Since the publication of the works Tim Ferriss And Roberta Kiyosaki such a concept as " passive income“has turned into some kind of mystical thing that gives the opportunity to start a rich and free life for everyone who can get it.
It's no wonder that many are tempted to get their hands on this Holy Grail. But before you take action, it’s better to take a closer look at what passive income is and how it works.
What is passive income and earnings
In simple terms, passive income is creating something ( material or intellectual value), which will allow you to receive money for an indefinite period without further human intervention.
How to create passive income?
The simplest examples of passive income are book authors. They can spend several months writing a novel and then get paid for every copy of that book sold for decades. They create value, which then works for them.
However, this was too narrow a definition.
According to a reputable publication Investopedia Passive income is "earnings a person receives from a rental property, limited partnership, or other business venture in which he is not actively involved."
True passive income is income that does not depend on the mandatory performance of any regular actions and comes in even if its owner does nothing at all.
Popular culture in Russia defines passive income in rubles as “ any money you can make lying on the beach and sipping a cold mojito», but this is a misconception.
For example, a well-known financial trainer and expert in the USA Todd Tresidder notes that today passive income can be considered any income that requires minimal effort after the initial investment of time or money, and works in accordance with with Pareto's Law - « 20% of efforts give 80% of results».
Before you think about how to create passive income, you need to understand about active income.
What is active income?
Active income is the reward a person receives for the work he does. Regardless of profession, if a person spends his time and effort in exchange for money, this is active income. Earning options may vary ( lawyer, doctor, bartender, loader, copywriter, correspondent for print or online publications) but the principle remains unchanged.
- The principle of active income: work - eat.
- The principle of passive income: work - eat today, tomorrow, the day after tomorrow...
The main point of creating passive income is to invest heavily or work at a certain point, and then, without putting in much effort, reap the fruits of your labor in the long run. Since there are so many different options for passive income, it’s worth talking about each of them separately, highlighting several of the most common and accessible to everyone.
Types and sources of passive income
Today there are a variety of ideas, examples and options for sources of passive income. However, it is immediately important to recognize the fact that this will not be so easy. Otherwise, most of the hired workers, forced to work “from bell to bell,” would have long ago left for free bread. For those who are still determined, it makes sense to pay attention to such sources of passive income as:
- bank deposits;
- valuable property and real estate;
- securities;
- participation in mutual investment funds;
- creation of intellectual property;
- creation and optimization of your own business.
Each of these areas and ideas has its own methods of passive income. And by choosing the path that is closest to oneself, everyone can familiarize themselves with them in detail.
IMPORTANT! The biggest and easiest money is earned from a person’s desire not to work, so on the Internet you can find thousands of offers from scammers, so when creating passive income, focus on its legality, adequacy, reliability and simplicity, where it will not be possible to deceive you.
Shares as a source of passive income on the Internet
For example, if you start from $3000 and report $300 monthly at 50% per annum, then in 11 years you will already have $1 000 000 !
You invest $3,600 a year for 10 years and get a million dollars out.
1 year $8,565
2nd year $17,362
3rd year $30,558
4 year $50,351
5 year $80,042
6 year $124,577
Year 7 $191,381
Year 8 $291,586
Year 9 $441,893
10 year $667,355
11 year $1,001,032
Look at the graph of this option for passive income on the Internet for clarity:
A stock portfolio is an excellent option for passive income, it is understandable and adequate, and will be an interesting way for most.
Here you can find hundreds of European and American stocks, commodity futures, energy and other assets.
One way or another, stock prices are rising all the time, and companies that more and more people are learning about are growing hundreds of times.
Over the past 3 years, only one has grown by 300% . This is the most advanced and legal passive income on the Internet.
Valuable property and real estate
This type of passive income includes:
- real estate;
- precious metals and stones;
- antiques;
- objects of art;
- collectibles (coins, stamps, books, vinyl records, etc.).
But you need to understand that to develop such a business you need to have not only start-up capital, but also the necessary knowledge. So you will have to find experts and initially involve them in the cause.
How much can you earn this way? Depending on the chosen direction and market conditions, profitability can be from 15 to 70%. It looks good, but you need to keep in mind that investing in real estate, precious metals, as well as luxury and collectibles is not passive income in the classical sense. Yes it can match Pareto's law, but nevertheless, a person is required to:
- careful study of current market analytics;
- ability to select liquid assets;
- careful monitoring of tax affairs;
- ability to find and attract clients.
There is one more point - it is advisable to invest for a long time. Real “exhaust” can only be obtained in 5–10 years. During this time, an apartment purchased in a new building may become more expensive by 30–40%, and various antique values and even more. This type of passive income basically does not require anything from you - you buy and hold, and after n amount of time you sell.
