Get income trading examples any. Best Passive Income Idea
Types of passive income are those in which the availability of stable financial income does not depend on daily work. Each of us has heard of people living off of such income — those who don’t have to go to work. They are called "rentier", that is, living at the expense of rent.
Rent is the income that the owner receives from fixed capital placed in real estate, deposits, securities, etc. "From the same opera" - sources of passive income related to copyright. By the way, the last option is not ordered these days to anyone. It's simple: once you create something and fix the copyright to your own brainchild, you will have such deductions for every next sale.
If you are a professional (it doesn’t matter in which area) - you have a real opportunity to monetize your own knowledge. Simply record the training course on video or audio and launch it to the market.
Why aren’t we?
Today we will consider options for passive income and its possible sources. Its huge advantage is the release of personal time, which can be spent on your favorite activities, family, leisure, household chores or elsewhere. Anyone who works hard all day at work is almost completely devoid of such a wonderful opportunity.
To manage personal time at one’s own discretion does not at all mean living a life in entertainment establishments, or lying on a warm beach - many people would love to do charity work, helping the sick and homeless, or creating works of art. To begin to realize all these dreams, he needs the most - a stable passive income.
Everyone heard the expression "money to money." What does it mean? Nowadays, a situation is not uncommon when, having a generally good salary, a person “eats” it completely, buys things on credit and interrupts loans from relatives and friends from paycheck to paycheck. This goes on for years and decades.
But why is this happening? It seems that the main problem of such people is that the idea of \u200b\u200bpassive income does not even occur to them. They are not capable of creating an asset that will continue to work for their well-being. All that they earn, these people immediately spend, and thus deprive themselves of the only chance to ever escape from the captivity of financial slavery.
Do you recognize yourself?
Some of these consumers can be classified as "financial zombies." These are those whose asset has long been a negative value. That is, their expenses are greater than income. Debts accompany them throughout life. Having given one loan, they immediately take the next one and so on.
Another category is a bit more prosperous (but not any easier) - it is trying to somehow relate its expenses to the amount of earnings. They sometimes have a set of necessary goods - housing, a car, etc. Most of all this was purchased on credit, which puts the owners in a dangerous and unstable position. After all, if any unforeseen financial circumstance happened, their well-being would crumble like a house of cards.
Progress is evident ...
In contrast to the above categories, there are those whose asset can be considered positive. That is, their income is higher than expenses. Most of the ordinary citizens of this group prefer not to have debts or minimize them and even have some savings, but such saved finances do not play a fundamental role, as they accumulate extremely slowly and are located either under the mattress or (at best) on the passbook.
The most advanced of fellow citizens are those who are not left alone by the idea of \u200b\u200bpassive income. These are trying to seize every opportunity to invest available funds and create their own additional financial source.
Turn to the authorities
Many people know a name like Robert Kiyosaki. This investor and businessman has written a number of popular books on the basics of financial literacy, which will not be superfluous to read for anyone. For example, one of the most interesting and effective tips of this author is as follows: the mistake of almost all of us is that, having earned a certain amount, we try to distribute these funds to anyone, but not to ourselves. We pay rental housing and utilities, but at the same time do not leave anything to ourselves. You should start with yourself by creating your own monetary asset. Subsequently, it will become the basis of investment in a business or other source of constant income.
Another “pro” in financial matters by the name of Rockefeller once uttered a phrase that there was no time for a full-time person to make money. Despite the paradox of this saying, its wisdom lies on the surface - indeed, while working in the office or in the workplace, each of us is able to earn money personally only for running expenses to maintain our daily existence. For actions leading to wealth and prosperity, there is neither strength nor free time left.
The conclusion is this: the main resource is time, which is well known to any of the wealthy people. The idea of \u200b\u200bpassive income is based on the correct distribution of this priceless asset. And only having achieved this, you can begin the movement towards financial success. Everyone knows that all who have achieved wealth initially had a specific list of goals. Well, the third, most important component for creating passive income is active, focused work for several months or even years.
The result should be a legitimate opportunity to quit your unloved job and start living in dividends.
Passive income: examples and options
Now let's talk about the ways in which passive income is created. All its sources can be attributed to four varieties - investment (or financial), intellectual, marketing or legal (that is, one that is required by law). Passive income in Russia is no different from that in any other country in the world.
We will receive passive income of a financial or investment nature if we invest in a specific financial instrument, which will bring us some percentage of profit. Sources of such investments may exist in the form of real estate, securities, bank deposits, own business (if acquired), or equipment belonging to us that can be leased.
The second of these options, called intellectual, arises, as already mentioned above, through the creation and implementation of any product of mental labor. This principle is based on the information business that is widely spread today in the Internet. Many professionals in various fields develop and design their own training courses, then release them on sale an unlimited number of times.
"Partnerships" - an interesting topic
In the same way, it is possible to buy rights to resell a similar product, which can bring no less income. This type of earnings is called affiliate marketing. Other sources related to this item may be royalties, patents for advanced inventions or developed technologies.
