What is passive income. Active income: types and creation of sources
Most of us have heard of both passive and active income. But do we all understand what their similarities and differences are? And what is actually better and more profitable?
For many, active income is the only source of income. This is the salary you receive at the end of the month. As soon as you stop working, your profit disappears, i.e. to get it, you always need to be on the move, actively work and develop comprehensively. In addition to the salary, the active type also includes:
- Overtime;
- awards;
- tips;
- Commission.
If you have your own business, then funds will be considered active profit only if you are financially involved in this business.
- Advantages of this kind is that it is a quick income. You did a certain job and got paid for it. You do not need to invent something new or supernatural, because the scheme is so worked out that for many it is already a habit.
- disadvantages is that you are constantly wasting your time and energy. In this case, the amount of wages in 90% of cases depends on the employer, and not on you.
All funds are paid to the recipient after all tax deductions, i.e. , and then simply transferred to the employer. This form of accrual does not apply to private entrepreneurs, as well as to persons who work as independent contractors.
There are several sources of this type of profit at once. It can be:
- Financial investments;
- investments in real estate;
- marketing;
- copyright for IP;
- passive earnings on the Internet;
- franchise.
Financial investments allow their depositors to receive stable deposits constantly. One of the most common options for such investments is: money not only makes a profit, but is also stored in a safe place. The downside is that the interest on deposits is not very high in our country. For example, for every 1,000,000 rubles you get around 1% -1.4% per month.
You can use bonds and dividends. To receive dividends, you need to become a shareholder of a profitable enterprise that regularly pays financial bonuses to all investors. And the yield on bonds differs little from a bank deposit.
A more profitable but risky option is investing in stocks. In this case, you can either get rich or lose every penny.
Profitable passive income provides investment in real estate ... Here you can buy, sell, rent, increasing your base capital. In recent years, it has been stable, so this is the area that attracts the most.
Concerning marketing then it could be a franchise, network marketing, etc. Most of these companies form their own pyramid, the income from which will depend on the recommendation of a particular product to customers. Whoever proposes gets their commission. If you build a customer base, then product sales will generate consistent profits.
Not a bad option - passive earnings on the Internet ... You can earn on affiliate programs. By recommending products or services, you offer a link and get up to 30% of the purchased products. Profit will be generated through markups. You, as the site owner, receive your passive income. Alternatively, you can make money on contextual advertising. Today, such advertising is available on all sites. For every click on the banner, you get your share. A good site brings from $ 10. in a day. Depending on the popularity, the figure may vary.
The creators of songs and music, clips and films, photographs and books have on them copyright, and receive royalties for the use of their creations in a particular area.
What franchise? This is a transfer of rights to use a technology or trademark to third parties. It can be a chain of well-known restaurants, shops, etc.
- Advantages the fact that you can not work at all, while the money will always be in your pocket. You create or acquire a certain asset, and then it works for you, because there are people working for you. In your free time, you can do anything: hobbies, leisure, sports, etc.
- disadvantages is that it will take a long time before you get anything. You need to work hard and long to create and develop assets. In addition, in this case, there is always a fear of failure.
Passive income difficulties
Everyone would like to receive additional income, in addition to the main one. But, the catch is that you need to have certain financial assets at your disposal. It is impossible to create a passive source without them. If there are none, they need to be earned in the form of active income, after which you can receive passive bonuses. Everything is interconnected!
In addition, many spend years creating such a source, going through many stages and failing. This is not an option for those who only whine, envy and are lazy.
Active and passive income, in general, have a common goal: making a profit. In the first case, you receive a one-time reward for all your work (part-time work, wages, freelance, etc.), but you spend time and effort all the time. In the second case, you spend both one and the other once, but for several years, and the rest of the time you enjoy the fruits of labor.
Video - active and passive income.
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What is passive income and what are its effective and truly working sources. What are the main differences between passive and traditional income, how to start earning passively and what needs to be done first of all for this. Detailed description of all sources of passive income.
