{"id":10058,"date":"2022-07-05T19:43:18","date_gmt":"2022-07-06T00:43:18","guid":{"rendered":"http:\/\/blog.jlbn.net\/?p=10058"},"modified":"2022-07-05T19:43:20","modified_gmt":"2022-07-06T00:43:20","slug":"5-recession-proof-ways-to-make-passive-income-according-to-financial-planners","status":"publish","type":"post","link":"http:\/\/blog.jlbn.net\/?p=10058","title":{"rendered":"5 recession-proof ways to make passive income, according to financial planners"},"content":{"rendered":"\n<ul><li>I want to make sure I have passive income coming in if a recession hits, so I asked experts.<\/li><li>Financial planners recommend investing in self-storage and other real estate, including REITs.<\/li><li>Self-publishing books, renting out your stuff, and opening a savings account or CD are other options.<\/li><\/ul>\n\n\n\n<p>As an&nbsp;<a href=\"http:\/\/www.jenglantz.com\/\">entrepreneur<\/a>&nbsp;who runs a service-based business in the&nbsp;<a href=\"http:\/\/www.bridesmaidforhire.com\/\">wedding industry<\/a>, I&#8217;m always looking for ways to bring in new sources of passive income. I don&#8217;t want to work more than 50 hours a week, and in order to keep that work-life balance, I&#8217;ve found I need new ways of generating income that don&#8217;t involve so much of my time.&nbsp;<\/p>\n\n\n\n<p>Over the years, I&#8217;ve made passive income by selling online courses and ebooks, and doing affiliate advertising on content I create for my own website or social media channels.<\/p>\n\n\n\n<p>With the talk of a potential\u00a0<a href=\"https:\/\/www.businessinsider.com\/personal-finance\/what-is-a-recession\">recession<\/a>\u00a0approaching, I&#8217;ve found myself nervous that I&#8217;ll need to find new ways to bring in money. That&#8217;s why I asked financial experts to share some recession-proof passive income streams that might be worth considering in 2022.<\/p>\n\n\n\n<h2><strong>1. Invest in self-storage<\/strong><\/h2>\n\n\n\n<p>If you have the cash available and you&#8217;re looking to take on a new business venture, financial planner&nbsp;<a href=\"https:\/\/www.linkedin.com\/in\/tammytrenta\/\">Tammy Trenta<\/a>&nbsp;says it could be a good idea to look into investing in self-storage facilities.<\/p>\n\n\n\n<p>Since recessions might call for people to sell their homes, downsize, or temporarily move to new places, investing in self-storage facilities could not only be a good investment but also a good source of passive income.<\/p>\n\n\n\n<p>You can invest in self-storage facilities in many different ways, whether you want to buy your own facility or invest in specialist REITs (<a href=\"https:\/\/www.businessinsider.com\/personal-finance\/what-is-a-reit\" target=\"_blank\" rel=\"noreferrer noopener\">real estate investment trusts<\/a>) that operate a large portfolio of self-storage facilities already.<\/p>\n\n\n\n<h2><strong>2. Rent out a popular item<\/strong><\/h2>\n\n\n\n<p>One way to start a passive income stream is to look around your house and see what you have that other people are eager to rent.<\/p>\n\n\n\n<p>Financial planner&nbsp;<a href=\"https:\/\/www.linkedin.com\/in\/marliericksonthrivent\/\">Marli Erickson<\/a>&nbsp;says that if you have the capital available, you can even consider purchasing an item that is in high demand to be rented.&nbsp;<\/p>\n\n\n\n<p>&#8220;During a recession, individuals do more of their chores themselves that require specific equipment and tools,&#8221; says Erickson. &#8220;Get a utility trailer as an example. Your investment will be around $2,000 and you can put a photo of the trailer on your Facebook page and put signs on it that it&#8217;s available for rent.&#8221;&nbsp;<\/p>\n\n\n\n<p>In this example, she also advises adding a truck, tools, garden equipment, tents, and sporting goods for a larger inventory.<\/p>\n\n\n\n<p>You can list items that you want to rent to others on a variety of websites like&nbsp;<a href=\"https:\/\/friendwitha.com\/\">Friend With A<\/a>&nbsp;or&nbsp;<a href=\"https:\/\/www.loanables.com\/\">Loanables<\/a>, and every time the item is booked, you get to pocket the cash.