Feb 21, 2025
While we adhere to strict editorial guidelines, partners on this page may provide us earnings.
How would you feel about having an extra $5,000 in your pocket?
That’s the idea behind a proposal floated to Elon Musk, the billionaire Tesla CEO who also leads the Department of Government Efficiency (DOGE) — an initiative purportedly aimed at cutting wasteful spending and reducing unnecessary regulations.
Advertisement
In a post on X, James Fishback, CEO of investment firm Azoria, urged, “President Trump and @ElonMusk should announce a ‘DOGE Dividend’ — a tax refund check sent to every taxpayer, funded exclusively with a portion of the total savings delivered by DOGE.”
Fishback’s attached proposal suggested that since DOGE is targeting $2 trillion in government savings, 20% of that ($400 billion) could be returned to America’s tax-paying households.
“$400 billion in DOGE-driven savings divided by 79 million tax-paying households = $5,000 ‘DOGE Dividend’ check per tax-paying household,” the proposal states.
Musk’s response?
“Will check with the President,” he wrote in reply.
Trump: ‘The numbers are incredible’
It’s unclear whether Musk has directly consulted President Donald Trump on the matter. However, during his remarks at the FII Priority Summit in Miami Beach, Florida, Trump acknowledged the idea.
“There’s even under consideration a new concept where we give 20% of the DOGE savings to American citizens and 20% goes to paying down debt because the numbers are incredible, Elon, so many billions, hundreds of billions,” Trump said. “We’re thinking of giving 20% back to the American citizens and 20% to pay down debt.”
Advertisement
But don’t get your hopes up just yet — experts aren’t optimistic that these checks will materialize.
“It is completely impossible for DOGE to save $2 trillion,” Jessica Reidl, a senior fellow at the Manhattan Institute, told CBS. “Washington is facing annual budget deficits that will likely surpass $3 trillion within the next few years. Sending taxpayers dividend checks would be completely irresponsible.”
Musk has set an ambitious goal of cutting $2 trillion in federal spending. So far, DOGE claims total estimated savings of $55 billion. Bloomberg noted that the DOGE website only accounted for $16.6 billion of those savings.
The good news? You don’t have to wait for Washington to send out checks — savvy investors have long found ways to generate their own dividend income. Here’s a look at three easy ways to get started.
Must Read
- Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and the simple steps to fix it ASAP
- Robert Kiyosaki begs investors not to miss this ‘explosion’ — says this 1 asset will surge 400% in a year
- Vanguard reveals what could be coming for U.S. stocks, and it’s raising alarm bells for retirees. Here’s why and how to protect yourself
Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
Dividend stocks
Dividends are payments companies make to shareholders from their earnings, typically on a quarterly basis. While the idea of a DOGE dividend from the government remains uncertain, many corporations consistently return cash to investors through dividends.
Investing in dividend-paying companies can create a steady passive income stream — and sometimes, the numbers even catch Musk’s attention.
Back in 2023, when reports surfaced that Berkshire Hathaway, the investment empire of legendary investor Warren Buffett, earned $704 million in dividends from its Coca-Cola holdings in one year, Musk couldn’t resist commenting on X, “Berkshire Hathaway high on Coke.”
Advertisement
While stock prices fluctuate, companies that consistently pay dividends enable investors to earn income without having to sell their shares. High-quality companies like Coca-Cola can even increase these dividends over time, amplifying the income stream.
That said, past performance isn’t a guarantee of future results. And everyone’s financial situation is different, with unique goals, income levels and risk tolerance. If you're looking to build a passive income portfolio but aren't sure which investments align with your needs, it might be time to get in touch with a financial advisor through Advisor.com to help you build a plan.
Advisor.com is an online platform that matches you with vetted financial advisors suited to your unique needs. Once you’re matched with an advisor, you can book a free consultation with no obligation to hire.
Real estate
Real estate is another popular way to generate recurring income. When you own a rental property and tenants pay rent, you earn a steady monthly cash flow.
It’s also a popular hedge against inflation, as property values and rental income tend to rise alongside the cost of living.
Advertisement
Even Musk has endorsed this approach, once advising: “It is generally better to own physical things like a home or stock in companies you think make good products, than dollars when inflation is high.”
However, while real estate investing has clear benefits, being a landlord comes with challenges. Managing a property involves finding and screening tenants, collecting rent, and handling maintenance and repair requests (out of your own pocket) — and that’s assuming you can save enough for a downpayment and get a mortgage to buy the property in the first place.
The good news? These days, you don’t need to buy a property outright to reap the benefits of real estate investing. Platforms like First National Realty Partners (FNRP) allow accredited investors to own shares in institutional-quality, grocery-anchored properties without the hassle of finding and managing deals themselves — with a minimum investment of $50,000.
FNRP properties are leased to national brands like Whole Foods, Kroger, and Walmart, which provide essential goods to their communities. Thanks to Triple Net (NNN) leases, investors can enjoy the potential to collect stable, grocery store-anchored income every quarter, without worrying about tenant costs cutting into the bottom line.
Read More: Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it
High-yield savings accounts
High-yield savings accounts (HYSAs) offer a low-risk way to generate passive income while keeping your funds accessible. These accounts usually provide higher interest rates than traditional savings accounts, allowing your money to grow steadily without being tied up in long-term investments.
With so many options available, choosing the right HYSA can be overwhelming. That’s where SavingsAccounts.com comes in. This online comparison platform helps consumers evaluate high-yield savings accounts from various banks and financial institutions, offering side-by-side comparisons of interest rates, fees and key features to help you maximize your savings.
In the U.S., most savings accounts are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per depositor, per insured bank. This insurance provides protection to depositors in the event that the bank fails, ensuring that their funds are safe and accessible.
You May Also Like
- Turning 50 with $0 saved for retirement? Most people don’t realize they’re actually just entering their prime earning decade. Here are 6 ways to catch up fast
- This 20-year-old lotto winner refused $1M in cash and chose $1,000/week for life. Now she’s getting slammed for it. Which option would you pick?
- Warren Buffett used these 8 repeatable money rules to turn $9,800 into a $150B fortune. Start using them today to get rich (and stay rich)
- Here are 5 easy ways to own multiple properties like Bezos and Beyoncé. You can start with $10 (and no, you don’t have to manage a single thing)
Jing is an investment reporter for MoneyWise. He is an avid advocate of investing for passive income. Despite the ups and downs he’s been through with the markets, Jing believes that you can generate a steadily increasing income stream by investing in high quality companies.
