What should passive income be? What is passive income? "Affiliates" is an interesting topic

Daria Nikitina

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- one of the key terms in investing. Passive income is closely related to financial independence. A significant portion of the articles on our website come into contact with the idea of passive income in one way or another. Active and passive income are two sides of the same coin, but there are fundamental differences between them. Also, both of these types of income have their own advantages and disadvantages. We'll talk about this in today's article. We will pay a lot of attention to passive income, because this is what we strive for.

In this article:

Active income - its pros and cons

Active income- what we are all used to. The salary that a person receives while working in a hired job refers specifically to active earnings (it is also called linear). This also applies to all sorts of “part-time jobs,” freelancing, and business (to some extent). That is, you did the work - get a reward (one-time). As soon as a person stops working (quits his job), the income stops coming.

In the case of active earnings, you need to spend your time and (or) effort to obtain it - this is a prerequisite. That is, if you stop fulfilling your official duties (refuse to work) and sleep instead of working, then you will certainly be fired and your income will dry up. But this is already understandable.

The main advantage of active income is that you get everything at once.

Let’s summarize the pros and cons of active income.

Note that most people are familiar with only one way to receive money - working at an enterprise (the notorious active income). The word “sign” here means that in real life (and not somewhere in dreams), in practice, most people can only earn money in an active way, that is, by working in the generally accepted sense. However, this is not the only type of income. There is another, much more pleasant way, well known among rich people.

Passive income - an alternative or addition to active

- this is income received without serious expenditure of effort and time on your part. Roughly speaking, this is when you do not work, but the profit continues to flow to you. How is this possible, you ask? The fact is that passive income (also called residual, non-linear income) can be obtained from assets that you have. Strange, right? In theory, active income should come from assets, not passive. But everything is just the opposite.

Difficulties in earning passive income

However, not everything is as rosy as it seems at first glance. The problem is that before you can receive passive income, you need to acquire an asset that will generate it. And if there is no asset, there is no passive income! Thus, the whole difficulty is to create a source of your income. To make a profit from capital (real estate, shares), you first need to get money from somewhere. And the beauty is that you need to do this once and then just “milk the cow.”

Savings calculator

Passive income is a reward for the work done once.

As a rule, creating passive income, the level of which is at least comparable to the level of salary (or other type of active income), requires much more effort and (or) time than active income. What did you want? You have to pay for everything in this life.

Also, creating passive income is a very slow process and can take years.

Example. Borya works as an engineer and earns 20 thousand a month. But Borya wants to accumulate capital, put it on deposit in a bank and receive the same 20 thousand, but without working. In order to “turn a fairy tale into reality” you need a capital of 2 million 400 thousand rubles, invested at 10%.

And how long does he have to work hard to earn 2 million? Not everything is as bad as it seems. Firstly, this is a very primitive example, a yield of 10% is very small. Secondly, as mentioned above, creating passive income is not a quick process, so you need to be patient and determined. Third, there are methods (rules), the use of which leads to faster and increased income. If a person has set out to create passive income for himself, then he will slowly and confidently move towards the goal, increasing his income. Fourthly, it’s never too late to start - because you can start

The content of the article:

What is passive income

According to Wikipedia, passive income is income that does not depend on daily activities. But this is not a completely complete definition.

Passive income is the income you receive even when you are not working. The simplest example is renting out an apartment. You can work your day job but receive passive income from your real estate.

However, there are a lot of types and sources for receiving passive income, and their essence is to create passive income from scratch.

You need to understand that in order to receive a constant income and do nothing, at first you will have to work hard.

But 6-18 months of work can provide you with stable profits for many years to come, even when you are no longer working.

The difference between passive and active earnings

The principle of active work: did the job - got paid. If I wanted more money, I did one more job. For example, the driver UBER, he gets money as long as he takes people. If he stops traveling, he will stop earning money.

The principle of passive income: if you create a source of income once, you receive profit on an ongoing basis.

Passive income is the dream of any normal person.

There are so many ideas for generating passive income that we will break them down by type and try to understand how much profit each option can bring.

Sources of Passive Income

What can bring us profit? An asset that we will create or buy. Most sources of passive income require some investment, and absolutely all assets require effort at the initial stage.

Let's start with options for creating passive income from scratch, without investments.

Passive income without investments. Creation of intellectual property

There are a great variety of ways to earn passive income available here, and each option will be of interest to a certain circle of people.

1. Book, text material

Once you write a book, you can sell it for years. It is not necessary to write novels or detective stories; educational books are also in great demand.

There are many services for aspiring writers, such as writing a book online. You will receive instant feedback, and if your idea is successful, you will immediately be awarded a publishing contract.

