Passive income is by far the most popular variant, as it promises the highest comfort and moderate profits. The principle behind it: Once invested, your money works independently and without further intervention, thus generating continuous profits. However, it does not work completely without work, as the share portfolio, the long-term price trends and the weighting of the individual shares must be regularly checked and possibly adjusted.
Compared to the active generation of additional income with shares, however, the effort here remains manageable. The most common passive investment strategy is probably the dividend strategy: Here, only stocks are included in the portfolio that have shown continuous dividend distributions of between 3 and 6 % in recent years. This way, after a one-time investment, you receive attractive distributions on a regular basis.
The only problem here is that companies have different payout rhythms. For example, share A pays its dividends once in December, share B in March and share C every half year. The dividend strategy is therefore less suitable for a regular monthly income, but can comfortably fill up your coffers throughout the year. An alternative to buying individual shares are dividend-paying equity ETFs. These also offer the advantage that they already have a good spread and you do not have to worry about rebalancing.
Bonds with interest payments also work similarly. However, these offer much lower profits. In addition, you have to make sure here that the interest is paid out regularly during the holding period and not only at the end of the term.
You pay yourself the return
This is the classic variant that allows you to earn a regular additional income after only a short time. Depending on the money invested and your success, monthly payouts of 50 EUR or more are possible.
Tip: Do not pay out all profits in full, but only a maximum of 50 % and reinvest the remaining part in further share packages. In this way, you guarantee yourself a regular additional income and can continue to increase this over time.
If you continuously buy new shares with the profits you have made, you can let the compound interest effect work for you and profit from considerably higher returns.
With this strategy, you forego additional income for the moment, but you can hope for much higher payouts in the distant future.
Some banks offer their own payout plans for this purpose. Alternatively, once you have sold all your shares, you can "park" the capital you have earned in a clearing account and set up a monthly standing order to your current account.
Alternative: Social Trading
Social trading or copy trading are practical alternatives for those inexperienced in securities trading.
Here you exchange information with other traders about investment opportunities, observe professional traders in withdrawal exness and copy their portfolio movements 1:1. This means that you do not need to constantly monitor share prices. Moreover, you can conveniently change the strategies to be copied at any time.
But for beginners it is difficult to recognise a suitable and above all serious trader. Orientation is provided here by the trading history with the monthly profits and losses in the last few years. However, this is no guarantee for future returns.
In addition, the corresponding social trading brokers usually only trade CFDs or Forex and not real shares. As leveraged products, these carry a higher risk of loss than real shares.