Alexey Zenkov
When someone is looking for an opportunity to earn extra money, most often they are advised to find a temporary part-time job. But what if you don't have the time or energy to do so? In this case, you need to find ways to generate passive income - making money with little investment of time and effort on your part.
Try index funds
Index funds allow you to receive income from investments in the stock market absolutely passively. For example, if you invest in a fund based on the S&P 500 index, your funds will be invested in the general market, and you will not have to think about how to manage your money and whether to sell or buy shares of certain companies. All these moments will be managed by the fund, which forms its investment portfolio depending on the state of a particular index.
You can also choose a fund that works with any index. There are funds involved in various business sectors - energy, precious metals, banking, emerging markets and others. You only need to decide for yourself that you want to do it, then invest and relax. From now on, your stock portfolio will run on autopilot.
Make videos for YouTube
This area is developing very quickly. You can make videos of absolutely any category - music, educational, comedy, movie reviews - anything ... and then put it on YouTube. You can then connect Google AdSense to these videos and they will show automatic ads. When viewers click on this ad, you will earn money from Google AdSense.
Your main task is to create decent videos, promote them on social networks and maintain enough of them to earn income from a few clips. Shooting and editing a video is not so easy, but after that you will receive a source of completely passive income that can last for a very long time.
Not sure if you can do it on YouTube? Michelle Phan has combined her love for makeup and art with making videos, has amassed over 8 million followers, and now has her own $800 million company.
Try affiliate marketing and start selling
This is a passive income technique more suitable for owners of blogs and active Internet sites. You can start promoting any products on your site and receive a fixed fee or a percentage of sales.
Making money this way is not as difficult as you might think, because many companies are interested in selling their products in as many places as possible.
You can find partnership offers either by contacting manufacturers directly or on specialized sites. It is best if the advertised product or service is of interest to you or corresponds to the theme of the site.
Make your photos profitable on the web
Do you love taking pictures? If so, you might be able to turn it into a source of passive income. Photobanks, such as and, can provide you with a platform for selling pictures. You will receive a percentage or a flat rate for each photo sold to a website client.
In this case, each photo represents a separate source of income that can work again and again. All you have to do is create a portfolio, upload it to one or more platforms, and that's where your action will end. All technical issues of photo sales are handled through the web platform.
Buy high yield stocks
By creating a portfolio of high yield stocks, you will receive a source of regular passive income with an annual interest rate that is much higher than the interest of bank deposits.
Do not forget that high-yielding stocks are still stocks, so there is always the possibility of capital revaluation. In this case, you will receive profit from two sources - from dividends and return on invested capital. To purchase such shares and fill out the relevant forms, you will need to create a brokerage account.
Write an eBook
Of course, this can be quite a laborious process, but when you write a book and place it on marketplaces, it can provide you with income for years. You can sell the book on your own site or enter into a partnership agreement with other sites that are relevant to the subject of the book.
Write a real book and get royalties
As with writing an e-book, this is where you have to work hard first. But when the work is finished and the book goes on sale, it will become a completely passive source of income.
This is especially true if you manage to sell the book to a publisher who will pay you royalties on sales. For each copy sold, you will receive a percentage, and if the book is popular, these percentages can result in substantial amounts. In addition, these payments can last for years.
Mike Piper of ObviousInvestor.com recently did this. He wrote the book Investment in Plain Language, which was only sold on Amazon. The first book became so profitable that he created an entire series. These books are in total.
Get cashback from credit card transactions
Many credit cards provide cashback ranging from 1% to 5% of the purchase amount. You still go shopping and spend money, right?
Such bonuses allow you to provide yourself with a kind of passive “income” (in the form of reduced spending) from actions that you still perform.
Sell your own products online
In this area, the possibilities are endless: you can sell almost any product or service. It can be something you created and made by yourself, or it can be a digital product (software, DVDs or instructional videos)
For trading, you can use a specialized resource, if suddenly you do not have your own website or blog. In addition, you can enter into a partnership agreement by offering goods to sites of relevant subjects or using platforms like (American marketplace for the sale of digital information products - ed.).
