Surely, you have already heard about the concept of "passive income" more than once, and wondered how to create sources of passive income? The income that is generated without your participation does not depend on daily activities and allows you to make a profit even when you are not working. Many people dream of a passive source of income - you do what you want, and money drips into your bank account regardless of anything, even from a crisis. The main problem is that before you receive passive income, you need to acquire an asset that will bring it. And if there is no asset, there will be no passive income! Thus, in order to have a profit on capital, you first need to create it. And the beauty is that you need to do it once and then just skim the cream off.
There are several types and sources of passive income. For example:
1. Deposit at the bank. Investing money in a bank at interest. Pros: it practically does not require your activity - the main thing is to choose the right bank. Cons: low income compared to inflation (mostly less than 10% per annum).
2. Securities. Investments in stocks of companies on the stock markets. The so-called Mutual Investment Funds (UIF). Pros: affordability and relatively high income (on average 10-30% per annum). Cons: requires the ability to competently build financial strategies for long-term investments, requires additional knowledge in the field of economics.
3. Information site on the Internet. If you create and promote a high-quality website, it will be a generator of Internet traffic (i.e. visitors). There are many ways to convert Internet traffic into money (contextual advertising, affiliate programs, teasers, etc.). Pros: a constant, stable source of income that does not require a lot of time to maintain. Cons: requires specialized knowledge and high labor costs for website creation, content filling and promotion.
4. Replicated publications. For example - write a book and receive income from each print run. Pros: Revenues are proportional to the size of the circulation, one book can be reproduced many times. Cons: unique knowledge and skills of a writer, significant time and labor costs for writing a book, experience working with publishers.
5. Big business. A business built on the principle of a system that does not require your direct participation to maintain it. Those. you can start a business yourself, and then you replace your work with someone else's. Pros: the ability to "clone" a business system, i.e. there is no income ceiling. Cons: Requires a combination of unique skills as an entrepreneur, manager, leader, and specialist in a specific subject area.
6. Royalties. If you or your parents own the copyright for an invention, then you receive income from each product or service that uses this invention. Pros: stable and investment-free income. Cons: first you need to invent and patent something useful.
7. Renting out real estate. A great way to get a stable source of income with minimal time investment. Pros: stability and transparent income scheme, does not require special skills. Cons: Real estate needed, often high real estate prices.
8. Foreign exchange market FOREX - a way to generate income from speculation on fluctuations in exchange rates. From the point of view of passive income, it is worth considering not independent trading, but investing in PAMM accounts or transferring funds to trust. Pros: high profitability. Cons: knowledge for choosing a PAMM account, increased risks.
9. Highly profitable investment. Includes investment of money at interest with a high level of profitability. Basically, this is the transfer of funds to trust in the Forex market and the stock exchange, investment in PAMM accounts.
It is also worth noting the importance of the psychological factor in the creation of passive income. Many people have stereotypes imposed by the state and traditional education. 90% of people in this world will never know what passive income is, and even more so will not become its owners. They do not even admit the thought that it is possible to receive decent amounts of money without working 8-12 or more hours a day, they are afraid to take risks and take the first step towards financial independence.