For example, Andy Warhol's painting "Lemon Marilyn" was purchased by an investor in 1962 for $250. After 45 years, it was sold for $28 million.
Earnings on PAMM investing
For those who are not well versed in stock trading, investment solutions from offering such features as automatic copying of transactions of successful traders or can be an excellent option.
The bottom line is to invest money in managers on the currency exchange. Traders will take a small percentage of the profits, but will also make money for you. Thus it benefits everyone.
To make it easier for users to choose the most suitable option, all brokers provide a rating of the profitability of managers, where you can clearly see their successes both in the short and long term.
The return on investment in traders largely depends on the professionalism and market situation and may fluctuate from 30 to 150% per annum, and you don’t have to do anything yourself.
Creation of intellectual property
The softest for those who want to create passive income from scratch.
For people with valuable knowledge, experience or good creativity, passive income without investment can be obtained thanks to
- audio creation,
- video,
- graphics,
- text materials of artistic or scientific content.
There are a great many ideas that can be implemented in this regard:
- writing books
- scenarios
- music
- software
with subsequent receipt of both royalties for the work itself and royalties, which will be paid whenever others want to use your work.
And although not everyone can earn large sums of money here, the availability of methods makes this direction very attractive.
Bank deposits
The most popular and simplest passive income in rubles is opening a bank deposit.
That is, in principle, you can put money in a bank and live on interest alone. The main advantages of this option:
- extreme simplicity of the process;
- you don’t have to do anything at all (just come to the bank, sign an agreement and give the money to the cashier);
- relatively low risks of losses.
However, there are also negative aspects. The first is more than modest profitability. The average rate of large banks is no more than 7–8% per annum. Less renowned institutions offer 8–11% in rubles or 2-3% in dollars.
In order to earn at least $1000 per month with a bet of 2% per annum, you must already have 600 thousand dollars, which will always lie on the deposit as “dead weight”.
Creating and optimizing your own business
Any business is painstaking and hard work. But only for the time being. According to an American financier Tim Ferriss, the success of any business is determined by its impact.
- Its first phase involves substantial cash injections and constant control by the owner. It takes about 4–5 years. In some cases up to 10 years.
- After this, the business evolves into the second phase and comes into compliance with the already mentioned Pareto Law - it provides its owner with 80% of the result with 20% of the effort. At this stage, there are no longer any problems with how to create passive income based on it.
The business owner can shift the lion's share of worries to the management staff, while he concentrates on things that are interesting to him or another promising business.
How to earn passive income in Russia
Organizing the creation of passive income in the Russian Federation is not much more difficult than in any other country in the world. However, there are also some nuances. Russia, for example, cannot be called “ a safe haven“, therefore, investing in shares of Russian companies in the long term requires particularly careful calculations and a willingness to quickly look for new solutions. However, nothing prevents you from buying shares of foreign companies through or.
The real estate market here is also characterized by its heterogeneity. For example, if by 70% territory of the Russian Federation, real estate prices behave predictably and in accordance with global forecasts in such regions as MSK or St. Petersburg It is sometimes very difficult to predict price movements. During a period of general boom, relative calm can reign here, and vice versa, when there is crisis and stagnation everywhere, the volume of real estate transactions in Moscow, for example, can go off scale.
As a conclusion
As you can see, passive income is real, however, it is not always passive 100%
, as some not very honest authors of various trainings and educational materials like to say.
However, in any version of passive income, it will not have a boss in front of you, a work schedule, and in the case of passive income on the Internet such as shares or trust management, no territorial reference.
At first you will need to do a lot ( initially unpaid) work to get into profit and get a stable flow of money.
Passive income has many advantages, but, as elsewhere, there are also compromises. Initially, it is difficult to get a big return from it, so you will have to put up with the need to go to a regular job, and maybe even more than one, in order to raise money for the start. And only those who are ready to mobilize efforts and forget what laziness is can succeed here.
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Who wouldn’t want to travel to different countries, relax at resorts and do whatever they want, while receiving a constant flow of money, but is this possible? - Of course!
This time we'll talk about how to create passive income from scratch, what methods exist and how long it will take for financial independence.
Passive income- this is profit that does not require your direct participation. But it only needs indirect actions that help create and maintain a constant income.
That is, our task is to do something once, after which we will receive a constant profit and only occasionally make changes that will help maintain or increase our income.
10 ways to create passive income
As always, let's start with the simplest, where the minimum investment is required. And we will end in the most profitable way, which will require the most return.