Passive income is income that does not depend on daily activities. That is, a person does not need to do some kind of work every day. He just invests his efforts and money in something once, and then passively makes a profit from it.
Such income does not arise from scratch. Its organization always requires financial investment and effort. But then, when all the processes have already been debugged, the profit comes "automatically" - that is, without human participation.
Passive income is now available to anyone. You can organize it with even a small amount for investments. How to do this will be described in detail below.
Basic and affordable sources of passive income
To start earning passively, you need to understand the features of the chosen source of passive income.
Below are the best and working options on which everyone can start earning in the near future.
But we must understand that each source requires detailed study and analysis. Therefore, you may need to read additional literature and watch training videos. All these materials are available on the Internet and freely available.
“I myself am guided by the application of money only in order to receive constant profit. Or when I don’t buy anything if it doesn’t regularly replenish my pockets. I don't need a one-time profit. I need a steady stream of money. This is a very important topic.
And the more you watch the investment world, the more you will understand why rich investors are investing for cash flows and why amateurs are for quick income. "
Robert Kiyosaki - American businessman, investor
Website as a source of passive income from the Internet
This method of passive earnings is the most accessible, so it will be considered first and in more detail.
Any site on the Internet is located for a reason. Their owners pursue specific goals - some offer services, others sell products, and someone receives passive income from the site.
How does this happen?
Let's say a person decides to make money on the Internet using a website. To do this, he creates a web resource and fills it with informational articles. Moreover, articles are written for a reason, but for specific and most popular search queries of Internet users.
When several dozen articles are posted on the site, and the number of unique visitors per day is in the hundreds, the resource is added to the advertising network.
Naturally, the site must comply with the strict rules of ad networks - these are requirements for page design, and for content, and for traffic and other indicators.
You can also earn income from banner and teaser ads.
With good traffic to the site and the right topic, the resource can bring in $ 1000 per month or more.
The only drawback of this method is that you won't be able to start earning quickly.
On average, the first 6 months will have to spend time, effort and money on the development of the site. In the future, you will need to pay for the services of a copywriter so that he regularly writes fresh and unique articles on the site. After all, if you do not make permanent publications, then the site's traffic may drop.
However, there are cases when site owners write articles themselves and do not pay copywriters. Such an activity does not take much time and it is enough to spend 1 to 3 hours a day on one article.
It is worth noting that when the site begins to bring the first money, they can be invested in the opening of another resource, which will also generate income in the future. As a result, a person will already receive $ 2,000 per month.
Thus, this type of source of passive income is available to almost everyone. All that is needed for this is to study the basics of web development, SEO-optimization and get acquainted in detail with the requirements of ad networks.
Earnings on intellectual property
In this case, not everyone will be able to make money, since a great creative potential is needed here. A person should be able to write books, poems, songs or create useful information products (educational materials).
The earnings themselves are based on royalties, which, for example, the author of a book receives from its sale. That is, this is some percentage that is set by the publisher. The money comes from the sale of paper and electronic versions of the book.
The same applies to poems, songs, some technologies, methodologies, inventions and information products.
Forex, or earnings through investments in PAMM accounts
Despite the fact that many are skeptical about Forex and do not believe that it is possible to earn money from this, it is still worth touching on this topic.
This type of earnings involves only two actions - to invest and withdraw money. It is not necessary to take part in the auction, as another person (trader) will do it with the money invested. The investor receives his interest, which can be withdrawn from the account at any time.
The topic of making money on PAMM accounts is quite extensive, and it is difficult to describe it in a nutshell. However, there is a lot of information on the web on this issue.
You just need to know that this type of earnings has some risk, since you can lose all the money you have invested.
Passive income from network marketing (not pyramid schemes)
As with making money with your own website, network marketing (MLM) is one of the most affordable sources of income. Of course, for many, it causes negative emotions, but you can still make money on it.
Only an active and friendly person who can quickly find a common language with people can engage in such earnings. This is necessary in order to quickly switch from active to passive earnings.
Also, in order to engage in such, let's call it, business, one must understand.