An e-book can bring $100-200 per month, but the greater the interest, the greater the profits.

Do you think no one does this? Mike Piper wrote the book “ Investments in simple terms” and started selling it on . Interest was so high that he continued and wrote a whole series of books. Now they bring him six figures.

2. Selling copyright photographs

Special services called microstocks , allow you to buy and sell unique photographs and images ( created in graphic editors such as Adobe Photoshop, Adobe Illustrator...).

If you love photography, editing images, creating interesting pictures in Photoshop, you can make a decent amount of money just by selling your images.

The idea is that you put your photos up for sale, but the buyer does not buy it, but simply buys the opportunity to download it in the highest quality. Thus, one photograph can be sold an infinite number of times.

Buyers include magazines, blogs, advertising agencies, designers and other businesses that need images.

We will give an example of one of our designer friends. Six years ago, he drew icons, pictograms and other web elements. He did this for 3 months. He posted all his works for sale on Shutterstock. In the first months he got to the top and earned about $1000 per month.

Over the following years, his earnings gradually fell, but last year ( sixth) his profit remains stable at the level $100 per month. This is despite the fact that he has not added new images for sale for 6 years. Since Shutterstock policy does not allow us to talk about the designer's earnings, we will not reveal the identity of the author.

The most famous and profitable microstocks in the world:

Shutterstock (This is the leader among microstocks in the world, everything is here);
DepositPhotos (The largest microstock with good sales).

Videos on Youtube

This type of passive income on the Internet brings in a lot of money: for example, a Youtube channel Mister Max who makes videos about children makes money for his owner 2-7 thousand dollars per day.

To create passive income from videos, you need to create a series of useful and always relevant videos. These could be instructions like “How to make…”, “How to cook…” that people will find and view in the long term.

You can connect Google contextual advertising to each video, plus YouTube itself will pay you for every 1000 views.

3. Online courses and master classes

If you know something that others don’t know, then you can launch a series of training courses. The master class format can be different: video, audiobook, instructions on the website, offline school. It is important that your students are satisfied with the quality of the material and gain new knowledge.

You can earn 20-50 or more dollars daily from video lessons. For example, courses on guitar and other musical instruments, drawing lessons, foreign languages and others are very popular. More highly specialized knowledge can be sold at a higher price. For example, trading courses on the NYSE can cost from $500 .

4. Music

Creativity that generates passive income is not limited to texts, photographs and videos.

Music is an interesting direction, which is also not suitable for every user. To create music tracks, you just need to learn how to work with programs like Fruity Loop or Adobe Audition, Steinberg Cubase and etc.

All presentations, sales, videos... are accompanied by background music. These are the first buyers of your tracks, they simply cannot live without them.

Just as microstocks sell images, they also sell audio. The most famous audio stock is AudioJungle.

Internet products

5. Website creation

Absolutely anyone can create their own website. You will have to spend a little money on a domain name ( in zone.ru – from 150 rubles. in year) and hosting that will display your site on the Internet ( from 900 rub. in year).

The main difficulty is finding interesting information that will really attract readers. It is not necessary to have a blog or a live journal; some resources are gaining popularity thanks to convenient tools: compound interest calculators, parsing currency quotes, free SMS widget, online translator and much more.

Average monthly earnings on the site vary from $50 to $1000, depending on the number of visitors, popularity of the resource, citation index, etc. It will take from 6 months to 3 years to promote a website.

Let's take a closer look at how you can make money on your own website.

6. Contextual advertising and banners

On almost all websites you can find advertising blocks from Google and Yandex. Each click on them brings the site owner from 20 cents to several dollars. The more visitors you have, the more ad clicks you will get.

If you add 1000 useful articles to your site and stop visiting it, you will continue to earn money for many years to come, since your site will remain online and work around the clock.

7. Eternal links

Many companies and simply other sites order the purchase of links on other sites so that search engines can see that many people are talking about their site, thereby increasing their ranking in search results. Customers buy paid reviews, laudatory articles, or simply placing a link anywhere.

Selling space on a website for such reviews can bring the owner 100-300$ per month. However, to do this, your site must have many visitors and good rankings in search engines. This method of earning money is suitable for a site that is already more than a year or two old, however, it will be an additional source of income that does not require special efforts from you.

8. SMM and social networks

Another way to make money available to everyone: maintaining a group on social media. networks. To create your own public page, just register on the site and go through a simple procedure.

Here the content comes first. Finding interesting, unique information is difficult: be prepared for the blatant theft of your content. But if you attract 100 thousand subscribers, then your monthly earnings will be in the thousands of dollars.

