As this blog has pointed out in the past, there is no shortage of opportunities to earn a passive income these days. The Internet has given rise to many different ways of earning extra money on the side, from self-publishing ebooks to creating online courses.
Those methods can certainly yield rewards. That said, you shouldn’t dismiss tried-and-true passive income strategies if those don’t appeal to you. You’re in fact much more likely to succeed if you choose a passive income strategy that you actually enjoy.
For example, investing has long been one of the most well-known ways of earning a lot of money without a lot of effort. Maybe you’d prefer to go that route.
Of course, investing can also be risky if you don’t know what you’re doing. You should never make major investments unless you’re confident in your expertise.
Don’t worry if you lack the necessary expertise and knowledge. You can still learn to invest wisely. Reading books on the subject is one of the simplest and most effective ways of doing so.
Just make sure you’re reading the right books. Plenty of people may claim to provide “expert advice.” That’s why you’re better off sticking with investing classics that have maintained a positive reputation over the years. The following are some titles to add to your reading list:
1. The Essays of Warren Buffett: Lessons for Corporate America by Warren Buffett
Want to know how to invest wisely? Who better to learn from than Warren Buffett, one of the most successful investors in history?
This collection of Buffett’s essays features key insights regarding the way in which companies operate to maximize returns for their shareholders.
While this may seem a little tangential to your goals, it’s actually vital. Smart investing requires an understanding of the companies in which you’re buying stock. Thus, you need to have a background in the way in which companies operate in regards to shareholder relationships.
Additionally, the essays touch on Buffett’s overall investing philosophies and strategies. Learning about his will help you to develop your own.
2. How to Buy Stocks by Louis Engel
Many people with dreams of earning extra money via their investments never actually pursue those dreams for one very simple (but also very understandable) reason: they don’t know where to start. Trying to make sense of the financial markets can be intimidating if you’re a total novice.
Don’t let that stop you. How to Buy Stocks is an essential primer on the subject. Read it carefully, and you’ll acquire the basic foundational knowledge you need to get started. Remember, without the right foundation, you could end up losing instead of earning money from your investments.
3. The Intelligent Investor by Benjamin Graham
Again, you’re probably reading this blog post because you’re a beginner. You need to learn the basics of investing before you can start buying stocks wisely.
“Wisely” is the key term here. Too many people, deluded by Hollywood, assume that they can get rich quick by picking the right stocks at the right time. While that is possible, it’s not likely, and it’s not a goal you should aim for if you want to earn a passive income. Trying to get rich with the right stock can actually backfire. It’s simply too risky.
Instead, take lessons from this book, which explains how to buy stocks in a way that is likely to limit your risk while yielding strong returns over the course of several years. If you need more convincing, it’s worth noting that Warren Buffett has hailed The Intelligent Investor as “the best book on investing ever written.”
4. A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing by Burton G. Malkiel
A Random Walk Down Wall Street is a somewhat more recent book that has nevertheless earned acclaim from industry professionals and amateur investors for several reasons. Like the other books mentioned here, it provides a clear breakdown of the financial markets and helps you to prepare to make investments. It’s also highly regarded for its “readability,” making it a good choice for anyone who finds the dry style of some investing books a little too boring or technical. On top of that, Malkiel explains much of the insider language that investment professionals use. This will enable you to more clearly understand what others are talking about when they discuss investment topics.
Keep in mind, however, that these are just a few well-known classics that are worth considering. You’re also welcome to do your own research. What’s most important, however, is that you make sure to learn the fundamentals before investing. That’s key to earning a genuine passive income.