Sources of passive income: features, ideas and ways

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Not working and getting paid is the dream of many people. That's just someone embodies this dream into 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 one of them, then the article will help you deal with this difficult issue.

Passive income. What is this?

Passive or residual income is the one that does not directly depend on human labor costs and goes "to the wallet" as a stable cash flow. Such income can be described in one capacious phrase: “Do it once - get it 100 times.”

For example, knowledge can be a source of passive income, which a person can sell by recording video courses or creating online trainings. It is worth creating such a course once, as later it will make a profit 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 incomefrom investments. Such people are called rentiers, that is, those who live on interest or dividends from their own financial assets, real estate or intellectual work.

Luxury beaches, white yachts, luxurious villas - all of us associate it with great prosperity and financial freedom, and creating passive income sources is the best way to achieve what you want.

21st century slavery

Ordinary people tend to spend everything they earn, and in addition, they tend to take loans and borrow from friends until the paycheck. This is because they don't focus on asset creation. Despite the fact that physical slavery has long sunk into oblivion, financial slavery is still flourishing today. John Rockefeller once noted that those who work all day do not have time to earn money. And he was absolutely right, at work people only get money for short-term expenses.

To achieve financial independence, you need to make good use of your time. A source of passive income will not appear at the snap of your fingers, it takes hard work to create it, and it often takes several months or years to create it.

Sources and types of passive income

People inexplicably constantly claim that they are not ready to wait several months or years to create a passive source of income. How wrong they are! Human performance lasts only 30-40 years, and then a citizenreceives a pension from the state, and this 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:

1. Investment, or financial.
2. Intelligent.
3. Marketing.
4. Legal, that is, the one that relies on the law.

Financial passive 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 funding in this area occurs when a person creates an intellectual property product and starts replicating it. According to this principle, the well-known information business on the Internet is being built. Sources of income can be roy alties from a book or a song and a patent for an innovation.

Marketing and legal income

It appears after a person creates a certain marketing system. For example, he will develop his own website or rent out a personal brand. The sources of such profit can be their own developed structures in network marketing systems, commercial companies that use a personal brand,websites.

The question of these three types of passive income is often raised on the Web, 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 demand additional funding from the state. Most of the working population is deprived of such privileges, as pensioners (pension), students (stipend) and low-income families (utility benefits) are eligible for additional financial support.

Passive Income: Ideas for Creating Additional Funding Keys

There are many ways to secure regular cash injections without having to work all the time:

1. Own website. 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 practically from scratch. Usually, in order to receive a stable income from the site from $ 1,000 / 57,000 rubles. every month, you need to spend from six months to two years of time working on your project every day. People are delusional, thinking that you can create a resource - and that's it, "it's in the bag." It will take a long time and hard work on your own website. In addition, if the site will bring a stable income, it can be sold as a ready-made business.
2. Creativity products. A person who has the talent of a musician, writer or inventor can trade in productsintellectual technology. A living example of this is JK Rowling, who now has a multi-million dollar fortune.
3. 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: vehicles, equipment, and even things that cost more than one minimum wage.
4. Investments. Also, investing in various financial instruments is considered a popular way to make a profit. 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 income. It is difficult to agree with this due to the fact that they are either already moving to the active stage, or they are outdated and do not bring money at all.

1. Network marketing. In this case, you have to invest not only time, but also money. Usually, you need $100 (5700 rubles) to start. If a person has the talent to find a common language with other people, then he can safely begin to work in this direction. Yes, within a few months, income will be able to compare with the average salary in the province. But you can't call it passive. Moreover, you should not have hopes that earnings will start to increase.
2. Own business. If you have enough funds to make a financial investment, then you can take the risk and start your own business. But even if you organize a business on the network by typeopening an online store, anyway, sooner or later it will move from the category of passive to active. You will have to work, and 365 days a year.

What's going on in Russia?

All of the above sources of passive income also work in Russia. However, the popularity of the methods is slightly different here.

One of the most popular ways is to create a PAMM account. This source appeared not so long ago. In literal translation, the name means "percentage distribution" is a financial management module on a trust basis. Compared to bank deposits, PAMM accounts bring much more profit, but in order to create such a source of passive income, you will need 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 your 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 a bank deposit. Here, the risks of losing money are minimal, and this method of income is available to everyone if there is a certain amount. If you invest 2,000,000 rubles in a bank at 10% per annum, then you can receive 16,000 rubles a month, which is quite good. It remains only to find 2,000,000 rubles.

Main options

The most well-known option of passive income in our country is the purchase of bonds. earning plan like thisquite simple way. The size of the bonds is predetermined, depending on the policy of the company, the money is paid out quarterly or once a year. Profit is similar to a bank deposit, with only minor differences:

• High income.
• Money back without loss of interest.
• If the market price of bonds rises, a person will receive additional income.

Financial Independence Tips & Tricks

Passive income is for the brave. Not everyone will agree to quit their job and set foot in nowhere, because it is not known how the situation will turn out, not everything always works out the first time. Only if there is willpower and a desire to go all the way, we can talk about creating sources of passive income.

Here are some tips to help you achieve financial freedom:

• Search for time. Don't limit yourself to just making money from your work, you should always find time to explore new ways to make a profit.
• One head is good, but two is better. You 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, if there are several sources of passive income, financial stability will be under reliable protection. If one source is lost, another will always help out.
• No regression. It is necessary to constantly develop, raise the level of literacy and engage in self-education. The first assetwhat a person has is himself, the more he invests in himself, the more he will receive in the end.

There are no secrets to achieving financial independence, it's all about the effort. No wonder they say that you can’t pull a fish out of a pond without effort. One way or another, each person initially has the same amount of time, it's all about how he spends it: returning from a hated job and watching TV or sitting down to study new information that will no doubt come in handy in the future.