With a large number of subscribers, advertisers themselves will find you every day. For example, for famous bloggers, an advertising post on Instagram costs from 500,000 rubles. Even if you have about 30 thousand subscribers, you can already sell advertising through special services.

Where to invest for passive income

9. Renting out real estate

Everything seems simple here: we buy a house or apartment, put it up for sale Airbnb or Booking, rent and make a profit.

Such passive income from each premises can bring 5000-30000 rubles per month and will cover utility costs.

More profitable ways to earn passive income from real estate are renting out garages and commercial real estate. A garage costs 5-6 times less than an apartment, while the rental price is only 2-3 times lower.

That is, instead of one apartment, it is more profitable to rent out 5 garages.

But there are differences between apartments and apartments. If you have a whole package of services - linen, cleaning, Internet, TV, beautiful view, food, parking and so on, then the cost here will be different. Many people have several similar properties, hire 1-2 people for maintenance and receive decent passive income.

10. Renting equipment, car, other asset

By analogy with real estate, there are different options for earning money here. If you have an unused property that can be rented out, consider turning a profit from it. After all, when a thing lies as a dead weight, it is a liability; if you receive income from its existence, it turns into an asset.

It could be a jet ski, a console PlayStation or XBOX, car or other equipment.

Thus, by investing in items that can be rented out, you can break even and then receive net passive income.

11. Exchange

Of course, this is one of the first options that comes to mind. You can buy shares and make money on their price growth. Many people think that this method is not capable of bringing in a lot of money, but we will show one example of our transaction to buy shares of Peugeot, and what came of it.

- one of the main French car manufacturers, part PSA Peugeot Citroën.

In order to buy shares on the stock exchange, we went to the broker's platform, selected shares and pressed the button Buy(BUY):

Within a couple of days, the price of the shares increased and this brought us profit:

To get money into your account you need to sell the shares back, that is, close the deal:

Now we have profit in our account. The results can always be viewed in the tab Transactions, below graph:

Buying shares can be a good source of passive income, even if you do not want to open trades often, you can buy shares for months and years, by the way, you can also receive dividends from the broker.

12. Trust management

Trust management in financial markets is one of the most profitable types of passive income. can bring on average from 60 to 120% per annum in passive mode.

Many brokers offer trust management in the form of investment funds, PAMM accounts, and copying of managers' transactions.

13. Indices and ETFs

If you look at the charts of stock indices, you will see that their profitability is not great, but it is always there. – these are shares of companies that buy shares from a basket of stock indices and their value dynamics are fully correlated with stock indices. By purchasing one share of an ETF fund, you are buying the entire index basket.

At the moment, ETF funds are very popular in the USA and Europe, because they are portfolio investments that are highly protected from all kinds of risks.

In addition, there are sector ETFs, balanced and unusual, such as ETF Whiskey, where the shares of whiskey producers are in the basket.

14. Creating a business for passive income

This is a promising way to earn money, because it allows you to completely control your investments. We do not mean an active business where you have to work yourself. You can organize or buy a company with an established work structure, with a director and his deputies.

If you turn to the Internet, there are even more examples. You can hire developers and create some kind of automatic service, program or service, which will then bring you stable passive income.

Currently, these types include services for checking the uniqueness of texts, analyzing websites, collecting data, creating presentations, logos, etc.

Other types of passive income

15. Benefits and government programs

Consult with a lawyer: You may be eligible for a government assistance program. A housing lending project for young people, rolled out across the country, could make it easier to buy an apartment. Maternity capital and the family support program will help support children.

Find out if you may be entitled to a benefit from the state, do you just need to apply for it?

16. Create passive income from your day job

Many people do not notice the advantages in their work, they get used to it and it seems to them that no one appreciates it.

A striking comparison is artists. So they draw a cat and everyone says - wow, how beautiful... but the artist thinks that it’s nothing special, everyone can do it.

Perhaps your job can provide many people with some kind of bonuses, as if along the way with your main job. Perhaps these will be additional services or knowledge that would be useful to people.

If you work in the tax office, then many would benefit from your outside consultation. If you work as a chef, then many would benefit from your advice on recipes that you can sell - write a column on a website, publish a book or run your own blog... And so on.

Make money doing what you would do anyway. For example, if you like to play games, then you can also make money from this. In addition to tournaments, there are many games where they sell characters, items... which you can earn in the game and sell for real money.

As we can see, there are plenty of ways to earn extra income. But they are always related to the use of existing resources or the creation of a new product. Before you set up a new source of passive income, ask yourself a couple of questions:

What is your soul? Do you love photography, writing, making videos? Perhaps you have a craving for the financial sector, for mathematical calculations? Are you an enterprising person? The answers to these questions will determine the area in which you should develop.
Do you have capital to invest? Free resources will greatly facilitate the search for sources of passive income.