The main thing in this case is not to fall into a financial pyramid, since there is a possibility of quickly going bankrupt and losing money.
Investments are required here. But the amount does not exceed $ 100. Moreover, investments quickly return when approached with enthusiasm.
The essence of passive income here lies in the fact that one person finds several like-minded people who are subsequently engaged in sales, and the person himself devotes only 2-3 hours a week to promoting the goods being sold.
3 more sources of passive income
- Bank deposits. One of the simplest types of passive income available to anyone who has even a small amount of money. There is a minimum of risks, but often the amount of income from a deposit is small and does not cover the inflation rate. To get a high percentage, you have to invest a lot of money. But, for example, part of the family budget can be kept in bank deposits, which will save money and save them from inflation.
- Deposits in securities and investment funds (mutual funds). A serious baggage of knowledge is needed here. But it can be obtained with a lot of effort. However, the results will exceed expectations. It is better not to choose such an area of earnings without experience and knowledge, since there is a very high risk of losing money here.
- Rent of movable and immovable property. One of the best sources of passive income with almost no risks. Residential and commercial real estate will bring high profits. For this type of earnings, you need to own property or buy it. Therefore, one must understand the need for serious investments.
Differences between passive and active (traditional) income
From the above information, the main differences between passive and traditional (active) income are clear. However, this information is worth supporting.
Passive income |
Active income |
A person earns without working. |
Continuous activity is required. |
Initial capital is required for investment. |
There are no start-up or other financial investments. |
Unlimited opportunities (in parallel, you can do business). |
Limitation of opportunities (attachment to one job). |
The risk of losing your invested money. |
There is no risk of losing money. |
People have a high level of financial literacy. |
People have a low level of financial literacy. |
What do you need for passive income and financial freedom?
To start earning passive income, you need to overcome some fears and learn how to easily invest in the future. Many are afraid of the new and the unknown. For many, the biggest fear is investing their savings in something. If this is the case, then this must be fought. Otherwise, passive income will remain only in dreams.
Here, of course, desire is also needed. Without it and enthusiasm, nothing will work. Therefore, it is worthwhile to set all the priorities in your life, think about the future and assess your current financial situation and future prospects.
It is imperative to improve the level of financial literacy. To do this, it is enough to read special literature. One of the best books in this direction is Poor Dad. Rich Dad "by Robert Kiyosaki.
Self-education in the life of a person who has decided to take the path of passive earnings plays the most important role.
You also need to be prepared for the fact that at first you will have to work seriously in order to get the desired passive income later. Perhaps the need for additional investments will appear. But we must always remember that they are done for the good.
Thus, passive income is available to everyone today. Therefore, if an idea arose to make money using this method, then you need to act without hesitation. The main thing is to choose the right niche and study it in detail. And then, through trial and error, come to the desired result.
A few decades ago, in our country, the concept of income almost completely corresponded to wages at a state-owned enterprise - with almost no options. The accumulated savings were kept by the people in a savings account. Now the ways to ensure existence are just a carriage. Someone started their own business, someone invested in securities and lives happily ever after (why work now?), Unless they have already gone bankrupt. Someone profitably rents an apartment in the center of the capital and also does not rush to the machine every day. Well, someone (and most of them) still get up a little and go to the office or production.
We all, in one way or another, receive some kind of income from our own activities, on which we live. But not everything is so simple. It turns out that income is different. And it can be different - active or passive. What a modest Russian rentier sometimes does not know about, who is renting out an "extra" odnushka on the outskirts of a provincial town. Well, let's talk about this - today's article is devoted to the type of income that any worker faced.
Let's understand the concepts
The term "active income", derived from the English active income, refers to one of its types based on the provision of services. The nature of its receipt is the opposite of other types - passive and portfolio income. The name itself suggests that the recipient is playing an active role.
With passive income, the sources are those in which the recipients are not directly involved. Here is an example: a specific person works for a salary and at the same time rents out an apartment. That is, both types are available. Income from active operations is wages, the second is rent payments. Portfolio income, which some economists consider as a kind of passive income, presupposes investment as a source.