You can learn how to sell goods on the Internet and earn quite a lot from it. It may not be completely passive income, but it is certainly more passive than a regular job that you have to go to every morning.
Invest in real estate
This method falls rather into the category of semi-passive income, since investing in real estate implies at least a small level of activity. However, if you have a property that you are already renting out, the only thing left to do is to maintain its condition.
In addition, there are professional property managers who can manage your property for a fee of approximately 10% of the rent. Such professional managers help to make the process of profiting from such investments more passive, but they will take away part of it.
Another way to invest in real estate is to pay off a loan. If you take out a loan to buy a property that you will rent out, your tenants will pay off this debt a little each month. When the full amount is paid, your profits will increase dramatically, and your relatively small investment will turn into a full-fledged exit program from your main job.
Buy a blog
Thousands of blogs are created every year, and many of them are abandoned after a while. If you can acquire a blog with enough visitors - and therefore enough cash flow - it can be a great source of passive income.
Most blogs use Google AdSense, which pays once a month for ads placed on the site. You can also enter into partnership agreements to provide additional income. Both of these streams of profit will be yours if you own a blog.
From a financial standpoint, blogs typically sell for 24 times the monthly income the blog can generate. So if a site can make $250 a month, chances are you can buy it for $3,000. This means that by investing $3,000, you can receive $1,500 annually.
You may be able to buy the site for less money if the owner really wants to get rid of this asset. Some sites host "eternal" materials that will not lose their relevance and will generate income years after publication.
Bonus Tip: If you buy such a site and then fill it with fresh content, you will be able to increase your monthly income, and you will be able to sell the site again after some time for a significantly higher price than you paid when you bought it.
Finally, instead of buying a blog, you can create your own. This is also a good way to earn money.
Create a selling website
If there is a product that you know a lot about, you can start selling it on the profile site. The methodology is the same as when selling a product of your own manufacture, except that you do not have to deal with the production itself.
After a while, you may find that you can add similar products. If this happens, the site will begin to generate significant profits.
If you can find a way to deliver goods directly from the manufacturer to the customer, you won't even have to get your hands dirty. It may not be 100% passive income, but it is very close to it.
Invest in Real Estate Investment Trusts (REITs)
Let's say you decide to invest in real estate, but don't want to pay attention and time to it at all. Investment trusts can help you with this. They are something like a fund that owns various real estate projects. The funds are managed by professionals, so you don't have to interfere with them at all.
One of the main advantages of investing in REIT trusts is that they usually bring higher dividends than stocks, bonds and bank deposits. You can also sell your interest in the trust at any time, making such assets more liquid than owning real estate on your own.
Become a passive business partner
Do you know a successful company that needs capital to expand its business? If so, you can become something of a short-term angel and provide that capital. But instead of giving credit to the owner of the company, ask for a share of the shares. In this case, the owner of the company will manage the work of the company, while you will be a passive partner, also taking part in the business.
Every small business needs a referral source to support sales. Make a list of entrepreneurs whose services you use regularly and whom you can recommend for cooperation. Contact them and find out if they have a payment system for referrals.
You can add accountants you know, landscape designers, electricians, plumbers, carpet cleaners, you name it. Be prepared to recommend these people to your friends, family, and colleagues. You can earn commission on every referral just by talking to people.
Do not underestimate referral programs in the professional field. If the company you work for has bonuses for recommending new employees or new clients, take advantage of it. This is very easy money.
Rent out unused accommodations on Airbnb
The concept appeared only a few years ago, but very quickly spread around the world. Airbnb allows people to travel the world and pay far less than regular hotels. As an Airbnb member, you can use your home to host guests and earn extra money through rent alone.
The amount of income will depend on the size and condition of your home and its location. Naturally, if your house is located in an expensive city or near a popular resort, the income will be much higher. This is a way to make money from free spaces in your home that would be empty anyway.