The simplest and most reliable option is to open a deposit in a bank, where you can receive 6-10% profit per year, depending on the total period and amount of investment.
For example, with a deposit of 100,000 rubles, you can earn 8,000 rubles in a year. But if next year you invest 108,000 rubles, then your income for the next year will already be 9,000 rubles.
If you reinvest over 10 years, you can save 250,000 rubles. Imagine that you invested a million rubles, then in 10 years you will have a net profit of more than 1.5 million rubles from the bank.
Remember that banks may have their license revoked, in which case the state will return the money within 1.4 million rubles to all clients.
2. Investments in HYIPs
There are business projects on the Internet that collect investments from people, and after a short period of time pay them back with high interest.
A more popular name for such projects is . In 2016, we managed to rise from $3,000 to $12,565, that is, we received more than 300% of net profit.
Where there are high profits, there are always high risks. HYIPs often close before you have time to withdraw your money. Therefore, I recommend reading -.
Well, if you don’t want to understand this, then you can just follow our list of HYIPs that pay in 2017.
is the most famous cryptocurrency in the world, which was created for the quick transfer of money without commission and at the same time you can remain unnoticed.
He was mining this cryptocurrency using his computer and having accumulated a decent amount, he waited for the rate to rise in order to sell everything.
At the moment, 1 btc costs $900, and at the beginning of last year, it could be bought for $400. That is, with an investment of 100,000 rubles, you could earn 220,000 rubles in a year (120 thousand net).
PAMM accounts— this is connecting a personal Forex account to an experienced trader, after which transactions will be copied on your account.
Thus, an experienced trader can bring up to 300% of profit in a year, of which 30-60% is taken for himself (commissions for excellent work).
As a result, you can earn from 30 to 180% profit per trader on PAMM accounts. Experienced investors create entire portfolios with up to 20 different PAMM accounts.
5. Earning money on social networks
Social networks are recognized as the most visited sites. And where there are a lot of people, there will always be many opportunities for passive income!
For example, you can do:
- Create a channel on YouTube and earn money from advertising;
- Create and promote VKontakte groups for resale;
- Create a large VKontakte group and earn money from advertising;
- Create an account on Instagram and complete small tasks to earn money;
- Post affiliate program links.
6. Participation in affiliate programs
Few people know that most of the current Internet services can bring in additional money. For example, you send a friend a link to a useful site, and for this you receive a percentage of his order.
affiliate program- this is making a profit from the service where orders are made using your links. You earn from 5 to 50% from this (depending on the service).
But only a few of these build an entire business! For example, you can praise LetyShops on various forums, which allows you to save money on electronic purchases.
If your friend buys a lot of goods on AliExpress, tell him that you can save 5-10% on each purchase if you do this using LetyShops!
And not so long ago I compiled a list of the most that can bring up to 30,000 rubles a month from various forums and social networks!
7. Creating an information business
If you are a true professional in your field, why not write a book and teach other people? We are talking about creating a cool information business that will generate passive income!
To do this, as a rule, they create a personal website where they beautifully talk about what you can achieve if he buys your book or takes an entire course for 30-50,000 rubles.
In addition, you can create a personal channel on YouTube and promote it to 50,000 subscribers. After which you will have many clients.
Several of my friends are already working closely with the information business and I can say with confidence that after a few years you can earn 150,000 rubles a month (from the sale of books alone).
Do you know that about 70% of all light industrial goods are produced in China. They have learned to make high-quality things that are also very cheap.
There are really many schemes for making money from China. For example, you can open a company and participate in tenders for the purchase of equipment or open your own store in the city.
Another way to sell goods is through the Avito or Yula platform. Well, in addition, open your own online store.
As a rule, the markup on goods is 40-80% of the original cost. Thus, by selling a dozen products a day, you can achieve a net income of 100,000 rubles per month!
A business such as real estate resale is not suitable for everyone, because for this you need to have a decent amount of money. Realtors are well aware that this is a great way to make money.
For example, in Moscow, apartments at the excavation stage are being snapped up quite quickly, especially if the house is being built in a new area that is just being developed.
After the house is rented out and all the amenities have been completed, the apartments rise in price by 20-50% of the initial cost. Well, after the development of the entire area, apartments will cost 2 times more than the initial price.
Thus, with an investment of 3,000,000 million, in 5 years you can get 6,000,000 million rubles. Therefore, wealthy realtors often buy apartments at the foundation pit stage.
10. Renting office space
One-room apartments in Moscow closer to the center cost 5-7 million rubles, and such an apartment can be rented out for 40,000 rubles. That is, our one-room apartment will pay for itself in 12.5 years.