&nbsp;<\/p>\n\n\n\n<h2><strong>3. Build a real estate portfolio&nbsp;<\/strong><\/h2>\n\n\n\n<p>Real estate is a passive income stream that also includes tax benefits, and is one that financial planner&nbsp;<a href=\"https:\/\/www.linkedin.com\/in\/georgenicola\">George Nicola<\/a>&nbsp;says is worth considering in case a recession happens.&nbsp;<\/p>\n\n\n\n<p>&#8220;The passive income derived from term rents and leases is recession-proof and has a low correlation to market&nbsp;<a href=\"https:\/\/www.businessinsider.com\/personal-finance\/what-is-volatility\">volatility<\/a>,&#8221; says Nicola.<\/p>\n\n\n\n<p>While owning real estate can require some active management to maintain high occupancy and ensure the upkeep of the property, you can also consider investing in dividend-generating REITs as another way of earning passive income.<\/p>\n\n\n\n<h2><strong>4. Self-publish books&nbsp;<\/strong><\/h2>\n\n\n\n<p>If you&#8217;re someone who enjoys writing or has always wanted to write a book, financial advisor&nbsp;<a href=\"https:\/\/www.linkedin.com\/in\/josephhogueefficientalpha\/\">Joseph Hogue<\/a>&nbsp;says that self-publishing books is a great way to earn passive income during a recession.<\/p>\n\n\n\n<p>&#8220;Everyone has a book idea in them,&#8221; says Hogue.<\/p>\n\n\n\n<p>Once you know what you want to write about, Hogue says it&#8217;s not only easy to publish the book on your own (using platforms like Amazon Direct Publishing or Barnes and Noble Press), but you can price the book low enough that a recession won&#8217;t affect people&#8217;s decision to purchase it.&nbsp;<\/p>\n\n\n\n<p>While it&#8217;s not easy to become a best-selling self-published author, Hogue says the benefit of publishing your book and putting it on a book retailer&#8217;s ecommerce platform (like Amazon, Apple Books, or Barnes and Noble), is that you might get traffic from people searching for books on a daily basis, as opposed to just writing blog posts on your own website (which might only attract a limited and smaller audience).<\/p>\n\n\n\n<p>According to a&nbsp;<a href=\"https:\/\/selfpublishing.com\/how-much-do-self-published-authors-make-on-amazon\/#:~:text=As%20a%20tool%2C%20Amazon%20can,their%20own%20books%20on%20Amazon.\">self-publishing resource website<\/a>, authors can make $1,000 a month selling their own books.&nbsp;<\/p>\n\n\n\n<h2><strong>5. Open a savings account&nbsp;<\/strong><\/h2>\n\n\n\n<p>While opening a savings account isn&#8217;t going to net you thousands of dollars in passive income each month, unless you have a ton of money to set aside, financial planner&nbsp;<a href=\"https:\/\/www.linkedin.com\/in\/susannah-snider-cfp%C2%AE-53699817\/\">Susannah Snider<\/a>&nbsp;says it&#8217;s still worth considering.&nbsp;<\/p>\n\n\n\n<p>That&#8217;s because Snider says interest rates are trending upward, and while the national average interest rate for savings accounts is 0.1%, you may be able to&nbsp;<a href=\"https:\/\/www.businessinsider.com\/personal-finance\/best-high-yield-savings-accounts-rates-right-now\" target=\"_blank\" rel=\"noreferrer noopener\">secure a rate north of 1.5% at an online bank<\/a>.&nbsp;<\/p>\n\n\n\n<p>Plus, she says, &#8220;If you can lock up cash for a little longer \u2014 one or five years, for example \u2014 in a\u00a0<a rel=\"noreferrer noopener\" href=\"https:\/\/www.businessinsider.com\/personal-finance\/who-has-the-best-cd-rates-right-now\" target=\"_blank\">certificate of deposit<\/a>, you may find rates hovering around 2.5%.&#8221;<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>I want to make sure I have passive income coming in if a recession hits, so I asked experts. Financial<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[254,3421],"tags":[888,3428],"_links":{"self":[{"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/posts\/10058"}],"collection":[{"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10058"}],"version-history":[{"count":1,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/posts\/10058\/revisions"}],"predecessor-version":[{"id":10059,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/posts\/10058\/revisions\/10059"}],"wp:attachment":[{"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10058"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10058"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10058"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}