According to studies, a stable financial situation and the availability of free funds are among the life priorities of the majority of the inhabitants of the planet, regardless of their nationality and citizenship. And the question “how to make money quickly” is traditionally one of the most frequent queries in search engines.
Let's see how you can really increase your income and form the basis of financial independence.
We receive income from four main activities:
1) Work on others (wage labor).
2) Self- employment (private enterprise).
3) Building your own business with the involvement of employees.
4) Investing.
According to the types of activities, income is:
1) Linear (active income - funds are earned by one’s own labor).
2) Residual (passive income - once completed work brings money again and again).
The most desirable is residual income, since it is it that exempts from routine work and brings coveted financial independence. Similar income brings:
- the property;
- marketing;
- investments.
Real estate income
Well-known financial expert Robert Kiyosaki puts investment in the purchase of residential and non-residential real estate as a priority. In Western countries, where mortgage rates are much lower, it is very beneficial to purchase square meters on credit, lease them and gradually pay the mortgage. After some time, such investments will be able to generate net income. However, in our country, in calculating the huge interest rate, the principle “one apartment for me and two for the bank” is clearly traced. In such circumstances, it is only profitable to buy the area immediately for cash, without bank lending. And if you inherited square meters by inheritance - then consider that you are very lucky. They should be sold only as a last resort. Indeed, according to the most conservative estimates, even if the market value of housing does not grow, income from own real estate is about 8-10% per annum, which, you see, is not bad at all.
Pros: minimal risks of asset depreciation, stable income.
Cons: the need to invest large sums of money one-time.
Residual investment income
You can now invest in many financial instruments: stocks, futures, precious metals, mutual funds , etc. Information on this issue has already been written a whole sea. It’s much harder to understand this sea and not lose money. The most reliable way out is to work with a personal financial consultant who can work out a plan for you. You will clearly know how much money to invest on a monthly basis, what to buy, what percentage of risk and profitability you will receive.
Yes, any financial risks carry the possibility of an investor losing their funds. But this percentage can be regulated. For example, if you entrust your money to the management of a fund or a private trader, then you sign a contract in which the risks will be clearly stated. Most often, losses will be limited to 15-20% of the invested funds. But you can always agree on individual conditions.
Most often, there is a direct correlation: the higher the risks, the higher the profitability. But in any case, you cannot invest in financial markets those funds that you cannot lose without compromising your standard of living. That is, selling an apartment, borrowing money or borrowing money for investing is categorically impossible.
Nowadays, private investment is becoming more popular: the game on the stock markets, futures, options, Forex. So you can really make money, but you must remember that this is a job, not a game of luck. Special knowledge, experience and skills are needed here - just like in any other professional activity. Therefore, it will be safer to develop a plan for uniform monthly investments in precious metals and the purchase of stable serious shares. In the long run, this will bring a smooth, even income, which will be higher than the percentage of bank deposits.
Pros: small initial capital.
Cons: high risks of loss of funds, the need for special knowledge and skills.
Resulting Marketing Revenue
This includes all types of activities that involve conducting preliminary marketing research: information business, creating websites and blogs, franchising, MLM, etc. The bottom line is that you will need to prepare your business proposal or business product that is necessary for a certain audience, and build a management network that will require minimal participation on your part. Otherwise, such a business will bring only linear income, that is, require your personal participation.
Of course, the creation of such projects will require a large share of creativity and fresh approaches to the market.
Pros: the opportunity to develop many new projects.
Cons: the need to process a large amount of information, constant monitoring of the situation on the supply and demand market.
Creating a source of passive income is, of course, laborious. And then it will be necessary to support it periodically: to repair and deal with real estate rental issues, monitor the rates of precious metals and stocks, maintain a website, update and improve information products, etc. But in practice, this is an interesting process that provides a huge incentive for personal growth and opens up real opportunities for one's own financial independence.