But smarter people will look towards office space, where for that kind of money you can get up to 70 sq. m and when renting from any company at a standard price of 13,500 rubles sq. m, the premises will pay for themselves in 6 years.
It turns out that buying an office is 2 times more profitable than buying an apartment. By the way, retail premises can pay for themselves even faster!
In fact, there are many more interesting ways to create passive income that never made it into one article. If you want to continue, write in the comments.
Passive income is the dream of a huge number of people. Many are trying to come up with and implement schemes that would provide stable profits without the participation of the creator. And some even succeed.
In this article we will talk about how to learn how to make stable passive income on the Internet.
Is it possible to earn passive income on the Internet without investments?
Indeed, a large number of people have achieved their dream - they have learned to earn passive income. But when other people look at them, they only see the tip of the iceberg. They see online entrepreneurs or investors who do not work, travel and live for their own pleasure, but at the same time they lose sight of how hard they came to such a life.
I want to disappoint those who believe that there are reliable and highly profitable ways of passive income without investments on the Internet that are accessible to beginners - there are no freebies on the Internet. In order to receive money on the Internet you need:
- To invest money.
- Invest your own time.
- Invest in self-education.
In order to increase your chances of success, you need to use all these 3 points. Success will directly depend on your diligence and determination.
How to make passive income on the Internet?
Yes, passive income online is quite possible. But we found out that without investments nothing will happen. The more money you want to earn in the future, the harder you need to work in the beginning.
To be honest, completely passive income is unlikely. But, at a minimum, you can delegate all your responsibilities to hired employees, devoting only a few hours a week just to analyzing your earnings.
Below we will look at the 7 best ways to earn passive income using the Internet.
1. Selling advertising on the site.
One of the most common ways to make passive money on the Internet is the creation and promotion of one or more information sites. This method has several advantages:
- High probability of making a profit. If you do everything correctly, then getting the required number of visitors is easy to predict and achieve.
- Stable results. If the site was promoted by “white” methods, then it will attract visitors without the participation of the owner for one to two years. And with minimal administration and updating for many years.
- Simplicity. Achieving results in promoting an information site is not very difficult. There are proven step-by-step instructions that will allow you to achieve results without professional SEO skills.
How to make money by selling advertising from the site?
One of the simplest and most effective ways to make money on a website is to place advertising blocks from Yandex and Google on its pages. You can see these blocks on most information sites that are presented on the Internet.
In these blocks, advertisements will be shown to site visitors, depending on what queries they entered into search engines and what sites they visited before. This means that this advertisement will be relevant to visitors, which will ensure a high probability of clicking on the ad.
As soon as a visitor clicks on an ad, a certain amount is debited from the advertiser’s account, which is divided in half between the advertising network and the site owner.
Earning money using contextual advertising greatly depends on the theme of the site and on the number and location of advertising blocks on the page. On average, from a resource with 1,000 visitors per day, a webmaster can earn about 3,000 rubles per month.
- Selling links.
Search engines actively combat the buying and selling of links. The result of this struggle was that the market for rental links was practically destroyed.
But perpetual links are still one of the most effective tools for website promotion. Therefore, a huge number of SEO specialists are ready to line up to buy a link from a quality site.
In order to sell a link, you need to register in one of the eternal link exchanges, for example: Miralinks.ru and Gogetlinks.net, or sell them directly by posting information about it on your website.
Miralinks link exchange.
- Direct sale of banners.
2. Earning money from affiliate programs.
Another highly profitable way to make money on the Internet is affiliate programs. The essence of affiliate programs is simple – attracting potential clients through referral links.
Many companies create multi-level affiliate programs. This means that if the referral you attracted attracts his own referrals, then you will receive money from the company for this. Under such conditions, you can count on passive income, because the more partners you attract, the more money you will receive from their partners.
Where to find referrals?
3. Investing.
We can say that earning money through investments is the most passive. After all, the very concept of investing is that your money works while you rest.
For those who want to try to invest their money and receive stable income from it, I have collected in one article all the best ways to invest and compared them with each other:
In fact, becoming a successful investor requires knowledge and experience. Therefore, for a beginner, it is recommended to choose the least profitable and least risky ways to invest money.
4. Passive income on social networks.
As with your own website, you can earn income from affiliate programs by selling advertising if you have a well-promoted group or account on social networks.
With today's competition, it is unlikely to be possible to do this for free, because social networks impose a limit on the number of free additions to friends or invitations to a group.
How to recruit members to a group on social networks?
5. Passive income on YouTube.
You can make money on YouTube by receiving money for views, selling advertising on your channel, or by placing referral links.