Earnings on affiliate programs is an excellent way out for those who do not really hope to create their own intellectual product - after all, this saves time and mental resources. It is enough to enter into such a program or acquire the right of reselling (resale) for the selected book, video or audio course.
Other earnings without investments
Marketing passive income is the one in which you organize your own marketing system or several of them. An example of such a structure can be your own website on the Internet or a personal brand, the right to use which you can also sell. Perhaps a combination of several of these strategies.
What is meant by the concept of a personal brand? This is a commercial use of a famous name. An example - shooting in commercials of movie stars, television and sports. Becoming the "face" of a particular brand, they get good money.
The fourth variety - passive legal income - includes all cases where people, in addition to a certain (sometimes not too high) remuneration for their work, have certain bonuses from the state. This may be, for example, early retirement with guaranteed receipt thereof, which is characteristic of the military, etc.
Go online
Creating a website for making money on the Internet (or blog). Today, this does not require a large number of complex technical knowledge and skills. You can make an acceptable website yourself by mastering the minimum information that can be easily and free to find on the Web. There are many step-by-step instructions and video courses.
Of course, your own blog or website will not bring you a monetary return right away. To promote it and bring it to an acceptable level, it will take at least six months, and most likely a year or two. All this time you have to work on your own project on a regular basis, optimize it and bring it to mind. This work will take several hours daily. However, you can count on the first small receipts in a few months from the start.
By creating and promoting a site, you can sell it, and for a very good amount. It’s quite possible for a person who has mastered this technology to organize his own business of “manufacturing” and further selling profitable web pages.
How do they make money on them? The most popular methods include generating income by placing blocks of contextual advertising and the same articles on the resource pages, of course, not for free. On the sites they place affiliate links and sell advertising space, from them they actively offer training courses for customers, both their own and partners.
In a word, there are a lot of ways to use such a valuable resource as a blog or website, and there is always the opportunity to choose something suitable for you.
For those who are not deprived of intelligence
The creation of a product with an intellectual status (such as books, videos of an educational nature, new technologies, etc.) implies the presence of a certain talent, as well as a high level of professionalism in any of the areas.
If you are an inventor or developer of an industrial design that has become fundamentally new, then your labor products can be safely attributed to intangible assets. This term refers to those derivatives of our intellect that generate income in the absence of a material form. Examples include trademarks, brands, or patented inventions.
Go down to earth
Income from renting an apartment (or other real estate, if any) is a well-known and very common option. But there are others like him: it’s possible to “rent” not only buildings or retail space, but also equipment belonging to a wide variety of industries - trading, construction or manufacturing.
Yes, and other expensive items (such as vehicles) will bring you good dividends. Sometimes it’s more profitable to manage equipment than real estate. In particular, having bought tools and equipment for construction, you will really organize a good and quite profitable business based on their rental. The payback of such an activity is very high and in time significantly exceeds that for rented real estate.
Want to become a shareholder?
Investing in securities (or other financial instruments, which include a huge number of banks, PAMM accounts, mutual funds) is a widely accepted practice today. Such activity is considered one of the varieties of business.
Replenishing the number of professional investors is not an easy task. This activity is quite complex and requires a competent approach, as well as quite serious training. The possession of financial instruments is impossible without the slightest acceptable education in this area, the ability to compare different flows of information, take risks into account and predict the situation.
Investments in securities have certain advantages compared, for example, with bank deposits, in the form of a higher level of profitability, but at the same time, the high risk of loss of invested funds sometimes negates all the advantages. When deciding to plunge into the world of stocks, mutual funds and PAMM accounts, remember that with the exception of bonds of a long-term loan, it is not so easy to achieve a stable income, and the risk of significant losses is always quite large.
You can sell everything!
A relatively simple and, perhaps, generally accessible option for creating a source of passive income is participation in network marketing. The amount of initial investment, if any, is not too large and rarely exceeds a hundred dollars.
A prerequisite for those who are trying to succeed in this field is sociability, willingness to contact with a large number of people. In the future, these people - your team - are able to bring money without your participation by organizing your own network, a percentage of the income from which you will receive.
How much money do you need?
Perhaps the classic and best way was and remains to create your own business. If this action takes place in virtual reality, that is, on the Internet, global financial investments at the initial stage, as a rule, are not required. That is, a similar option is available to people with very limited material resources.
It is quite possible even to earn money without investment, or to accumulate a small initial capital, you can earn it right here, on the Internet.
There are many options for starting and promoting your own business both online and in real reality itself. In "life", of course, this is very costly and requires many organizational and legal difficulties. In addition, the competition here is very, very high. But still, looking carefully, you can look at your own niche, not yet occupied by rivals.
What is real?
For example, a very promising business with passive income nowadays is the purchase and placement of machines for various purposes in large hypermarkets and other crowded places - from payment terminals to units selling coffee and cakes. Such a business is called vending. A person acquires at his own expense and installs machines, which then bring him a steady and stable income.
