If you're like me, you're probably starting 2020 looking to increase your passive income. Many of us have New Year's resolutions to save more and invest better, but it can be difficult to know where to start.
To get you on your way, I've put together a few ideas to get you working less and making more.
Invest in ASX dividend shares to boost your passive income
Let's start with the most obvious option to boost your passive income in 2020.
ASX dividend shares can be a really simple way to increase your cash flow this year. There are a number of options available for strong dividend yields, meaning you can also diversify your revenue streams. For instance, consider an evenly-split, $100,000 portfolio of National Australia Bank Ltd (ASX: NAB), Alumina Ltd (ASX: AWC) and Harvey Norman Holdings Ltd (ASX: HVN).
That could give you $8,470 in passive income for 2020, with diversified exposure to several Aussie sectors.
Invest in real estate for more yield
Direct real estate investment can offer great returns, but may not be truly passive income in 2020. Leverage is your best friend here, meaning you can control more assets and get some good tax bonuses along the way. However, you need consider all the time for management, repairs, inspections etc. Another option is to hire a property manager, but that will eat into your precious profits.
If you want truly passive income from real estate in 2020, I'd consider investing in some high-yield ASX REITs such as Scentre Group (ASX: SCG) or Mirvac Group Ltd (ASX: MGR).
Cash out of your winners for a short-term boost
While dividend shares and high-yield REITs are great for boosting passive income in 2020, don't rule out growth shares either.
If you've been sitting on tasty gains from Afterpay Ltd (ASX: APT) or CSL Limited (ASX: CSL), a slow sell down could be a good strategy.
You could improve your cash flow and rebalance your portfolio at the same time for a double win.
Of course, if there's more growth in store then you can always let your winners run and keep this strategy in your back pocket for another year.