The first way to fill your channel with content is to shoot videos yourself. You don't need professional equipment for this. You can make high-quality videos using a regular smartphone.
How you record a video depends on your topic. You can simply record your screen. At the same time, you can film your face on a webcam and display it in the corner of the video.
You can also make your video as a presentation. Record your voice separately and add it to your slides using a standard presentation program or video editor.
6. Internet business.
Another way to make passive money on the Internet is to create and automate a business. The Internet makes it easy to automate business processes, which makes it easier to earn passive income.
Of course, at the first stage you will have to actively participate in the promotion and creation of your online business. But gradually, you will be able to devote less and less time to it, while receiving a stable income.
What types of Internet businesses exist?
- Online store.
In order to create an online store, you do not have to rent a warehouse and fill it with goods. You can use dropshipping and sell products that are in stock at another online store.
To do this, you need to create an online store. After this, agree with another online store that you will regularly buy goods from them and agree on a discount for what you will constantly buy.
After that, fill your website with products that are posted in your partner online store. Set approximately the same prices and start attracting visitors.
To attract visitors, you can use SEO optimization, contextual advertising, social networks, etc. After a client orders a product from you, you will buy it in a partner online store and resell it to the client, earning a discount.
You can arrange delivery yourself or arrange for a partner online store to send the package on your behalf.
- Services.
You can choose any service, even if you don’t know how to do anything. You can engage in design, legal services, repairs, etc.
To do this, you need to create a selling website or group or account on social networks. After that, find a specialist in the field in which you decide to create a business. You can hire him for a salary, as an employee, or take him as a partner.
After this, you will split up: you will promote a site or group and generate a flow of clients. The specialist will perform the work by providing services to clients.
If you cannot find such a specialist, then you can come or call any company and offer to attract additional clients to them, receiving a reward for this.
- Service.
To do this, you need to be an expert in the field in which you plan to build such a business. This could be access to a closed database or a useful service that solves a user problem.
- Infobusiness.
Selling information via the Internet is one of the most profitable ways to make money. The fact is that the monetary costs of creating information products are minimal, and they can be sold an infinite number of times.
The most common type of information products are training courses. In our information-overloaded times, it is becoming increasingly difficult to sell information. But with the right approach, this type of income is still very profitable.
7. Newsletter.
Many businessmen note that email newsletters are the most effective and profitable way to make money on the Internet. But we are not talking about spam, but about the case when users voluntarily leave their email address.
You can collect a subscriber base using the subscription form on the website, advertising the capture page using paid advertising methods, changing the e-mail with some useful information, etc. And the mailing is carried out using special services, such as Mailchimp.com, Smartresponder.ru, Justclick.ru, Getresponse.ru.
In order for subscribers to willingly read your newsletter and not unsubscribe from it, you need to send them useful information in 70-90% of your emails. And only 10-30% need to send letters with advertising or a call to buy.
Due to numerous requests from readers... So get ready, pour yourself some tea or coffee, make yourself comfortable - this will be a voluminous, but very useful article! 🙂
How would your life be different if you made a few hundred or thousand dollars a month without actively working?
Perhaps you could get busy which you have always dreamed of. Maybe you would travel more around the world. Perhaps they would move to live in another country with a better climate and quality of life. Some would spend more time with their family and take more care of their health. And someone would combine All the above! And passive income just allows you to realize these ideas.
The idea of passive income is so attractive for people all over the world precisely because it allows a person do more of what he likes and minimize what he doesn’t like.
Clarification
I want to immediately clarify one point - I have not come across any “passive” income. Almost every passive income requires some work, at least in the beginning, after which it can generate income for a very long time without requiring your active involvement. 
So, let's look at the main types of passive income.
Rent out real estate
You can purchase residential or commercial real estate for rent, or you can rent out the property you already own (for example: an apartment, house, cottage, garage, basement, attic, etc.). You can even rent out part of your home (for example, one of the rooms, using the service . You can get confused and pass through).
Rent out your home and move into a rented one yourself
Don't want to share your home with anyone? You can rent out your own, more expensive housing, and also rent another, but cheaper one yourself. The difference in these rents will be your additional passive income.
Sell your accumulated trash and junk
If you think that these are pennies that are not worth spending time on, look at how my wife and I for thousands of dollars! Many of these things have been stored since student days and have cluttered our house for years.
Turn your car into a means of earning money
You can rent out your car to taxi services, or you can use it as an advertising medium. Similar services have been present in big cities for a long time.
Deposits
Deposits are one of the easiest and an understandable way for the population to save money and earn passive income. It's simple - you give the bank your money for a certain period, for which the bank charges you interest. The return on deposits is usually low and does not cover inflation, therefore, this method of earning money is only suitable for short-term strategies.