In a short article we are not able to consider all types of passive income - there are very, very many of them. The media are offering us its options today, and even the Internet has been and remains their indispensable source. We want to complete our material with important tips.
Few parting words
- At any cost, try to regularly cut out the time remaining from the main work that you will spend on creating your future asset. Constantly think about how to use it the most. Your goal is to not earn money at your main place of work as the only source of money for you. You must find sources of passive income that allow you to make a profit more than once or twice.
- Do not limit yourself to creating the only such source. There can and should be several options for passive earnings, and the more, the better. After all, there is always a risk of losing one or most of them. In this case, the losses will be compensated through parallel channels. You can see the importance of this postulate by reading about Robert Allen's multiple sources of income.
- Do not forget about self-education. Knowledge is an asset that will not hurt anyone. Understanding the world of finance, understanding how money is made, where it comes from and where it is directed to is no less important than coming up with an interesting idea for an investment or successfully finding yourself in the right place on time.
The principles of creating passive income do not carry any special secrets. If you are firmly committed to success, have the necessary minimum knowledge and some amount of free time, the result with a high degree of probability will sooner or later please you.
Passive is an income that does not depend on the regular activities of a person. The simplest example would be a deposit in a bank: it consistently brings interest to its owner. Regardless of the age of the contributor, the presence of illness or the desire to go to work, interest will be accrued to him.
Active income is completely dependent on human actions. To receive it, you must engage in any activity: to produce goods, sell them, provide services, extract minerals and much more.
Revealing the concept of stable passive income, one should not forget about the risks. Using the example of a deposit, the following risks for investors can be identified:
- depreciation of the currency;
- bank bankruptcy;
- force majeure circumstances.
There are also a number of inconveniences: interest is accrued after a certain period of time (for example, once a month), and invested money cannot be used until the end of the deposit period.
Therefore, before creating a passive source of income, it is necessary to consider all possible risks of activity.
Proven Ways to Create Passive Income
Before creating passive income from scratch, it is recommended that you familiarize yourself with the existing methods of such passive income. This will help to see all the advantages and disadvantages of the main options for passive income sources. The article will examine effective and proven sources of passive income. They can be used as the basis for building your business.
It should be borne in mind that, having a certain amount of funds, it is somewhat easier to build a source of stable passive income. Having no money to realize your dreams will have to spend your own time and effort.
Business Design and Delegation
This is the most effective way to earn passive income. It has a minimum of shortcomings in the competent organization of the case. To create it, you will need the following:
- company organization;
- business development;
- reaching a stable income level;
- selection of a candidate for the position of manager;
- making a profit with minimal time spent on monitoring key documentation and making important decisions.
Of course, there are risks. Among them, the main one stands out: the responsibility and decency of the manager. The success of the company or organization will depend on his daily decisions. To select a suitable candidate, they often resort to proven personnel who have worked at the enterprise for a long time.
It is not easy to create and develop a business. It takes a lot of time, money and skills. However, there are many situations when a skillfully selected niche for doing business allows you to quickly develop it.
What you need to start your own business:
- business plan;
- start-up capital (in most cases);
- official registration;
- rental of premises;
- hiring employees (if required).
Any enterprise carries risks for the entrepreneur. No one can be sure that activities will generate income, not losses. Therefore, you need to weigh everything correctly before creating your own business. If everything is done correctly, the entrepreneur will have success and the opportunity to receive passive income.
Selling Your Intellectual Property
This option is suitable for those who have knowledge and skills in certain sciences or specialties. How to create passive income from scratch, having the ability to create popular information products? They need to be implemented.
What can be attributed to intellectual property:
- art, literary and scientific works;
- created unique industrial designs;
- developed software;
- invented objects or technologies in all sectors of life.
As can be seen from the list, intellectual property can be in any field of human activity. Passive profit can bring as a written book, as well as a unique invention that helps to increase the productivity of equipment, for example. For the property to be individual, it is necessary to confirm it with documents. For this, patents and copyright are granted. Owning them, you can profit from the sale of your goods / services.
The simplest example for considering a profit option would be a written book. The author of the book will sell copies of the books on his own or by signing a contract with a publishing company. The rights holder will make a profit on each book sold. If it is in demand, it makes a profit. If it is claimed for a long time - it makes a profit for a long time.
This applies not only to books. Increasingly, they are resorting to the creation of various programs on a PC or mobile device. One completed project can generate passive profits until another, cheaper or more useful one appears on sale.
Accordingly, a person to create such a source of income must:
- to invent / create something unique and in demand for society;
- confirm your rights to the invention;
- realize the product of their activities.
Disadvantages: the creation of unique works / equipment / technologies requires a lot of work; the property may be unclaimed and will not bring tangible profits.
Building your own distribution network
Such a network is able to provide its owner with constant passive income. All actions will be performed by network participants, and its creator will receive ever-increasing profits. To do this, you need the following:
- create your own unique products (less often services are provided);
- officially register a production and sale enterprise or cooperate with a manufacturer;
- to interest those who want to become members of the network;
- sell \u200b\u200bthem to other network members
- to formulate the price of the goods so that part of the profit goes to the owner of the network, and part to the seller of the goods.