Choosing a source of passive income ultimately depends only on you, do not shift this responsibility to others. In addition to the well-known methods, you can come up with something of your own, and this will be an even better option.

And finally, a couple of tips:

Diversify your sources of income. Try to create as many assets as possible that will bring you profit. This way you will protect yourself from crises and force majeure.
AND find the best options for passive income, don’t stop there. If you have found a stable, highly profitable instrument, transfer part of the funds from your bank deposit to this source. Thus, you will increase the profitability and efficiency of your entire asset portfolio.
Improve financial literacy. Find out more about investment programs, operating conditions of companies, do not be afraid to open new sources, experiment with creating options for investment.
Don't spread yourself thin. It’s better to devote all your time to one source until you get the job done. Working on multiple projects is not prohibited, but it may affect the quality of each individual product.

Conclusion

Passive income is the key to a good life. We've listed a dozen ways to create your own source of extra income, but the list goes on and on.

The fact that you have thought about the need to generate passive income already elevates you above most of the people around you. There are many methods available to each of us to improve our financial condition, but we need to work on them. We wish you good luck in organizing sources of passive income and achieving financial independence.

If you find an error, please highlight a piece of text and click Ctrl+Enter.

Carries an appropriate connotation, so borrowing is now more common passive income.

Main categories of passive income and passive losses

Periodic depressions in the stock market can reduce the value of capital several times, or lead to complete ruin.
A crisis in the housing market, a demographic crisis, an economic crisis, or a local catastrophe can reduce the cost of housing, including to zero (for example, small towns in the post-Soviet space that have lost their only economically active enterprise)

Features of creating passive income and its difference from active

The main difference between passive income and active income is that it does not require investment of time and labor.

The money arrives into the account by itself.

Of course, you will have to put in some effort to ensure that the profit flows into your account, but it pays off and brings you money in the future.

Active income requires constant work, visiting the workplace and performing one’s duties.

To receive passive income, you need to perform certain actions once to receive it.

Receipts will occur over a certain period of time.

To get rich, you must have at least 1-2 sources of passive income, in addition to the main income received from a permanent job.

Many people talk about this in their books and interviews.

When creating several sources of profit, you can completely leave your work activity “to your uncle” and start your own business.

How to create passive income: 14 best ideas

Create your own website or blog on the Internet and promote it.

In this case, passive income is achieved by paying for advertising.

On average, on one site, a beginner can earn about 12,000 rubles.

But you can sell a site where the total number of visitors exceeds 5,000 people for 200-250,000.

You can not only make passive money from this, but also build a highly profitable business.

An alternative to the website is maintaining a VKontakte group.

One well-promoted group can bring the owner from 8 to 15,000 rubles per month.

What if there are five such groups?

Selling your own seminars and training courses.

This option is suitable for those who have graduated from a higher educational institution and have a diploma with the right to teach.

The most difficult thing is recruiting listeners.

However, if the topic is interesting, people will find you.

To write a book.

Income from the work "royalty" goes to the author until the book is removed from sale.

Create an intelligent product.

For example, a computer program.

By obtaining a patent for it, you can also receive regular royalties from sales.

Or a car.

Even a one-room apartment can generate income comparable to the average monthly salary of a citizen in Russia.

Renting a salon, hairdresser's place.

Government payments.
They can be received by disabled people, large families or people who have retired due to age.
Bank deposit.
Investing money in a bank as a deposit is not a great passive income, but for the most part allows you to save money.
However, it is still quite possible to receive not an extra 3-10 thousand per month from a large amount.
Sale of securities and mutual funds.
A good option for long-term capital investment with the aim of making a profit.
However, it must be approached very carefully.
Gather all the information about the organization in which you are investing your money.
Income from shares becomes large only after about 7 years have passed since their acquisition.
Own business.
A very good option for receiving passive income, but it requires a lot of effort and time before it starts to generate profit.
Venture investments and profits.
To receive venture capital royalties, you must invest in a newly launched company.
After a few years, you can start receiving a very substantial amount, depending on the amount of the contribution.
Investing money in investment and trust organizations.
Profit is generated through the redistribution of capital.
However, in this case there is a high risk of losing your investment.
Purchase of housing under construction and its sale after construction.
A profitable option if you have the funds to purchase one or more apartments under construction.
You will buy it for 500,000 rubles, and sell it for 1,000,000.
However, most likely, repairs will have to be made, at least cosmetic.
When choosing a developer, you should be extremely careful.
Buy housing only from reliable, well-known developers who have been working in the housing market for several years.