Active income: options
The whole variety of types of active income comes down to money paid in the form of wages. It can be a fixed salary or an hourly wage. This also includes all the variety of overtime, bonuses, tips and so on. Commissions paid for agent services (for example, for the sale of real estate) also apply to this article. That is, it is quite possible for everyone to create an active source of income - it is enough to get a job. After all, no one has taken away the ability to work from us.
This form (active income) also includes your profit if you "run" your own business and participate in it financially. We are not talking about buying a ready-made business for the sole purpose of making a stable profit without the intention of developing your own business. In particular, in the US tax administration, it is customary to consider the regular conduct of business with financial investments as the basis for classifying the income received as active.
Ask a specialist
If you do not fully understand what the difference is, whether it is active or passive income (when it comes to profit from your activities), you can resort to the services of a financial consultant. You can figure it out on your own by analyzing the criteria that are used for the same purpose by the tax services of states.
The vast majority of options involve the payment of active income to its recipient in its pure form, that is, after all possible tax deductions. Salary in this case is a typical and most common example. This rule does not apply to sole proprietors or those who work as independent contractors. When receiving money, these people are personally responsible for the taxes paid and the timely declaration of income.
Consider the details
Now let's touch on the concept of active income, its advantages and disadvantages in somewhat more detail. Let us also consider the current topic "active and passive income - specific differences" in order to finally clarify for ourselves all the nuances of the issue.
In fact, all types of income to the personal budget can be attributed to only one of its two types - active or passive, since the investments mentioned above (portfolio income) are one of the varieties of the latter. At the same time, types of active income are all those ways of earning when the receipt of money in a person's personal budget depends on his own labor.
These are all types of traditional work, part-time work, part-time jobs - both in real life and on the Internet. The main fundamental difference between active and passive income is that the latter allows you to replenish your own budget without daily labor efforts, but at the same time requires an investment of initial capital, sometimes very, very significant.
Income and virtual reality
Is active income possible on the Internet? And if so, what is it? For some reason, many ignorant citizens think that nothing can be earned on the Internet - everything is completely a scam and attempts at divorce for money. Others go to the opposite extreme and, having read the tempting promises of instant enrichment, with which the World Wide Web is flooded now, they have been looking for a magic money button for months and years.
Both are wrong. You can make money on the Internet - just like in real life. We are talking about performing specific actions - writing articles, working remotely by anyone - a designer, accountant, consultant. It's not about whether you are online or not. If you perform certain tasks, receiving a stable linear income for this, that is, changing your own time and labor for banknotes (albeit in electronic currency) - we are talking about the same active income, that is, about the most ordinary work, albeit with the use the latest technology.
How remote work differs from internet business
Another thing is the Internet business, when, for example, by creating your own e-book (or by purchasing the rights to resell a similar one, which is called reselling), you launch it into circulation. Such an information product can be sold an unlimited number of times.
Having set up a business from a technical point of view (payment, customer feedback), you can relax - no further regular efforts are required on your part. Isn't it passive income?
Back to the real world
As examples of it no longer in the virtual, but in the real sphere of our life, one can name receipts from deposits, dividends on securities (the same portfolio income), renting out property (not only housing), profit received from investing in some or asset management companies.
Its traditional source, known to our parents in Soviet times, is placing money on a bank deposit (on a savings account). This option has all the signs of passive income. This is the need to own initial capital, the ability to choose an investment object and all the inherent risks in the form of instability in the financial market and the likelihood of a large or even complete loss of the investment. Whereas the ability to work and sell your own working time will not be taken away from you (we are not talking about old age or loss of working capacity due to illness).
What happens if you stop working
Based on constant work, the amount of income (active) considered in the article is directly proportional to either the results of the expended efforts or the expended working time. But its common characteristic is the cessation of the receipt of money in the personal budget immediately or after some time after the cessation of labor activity - when active sources of income run out.