Everyone who wants to make money in such a network should sell these goods. The more he sells, the more he earns. The main key to success is quality and sought-after products at competitive prices. It can be anything from cosmetics to food, medical supplies or unique services.
The main difference from most network marketing companies should be as follows:
- providing guarantees to all network participants;
- use only safe goods;
- the presence of contacts for communication with management and all comprehensive information about the organization.
These factors will increase sales and employee interest.
5 (100%) 4 vote [s]
What is passive income and how to create it for an ordinary person? How can you live only on the percentage of your investment and never work again. Read about all this below.
1. What is passive income
Passive income - it is a constant and stable source of income, which does not require any time costs (or they are minimal)
The main idea of \u200b\u200bpassive income is to create for yourself eternal sources of profit and to further receive money from them on an ongoing basis. That is, we once created something and then do nothing in order to receive funds. For example, all the work we are used to refers to active sources of income, since payment is made only when the employee goes to work. You need to constantly spend your time.
The simplest example of passive income is renting out an apartment. You are paid a monthly rental. In order to receive this money from you no further action is required.
The sooner you think about creating passive income, the more opportunities you have. You will be able to quickly and more accumulate funds for the implementation of your plans. Most of us dream of creating financial freedom for ourselves and no longer work, but do what we like.
Benefits of Passive Income
For example, you can save money on a bank deposit every month and save a good amount for a year. For 3 years this amount will be even more solid and maybe even a percentage of it will be enough for you for some needs.
3.1. Accumulative effect of compound interest
In mathematics there is such a thing as compound interest. Simply put, this means that over time, your savings begin to grow not linearly, but exponentially. This is easy to achieve if you reinvest the income received.
My wealth is the result of a combination of several factors of life in the USA, good genes and the accumulating effect of compound interest. Warren Buffett
For example, if we put 1 million rubles at 10% per annum, then in a year the amount will be 1.1 million rubles. Two years later, the account will be the amount of 1.21 million rubles. In the second year, capital increased by 110 thousand rubles, and not by 100 thousand rubles, as in the first year. Even in such a short period of time, it is already noticeable that capital begins to work for us even more efficiently.
I agree with those who say that this is insignificant. However, if we take a calculator and calculate what will happen in 10 years, in 20 years, it turns out that the effect is already huge.
How fast is the amount growing in compound interestTo double the initial amount of money at a constant interest rate of 10% per annum, it will take not 10 years, but only 7.25 years. It will take 11.5 years to triple.
To calculate how quickly the original amount doubles with a predetermined interest income, you need to divide 72 by this number. For example, if the rate is 8% per annum, then the amount will double every 9 years, and not 12.5 years as it might seem at first glance.
- Develop your financial literacy. To do this, read books about investment, trading, the philosophy of wealth. You can start with Robert Kiyosaki and continue with specialized exchange literature.
- Create new assets regularly and reduce liabilities. Look for new opportunities, they are always there.
- Create multiple sources of passive income. Attachment to only one is not worth it.
3.3. Rules: how to get rich from scratch
There is a basic set of rules that should be followed by anyone who wants to become rich. They are not at all complicated and can be done by any person:
- Pay yourself. As soon as you receive a salary, first of all, set aside a part of your funds (at least 10%). Most often, the population on the contrary repays debts and spends money, but what remains is put aside. This is a habit of poor people, exclude it from your life.
- Save what you put aside. This rule implies that deferred funds cannot be spent.
- Increase money. It is necessary to invest money in reliable assets in order to constantly increase your capital. We will talk about sources of passive income below.
- Save the multiplied. Profits are best reinvested so that savings grow faster. No need to invest in dubious and overly risky assets.
- Create several types of assetsto minimize your risks. Whatever your overall reliable income, it will be even more reliable if you distribute money between several such sources.
4. Sources of passive income
You can create many sources of passive income. Everything rests on the individuality of each of us. We all have slightly different knowledge, skills, abilities, wishes, therefore, it’s up to you to decide for yourself what exactly to do. We will only consider in detail the basic options for stable sources of money. We will focus on a mathematical basis to calculate how beneficial each source is.
How many sources of passive income you have will be up to you. I can only say that the more there are, the more reliable and more wealthy your life is. Therefore, follow the Paretto principle: 20% bring 80% of the result. Make small efforts in different industries to get the most benefit.
4.1. Bank deposit is a reliable source of passive income
Bank deposit is the most popular means for saving and accumulating funds among the population in Russia. The interest that banks offer is certainly not as large as we would like, but nevertheless this is really the most reliable way to slightly increase your capital in the absence of any action.
There are a lot of offers in the bank deposit market. Each bank offers its own line of deposits. If you spend literally 10 minutes, then you can choose the most profitable for you. Do not be too lazy to do this, because there are always advantageous offers in banks, where the yield will be slightly higher (at least 1-3% per annum).