Finding the best option from the many existing ones is not a matter of one day.

You should carefully consider the steps, evaluate the initial capital and decide what is best suited.

Many people, thinking about how to create passive income, do not want to do anything about it.

However, in the beginning you will have to work hard in order to reap the sweet rewards in the future.

12 tips for beginning businessmen to create passive income

To become a free person in terms of finances, not to depend on the opinion and mood of the employer, you will have to work hard.

You are always looking for the best option for investing and starting a business.

Look for new assets that will later turn into liabilities.

To become a wealthy person, strive to create several sources of passive income.
Improve your financial literacy.

Be an educated person, read books, attend courses and lectures.

Live the life that rich people lead.

Before investing, study all options, do not invest money at random.

Always have on hand the necessary documents confirming your investment in a company or bank.

Break your cash capital into several parts and invest in different projects.

Calculate the risks of losing your invested money.

If the risks are minimal, take the risk.

However, if intuition and common sense scream that the investment is not worth making, stop, no matter how profitable the offer may seem.

Think about your future every day.

Decide what you want to achieve.

Open your website on the Internet and develop it.

If there is a lack of capital, the site can be sold for a good amount of money.

Find a mentor or coach who has already walked your path and can give you some ideas.
Be prepared for the fact that to create good passive income you will have to work for some time, invest not only money, but also time and effort.

Don't try everything at once.

Focus on one project, and when you finish it, try another.

By focusing on several projects at once, you can get confused and lose your investments.

How to create passive income on the Internet?

Organizing your own financial project is a great way to create passive income.

You can open a business both in real life and on the Internet.

If there is no initial capital, or it is relatively small, the option of creating a business on the Internet is preferable.

Choose the business that you are best at.

This could be website creation, group administration on social networks, copywriting, Forex trading.

To start trading on the Forex exchange, you need to undergo a month of training and conclude several trial transactions.

At the initial stage, invest the minimum amount and develop.

Robert Kiyosaki talks about how to create passive income in the video:

How to create passive income and gain financial freedom?

In books on self-development, achieving success and wealth, millionaires give advice on achieving financial freedom.

We have selected the best ideas:

To avoid remaining poor throughout your life, find time to create passive income, even while working your day job.

In a month or a year, these efforts will more than pay off.

Always strive to create as many sources of passive income as possible.

When you make a profit, invest it again.

Develop yourself.

Financial literacy is a prerequisite for those who want to get rich.

Start by at least reading books by the world's millionaires and billionaires and follow their advice.

People who think about how to create passive income, are already a step above the rest.

Move forward, apply the recommendations we have described and become a millionaire.

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Welcome to the blog! I am very glad to see you!

Many people dream of passive income and ask: “How to create passive income from scratch? Where can I find proven passive income ideas? But not many people know that today this type of income has become available to everyone. And largely thanks to His Majesty the Internet! In this article I will expand on the concept of “passive income” (residual income), talk about the sources of this type of income and describe several ideas for creating it that I use myself.

If you have already thought about the possibility of creating passive income and are striving for the life that passive income provides, then this article will be useful for you!

1. The concept of “passive income”

is a type of income characterized by stable cash inflows, regardless of daily activities. Most likely, you have already encountered (or heard of) people who live off passive income. These people usually "don't go to work." Such people are called rentiers.

A rentier is a person who lives off rent - income received from the capital that he placed in business, deposits, income-generating real estate, securities, as well as income from copyrights.

For example, you are an expert in a certain field. This means you can “sell” your knowledge by recording a training course (audio or video, it doesn’t matter). You have created a high-quality course once, and it will generate income for you whenever someone buys it (this can last for more than one year).

We have defined the concept of passive income. Now answer this question for yourself:

Why do you need passive income?

Many are attracted by luxurious life - luxurious beaches and houses, cars and yachts. But some people take this life calmly and are happy with what they have. I am one of these people because I understand that a luxurious life is just the tip of the iceberg.

I think the main advantage of building passive income is that you will be able to free up your precious time for your favorite activity, which you cannot do now because you are “working at work.” I know people who would like to devote themselves to serving other people - the homeless, children in orphanages.

With the help of passive income, you can start making your dreams come true.

The expression “money leads to money” quite often justifies itself. Today it so happens that people with average incomes spend all the money they earn without a trace, purchase goods on credit and borrow from friends and acquaintances until their salary or advance payment.

Why does it happen that people 30–40 years old cannot earn a good living? Now I will answer this question.