If you know a subject (no matter what topic!), write an e-book and sell it on your website or on special platforms for selling e-books. Writing a book takes from a few days to 2-4 months, but once you write it and post it on book platforms, it can provide you with passive income for years.
Create a video training course
The idea is the same as with an e-book. If you are an expert in some field, record a training video course and sell it on special educational platforms (see the complete list of platforms for creating video courses ) or on your website.
Create or buy a ready-made online store
If you already have goods for sale or you know how to arrange supply, sales and delivery, it’s time to think about your own online store. There are services that allow you to automate delivery, storage, accounting, sales, payment acceptance, discounts and promotions, and even marketing.
Start your YouTube channel and make money from advertising
You can shoot simple videos (including on a mobile phone) - music, educational, comedy, movie reviews, equipment - anything!YouTube will show people ads before or while playing your videos, and you will receive money (with monetization enabled and AdSence connected).
Earn money from advertising on your site
If you have your own website, you can (should) enable advertising (AdSense or any other). This is done in different ways (read on the Internet) and is generally very simple. People come to your site, read or watch something, and are automatically shown an ad. You get paid for views and/or clicks from your readers. See examples of advertising at . Subscribe to my articles to see how it works in the articles :).
Credit card bonuses - No No No!
My readers know very well my opinion about plastic cards - do not deceive yourself with the attitudes “I pay off the debt on the card every month” or “I earn miles or cashback” and other nonsense. Just ask yourself the question, from what…. does the bank give you free money, miles, cashbacks and other goodies? 🙂 I explain in detail here: In a nutshell, try to get rid of this source of “income”, because... in the end you will lose much more than you earn. Trust the person who had more than 20 mega-cool cards))) Also read and watch:
Do you like photography and are you good at it? Then you can sell your pictures or videos through photo banks such as Shutterstock, Depositphotos and iStockphoto You will receive a percentage or flat rate for every photo or video sold through these photo banks. You upload your photos and videos to one or more platforms, and that's where your activism ends.
Microloans - NO NO NO!
Microloans are a disgusting tool for robbing financially illiterate and desperate people. People take a small amount “before payday” at 100-200 percent or more per annum, thinking “just think, the interest will be only 500-1000 rubles. It’s just pennies.” There are platforms that offer you to become a lender and receive a certain percentage from it. I won’t give links because... I am categorically against earning money that drives other people into a financial abyss.
Accelerated repayment of loans and debts
Every penny you pay to the bank is a penny that could be (passively) making you money! Debts, like termites, devour and destroy the financial well-being of a family. It is important to understand that for every dollar (ruble, etc.) returned ahead of schedule, interest will not accrue (for months or years in the future) and all these months or years you will be able toearn interest yourself rather than pay it to the bank.
Example: If instead of a 20-year mortgage, in the amount of 3 million rubles. (~ 50 thousand dollars. This is a studio or one-room apartment in St. Petersburg), taken for 20 years, at 12%, set aside the same money that you will pay monthly to the bank (the monthly payment will be 33 thousand rubles), at, say, 8% - in 20 years you would have accumulated an amount approximately equal to 20 million rubles (~300-350 thousand dollars) due to ! This amount would be enough to provide you with an income of 1.5 to 3 thousand dollars for the rest of your life per month! With that kind of income, you could live well in any country from east to west! By the way, this amount would put you in the 5-10% richest people on the planet! Make sure of this .
Change jobs
If you are sure that you are being paid below the market, attend interviews and change jobs! Thus, you will provide yourself with additional income for many years in the form of the difference between the old and new salaries. This can be very scary to do, because... We, people, become attached to the team, to the work being done, to status, to various bonuses, to stability, etc. We are afraid to take risks and change something. However, every fear has a price! If you're losing hundreds or thousands of dollars a year, it's time to stop being afraid and start taking action!
Ask for a raise
You can change your job for a new one, or you can ask for a raise. If you find out (and don’t just think so) that you are objectively worth more, if you bring value to the company that you can evaluate and show to management, if you are not easy to replace, ask for a raise. Read: .
Get everything from the state!
Take everything from the state what it provides by law. You may not pay (that is, you will return this tax to your family) tax on purchased real estate (up to 260 thousand rubles or 4,300 dollars), for interest on a mortgage (390 thousand rubles or 6.5 thousand . dollars), for training and treatment, etc.
My wife and I, for example, used tax deductions when purchasing real estate. This returned 130,000 rubles to the family (more than 5 thousand dollars in old money). We received all possible benefits for children, including maternity capital (450 thousand rubles or 7.5 thousand dollars).