Write an application
Apps can be an incredibly lucrative source of income. Think about how many people have smartphones today. Yes, almost everything! People are downloading apps like crazy – and for good reason.
Apps make people's lives easier. Whether it helps you post beautiful pictures or keeps track of tasks, there is always an app that is useful to someone.
You may ask: if there are so many applications, why should you try to create another one. Isn't there too much competition? All this is true, but fresh creative ideas can win. If you can come up with something unique, you can capitalize on it.
Don't know how to program? No problem, you can learn. There are a lot of different courses on the Internet, including free ones. Alternatively, you can hire a developer to create an application based on your idea.
The end result is an application that will potentially generate relatively passive income.
Create online courses
Every person is an expert in something. Why not create an online course about your hobby?
There are several ways to create and deliver your own online courses. One of the easiest ways is to use sites like
How to create passive income - 14 working ways + 12 tips for beginner businessmen.
To answer the question: how to create passive income, you need to understand how passive income mechanisms work, how money is accumulated in the account, and also what to do in order to start earning money without investing your time and effort?
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.
Money comes into the account by itself.
Of course, in order to ensure that profits enter your account, you will have to make an effort, but they pay off and bring money in the future.
Active income requires constant work, visiting the workplace and fulfilling 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 full-time job.
Many 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
Government payments.
They can be received by the disabled, large families or people who have retired due to age.
Bank deposit.
Investing money in a bank against a deposit is not a great passive income, but for the most part allows you to save money.
However, nevertheless, with a large amount it is quite possible to receive not at all superfluous 3-10 thousand per month.
Sale of securities and mutual funds.
A good option for a long-term investment of capital with a view to making a profit.
However, it must be approached very carefully.
Gather all the information on the organization in which you invest your money.
The income from shares becomes large only after about 7 years have passed since their acquisition.
Own business.
A very good option for obtaining passive income, but it requires a lot of effort and time before it starts to make a profit.
Venture investments and profit.
To receive venture royalties, you need to invest in a newly opened company.
After a few years, you can start to receive a very substantial amount, depending on the amount of the contribution.
Investing money in investment and trust organizations.
Profit is formed through the redistribution of capital.
However, in this case, the risk of losing your investment is high.
Acquisition of housing under construction and its sale after construction.
A profitable option if there are funds for the purchase of one or more apartments under construction.
You buy it for 500,000 rubles, and sell it for 1,000,000.
However, most likely, you will have to make repairs, at least cosmetic.
When choosing a builder, you should be extremely careful.
Buy housing only from reliable, well-known developers that have been operating in the housing market for several years.
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.
And you can sell a site where the total number of visitors exceeds 5,000 people for 200-250,000.
You can not only earn passively on this, but also build a highly profitable business.
An alternative to the site is maintaining a VKontakte group.
One, well-promoted group can bring the owner from 8 to 15,000 rubles a month.
What if there are five such groups?
Sale of own seminars and training courses.
This option is suitable for those who graduated from a higher educational institution and have a diploma with the right to teach.
The hardest part is recruiting listeners.
However, if the topic is interesting, people will find you.
Write a book.
The royalties from the work go to the author until the book is withdrawn from sale.
Create an intellectual 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, a hairdressing place.
The average price of one seat in a salon per month is 8,000 in a small town, and a salon is more than 20,000 rubles.
Finding the best option from the many existing ones is not a matter of one day.
You should carefully consider the actions, evaluate the initial capital and decide what is best for you.
Many people, thinking about how to create passive income They don't want to do anything about it.
However, at the beginning you will have to work hard in order to reap sweet fruits in the future.
12 Tips for New Business Owners 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.
- To become a wealthy person, strive to create several sources of passive income.
- Improve your financial literacy.
- Break your cash capital into several parts and invest in different projects.
- Find a mentor or coach who has already walked your path and will give you some ideas.
