Not to work and receive money at the same time is a dream of many people. It’s just someone who makes this dream a reality, but for someone it still remains an unattainable mirage on the border of desires. Today, people daily find sources of passive income, and if you are not yet among them, then the article will help to deal with this difficult issue.
Passive income. What is it?
Passive or residual income is called one that does not directly depend on human labor costs and enters "into the wallet" as a stable cash flow. Such income can be described in one succinct phrase: "Once done - get 100 times."
For example, a source of passive income can be knowledge that a person can sell by recording video courses or creating online trainings. Once you create a rate, it will later be profitable due to the fact that it will be sold many times. Surely everyone has heard that there are people who do not work for years, but live only thanks to a source of passive income from investments. Such people are called rentiers, that is, those who live on interest or dividends from their own financial assets, real estate or intellectual property.
Luxurious beaches, white yachts, luxury villas - all of us associate this with great wealth and financial freedom, and creating sources of passive income is the best way to achieve what we want.
21st Century Slavery
Ordinary people tend to spend everything that they earn, and in addition to this, they tend to take loans and borrow from friends to pay. This is because they do not focus on asset creation. Despite the fact that physical slavery has long sunk into oblivion, financial thriving today. John Rockefeller once noted that someone who works all day does not have time to make money. And he was absolutely right, at work people receive only money for momentary expenses.
To achieve financial independence, you need to use your time correctly. The source of passive income does not appear at the click of a finger to create it, you need to work hard and it often takes several months or years.
Sources and types of passive income
For unknown reasons, people constantly claim that they are not ready to wait several months or years to create a passive source of income. How wrong they are in this! Human working capacity lasts only 30-40 years, and then a citizen receives a pension from the state, and that is where all the prospects end.
In general, there are four main sources of passive income. In the list below they will be presented in order of importance:
- Investment, or financial.
- Intellectual.
- Marketing.
- Legal, that is, one that relies on the law.
Passive financial income
This method of profit occurs when a person invests his money in various financial instruments. He is paid dividends in the form of interest or net profit. For example, sources of passive income of this kind can be: real estate, bank investments, the purchase of securities, the purchase of a business, the purchase of specialized equipment for subsequent leasing.
Intellectual income
Additional financing in this area occurs when a person creates an intellectual property product and begins to replicate it. According to this principle, a well-known information business on the Internet is being built. Sources of income may be fees for a book or song and patent for innovation.
Marketing and legal income
It appears after a person creates a certain marketing system. For example, develop your own website or rent a personal brand. Sources of such profits can be their own developed structures in network marketing systems, commercial companies that use a personal brand, sites.
The web often raises the question of these three types of passive income, but not a word is said about the legal source of profit. A person can receive such compensation if his life situation allows him to require additional funding from the state. Generally, the working population is deprived of such privileges, since pensioners (pensions), students (scholarships) and low-income families (privileges for paying for utilities) have the right to additional financial support.
Passive source of income: ideas for creating additional financing keys
There are many options in order to secure regular cash injections without working constantly:
- Own site. This is one of the most popular sources of passive income on the Internet. If a person is well acquainted with the principles of marketing and owns a computer at the level of a confident user, then he can create such a source of income from scratch. Usually, to get a stable income from the site from 1000 dollars / 57000 rubles. monthly, you need to spend from six months to two years of time, daily working on your project. People are mistaken in thinking that it is possible to create a resource - and that’s it, “the matter is in the hat”. Work on your own site will have to be long and hard. In addition, if the site will bring a steady income, it can be sold as a ready-made business.
- Creativity Products. A person with the talent of a musician, writer or inventor can trade with products of intellectual technology. A living example of this is Joan Rowling, who now has a multi-million dollar fortune.
- Rental property. Of all the types of passive income, the most famous is the rental of real estate. However, you can rent out anything that has at least some value: transport, equipment, and even things that cost more than one minimum wage.
- Investments. Another popular way to make a profit is investing in various financial instruments. In addition to banks, you can invest in PAMM accounts, mutual funds and securities. However, such income is not always permanent, it is quite possible to suffer damage.
Now let's talk about those ideas that some mistakenly call passive earnings. It is difficult to agree with this because they are either already moving into the active stage, or they are outdated and do not bring money at all.
- Network marketing. In this case, it is necessary to invest not only time, but also money. Usually you need $ 100 (5,700 rubles) to start. If a person has a talent to find a common language with other people, then he can safely begin to work in this direction. Yes, in just a few months, income will be able to compare with the average salary in the province. But you can’t call him passive in any way. Moreover, one should not have hopes that earnings will begin to increase.
- Own business. If there is enough money to make money investments, then you can take a chance and organize your own business. But even if you organize a business on the network by the type of opening an online store, anyway, sooner or later it will switch from passive to active. Will have to work, and 365 days a year.
What is going on in Russia?
All of the above sources of passive income in Russia also work. However, here the popularity of the methods is slightly different.
One of the most popular ways is to create a PAMM account. This source appeared not so long ago. In the literal translation, the name means "percentage distribution" is a financial management module on a trust basis. In comparison with bank deposits, PAMM accounts bring much more profit, but to create such a source of passive income, it will be necessary to invest certain funds.
DU, or trust management. In fact, this is the same as creating a PAMM account, but you need to invest more and choose a trader that will manage finances. However, the profit from this method will be much greater than from the previous one.
Another example of a source of passive income in Russia is considered a bank deposit. Here, the risks of losing money are minimal, and this method of income is available to everyone in the presence of a certain amount. If you invest in the bank 2,000,000 rubles at 10% per annum, then you can get 16,000 rubles per month, which is quite good. It remains only to find 2 million rubles.
Key Options
The most explored option for passive income in our country is the purchase of bonds. The earnings plan in this way is quite simple. The amount of bonds is predetermined, depending on the policy of the company, money is paid once a quarter or once a year. The profit is similar to a bank deposit, with only slight differences:
- High income.
- Refund without loss of interest rate.
- If the market price of bonds rises, a person will receive additional income.
Gaining financial independence: tips and tricks
Passive income is the destiny of the bold. Not everyone agrees to quit work and step nowhere, because it is not known how the situation will turn out, the first time it does not always work out. Only if there is willpower and a desire to go to the end, we can talk about creating sources of passive income.
Here are some tips to help you get financial freedom:
- Look for time. You do not need to limit yourself to just getting money from your work, you always need to find time to learn new ways of making a profit.
- One head it's good, but two better. One should always strive to create multiple sources of income. For example, why not create and develop not one, but three sites. $ 3,000 a month is better than one. In addition, with multiple sources of passive income, financial stability will be well protected. If one source is lost, the other will always help out.
- No regression. It is necessary to constantly develop, improve literacy and engage in self-education. The first asset that a person has is himself, the more he invests in himself, the more he will receive in the end.
There are no secrets to achieve financial independence, the whole thing lies in the efforts made. It is not for nothing that they say that without effort you can’t even take a fish out of a pond. One way or another, each person initially has the same amount of time; the whole thing is how he spends it: he returns from hateful work and watches TV or sits down to study new information, which, no doubt, will be useful in the future.