In addition, you can getsubsidies(compensation) from the state to pay for communal services, to create/develop a business, payments to mothers under Maternity Capital certificates, try to get preferential housing (for some categories of citizens),social benefits for the birth of a child, etc.
You can buy a blog or a ready-made online business
Thousands of blogs and online businesses are created every year, and many of them end up abandoned after some time. If you can find and purchase a blog/online business with a sufficient flow of visitors, then you can make good money from it. Blogs typically sell for 24 times monthly income, giving a 4.2% (100/24) return (typically in dollars) - which isn't very high, but not very low, considering the rates on dollar deposits in banks. Plus, a blog or online business can be developed and earnings increased.
Participation in reviews, clicks and other online manipulations
Many advertisers pay money for certain actions on the Internet, such as: click on a link, leave a review, like, repost, fill out a form, etc. Accordingly, there are services (eg seosprint, v-like.ru, socialtools.ru, sarafanka.com, prospero.ru, smmka.ru, etc.), which can automate the process and connect advertisers with people who want to earn money in this way. However, calling such income passive can only be conditional.
Stock
A share is a A security that gives its owner the right to a share in the company and to receive part of the profit in the form of dividends.
Company shares can be purchased through a broker. The entry threshold is usually very low. Earnings will consist of two components - the increase in the value of the stock (bought cheaply and sold more expensive) and also from dividends that companies (though not all) can pay to the owners of their shares. However, I do not recommend that non-professional investors buy shares of individual companies, because... Without significant experience and knowledge, such purchases will be similar to betting in a casino. The best solution for an inexperienced investor would be mutual funds or structured products offered by brokers. Such funds/products include many stocks, so a sharp drop in the value of one share will not significantly affect the decline of the entire fund/product.
Bonds/bonds
A bond is a fixed income bond.Essentially, it is a loan agreement between a lender (usually national governments, municipal governments and private companies) in which you lend a certain amount, for a certain period and at a certain interest rate.
The riskiness of this instrument as a rule, very low, but the profitability is also low. However, you can (often) make more money on bonds than on bank deposits. You can also buy bonds through a broker, but the entry threshold can be high, from a couple of thousand dollars.
Mutual funds
mutual funds or Mutual Investment Funds are a pool of money from a large number of investors (like you, for example), which is managed by a management company in order to increase the value of this fund.
Mutual funds can be selected to suit every taste- industry, “blue chips”, etc. The value of your share (the part you purchased in the fund) can go into deep minus and rapidly grow upward. Therefore, this is a long-term instrument, for investing for 5-10 or more years. The entry threshold can start from several tens of dollars or thousands of rubles.
ETFs and index funds
In developed Western markets(for example, American or European stock markets) you can invest in ( Exchange Traded Funds ) or to index funds (the same ETFs linked to a specific index). These instruments, as a rule, are tied to a certain type of asset (for example, blue chips, shares of fast-growing companies, oil sector companies, stock index of the largest American companies (for example, ““), etc. There are a great variety of them and you can choose to suit every taste and risk attitude!
The Russian stock market also has, incl. denominated in dollars, but the choice is terribly small (there are about 15 of them at the time of writing this article).
You can buy these instruments (in Russia) through brokers, which provide access to foreign markets and instruments.These are very cool toolsallowing you to earn 5-10 percent or more in dollars and get rid of country risk, which is very important for you and me :) Like mutual funds, ETFsThese are long-term instruments designed for investment for 5-10 years or more. The entry threshold is from a couple of hundred to several thousand dollars. These are my favorite passive income tools!
“A dollar saved is a dollar earned!” B. Franklin.
Perhaps none of the methods described above suited you, but there is one way to make money that is available to everyone! This . Saving on yourself is unpleasant. However, saving is “smart” when you save money, but do not noticeably change the lifestyle to which you are accustomed - even exciting and reckless. Hundreds of smart saving ideas .
Investment in yourself loved one!
In all my materials I write and say that money is always a tool (like an axe, hammer or brick), but not an end in itself. Therefore, the most inexpensive investments with the highest short-term and long-term returns are investments in yourself, such as:
- investment in relationships with your spouse, children, relatives, friends. For example, an unsuccessful marriage can put an end to all your investment desires for years and decades and ultimately ruin you. What do you do to keep your relationship alive?
— investments in health- these investments generate income, ranging from savings on the costs of doctors and medications, and ending with the fact that a healthy body greatly affects the health of the “brains”, your thoughts, mood, motivation, which, in turn, affects everything in including the ability to earn more and invest better. Watch me play sports for free.