- Be prepared for the fact that in order to create a good passive income, you will have to work for some time, invest not only money, but also time and effort.
You are always looking for the best option for investing and starting a business.
Look for new assets that will later turn into liabilities.
Be an educated person, read books, attend courses and lectures.
Lead the life rich people lead.
Before investing, explore all options, do not invest money at random.
Always have on hand the necessary documents confirming your investments in a company or bank.
Calculate the risks of losing 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 site on the Internet and develop it.
With a lack of capital, the site can be sold for a good amount of money.
Don't try everything at once.
Focus on one project, and when you're done, try another.
Inflaming several projects at once, you can get confused and lose investments.
How to create passive income online?
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 job that works best for you.
This may be the creation of websites, the administration of a group in social networks, copywriting, Forex trading.
To start trading on the Forex exchange, you need to go through a month-long training and make several trial trades.
At the initial stage, invest the minimum amount and develop.
Robert Kiyosaki talks about how to create passive income in a video:
How to create passive income and gain financial freedom?
In books on self-development, achievement of success and wealth, millionaires give advice on achieving financial freedom.We have selected the best ideas:
In order not to remain poor all your life, take the time to create passive income, even while working at your main 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 get a profit, invest it again.
Develop.
Financial literacy is a prerequisite for those who want to get rich.
Start at least by reading the books of the world's millionaires and billionaires and follow their advice.
People who think about how to create passive income are already one step above the rest.
Move forward, apply the recommendations we have described and become a millionaire.
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Many 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 reveal the concept of "passive income" (residual income), talk about the sources of this type of income and describe several ideas for its creation, which I use myself.
If you are already thinking about the possibility of creating passive income and strive for a life that passive income provides, then this article will be useful for you!
- This is a type of income characterized by stable cash receipts, regardless of daily activities. Chances are you've come across (or heard of) people living 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 - the income received from the capital that he has placed in a business, deposits, profitable real estate, securities, as well as income from copyrights.
For example, you are an expert in a particular field. So, you can “sell” your knowledge by recording a training course (audio or video, it doesn’t matter). You made a quality course once, and it will always bring you income when someone buys it (this can take more than one year).
With the concept of passive income, we have decided. Now answer the question for yourself:
Why do you need passive income?
Many are attracted by a luxurious life - chic beaches and houses, cars and yachts. And someone treats such a life calmly and is satisfied with what he has. I am one of those people because I understand that a luxurious life is only the tip of the iceberg.
I think the main advantage of building a passive income is that you can free up your precious time for the things you love that you can't do right now because you're "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.
2. "Money goes to money"?
The expression "money - to money" quite often justifies itself. Today it so happened that people with an average income spend all the money they earn without a trace, buy goods on credit and borrow from friends and acquaintances up to a salary or an advance.
Why does it happen that people in their 30s and 40s cannot earn a good living? Now I will answer this question.
IMPORTANT! The thing is, people don't know how to focus on asset creation. capable of solving material problems. It turns out that people drive themselves into financial slavery, which is flourishing today.
In the educational cartoon, which you will find at the end of the article, the basics of personal finance are presented in simple language and the classification of people is given depending on the ability to manage them (which category do you belong to?):
1. Zombies (financial). Their expenses exceed their income, their assets are negative. Those. they live paycheck to paycheck and are always in debt. Almost all of their money goes to pay off their debts.
2. Kamikaze (financial). Their p a incomes are approximately equal to their incomes, 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 expenses or slightly exceeds them, assets are equal to zero. They usually have no debts, but also savings. They are in the grip 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 expenses, assets are positive. They have no debts or they are minimal, they have savings. But like turtles, they accumulate slowly because they prefer to keep their savings under the mattress, and the most advanced turtles in the bank.
5. Wise men (financial). Their income exceeds their expenses, assets are positive. They differ from turtles in the level of investment. Net asset investments generate passive income for them.