IMPORTANT! The point is: people don't know how to focus on creating assets. capable of solving material problems. It turns out that people are driving themselves into financial slavery, which is flourishing these days.

The educational cartoon, which you will find at the end of the article, presents the basics of personal finance in simple language and classifies people depending on their ability to manage them (which category do you belong to?):

1. Zombies (financial). Their expenses exceed their income and their assets are negative. Those. they live from paycheck to paycheck and are always in debt. Almost all their money goes to pay off their debts.

2. Kamikaze (financial). Their p A collections are approximately equal to their income, assets are negative. They often look wealthy: they have an apartment, a car... However, this is all on credit. They walk on a razor's edge, and in case of unforeseen circumstances they easily fall into the ranks of financial zombies!

3. Maniacs (financial). Their income is equal to or slightly higher than their expenses, and their assets are zero. They usually have no debts, but they also have no savings. They are at the mercy of the consumerism syndrome: they never have extra money, because they will always find something to spend it on right away.

4. Turtles (financial). Their income exceeds their expenses and their assets are positive. They have no or minimal debts, they have savings. But like turtles, they accumulate slowly, because they prefer to keep their savings under the mattress, and the most advanced turtles keep their savings in a bank.

5. Sages (financial). Their income exceeds their expenses, their assets are positive. They differ from turtles in the level of investment. Investments of net assets generate passive income for them.

Do you recognize yourself from the description? For example, I see that since I started thinking about personal finance and studying books on financial literacy, I gradually began to move towards the 5th category.

In order to learn how to create assets, I highly recommend that you read books on financial literacy by the famous businessman and investor Robert Kiyosaki. And be sure to give these books to your children to read. Start with books Rich dad, poor dad And Cash Flow Quadrant. If you prefer books in “paper” form, you can purchase them, for example, on Ozone (they have free delivery) - Rich dad, poor dad, Cash flow quadrant.

I like Kiyosaki’s simple but very effective advice for creating your own asset. As soon as you receive some income, you begin to distribute it to others - pay for an apartment, for school, for a hairdresser, for a concierge at the entrance. You give your money to everyone, but not to yourself! This is a fatal mistake for everyone who has not yet built passive income.

You must first of all “give” money to yourself, and therefore to everyone else! In this way, you will begin to create your asset and then you will be able to increase it by investing in your business or in some other way (which we will discuss below).

Here's a simple exercise. You can easily become a millionaire if you save just $1 a day! Don't believe me. Then open any deposit calculator on the Internet, for example this one. And you will see that if you give up one cup of coffee a day for 30 years (figuratively speaking), you can become a “hryvnia” or “ruble” millionaire.

I can’t believe it?! Look at the screenshot: a deposit at 12% with monthly top-ups of only $30 ($1 per day) with monthly capitalization will turn into 2.7 million hryvnia or 7 million rubles ($108,000). And it's only $1 a day.

Tip #2: Understand that someone who works all day has no time to make money.

John Rockefeller said: “He who works all day has no time to earn money!” Think about his words.

Indeed, working in an enterprise, production, office, or no matter where, people earn money for “current” expenses. And you can become a millionaire only in your free time from your main job.

It follows that TIME IS OUR MAIN WEALTH. Remember: “Time is money” - this is what wealthy people take advantage of.

Let's consider the day of an ordinary person: in the morning he goes to work, in the afternoon he works all day, in the evening he goes home. On the way home, perhaps he goes to shops, cafes, and at home - dinner and TV. Naturally, such monotony does not set the stage for progress in the future, especially if you take into account that many make money by doing something they don’t really like to do.

Naturally, the creation of passive income is preceded by active work for a certain time (this can be several months or several years). But then you can leave your “unloved job” and enjoy life.

Tip #3. Gain knowledge in personal finance

The famous financial literacy specialist Robert Kiyosaki, whom I mentioned above, DEFINED WEALTH BY THE LENGTH OF TIME during which, while continuing to live comfortably, a person can not work.

"Cash flow"- this is the name of the world-famous game by Robert Kiyosaki, which can help you figure out how to “turn time into money” by creating a constant passive income.

There are several versions of the Cash Flow game - 101, 202, 303 and 404. Each of them teaches investing skills, building your own business and competent handling of personal finances. Don't think this is just child's play. The game “Cashflow” will be interesting and challenging for all adults - not only for an office worker, but also for the owner of his own large business.

You can buy the game in a bookstore, but it will cost 30 or even 50% more than in an online store. You can order the game on the trusted website (online store) ozon.ru with free delivery.

If you want to learn more about the Cash Flow game, I recommend this interesting and useful with a detailed description of it.