- spiritual development- we, as a rule, leave this aspect to the very end, although in life it is almost the most important. Your spirit, your mood, your attitude towards life and other people, your life goals influence everything!
What type of passive income should you choose?
Not one alone!None of the tools described above separately will be the right and good solution for generating confident and reliable passive income. Remember - “don’t keep all your eggs in one basket”! As a rule, it is necessary to combine some the tools described above. Something like - part of the assets in cash, part in bonds, part in real estate, part in mutual funds/funds or structured products. At the same time, part of all assets must be in the national currency, and part must be pegged to (for example, the dollar).
Test before invest!And one more thing - no matter what you choose - “test before invest” & “try small” - which means “test, then invest” and “try on a small scale”. You don’t need to use all your money to buy one instrument (for example, shares of a company or mutual fund) that you have not tried before. Buy it for a small amount, try it, make sure everything works well and then increase your investment in this or that tool.
Break down the risks over time!An additional strategy could be to enter one or another instrument gradually - for example, buy such and such for a certain amount every month. This will help you reduce (but not eliminate) the risks of getting into a bad instrument and losing money.
When should you start creating passive income tools?
The earlier the better! Preferably from school, student, or at least your first job. But, if you haven't done it then, it's never too late to start doing this. It’s just that the sooner you start, the more powerfully (in your place) compound interest will work, whose power grows like a snowball, only after some time. Read the amazing story of Susan, Bill and Chris and you will understand what I mean.
BUT! There is one limitation.I recommend starting to invest only AFTER how you pay off all debts (except the mortgage) and create equal to 6 monthly income (or expenses, if that’s easier for you:). And only after that you can and should engage in investments, making money, etc.
One of the most effective tools for solving these two problems (getting rid of loans and forming a fire reserve) is.
Conclusion
As you can see, there are many types of passive income. Some are very easy to understand and cheap to get into, some are a little more complex and more expensive. You don't need to limit yourself to one tool and you don't need to try to fit into too many of them.
The main thing is not to “sit” forever in the asset, who earns less than inflation (like cash under your pillow or money on deposit), and learn to invest your money in profitable (and passive) instruments. And then, one day, your passive income will start earning more than active income, and you will be able to do what brings you joy for the rest of your life!
It will be useful!
Call to action
What can you do right now? Two things:
First.On your own or with help, make an annual budget for your family, set yourself the goal of “expeditiously paying off all debts except the mortgage” and “forming a Fire Reserve” of 6 months and make these two goals part of your budget.
And the second one!Meet with 2-3 large brokers in your country and city and ask them to tell you about the tools described above, taking into account your financial capabilities and risk tolerance. This conversation will be very useful and will charge you with the necessary motivation to engage in passive income!
Few people can do a job they don’t like, especially if they do it for 30-40 years. Therefore, more and more people, from their youth, are thinking about finding decent sources of passive income. They don't teach this in school, but they should. What better way to develop creativity than not having to go to work to survive.
Before getting into the basic ideas of generating wealth, it's worth considering what passive income is. This is the profit that a person receives without the need to actively perform daily work. That is, to receive passive income, you don’t need to hang around in the office from 9 to 6 or go to the factory. In addition, you will receive your money, the amount of which may exceed the income from work. By providing such an income, you can become a financially free and independent person: devote time to your family, travel and engage in your favorite hobbies.
The most common ways to create passive income
- Create some object that implies the emergence of copyright - this could be a design, an invention, a book. Once, having written a beautiful song, the author receives passive income for using it on an ongoing basis. The legislation of the Russian Federation contains a list of objects related to copyright. By obtaining a patent, you can receive a one-time reward. The advantage of this method is that you only need to apply effort to the job once, and then receive a fee the entire time.
- Construction of a business system that assumes the intermittent participation of the founder. All that is required is to create a large or small company that will benefit people, provide jobs for workers, and bring passive income to the creator. The advantage of the method is that having created a strong company in just 5 years, you can forget about being hired. The disadvantage is the complexity of the process; it will take a lot of time and effort to achieve the goal.
- Implementation of a business franchise. This idea refers to the possibility of starting a business from scratch, but does not quite fall under the concept of passive income without investments. The fact is that opening a company will require a lot of effort, especially if you plan to sell its franchise.
- Capital accumulation. In the world of rich people, there is one “golden” rule that says: money makes money. This idea of creating passive income is one of the most popular. That is, it is not necessary to make enormous efforts to earn money in large quantities without personal participation. However, to implement the idea, a certain amount of start-up capital will be required. You can start by saving 10% of your income from each salary; after 10 years, a large amount will accumulate that can be invested at interest.