How could $1,500 a week become passive income?
I work for a company that provides per diem and covers my hotel expenses. On my next contract, I’ll be taking home around $1,750 weekly after taxes. I have some debt to clear, but once that’s done, I’m interested in using a significant portion of my earnings to generate passive income.
Invest in the S&P 500 and use the remaining funds for living expenses.
Absolutely right, it should be the default answer for 70%-80% of questions about what to do with extra money. While not flashy, the truth is that someone who consistently invests their savings in a passively managed index fund like the S&P 500 is likely to retire with more wealth than those who engage in day trading, real estate flipping (real estate appreciates less on average than the S&P 500), dropshipping, or other seemingly attractive ventures. There may be exceptions, but they will be rare.
Real estate tends to appreciate at a slower rate on average. However, it also allows you to accumulate equity and potentially generate income through cash flow. While my preference lies with low-cost ETFs, real estate has a track record as a reliable investment option.