How can I generate passive revenue to cover my home loan payments?

Creating Passive Income to Cover Your Mortgage

Hey Kristin,

Currently, I shell out around $2,500 every month for my mortgage. My aim is to establish a fund that can generate passive income enough to cover my mortgage. How can I make this happen?

Best, John

Hey John,

There's a popular saying that millionaires have seven streams of income, and that doesn't mean they work seven different jobs. So how do they do it? The key is passive income. You can create multiple revenue sources to cover your monthly mortgage and more.

One way is through an income investing strategy. Just like a retirement account, you could have an investment account where you withdraw funds each month or year to cover your mortgage. However, keep in mind that you may have to pay capital gains taxes. If your monthly payment is $2,500, your account needs to generate at least $30,000 annually. With the average stock market return at 10%, your account would need $300,000 to make that $30,000 per year.

Another option is real estate. Owning rental properties can generate passive income to cover your mortgage payments. However, this comes with risks, so proceed with caution.

You can also look into side hustles or royalties to diversify your income. Creating content like a book or song can bring in royalties for years. Advertisers pay for features on websites or videos, providing additional income. While not entirely passive, a side hustle could help cover your mortgage and other expenses. This could be a small business, blog, vlog, or another side job.

There are countless ways to increase your income and achieve your goals. Don't get discouraged if passive income doesn't cover your entire mortgage right away. Even a portion adds up over time and can be invested for future financial success. Good luck!

-Kristin

If you have money questions, Kristin is here to help. Submit an anonymous question for a chance to have it answered in a future column.

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