It is not worth worrying about the fact that the funds will be lost. All deposits are insured by the DIA in the amount of 1.4 million rubles (including interest). It makes no sense to put exactly 1.4 million rubles in one bank. It is better to put a little less in order to insure the accumulated interest. For example, if we are talking about a rate of 8% per annum for a period of one year, it would be logical to put the amount of 1.29 million rubles and sleep peacefully (at the end of the term the deposit will be 1.3932 million).
How much can you earnThe yield on the deposit changes due to the economic situation. Check the relevance of the information. As of 2019, you can find deposits with a maximum rate of 8.5%. In more reliable banks at 7% per annum. These are almost the smallest deposit rates for the new history of Russia. Previously, there were always offers at 10-12%.
- Reliability of investment (the amount is insured by the DIA)
- Predictable income
- No action required from investor
- You can invest any amount
- There is no way to "break" and spend money, because it is necessary to break the contract on the deposit and then the accumulated interest "burn"
- Low profitability
- It is impossible to close a deposit ahead of time without losing interest
- It is impossible to store substantial amounts of more than 1.4 million rubles in one bank due to the risks of closing
I also advise partially storing money on debit cards, which give interest on the balance. These cards also provide cashback for any purchase. I myself use these cards:
- Tinkoff. 6% per annum on the balance. Amount up to 300 thousand rubles. You can transfer any amount to a special savings account at 5%.
- Benefit (HomeCredit Bank). 7% per annum on the balance. Amount up to 300 thousand rubles.
Summing up, we can say that it makes sense to have some part of money on deposits, because it is a liquid and reliable asset.
4.2. Real estate for rent
Real estate has always been and will be in trend among investors. Such purchases can be visually seen, felt. However, their profitability is extremely low, but first things first.
Real estate can be earned in two ways:
- Rent
- Resale
For passive income, the first option is considered, since the second method is more risky and requires a constant search in the market for new good offers.
The following types of real estate investments are shared:
- Residential (apartments)
- Commercial (garages, office rooms, warehouses)
- New buildings (investments in the construction of new facilities)
Large investors buy commercial real estate more often, since the profitability of renting non-residential premises usually brings more profit, and also does not need any repairs. However, such a situation arises only in favorable periods of the economy, when GDP is growing steadily, inflation is within acceptable limits.
It is difficult for an ordinary person to buy commercial property because of its high cost. Objects are different, but usually a good place is like 3-5 one-room apartments. Therefore, many would rather choose the option of buying 3 apartments than one such object.
Since 2014, the economic situation in Russia is rather complicated. Real estate prices are not rising. Therefore, many who have invested in commercial real estate are now at a loss. Residential also fell in price, but with slightly less loss for the investor.
What is the returnRental yield is at a modest 4-6% per annum. This is even less than on bank deposits. At the same time, there are still risks of property damage by tenants and will periodically have to be invested in repairs (rarely, but such moments do happen).
Real estate will rise in price over time, but you can hardly count on it, since this is an extremely long process. For the growth of its value in the country as a whole should be economic growth. Otherwise, due to cuts in salaries and high inflation, no one risks getting into mortgages (most apartments are bought on credit), even at low rates.
- High reliability
- Real estate can be really seen through the eyes, which for many people is very important
- Stable rental income
- Great for risk diversification.
- Low profitability
- Low liquidity (when selling, you will have to look for buyers at an average market value, plus another 2-3 weeks to complete the transaction)
- There is overhead for the maintenance of real estate
- Large investments (real estate costs several million rubles at least)
4.3. Securities Investments
The securities market is traditionally considered one of the most profitable options for increasing money. Profits are on average 8% -20% per annum, provided that you act on a buy-and-hold basis. If you engage in trading, you can significantly increase these numbers and get 30%, or even 100%.
High profitability and high liquidity allow you to quickly and efficiently manage your capital. Anyone can enter the market, while for this it is enough to have small investments. I would recommend entering the market with amounts from 100 thousand rubles.
From the article you will learn what is passive (residual) income, what are the sources of passive income, as well as a description of practical ideas on how to create it
Hello dear readers. In touch Eduard and Dmitry.
If you are interested in the topic of earnings, then you probably know the concept of “passive income”.
The dream of many people is not to work, and still receive money.
If you are one of these people, then this article is for you! Every day today, people create this type of income, and the easiest way to create it on the Internet.
We will consider all the methods described below in the form of a review, and it is up to you to decide which one to choose to build your financial freedom.
1. What is passive (residual) income?
Passive income - income that does not depend directly on our labor costs and comes to us in the form of a stable cash flow.
This type of move illustrates the motto " Do it once - get it 100 times».
So, for example, you can earn money by selling your own knowledge by recording your training video course on a topic that you are well versed in. Once you create such a course, and then it brings you passive income due to the fact that it is sold many times.
You probably heard that there are people who have not worked anywhere for years, and live only on passive income, for example, from investments. They are called rentier *
Rentier - a person living on interest or dividends, usually from financial assets, renting out property or products of his intellectual labor.