Did 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 strongly advise you to read books on financial literacy by the famous businessman and investor Robert Kiyosaki. And make sure to read these books to your children. Start with books Rich dad, poor dad and Cash flow quadrant. If you prefer books in a "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 - you pay for an apartment, for a school, for a hairdresser, for a concierge at the entrance. You are giving away your money to everyone, but not to yourself! This is a fatal mistake for everyone who has not yet built a passive income.
You must first of all “give” money to yourself, and therefore to everyone else! Thus, you will begin to create your asset and then you can increase it by investing in your business or in some other way (which we will discuss below).
Here is a simple exercise. You can easily become a millionaire if you save only $1 a day! Don't believe. Then open any deposit calculator on the Internet, for example, this one. And you will see that if you refuse one cup of coffee a day for 30 years (figuratively speaking), you can become a “hryvnia” or “ruble” millionaire.
Can't believe?! Look at the screenshot: a deposit at 12% with monthly top-ups of only $30 ($1 per day) with a monthly capitalization will turn into 2.7 million hryvnias or 7 million rubles ($108,000). And it's only $1 a day.
TIP #2. UNDERSTAND that the one who works all day has no time to make money!
John Rockefeller said: "He who works all day has no time to earn money!" Consider his words.
Indeed, working at an enterprise, in production, in an office, no matter where, people earn on “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 use.
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, he may go to shops, cafes, and at home - dinner and TV. Naturally, such monotony does not set you up for progress in the future, especially if you take into account that many earn money by doing what they don’t really like to do.
Naturally, the creation of passive income is preceded by active work for a certain time (it can be several months or several years). But then you can leave your “unloved job” and enjoy life.
TIP #3. GET knowledge in the field of personal finance.
The well-known financial literacy specialist Robert Kiyosaki, whom I mentioned above, DETERMINED WEALTH BY THE LONG 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 permanent passive income.
There are several versions of the Cashflow game - 101, 202, 303 and 404. Each of them teaches the skills of investing, building your own business and competent handling of personal finances. Don't think it's 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 big business.
You can buy a game in a bookstore, but it will cost 30 or even 50% more than in an online store. You can order the game on a trusted site (online store) ozon.ru with free shipping. Here is the link Board game Cash flow 101 (2016 edition).
If you want to learn more about the CASHFLOW game, I recommend this interesting and useful with a detailed description.
IMPORTANT! I think you have already understood that in order to build a passive income, the first thing you need to do is learn financial literacy. Neither 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. Further we will talk about this. You just have to choose the method that suits you.
Many are not satisfied with the fact that they have to wait (months, years). But we need to get out of this psychological trap. Think about it, the working age lasts 25-40 years, ending with the 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 what you don’t really like, but securing financial independence for ourselves is “beyond our strength.” But you will have the opportunity to retire much earlier than the period set by the state (not at 55 or 60 years old, but at 35-45).
Are you sure you want to create passive income to have more free time at your disposal? Then begin TODAY to act decisively in this direction. Decide and act!
So, more about the types and methods of creating passive income
There are 4 types of passive income:
- investment (financial),
- intellectual,
- marketing,
- legal (relying on the 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 how you can provide passive income.
1st view. Investment (financial) passive income
It is created in case of investment (investment) of funds in certain financial instruments, objects. From the investment, we receive a certain amount in the form of interest or profit.
Sources of income can be:
- the property;
- Bank deposit;
- securities;
- our business (if we buy it);
- equipment (if rented).
2nd view. Intelligent passive income
Sources of income can be:
- Author's fee;
- Patent for an invention (technology)
If you do not like the idea of creating an information product yourself, you can earn income from the promotion of other people's information products through affiliate programs. I myself receive income from this online business. I consider Evgeny Vergus the main expert in making money on affiliate programs. You can immediately start earning in the process of studying his course "WORKSHOP OF PARTNER SALES". You can easily reimburse the cost of the course by studying the course and earning at the same time by advertising affiliate information products. *
3rd view. 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 that is rented out (rented). One or more options are possible.