IMPORTANT! I think you already understand that to build passive income, the first thing you need to do is learn financial literacy. Neither our parents, nor schools, nor universities give us this knowledge. Even if you work as an accountant in a large enterprise or a financial analyst in a bank, this does not always mean that you have knowledge in the field of personal finance.

3. Types and sources of passive income

We answered the question, what is passive income? I think it’s time to satisfy your curiosity by revealing the “secrets” of ways to create and sources of passive income. We will talk about this later. You just need to choose the method that suits you.

Many are not happy with the fact that they will have to wait (months, years). But we need to get out of this psychological trap. Think about it, working age lasts 25–40 years, ending with retirement age and receiving a pension, which can hardly be called “deserved and worthy.”

It turns out that we can work for several decades doing something that you don’t really like, but ensuring financial independence for ourselves is “beyond our strength.” But you will have the opportunity to retire much earlier than the period established by the state (not at 55 or 60 years old, but at 35 - 45).

Are you sure you want to create passive income so you can have more free time? Then start TODAY to take decisive action in this direction. Make up your mind and take action!

So, more about the types and methods of creating passive income

There are 4 types of passive income:
investment (financial),
intellectual,
marketing,
legal (required by law).

Agree, not very much. The types of passive income in Russia are the same as in other countries in the world. Now let’s figure out what ways you can provide passive income.

1st type. Investment (financial) passive income

Created in case of investment (investment) of funds in certain financial instruments and items. From the investment we receive a certain amount in the form of interest or profit.

Sources of profit can be:

real estate;
Bank deposit;
securities;
our business (if we buy it);
equipment (if you rent it out).

2nd type. Intellectual passive income

Sources of income can be:

Royalty;
Patent for invention (technology)

If you don’t like the idea of creating an information product yourself, you can earn income from promoting other people’s information products through affiliate programs. I myself earn income from this online business. I consider Evgeniy Vergus to be the main expert on making money on affiliate programs. You can immediately start earning money while studying his course “AFFILIATE SALES WORKSHOP”. You can easily recoup the cost of the course by studying the course and at the same time earning money by advertising affiliate information products. *

3rd type. Marketing Passive Income

This type of income is possible if you create a marketing system(s). For example, your website on the Internet or a personal brand for rent. Either one or several options are possible.

Personal branding involves using your name for commercial purposes.

For example, screen and sports stars are often involved in filming advertisements, thus becoming the “face” of a certain brand or company. They receive decent fees for using their name.

In this case, sources of passive income can be:

own developed network marketing structure;
commercial structures using your personal brand;
your website;
a business that generates profit from the operation of a marketing system (for example, an information business).

All these sources of passive income will provide you with passive income on the Internet without investment.

4th type. Legal passive income

I think there is no particular need to dwell on this view. I will only note that these are payments due to you “according to the Law.” By the way, there are people who rely on this type of passive income. For example, civilians work under contract in military units for low pay. But then they retire earlier and are guaranteed to receive a “military” pension.

4. Ideas for creating passive income

You have already learned about the types and sources of passive income. It's time to get acquainted with the options for creating it.

I propose to consider the most common and relevant ideas. Perhaps one of them will suit you to ensure a regular cash flow.

1. Information site or blog

If you know how or want to learn how to create and launch websites, and know the basic principles of marketing, then you can organize passive income, practically from scratch. It’s not for nothing that organizing passive income using the Internet is becoming increasingly popular.

For example, the blog you are currently on also generates passive income.

In addition to the above skills, you will need free time, as well as a desire to learn. You you can make your own website even if you do not have any special technical skills. Especially for those who decide to make money with their blog or information site, I have prepared a series of articles with step-by-step instructions, videos and screenshots. In less than a week you will have your website ready for content. Here is the link .

To organize passive income using your website, you will, of course, need some time (from six months to two years). This time will be needed to regularly work on your project (several hours a day) in order to improve and optimize it.

Do not be mistaken that by creating a website, you have done everything necessary to receive passive income, and now you can “sit back.” No! To turn a site into a full-fledged “money machine” you will have to work on it for 1-2 years. But you will start receiving your first money within a few months after the start of the project.

After you turn your site into a “money machine”, you can sell it (ready-made business!). Moreover, the proceeds from the sale can exceed the amount of monthly passive income by 20 times.

For example, my colleague bought a 3-year-old working website for 1,500,000 rubles.

The arithmetic is simple: If your website brings in 10 thousand rubles a month, then you can sell it for 200 thousand rubles. and more expensive.

Therefore, you can make money by creating income-generating websites and organize your business in this way.

