Where to invest money for passive income in 2022

2024 Author: James Gerald | [email protected]. Last modified: 2023-12-17 14:00

The economic crisis is a reality for the whole world. Experts spoke about its inevitability, but the project of the world global community exacerbated the negative processes. The coronavirus pandemic has led to depreciation of stocks and currencies. This also affected the most stable monetary units due to the stagnation of the economy and the frozen transport industry for a while. Where to invest money for passive income in 2022, not only ordinary people are pondering, but also professional investors, stock brokers and analysts of large companies.

The necessary conditions

Information portals and financial sites designed to educate ordinary citizens in the economic sphere are filled with advice on where to invest money for passive income in 2022. Lists of ideas include from 5 to 45 points, but only a few of them provide the conditions necessary for earning income without much activity: to invest and receive your share of the profit in the form of payment or interest.

Stones and precious metals are not included in this list - this is just a way to save depreciating banknotes in the form of coins or ingots. Professionals who have a significant stock, but not an ordinary citizen who bought a couple of bars or a little scrap on the occasion, can earn income on resale.

Passive income that would provide for the basic necessities of life is almost always a difficult path and a complex financial scheme. This will require at least:

• the availability of capital (the size is different for the capital and the province due to different standards of living and incomparable needs);
• its correct investment - at least 10%;
• refusal to spend the received profit and its new investment;
• choosing long-term investments or gaining investment experience with small amounts;
• further investment of each ruble, carried out on the advice of experts.

When deciding where to invest money for passive income in 2022, you need to decide on the desired degree of investor activity. For example, the purchase of real estate leads among the recommendations, but you can only get income from it by reselling it for a profit or renting it out. And this suggests that the owner must show some activity - look for potential tenants, monitor the condition of the house or apartment, raise the payment if it has grown in the market.

Review of offers

The Bankiros.ru website, having previously reported on the benefits that investors receive over time, lists 7 types of the most promising investments. You can focus on them, provided that you have everything you need for this:

• capital;
• the ability to calculate;
• constant monitoring of the market;
• the ability to take risks.

One of the proclaimed postulates “the more you risk, the more you get,” should be taken with extreme caution at the initial stage. This is a rather controversial statement when you consider how many stock brokers ended up running out of money, although they made good money initially.

But there are also tips that are worth listening to: invest only in what the client understands, regularly make contributions to reinvest profits, and diversify savings (distribute across different assets).

Here is a rough list of where to invest money for passive income in 2022, acceptable for an inexperienced investor. It is suitable for those who have a certain amount and want to avoid its depreciation when inflation is high.

Bank deposits

Until recently, they were hardly mentioned in the list of profitable investments, since the Central Bank has repeatedly raised the key rate, and after that, the offers of banks became less and less profitable for the average consumer. In 2021, it was raised several times, and now you can place your funds at quite decent interest rates. Experts are confident that there will be no downgrade and even more can be earned if we consider time deposits in small provincial banks.

Sberbank is not suitable for this purpose, the maximum promise is 5%, but depending on the depositor and conditions, the rate may be less.

Interesting! Which bank is better to invest money at interest in 2022 in Russia

The profit from the deposit is guaranteed under the following conditions:

• the amount is less than 1 million rubles. and is not taxed;
• you need to choose deposits with limited management and short-term, without withdrawal and replenishment (this will make it possible to choose a more profitable product next time);
• take care of capitalization and automatic extension of the term, otherwise the money will go to the bank account and will be idle.

Experts point out certain disadvantages of this method of investing money for passive income in 2022: interest is unlikely to be enough to not work and live on the funds received. On the other hand, it is reliable, since the state insures deposits and will return the money in case of a crisis.

Advice to keep money in the bank in foreign currency deposits can be disregarded - the interest on them is low, and the risk of de-dollarization or the appearance of amero will lead to the disappearance of capital, which will still be issued in rubles at the current rate.

Deposits and deposits are a great opportunity to save money and make a profit if you choose the most profitable offer and work with the amount, taking into account the short-term, the need to move, reliability, etc.). Passive income is guaranteed, but you won't be able to live on it.

Top 6 other ways

A person who has some knowledge can consider other options for where to invest money for passive income in 2022:

• Bonds are a kind of loan from a citizen by a company or state. They also involve payment of interest on the debt and can be sold at any time. The income is slightly higher - up to 10%, but the risks are also higher - you can lose the invested money and not receive compensation. And some are difficult to sell even at the purchase price.
• Real estate - buy a ready-made object or invest in a building under construction. In the first case - income from rent, in the second - the sale of an already finished apartment or house. There are many risks and concerns, but some people live by renting out their homes or resale. The costs can be significant, and in the absence of tenants, even exceed income.
• Commercial real estate requires a lot of investment, but can bring up to 12% if the object is chosen correctly and in demand. You can resell if the price rises.
• Stocks offer two income opportunities, but only one of them (dividends) is truly passive. A lot of time will pass until the moment when it will be possible to live on this profit. Trading is a more profitable option, but this is the case when the profit is commensurate with the risks, and you can lose everything overnight, regardless of whether a citizen trades securities on his own or entrusted the disposal of them to a specialist.
• Cryptocurrency is an unpredictable investment. High volatility means that you can lose as much as you can make money, and it is almost impossible to predict its approximate value.
• Alternative investments like crowdfunding investing in business. There are several types of such offers, but 50% of the profitability that companies promise can turn into a loss of investment or into a real 10-20% per annum.

If you analyze the advice of experts aimed at the common man, you can find a pattern: none of them insists on global risks and the latest trends in the exchange business. It is advised to buy real estate, precious metals in ingots and stones, open bank deposits. There is a lot of writing about the unpredictability of stocks caused by the pandemic, and bitcoin, the value of which is simply incomprehensible. The degree of risk, of course, determines the potential income, but it often deprives of those small funds that were saved.

Outcomes

The advice of the experts is contradictory, but you can catch the general patterns:

1. It is worth investing only in what you understand.
2. Even small incomes require work and initial investment.
3. Once you start investing, you will have to reinvest in order to get a normal profit.