Personal branding involves using your name for commercial purposes.
For example, screen and sports stars are often involved in the filming of commercials, thus becoming the "face" of a particular brand or company. For using their name, they receive decent fees.
In this case, the 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 view. Legal passive income
I think there is no special need to dwell on this species. I will only note that these are payments that are due to you “under 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 its creation.
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, know the basic principles of marketing, then you can organize passive income, practically from scratch. It is not for nothing that the organization of passive income using the Internet is becoming more and more 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 website even if you don't have 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 make your site ready for filling. Here is the link .
To organize a passive income using your website, of course, you will need a certain amount of time (from six months to two years). This time will be required for regular work on your project (several hours a day) in order to improve and optimize it.
Do not be mistaken that by creating a site, you have done everything necessary to receive passive income, and now you can “sit back”. Not! To turn the site into a full-fledged "money machine" you will have to work on it for 1-2 years. But you will start receiving the first money within a few months after the start of the project.
After you turn the site into a "money machine", it can be sold (ready-made business!). Moreover, the proceeds from the sale of the amount may exceed the amount of monthly passive income by 20 times.
For example, my colleague bought a 3-year working site for 1,500,000 rubles.
The arithmetic is simple: If your site 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 websites that generate income and organize your business in this way.
Ways to make money on your site:
- placement of contextual advertising;
- placement of paid advertising articles;
- sale of advertising spaces;
- placement of affiliate links;
- sale of own training courses.
2. Intelligent product
Possessing a certain talent, it is possible to create your own intellectual product (book, technology, training video, etc.). This product can become a source of your passive income if you start replicating or renting it out.
Consider an example of passive income, when an intellectual product (a book) made the author a millionaire. Today, perhaps, it is difficult to find a person who does not know the name of JK Rowling. But it was the Harry Potter books that brought her a multi-million 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, which, without 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 options for passive income. For example, construction, commercial or industrial equipment and other expensive items. Especially since passive income from real estate is often lower than from equipment.
For example, when 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 a tool for 100 - 500 rubles per day. The tool will pay off in a fairly short period of time (less than a month).
4. Securities, pamm-accounts, banks, mutual funds
One common way to create passive income is to invest in financial instruments.
Investing, in a way, can be seen as a business. But to become a professional investor, you must first learn this complex topic. You can learn more about financial instruments on this useful website. Club of private investors "Where to invest money - ways of investing".
Of course, there are advantages in investments (higher income compared to a bank deposit), but they also have disadvantages, namely: high risks.
Pamm accounts, mutual funds and securities are not able to provide a stable income (excluding bonds). The risk of losses is great. Learn it!
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 can be called sociability. Because in this case, you will need to be able to communicate with people, win them over, ensuring the friendly nature of communication. The main thing is that you do not fall into the 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 don't have big enough finances, the network can provide start-up opportunities with little to no investment. Thus, your income will gradually turn from "active" to "passive".
The most difficult step towards your business is the banal adoption of a final and irrevocable decision. It is best to start with a simple business without investments. With organization ideas business without investment for beginners entrepreneurs read . The information in this article will help you organize your business and create passive income from scratch.
Let me give you an example of passive income. I built my own vending business - I bought several payment terminals (invested my capital), installed terminals in supermarkets under a lease agreement. The terminals are collected by a third-party organization under a maintenance contract. I receive income that can be called passive, although I participate in it (I make settlements with my counterparties). It takes quite a bit of time for this business - 1-2 days a month.
I highly recommend investing in a vending business, where vending machines work for you, and you receive income. The potential of this business, based on statistics, is huge!
5. Recommendations and tips for gaining financial independence
You have already got 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 get started. Once you make up your mind and start taking action, you will have the opportunity to gain financial independence, leave your “unloved” job, start traveling and do what you have been dreaming of all your life, such as charity.
1) Take the time to build assets.
Don't limit yourself to income from your main job. Think about what you can do to make it 1 time, get money many times - replicate your efforts!