What does "after a while" mean? Let's say you were fired, and you register at an employment center. You will hold out on the benefits for a while. But, formally speaking, these payments can already be attributed to passive income, which you receive on the basis of the previously invested capital - your work at the previous place of work.
And if you don't work?
What else is the difference between active and passive income? In contrast to the first, the second presupposes the possibility of income even when there is no need to work. To create such a source, one way or another, you will need to invest a considerable amount of labor or money - passive income itself does not come from anywhere.
For active income, this requirement appears only when it comes to creating your own business. Basically, people sell their own labor - most of you and I have nothing else to sell and invest.
I wonder how to classify the situation with receiving a pension? Formally, this can be attributed to passive income. But if you think about it, it's an illusion. The lack of investment in this case is deceptive. To receive his modest income for life, the pensioner spent his whole life investing capital in the form of contributions to the pension fund.
Active and passive income: the difference in the number of opportunities
Are you familiar with the concept of diversification? This is synonymous with diversity, and in the case of active earnings, there are very few options. Indeed, human capabilities are inherently limited to fairly narrow boundaries. You cannot physically combine active earnings in two or three or more jobs. Most often, we receive active income from only one source in the form of a main job and occasionally earning money (but these amounts are no longer fundamental).
Diversification of the other income - passive - is much broader and is not subject to restrictions. No one is prohibited from breaking the existing capital into parts, each of which can be invested in absolutely any project that can bring passive income.
About risks and losses
It is the weak diversification of sources with active income that carries a high risk of losing both it and the capital invested there. A typical example - you were fired from your job or the authorities closed the business you organized. In this case, you will lose both.
With the strong diversification inherent in the opposite scenario, the situation is much better. If one of the sources of passive income is closed or goes bankrupt, its owner will receive profit from the others - the remaining ones.
Can you get rich at work?
Almost always, active income is characteristic mainly of those who, due to their financial condition, exist below the poverty line. A few exceptions are the stratum of those holding a serious position or possessing a valuable specialty with a high salary, and the percentage of these is not too high. These people can count on a certain financial stability, but at the same time they run into a constant ceiling, that is, dependence on their own high-paying work becomes decisive in their lives. If, due to some unfortunate coincidence of circumstances, an advantageous place is lost, the source of income will instantly cease to exist for them.
Those who occupy a position well above the poverty line, as a rule, have a certain amount of capital and tend to move from active to passive income. They create at first a small source of it, then gradually build it up. With a skillful approach to business, such people have every chance of financial independence in the future.
Where do millionaires come from?
School, government and parents taught us that in order to achieve success in life and stability in the material sense, we must work hard, having mastered a good previously demanded specialty. In practice, the situation looks completely different. Look around: are the most financially successful people the ones who work tirelessly? On the contrary, these honest workers most often cannot break out of poverty for years and decades, living their lives from paycheck to paycheck.
The winners are those who managed to accumulate at least some amount as initial capital, then invested it profitably and continue to look around in search of new promising sources of investment. It is from the stratum of such people that millionaires and billionaires come out. Rereading the stories of their success, you come to an unequivocal conclusion - if in your life there is only active income, and you have not had to think about anything more than that, your chances of success, alas, are minimal.
Since the publication of the works Tim Ferriss and Roberta Kiyosaki such a thing as " passive income"Has turned into a kind of mystical thing that makes it possible to start a rich and free life for everyone who can get it.
Not surprisingly, many are tempted to get their hands on this Holy Grail. But before you start acting, it is better to take a closer look at what passive income is and how it works.
What is passive income and earnings
In simple terms, passive income is creating something ( material or intellectual value), which will allow you to receive money for an indefinite period without further human participation.
How to create passive income?
The simplest examples of passive income are book authors... They can spend months writing a novel, and then spend decades getting paid for every copy of the book they sell. They create value that then works for them.
However, this was too narrow a definition.
According to a reputable publication Investopedia passive income is "earnings that a person earns from rental property, limited liability partnerships, or other business in which they are not actively involved."