When we see gorgeous beaches with yachts, expensive hotels, houses and cars on TV or in the photo, in one way or another all these things are associated with great wealth and financial freedom.
Passive income is the best way to start living the life of your dreams, travel and manage your own time at the moment when everyone is working.
2. Why do the poor get poorer and the rich get richer?
If you look at the life of an ordinary person 30-40 years old, in most cases he spends everything that he earns, often has a lot of loans or takes “a couple of pieces to pay” from friends.
All this happens because he does not focus on creating assets that would help solve his financial problems.
Financial slavery flourishes in the 21st century, despite the fact that physical slavery has long sunk into oblivion.
Here it is worth recalling a wonderful quote from John Rockefeller - the famous American billionaire:
The one who works all day has no time to make money!
John Rockefeller
It really is. After all, they become millionaires in their free time from work, and at work people usually earn money only in order to cover momentary expenses.
Thus, it is worthwhile to understand that our main asset is time, and rich people know how to use it well.
After all, if you look at the ordinary day of a simple person, then we will see a picture that repeats every day: in the morning - at work, in the evening - from work, cafe, beer, TV.
Moreover, the progress of such a person in the long run is minimal, especially considering the fact that the majority does not like their work and their income does not grow from year to year.
The rich and the poor differ in what they do in their free time.
It is the correct use of time that is the key to achieving wealth and passive income, as one of the instruments of financial freedom.
After all, to create passive income you need very well actively to work. Most often a few months or even years old. But after that you can quit your job and become a wealthy person.
According to the famous businessman, investor and financial literacy specialist Robert Kiyosaki, wealth is not determined by the size of a bank account, but TIME, during which a person may not work, maintaining a comfortable standard of living.
In order to understand how you can turn your time into a source of constant passive income, break out of the “rat race” and gain financial freedom, we recommend that you play Robert Kiyosaki's world-famous financial game Cash Flow.
3. Sources and types of passive income
Surely you can’t wait to find out how you can create passive income and from what sources it can come. Below will be given answers to these questions.
You just have to choose a suitable method for yourself and work on it.
It is curious that most people say: “But a few months or years is a very long time, I’m not ready to wait so much.”
This is the psychological trap. Indeed, the usually able-bodied period in people lasts 30-40 years, after which they receive only a pension, and this, without exaggeration, “handout” becomes their only source of livelihood.
It turns out that we can work 30 years in a row (in most cases at a hated job), but we don’t have patience to take care of our financial future and retire not in 55-60 years, but say in 30 or 40 years enough.
No need to deceive yourself, because if you have definitely decided that you want to create passive income and have more free time, then you need to take decisive action to change your life!
It was an introduction, and now to tools and types of creating passive income.
There are only 4 main types of passive income:
Let's analyze each of them and see what tools can be used to generate passive income within each type.
1. Investment or financial passive income
It occurs when we invest money in various financial instruments or items, receiving dividends in the form of profit or interest.
Sources:
- the property;
- bank deposit;
- securities;
- own business (when we buy it);
- equipment for renting.
2. Intelligent passive income
Occurs in the case of the creation of an intellectual product and its further replication. The infobusiness known to many on the Internet is built on this principle: they recorded their training course once, and then sold many copies of it.
Sources of passive income:
- royalties for the released book, song, role in the movie;
- patent for an invention (technology).
3. Marketing passive income
It arises from created marketing systems, for example, from a commercial Internet site, your structure in network marketing, or the rental of a personal brand *
Personal brand - a set of social achievements of a person that is associated with his person and can serve as a reason for using his name (reputation) for commercial purposes.
For example, many stars of show business, sports and cinema act in commercials and become “faces” of a particular company, for which they receive a lot of money as a fee for using their name.
Sources of passive income:
- own developed structure in a network marketing company;
- commercial companies using your personal brand;
- your website on the Internet;
- business, the profit from which is formed from the work of the marketing system (often this is an information business).
4. Legal (statutory) passive income
To one degree or another, almost all people speak of the three types of passive income described above, but they do not say a word about the fourth, conditionally called it “legal”.
But he not only has a place to be, but can become the most easily accessible of all.
You can receive this type of passive income if your life situation allows you to officially receive monetary and other material incentives from the state at the legislative level.
You have not guessed what it is about?
Naturally, the most famous form of such passive income is pension. Students have a scholarship. But the working part of the population in most cases is deprived of such "buns".
Sources of passive income:
- old-age pension, disability, military pension;
- subsidies (compensation) for the payment of utilities;
- subsidies for starting or developing a business;
- "maternal capital";
- preferential housing for needy citizens.
4. How to create passive income - 7 best ideas
Now you know what types of passive income are and with what tools you can create passive income.
There are different options for creating passive income, let's now consider the most popular ideas of how exactly you can ensure a regular flow of money for yourself, without working for this constantly.
Idea 1. Creating a website for making money on the Internet
Passive income on the Internet today is gaining great popularity. If you are familiar with the principles of marketing, have a good command of a computer, then you can create such income even from scratch, having only a great desire to learn new things and a certain amount of free time.
