocks, because if you look over long periods of time, growth stocks tend to outperform dividend, investing quite considerably and i take dividends as just an extra little perk of the companies they invest in if they happen to pay them as well. The third option for investing your money is something a bit different and if you wanted to diversify the places from which you are earning your money - and you want to put your thousand dollars to something that isn't the stock market, this might be a really interesting one And it is called peer-to-peer lending now, peer-to-peer lending is essentially a way for customers who don't have the sort of credit to be able to afford very low or very cheap loans or credit cards to be able to borrow money still on reasonable rates, but from alternative Providers of credit, now these lenders act as a middleman. In many cases, they actually guarantee the level of risk and they also go and get the money to lend out either from institutional investors or regular people like you or me, the platforms work really differently. In some cases they will automatically distribute the money that you put into the platform between hundreds and, in some cases, thousands of people based on the term that you've selected and the level of risk and reward that you are happy with.

In others. You have to go and manually pick the people specifically who you want to lend money to based on their risk profile, but the beauty of it is in almost all of these cases, certainly with all the big companies you'll benefit from being able to distribute your risk Between a large number of people, so you don't go and give the entire one thousand dollars to just one person, you're able to go and break it up between hundreds and thousands of different loans and, as a result, the level of risk is actually really manageable. And your returns are somewhat stable over time, depending on the level of risk, you're happy with or the term you select companies in the us like prosper or lending club or rate setter and lending works in the uk, pay you somewhere between three and five percent per Year after you account for their fees and the risk of people not paying the one big downside here is that, unlike some of the other options, your money is locked away for quite long periods of time because of the length of the loans and as a result, You may not be able to access it for several years unless you're prepared to take a lower rate of return in exchange for flexibility. So, as you can see, if you're looking to earn passive income from a thousand dollars without having to put in very much effort at all other than the few minutes initially to go and make a decision as to what to do with your money, you are looking At making somewhere between three percent and eight percent return per year on average, now you can make a lot more money than that.

If you choose to actually go and put in some effort alongside the money that you have saved up, a great way of making higher returns and passive income is by building an online content website, and i specifically mean an online content website rather than the myriad other Options that people go and try to sell from amazon fba to trading to other options, because that is a genuinely passive way of earning money over time. You do have to go and spend energy and time and effort up front to go and create the resource that people will then be able to use that you're going to be able to earn money from, but after you've done that money begins coming in month after Month and year after year, i actually have a whole channel dedicated to building an online business that i've recently set up. It's called the sasha yanchen story. I go in depth on exactly what it takes to go and build an online business and some of my experiences with it.

If that's of interest, make sure you go and hit the link in the description below and go and find it and subscribe. If that sounds interesting, but anyway, let's move on with the topic. If you do choose to go and set up a content website to make passive income a thousand dollars is gon na go a long way to helping you get started. You will have enough money for several years of hosting for various incidental expenses like paying for subscriptions to various services and for paying for various forms of photos and other content.

You may want to reuse from people and also, if you want help from either some kind of assistant or from people writing additional content. For you. The important thing to note is that this type of passive income will take a lot of effort and a lot of time before you're able to actually make a return on it. This is definitely not some kind of rich quick scheme.

It will take you many many months before you begin to earn anything, and in that time you will not have any income from this source at all. In fact, you'll actually be losing money because you're going to be spending that original thousand dollars on all the things that i've just mentioned. But the beauty of it is once you do begin earning money, you're able to earn considerably more than a three to eight percent return that the other ways of making passive income with a thousand dollars will allow you. Let me explain in a bit more detail when you're first starting out you're able to earn money from two sources: that's advertising and affiliates with advertising.

When people go and visit your website, you'll have various different ads on there and typically, you should expect to earn between five dollars and thirty five dollars for those ads per thousand people coming to read your content with affiliates, it's a little bit less, but whenever you Recommend a product and if people go and click the link to the product, or maybe a service you're able to get some kind of small commission in exchange, for example, you can go and send people to amazon or some other big retailers and they'll pay you for Doing that the beauty of this is once you've created the content once you've written the post once you've put the content out there, you're able to then go and earn that income month after month for long periods of time. I have articles that i've written several years ago that are still earning quite a good amount of money every single month, as your website grows. You're then able to scale your income by either earning money from building tools or from selling information in the form of guides books or online courses as well, which can significantly increase the returns from there as well. The next way of making passive income is somewhat similar to the one that i just mentioned, but not quite the same.

It is making videos on youtube literally. What i'm doing right now again starting a youtube channel, will require quite a substantial amount of effort and time. It takes a long time to go and film videos to go and edit them to go and think of next topics that you want to talk about. To go and do everything in between that's required: it is a very time consuming process, but the beauty of youtube is that you're able to scale your business much much more quickly than through writing blogs or some other methods.

I only started this channel right at the end of march 2020, which is almost exactly nine months ago, and in that time i've managed to grow it to 4 100 subscribers and some of my videos get thousands of views, which is incredible. If i was doing a website - and i had exactly the same amount of time by this point - i'd only just about be getting some kind of traction. I'd only be getting the first sort of visitors coming to the website, and the first post would be beginning to rank on google. So if you consider this option versus writing a website, the results can come considerably faster.

A thousand dollars can also go a long way to helping you get started on youtube now, in general, i am a huge proponent of not spending money when you first getting started, your phone has a camera. That is perfectly good enough to make your first batch of videos, but even if you're, using your phone at the beginning, even if you are trying to save money, you still will want to go and probably spend a little bit of money just to get that quality Level a little bit higher you'll probably want to put some kind of lapel microphone or get some kind of cheap microphone to speak into. You'll also want to go and invest in some kind of lighting just so that people can at least see your face. So there's going to be some incidental expenses like that and down the line after you've made your first 20 or 50 videos and you want to go and upgrade the equipment, because you've learned and you've overcome the bottlenecks of having no confidence of not knowing how to Edit anything of not knowing anything about youtube or the algorithm once you've gone down the road, maybe you'll, want to go and invest in an initial starter camera and a thousand dollars can cover all of those things.

As with the blog option. The problem here is that you're going to spend the entire 1 000 in the process of building your youtube channel, and so unlike investments or some of the other options i mentioned earlier, the entire principal part of your investment is spent. It's gone. You are never going to see it again, but the beauty is that you're able to go and earn far more money by doing this option than three to eight percent you're able to do with investments and peer-to-peer lending and all of those kinds of things.

In my eighth month of being on youtube, i managed to earn over 1 600 from my youtube channel. I go through all the numbers on my second channel, so make sure you go and check it out if you're interested, but that is a colossal amount of money for something that is only eight months old. So now with that said, thank you so much for watching. If you enjoyed this video, please make sure to go and smash the like button for the youtube algorithm.

It is incredibly important for a channel like mine that is still in the very early stages. If you want to find out more about me building my online business and some tips and helpful stuff that comes out of that make sure you go and subscribe to. My second channel called the sashi ancient story link in the description below. Thank you.

So much for watching once again and i'll see you guys later.