True passive income is income that does not depend on the mandatory performance of any regular activities and comes in even if its owner does nothing at all.
Popular culture in Russia defines passive income in rubles as “ any money you can make lying on the beach and sipping a cold mojito», but this is a delusion.
For example, a well-known financial trainer and expert in the USA Todd Tresidder notes that today, passive income can be considered any income that requires minimal effort after the initial investment of time or money, and works in accordance with with Pareto's Law - « 20% of the effort gives 80% of the result».
Before you start thinking about how to create passive income, you need to understand about active income.
What is active income?
Active income is the reward a person receives for the work they do. Regardless of the profession, if a person spends his time and energy in exchange for money, this is an active income. Earning options may be different ( lawyer, doctor, bartender, loader, copywriter, print or online correspondent) but the principle remains unchanged.
- The principle of active income: work - eat.
- The principle of passive income: work - eat today, tomorrow, the day after tomorrow ...
The main point of creating passive income is to make a solid investment or work at a certain moment, and then, without making much effort in the long term, reap the benefits of your labor. Since there are a lot of different options for passive income, it is worth talking about each of them separately, highlighting a few of the most common and accessible to everyone.
Types and sources of passive income
Today there are a variety of ideas, examples and options for sources of passive income. However, it is immediately important to realize the fact that it will not be so easy to do this. Otherwise, most of the hired workers, forced to work hard "from bell to bell," would have gone on free bread long ago. For those who are still determined, it makes sense to pay attention to such sources of passive income as:
- bank deposits;
- valuable property and real estate;
- securities;
- participation in mutual funds;
- creation of intellectual property;
- creation and optimization of your own business.
For each of these areas and ideas, there are ways of passive income. And having chosen the path that is closest to themselves, everyone can familiarize themselves with them in detail.
IMPORTANT! The biggest and easiest money is earned on the desire of a person not to work, so on the Internet you can find thousands of offers from scammers, so when creating passive income, focus on its legality, adequacy, reliability and simplicity, where it will be impossible to deceive you.
Stocks as a source of passive income on the Internet
For example, if you start from $ 3000 and report monthly at $ 300 at 50% per annum, then in 11 years you will already have $1 000 000 !
You invest $ 3600 a year for 10 years, and you get a million dollars in return.
1 year $ 8,565
2 years $ 17,362
3 years $ 30,558
4 years $ 50 351
5 year $ 80,042
6 year $ 124 577
7 years $ 191,381
8 year $ 291,586
9 year $ 441,893
10 year $ 667 355
11 years $ 1 001 032
Look at the graph of this option for passive income on the Internet for clarity:
A stock portfolio is a great passive income option, it is understandable and adequate, and will be an interesting way for most.
Here you can find hundreds of European and American stocks, commodity futures, energies and other assets.
One way or another, stock prices are rising all the time, and companies that more and more people learn about are growing hundreds of times.
Over the past 3 years, only one has grown by 300% ... This is the most advanced and legal passive income on the Internet.
Valuable property and real estate
This type of passive income includes:
- real estate;
- precious metals and stones;
- antiques;
- objects of art;
- collectibles (coins, stamps, books, vinyl records, etc.).
But you need to understand that for the development of such a business, you need to have not only the start-up capital, but also the necessary knowledge. So you have to find experts and, at first, involve them in the case.
How much can you earn this way? Depending on the chosen direction and market conditions, the profitability can be from 15 to 70%... Looks good, but keep in mind that investing in real estate, precious metals, as well as luxury items and collectibles is not passive income in the classical sense. Yes, it may fit Pareto law, but nevertheless, a person is required to:
- careful study of relevant market analytics;
- the ability to choose liquid assets;
- careful observation of tax matters;
- ability to find and attract customers.
There is one more thing - it is desirable to invest for a long time. Real "exhaust" can only be obtained years in 5-10... During this time, an apartment bought in a new building may rise in price by 30-40%, and various antique values and even more. This type of passive earnings basically does not require anything from you - you bought it and keep it, and after n amount of time you sold it.