I hope that you do not aspire to a “beggarly” existence, which, unfortunately, a pension can provide.
2) Strive to organize several sources of passive income.
In this case, you protect yourself from possible risks: the loss of one source can be compensated by another. And at some point you will support.
How important this is, he described very well in his book.
3) Improve your financial literacy
Self-education is the first thing you should do! Invest in yourself! I recommend that you carefully read books that are considered fundamental: Robert Kiyosaki "Rich dad, poor dad" and Bodo Schaeffer "Money or the ABC of Money", - they will help to better understand 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 the desire, time and certain knowledge.
Watch this educational cartoon about passive income so that all the puzzles fit into a clear picture and there is confidence to start moving towards creating passive income. You should start with self-education in personal finance. It is also important to pass this knowledge on to your children!
I wish you all confidence and determination!
I managed to create several sources of passive income, so you can too!
Write in the comments which category of people in terms of finances you belong to and did you manage to move to a category closer to the 5th?
Subscribe and get the most interesting blog posts - subscribe below. When you subscribe, you will receive for free the first biography of Elon Musk - one of the leaders in financial literacy at the present time.
How to create passive income in 2018 and get a steady profit without putting in much effort is a topic that interests almost anyone.If you are close to the idea of living on passive income , read this material - we analyze the possible options.
Types of passive income
Source of passive income can be both material value and intellectual work. The main options for generating passive income boil down to the following:
- interest received on a bank deposit;
- profit from the sale of securities or dividends accrued on them;
- income from the rental of real estate, land, business, equipment and other material assets;
- copyright income.
But to the widespread messages in social networks, which promise quick and easy passive income on the Internet, you should be skeptical and not invest in dubious online projects, the mechanisms of which you do not understand.
Let's first look at options that require an initial investment, and then get acquainted with ideas that will help create passive income without investment or with minimal material investment.
Passive income from property rentals
Real estate rental income is an obvious passive income source when you have something to rent.
When it comes to options, there are a lot of them.
You can donate:
- a room in your own apartment;
- separate housing (own or bought with a mortgage);
- premises for a commercial facility.
Renting a room
The option of renting out a room in an apartment will allow not only to share utility bills with the tenant, but also to receive a constant amount of money from him, on which you can live. In this case, it is convenient to monitor the safety of housing. But, of course, this way of obtaining passive income in terms of comfort does not stand up to criticism and is not suitable for everyone.
Renting a separate apartment
Rent can be long-term (for many years) or short-term (for example, daily rent of an apartment). The latter option is considered to be more profitable in the future, but also more troublesome, since you will not only have to contact constantly changing customers, but also carefully monitor the appearance of the object being handed over.
Renting an apartment bought with a mortgage
One of the varieties of obtaining rental income is the method in which an apartment bought with a mortgage is rented out. Monthly installments of tenants partially or completely extinguish the payment on the loan. After the entire amount is repaid, the ability of the apartment owner to receive a stable passive income will increase significantly.
Leasing commercial premises
As for making a profit from commercial real estate (for a shop, office or warehouse), here the owner will need to comply with a number of regulations and initially be ready to invest in refurbishing the premises.
Strictly speaking, this type of income is not completely passive, since it is still necessary to maintain the premises in a “commodity” form, as well as to make some organizational efforts. However, it is possible to hire a professional property manager who, for a percentage of the profits, will take over the management of the rental process.
Income from the rental of other material assets
Theoretically, you can rent out everything that has material value - a car, commercial or construction equipment, household appliances, inventory and even clothes
So, high-quality repair equipment, for example, a puncher, can cost 15-20 thousand rubles, you can rent it for 500 rubles a day. With a high flow of customers, it will be possible to recoup the investment in a couple of months.
Purchase of housing under construction with further sale
Another way to earn income from real estate transactions is to buy an apartment under construction and sell it after it is put into operation.