For example, now the site HeaderBober.ru, where you are located and reading this article, brings passive income.
Usually, to start earning regularly on your site from $ 1,000 per month, you will need from 6 months to 2 years of regular work on your project several hours a day.
For some reason, some people think that making money on the Internet is very easy and when you create your site, you can’t work anywhere else, as soon as it appears on the network.
This is a big mistake. Work on your site will have to be very hard and the most difficult stage here is not to break down, but to reach a regular passive income of $ 100-200 per month.
If you have (will) a site that consistently brings passive income, then you can sell it as a ready-made business. At the same time, the amount for which you can sell a profitable website is 20-24 times the amount of its monthly passive income.
So if you have a website that brings 10,000 rubles a month, then you can sell it for 250 000 - 300 000 rubles.
Thus, you can even create profitable websites for sale and build your own business on this.
This is like livestock. You grow a cow and it gives you milk, you can sell it regularly, making a profit, and if you need large amounts of money right away, you can sell the cow itself.
On your site you can earn in the following ways:
- selling links;
- placing contextual and teaser advertising;
- placing paid advertising articles;
- selling ad space for banners;
- recommending to buy a product or service from your affiliate link (earnings on affiliate programs);
- selling their own training courses (Infobusiness).
Idea 2. Creation of an intellectual (creative) product
If you have the talent of an inventor, writer or musician, then create your intellectual product - technology, book or song.
So you can receive passive income on their replication (in the case of a book or song) or by renting (in the case of technology that can be patented).
For example, the famous writer Joan Rowling, the author of books about Harry Potter, now has a multi-million dollar fortune, thanks to passive income from her intellectual property.
By creating an “invention”, “industrial design” or “utility model”, you can also create sources of passive income. After all, it will be yours intangible assets*
Intangible asset - a product of intellectual labor that does not have a material form, but is capable of generating profit for a person or company.
Such assets include patents, trademarks, business reputation of a company or person.
Idea 3. Property for rent: real estate, transport, equipment
Passive income on real estate is the most famous of all rental types of passive income. But there are other ways.
You can rent almost anything of value: vehicles, construction, manufacturing or retail equipment and even things worth more than one average salary in your city.
Typically, income from real estate is less than from equipment. For example, there are entire types of businesses where construction equipment is bought, expensive rotary hammers and then rented out.
So a drill or punch worth 20,000 rubles can be rented for 500-1000 rubles a day! In this case, the payback period of the tool can be less than a month with a large flow of customers.
Idea 4. Receiving state payments in the form of passive income
If you fall into the category of socially unprotected citizens (a disabled person, a large family, a pensioner, etc.), you can apply for compensation payments both of a one-time and permanent nature (the same passive income).
To do this, you need to carefully study the civil code of the Russian Federation or contact the social security service at the place of residence.
You may not know that you should receive thousands, and possibly tens of thousands per month, just because you belong to the people described above. Do not neglect such an opportunity.
Some citizens even give bribes in order to receive preferential housing or a disability pension, while not being people with disabilities.
We do not urge you to improve your financial situation in dishonest ways, but if you have legal grounds for state financial support, why not use it.
Idea 5. Investments in securities, bank pamm accounts, mutual funds
Investing in various financial instruments is also a fairly popular way to generate passive income.
All these financial instruments were analyzed in some detail by one of the previous articles: “”
Although they have advantages, they are not without drawbacks. For example, the bank’s income will be minimal and will hardly save your money from inflation.
As for pamm accounts, mutual funds and securities, here in most cases your income will be unstable (with the exception of bonds), and will not be passive.
Rather, by investing in such tools you can get speculative gains, but losses are also possible. Be careful!
Idea 6. Network Marketing
This is one of the most affordable ways to create passive income by investing your time, since in most network companies money for starting does not need more than $ 100.
If you have the talent to find a common language with different people, you are friendly and full of energy, then boldly start in this industry and within a few months your passive income can be compared with the average salary of a provincial city.
Very well the person’s path in the process of building his passive income in network marketing is illustrated by the “parable about the water supply system” about two guys Pablo and Bruno. One of which worked for money, and the other at that time created a profitable system:
Idea 7. Own business
A great way to create passive income is to organize your own entrepreneurial project.
If you do not have enough money to open your own business or do not want to risk money, then the best way to organize your business for you is an online business.
Yes, today in a global network thousands of people earn big money.
If you think that starting a business is the best solution in your case to create passive income, then you should definitely read our articles on this topic:
Thanks to the information from these articles, you can organize your business from scratch as soon as possible and turn it into a stable source of passive income in the future.
For those who want to open their own business with minimal risk, we offer an alternative option: buying a franchise, a chain of Japanese and Pan-Asian restaurants.
Why exactly this project? The answer is simple: our good friend named Sergey has already opened a restaurant for this franchise in Maykop and now has a stable profit. 1.5 million, which he invested, paid off after six months - an excellent indicator for a city with a population of 140,000 people. In megacities, funds will return even faster.