For example, Andy Warhol's painting Lemon Marilyn was bought by an investor in 1962 for $ 250. After 45 years, it was sold for $ 28 million.
Earnings on PAMM investing
For those who are not well versed in stock trading, investment solutions from offering such opportunities as automatic copying of transactions of successful traders or.
The bottom line is to invest in money managers on the currency exchange. Traders will take a small percentage of the profits, but they will also make money for you. Thus, it is beneficial to everyone.
To make it easier for users to choose the most suitable option, all brokers provide a rating of managers' profitability, where you can clearly see their success both in the short and in the long term.
The return on investment in traders is highly dependent on professionalism and market conditions and may fluctuate from 30 to 150% per annum and you don't have to do anything yourself.
Creation of intellectual property
The most pulp for those wishing to create passive income from scratch.
For people with valuable knowledge, experience, or good creative ability, passive, no-investment income can be earned through
- creating audio,
- video,
- graphs,
- text materials of artistic or scientific content.
There can be a great many ideas for this part:
- writing books
- scripts
- music
- software
with the subsequent receipt of both royalties for the work itself and royalties, which will be paid whenever others want to use your work.
And although not everyone can see large sums of earnings here, the availability of methods makes this area very attractive.
Bank deposits
The most popular and simple passive income in rubles is opening a bank deposit.
That is, in principle, you can put money in a bank and live on one interest. The main advantages of this option are:
- extreme simplicity of the process;
- you don't have to do anything at all (just come to the bank, conclude an agreement and give the money to the cashier);
- relatively low risks of losses.
However, there are also negative aspects. The first is more than modest profitability. The average rate of large banks is no more than 7-8% per annum. Less established institutions offer 8-11% in rubles or 2-3% in USD.
In order to earn at least $ 1000 per month at a rate of 2% annual, you must already have 600 thousand dollars, which will all the time lie on the deposit "dead weight".
Creation and optimization of your own business
Any business is painstaking and hard work. But only for the time being. According to the American financier Tim Ferriss, the success of any business is determined by its return.
- Its first phase involves a solid cash injection and constant control by the owner. It takes about 4-5 years. In some cases, up to 10 years.
- After that, the business evolves into the second phase and comes into compliance with the already mentioned Pareto Law - it provides its owner with 80% of the result with 20% of the effort. At this stage, there are no longer any problems with how to create passive income based on it.
The business owner can shift the lion's share of the worries to the management staff, and he himself can concentrate on things that are interesting to himself or other promising business.
How to get passive income in Russia
It is not much more difficult to organize the creation of passive income on the territory of the Russian Federation than in any other country in the world. However, there are also some nuances. Russia, for example, cannot be called “ haven of peace”, Therefore, investing in shares of Russian companies in the long term requires particularly careful calculations and a willingness to quickly look for new solutions. However, nothing prevents you from buying shares of foreign companies through or.
The real estate market here is also characterized by its heterogeneity. For example, if by 70% the territory of the Russian Federation, real estate prices behave predictably and in accordance with global forecasts, in regions such as MSC or SPB sometimes it is very difficult to predict price movements. During the period of a general boom, a relative calm can reign here, and vice versa, when there is a crisis and stagnation everywhere, the volume of transactions with real estate in Moscow, for example, can go off scale.
As a conclusion
As you can see, passive income is real, however, it is not always passive for 100% , as some not too honest authors of various trainings and educational materials like to say.
Nevertheless, in any variant of passive income, he will not have a boss in front of you, a work schedule, and in the case of passive earnings on the Internet like shares or trust management - a territorial tie.
At first, you need to do a lot ( originally unpaid) work to make a profit and get a steady flow of money.
Passive income has many benefits, but as elsewhere, there are also trade-offs. Initially, it is difficult to get a big return from it, so you have to put up with the need to go to a regular job, or maybe even more than one, in order to raise money to start. And only those who are ready to mobilize efforts and forget what laziness are can achieve success here.
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