Generating income is getting tougher these days, so reaching $1,000 a month of passive income could be a difficult task.
Wage growth is occurring at a very slow pace, so the best thing to do might be to try to boost your income with alternative methods.
A simple solution to make more money would be to get a second job. But when you're paid by the hour it's hard to make a lot of money without working a lot of extra hours at somewhere like Woolworths Group Ltd (ASX: WOW), Coles Group Limited (ASX: COL) and Wesfarmers Ltd (ASX: WES).
Another way to boost your income could be to start a blog about a topic that you have a lot of interest or knowledge in. Writing a blog can be an excellent way of improving your written communication skills. Blogs can generate an income if you attract a decently-sized audience.
Some bloggers promote referral programs of various products or services where they earn a commission if a user signs up to that service or buys the product. There are some people that earn tens of thousands of dollars a month from these programs. Some examples of these referral programs are Amazon books and Uber.
Online video making, such as YouTube, is also a way to generate a good income if you build up a big enough following.
But, by far, I think the best way to build a passive income is owning assets that pay cashflow. An income of $1,000 a month isn't easy to make, but it's certainly possible.
You have to bring an attitude of saving money and spending less than you earn. Doing that will enable you to invest some money into the share market and it will compound over time.
For example, if you just invest $500 a month which returns 10% a year, in 12 years you could have a portfolio worth $128,000 which would generate an annual income of over $12,000 a year if you invest in high-yield ASX shares like Naos Emerging Opportunities Company Ltd (ASX: NCC) and WAM Research Limited (ASX: WAX).
A portfolio worth $240,000 with a dividend yield of 5% would generate the desired income of $12,000. I think that yield is entirely possible if you were to just invest in the ASX market through an investment like Vanguard Australian Share ETF (ASX: VAS), BetaShares Australia 200 ETF (ASX: A200) and Australian United Investment Company Ltd (ASX: AUI) when you include the franking credits.
Foolish takeaway
I can't wait for my portfolio to earn an average of $1,000 of month of passive income.