Ways to make money on your website:

placement of contextual advertising;
placement of paid advertising articles;
sale of advertising space;
placement of affiliate links;
selling your own training courses.

2. Intelligent product

Having a certain talent, it is possible to create your own intellectual product (book, technology, educational video, etc.). This product can become a source of your passive income if you start replicating it or renting it out.

Let's consider an example of passive income, when an intellectual product (a book) made the author a millionaire. Today, it is perhaps difficult to find a person who does not know the name JK Rowling. But it was the books about Harry Potter that brought her a multimillion-dollar fortune.

An invention, a fundamentally new industrial design or technology can also become a source of passive income. They will be your intangible asset.

An intangible asset is a product of intellectual labor that, without having a material form, is capable of generating income. For example, a patent for an invention, trademark or brand.

3. Property rental

Of course, the most common way is to rent out real estate. But let's look at other passive income options. For example, construction, commercial or industrial equipment and other expensive things. Moreover, passive income from real estate is often lower than from equipment.

For example, by purchasing construction equipment and tools, you can rent them out, thus organizing your business. If a drill or hammer drill costs, for example, 20 thousand rubles, then you can rent out the tool for 100 – 500 rubles per day. The tool will pay for itself in a fairly short period of time (less than a month).

4. Securities, bank PAMM accounts, mutual funds

One of the common ways to create passive income is by investing in financial instruments.

Investing, in some ways, can be thought of as a business. But to become a professional investor, you must first study this complex topic. You can learn more about financial instruments on this useful website Club of private investors “Where to invest money - ways to invest.”

Of course, there are advantages to investments (higher income compared to a bank deposit), but they also have disadvantages, namely: high risks.

Mutual funds and securities are not able to provide stable income (excluding bonds). There is a high risk of losses. Take this into account!

5. Network Marketing

Network marketing is considered one of the most affordable ways to create passive income. Perhaps because the first investment usually does not exceed $100.

The condition under which you can organize this kind of passive income is communication skills. Because in this case you will need to be able to communicate with people, win them over, ensuring friendly communication. The main thing is that you do not fall into a financial pyramid!

To protect yourself from this risk, check out this helpful article “What is a financial pyramid?” .

6. Own business

Organizing an entrepreneurial project is perhaps the best way to create passive income.

Internet business is suitable for people with any financial situation at the moment. Even if you do not have large enough finances, the network can provide opportunities to start with virtually no investment. Thus, your income will gradually turn from “active” to “passive”.

The most difficult step towards starting your own business is simply making a final and irrevocable decision. It's best to start with a simple business without investment. With organization ideas business without investment for beginners entrepreneurs read . The information in this article will help you organize a business and create passive income from scratch.

Let me give you my example of passive income. I built my own vending business - I bought several payment terminals (invested my own capital), and installed terminals in supermarkets under a lease agreement. The terminals are collected by a third-party organization under a maintenance agreement. I receive income that can be called passive, although I participate in it (I carry out settlements with my counterparties). This business takes very little time - 1-2 days a month.

I highly recommend investing in a vending business, where machines work for you and you receive income. The potential of this business, based on statistics, is huge!

You have already become acquainted with the concept of “passive income” and learned about its types and methods of organization, about the ideas of passive income. You know enough to take action. As soon as you make up your mind and begin to act, you will have the opportunity to gain financial independence, leave your “unloved” job, start traveling and do what you have dreamed of all your life, for example, charity.

1) Take the time to build assets.

Don't limit yourself to just income from your day job. Think about what you can do so that, having done this once, you will receive money many times over - replicate your efforts!

I hope that you are not striving for a “beggarly” existence, which, unfortunately, a pension can provide.

2) Strive to organize several sources of passive income.

In this case, you will protect yourself from possible risks: the loss of one source may be compensated by another. And at some point it will support you.

How important this is, he described very well in his book "Multiple Streams of Income" Robert Allen.

3) Increase financial literacy

Self-education is the first thing you should do! Invest in yourself! I recommend carefully reading books considered fundamental: Robert Kiyosaki "Rich dad, poor dad" and Bodo Schaeffer "Money or the ABC of Money", - they will help you understand more deeply the principle of the functioning of money and the principle of creating passive income.

Please note that there are no special “secrets”. For success you only need desire, time and certain knowledge.

Watch this educational cartoon about what passive income is so that all the puzzles fit into a clear picture and you have the confidence to start moving towards creating passive income. You should start by educating yourself on personal finance. It is also extremely important to pass on this knowledge to your children!

I wish everyone confidence and determination!

I managed to create several sources of passive income, so you can too!

Write in the comments which category of people you belong to from a financial point of view and did you manage to move to a category closer to 5th?

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