Sushi Master restaurants are retail outlets in four formats: “street”, “island”, “food court” and “classic”. The partner receives a ready-made business model, marketing technologies, unique recipes and the help of a start-up team. Further is a matter of technology.
Here's what the co-owner of Sushi Master Alex Yanovsky says about the benefits of the franchise:
Now you know what passive income is, what types of it exist, and what you can do to quit your job, gain financial freedom, and be able to travel.
Tips for gaining financial freedom:
Tip 1. Take time to create assets.
Try not to limit yourself to just getting money from your work, regularly think about how you can get money many times over once done work - replicate your efforts!
After all, you don’t want to be among the people who live on the same beggarly pension in old age.
Tip 2. Strive to have multiple sources of passive income
If you can create multiple sources of passive income, then your financial stability will be well protected and if you lose one source of income, the other will always help you out.
It worries many people. The explanation is very simple - everyone would like to be able to earn money without having to bother with any work. This is the idea of \u200b\u200bpassive income - to receive money without labor.
Especially the desire to begin the search for such a "source of money" is aggravated during periods when a person encounters difficulties in his main job and realizes that he does not want to spend all his life doing routine paperwork, but would like to devote more time to himself, his family, rest and self-development.
In this article, we will try to describe the most affordable passive income business ideas. Perhaps those who read it will be inspired and find their own source!
Rental
One of the most popular and easiest, perhaps, is the income from renting out property. Such an idea is elementary in terms of resources for organizing such income - it is enough to find tenants for the property that you own. On the other hand, the difficulty is, firstly, obtaining ownership of what you would like to rent; and secondly, achieving profitability. We explain in more detail.
A great idea for passive income is renting an apartment in the city center. What difficulties can there be? Firstly, not everyone has such a property. This is the main problem. Secondly, if you have such an apartment, you need to find a tenant for it. Thirdly, this person should be offered a rental rate that he could afford, and, moreover, that would be beneficial to you. This should also include the costs of cleaning the apartment after the tenants ’congress, as well as depreciation expenses.
In the example with an apartment, everything looks quite simple - it is for this reason that today so many people are engaged in such activities. And let’s take, for example, an object more complicated - some non-residential premises located on the outskirts of the city. As an owner, it will not be easy for you to find a person interested in such an object.
However, in order to receive such passive income, you can engage in subleasing something. This, for example, when you rent an apartment on a monthly basis, and rent out - for daily rent. The benefit received is the difference between the rent and the money returned to the owner.
Copyright
A good passive income can promise the creation of some unique object, protected. For example, it can be a musical composition, a computer program, a film or an image. With the protection of the rights to music, of course, everything is very bad in our country - copyright holders can only earn money at concerts. Films make a profit on cinema deductions and on the fact that they are bought by television channels. But with a program or a picture, everything is easier. In the first case, you can, say, start selling copies of your development directly on the Internet, receiving money for each installation. In the second, by posting the image on photo hosting, you will also generate real passive income.
Ideas do not end with these objects - you can come up with some kind of patent it and live on royalties for its use.
Business creation
Of course, another fairly common way to organize passive income is to own a business. It can be anything - a store, cafe, some service that provides services, and so on. The advantages that such an idea of \u200b\u200bpassive income has are obvious: by creating one working business and hiring the right staff, you can move a little away from control over it and take up the parallel development of other projects. Thus, we can talk about increasing the scale and growth of your income.
The disadvantage of owning a business is the high level of risk and the mass of difficulties that novice entrepreneurs face. Also, you should not forget about the starting capital, which varies depending on what you would like to do. However, this is the topic of another article.
Online project
The development of the Internet has led to the emergence of yet another large and global business area. Now everyone can start their own business online. It is noteworthy that the cost of creating such a business can be much lower than investing in a real business. But at the same time, you should not hope that it is easy to work on the Internet - the competition here is no less than in real life. But by running a successful project once, you can get guaranteed passive income.
The ideas of what kind of resource this might be (a news blog, a service, a catalog, a store, and so on) are unlimited.
Investment
Another obvious idea of \u200b\u200bpassive income is investing. There are several drawbacks - high risk and the need for the availability of money for investment. Assessing the degree of risk, the investor makes a decision about where he would like to invest, after which he begins to receive dividends. The latter is the whole point of the idea of \u200b\u200bpassive income.
The ideas of passive income in a small city are also relevant, as well as in a metropolis. Investing as a tool for passive earnings justifies itself everywhere and always, the main thing here is to correctly assess the probability of making a profit or losing money. It already depends on the scope of investment.
findings
Of course, the best ideas of passive income always remain unknown to the vast majority of people. And only those with whom they appear and who implements them begin to apply them. This, on the one hand, is bad for those who do not know what to do to get such an income. On the other hand, everyone has the opportunity to launch their own source of passive income.
If there is money, it can be a lease of an object or an investment in something. If there is no money, then you can create based on an interesting idea, or start your own Internet project. In this case, you will find a long hard work that will certainly lead to success.
And the best idea for passive income is the one that works! Good luck with your endeavors!