Where to invest money for passive income

In our difficult times, there are still people who have been able to accumulate some savings and they are faced with a particularly pressing question - where to invest money for passive income.

After all, no one needs to be convinced that unused capital is melting away before our eyes; over ten years, inflation even for the US dollar was about 30%.

That is, if you kept your money in US dollars, you have already lost a third of your savings in just ten years.

You can analyze possible investment options for a long time, comparing their profitability, but it is best to study this issue using a specific example.

During times of good income, I actively invested money, and after five years I can say which investments turned out to be more profitable for me. Perhaps my experience will help you choose the best option.

So, where is it profitable to invest money for passive income?

To ensure an objective assessment of the profit received, all calculations will be presented in US dollars.

Real estate in Ukraine – an apartment in a new building purchased during the construction phase for $400 per square meter now costs over $600 per square meter. This means the investment has yielded a 50% or 10% annual return.

The price increase occurred due to the commissioning of the building and the general increase in prices on the real estate market in the western regions of Ukraine.

Real estate abroad – an apartment purchased in Poland at $1,260 per square meter has now risen in price to $2,000, or 59% over 5 years, which is equivalent to 11.8% per annum.

This high result was possible due to a sharp rise in prices in Poland and the current weak US dollar exchange rate. Real estate prices in Poland are not as closely tied to the US dollar and can fluctuate significantly depending on the dollar/zloty exchange rate. Therefore, it is more profitable to buy real estate in Poland when the dollar exchange rate is high and to sell when it is low.

Gold bars - around the same time, a small bar of bank gold was purchased at a price of $42 per gram.

The purchased bar can currently be sold at a price of about $60 per gram, the profit would be 43% or about 8.6% per annum.

Interest on hryvnia deposits was nearly negative due to the hryvnia's depreciation against the US dollar. Over five years, approximately 45% was accrued, but the hryvnia's depreciation was 40%, meaning the return will be less than 5% over five years.

It's even funny to count deposits in foreign banks, since the dollar rate is 1-1.25% per annum, which doesn't even cover inflation.   

Deposits with brokers , which accrue on account balances, yielded slightly higher interest

There were also investments in cryptocurrencies, but this asset was sold earlier and with varying success, so it is impossible to objectively assess the real profit from investing money in cryptocurrencies .

Based on my experience and answering the question: where to invest money for passive income? I would now choose the following options:

• Investing in gold, as the price of this metal is expected to continue to rise in the coming years. However, instead of gold bars, I would open a trade on the exchange with one of the brokers , as this is now much easier than buying bars.

• Real estate abroad – but this time I'd buy smaller properties, apartments of 30-40 square meters, or underground garage spaces. This is because these properties have appreciated in price by much more than 59%. And selling or renting out a small apartment is much easier.

Overall, it's quite difficult to earn more than 10% per annum from passive investments unless they are high-risk. While there are certainly more profitable options, such as PAMM accounts , you could end up not only failing to make a profit but also losing your money.