The risk of this method is not only that the developer may be unscrupulous or suffer from the economic crisis and fail to complete the object
Real estate prices for several years, while construction is underway, may change, and not always in the direction of rising prices. There are cases when investments of this kind ended both with a 100% profit for the investor, and situations when the apartment after the completion of construction was estimated at the same amount that the buyer paid for it at the stage of excavation.
But in general, this method remains interesting for investors who have the opportunity to invest money in shared construction and receive, after a while, if not a constant, but tangible income.
Income from bank deposits
The income from a bank deposit will directly depend on the initial investment: the larger the amount, the higher the profit. However, no less important is the term of the deposit and the possibility of capitalization of interest (addition of interest to the principal amount of the deposit).
As a rule, deposits are of two types:
- deposits from which you can withdraw interest every month;
- deposits, the interest on which is added to the main deposit.
It should be noted that interest rates on deposits in Russian banks are still quite modest, and in order to receive passive income from a ruble deposit, which will allow you to live comfortably, you need to have several million on your account.
Investments in securities
Holders of securities can count on annual dividends, however, the assets must be chosen correctly.
Beginners are advised to give preference to preferred shares of large companies. Their advantage over ordinary shares is that dividends on them are guaranteed.
Another suitable option for beginner investors is investing in mutual funds or ETFs. The essence of mutual funds is that investors buy shares in the property of the fund, and professionals manage it. When investing in a mutual investment fund, you should study its rating, the nuances of entering and exiting a mutual fund. And it should be borne in mind that even if all the conditions are met, the profitability of this financial instrument is not guaranteed.
We talked about what an ETF is and why it is profitable.
Options for obtaining passive income without investment
The passive income ideas discussed above require material investments. However, even without investments, you can create a source of passive income for yourself. True, to begin with, you will have to work hard and invest not money, but your time and intellectual work.
Hobby monetization
If your hobby is the production of any valuables, art objects, jewelry, clothes, furniture and decor, then you can make very good money on it. And in the future, turn it into the main source of income.
You can sell the fruits of your labors on your own page on the social network or by registering on special trading platforms, fairs of craftsmen
Intellectual Product Income
Photos, books and articles, software, a mobile phone application, a training lecture or a webinar - all these are the results of intellectual work, for which, if used, the author should receive royalties and deductions.
Getting cashback
It is unlikely that you will live on the amount of interest returned after purchases on Internet services or with bank cards, however, you should not miss this opportunity.
Non-passive income
Summing up, it is worth mentioning not the best ideas for passive income. The point is not that these ideas are unsuccessful, but only that there is no question of “passivity” here.
Options such as starting your own business or growing into a network marketing structure often make it onto lists of income streams that operate without the involvement of an owner. However, it should be borne in mind that they will not become so immediately.
It will take a lot of money, effort and time to develop your business from scratch and make it work on its own
The same applies now to the promotion of your own website, blog or YouTube channel - the development of a full-fledged competitive resource today requires significant investment and the involvement of professionals.
Each of us dreams of financial independence. However, for the most part, we are forced to work actively from paycheck to paycheck, feeling the eternal fear of losing our job as our main source of income.
Meanwhile, there are options for the so-called passive income, for example, we told in detail. Such earnings do not depend on current activities, funds are credited to the account due to thoughtful investments made earlier. You can lie on the beach and earn passive income as the only source of funds, or you can work peacefully in the office, along the way getting a nice increase in income and not worrying about a possible loss of work.
Today's selection presents the best sources of passive income. Of course, most of the ideas from the top 10 require a certain start-up capital, but there are also ways that allow you to lay the foundation for future income without investment.
10. Credit unions and trusts
Unlike bank deposits, such investments bring a higher income. However, the risks here will be much higher. Credit unions and trust funds do redistribute capital so that money will work and generate income, but only if fund management invests it wisely.
Investments in securities can bring a stable income if the investment is made by a specialist. Therefore, such investments require at least minimal knowledge of the state, trends and laws of the securities market. Otherwise, it is better to entrust the funds to professionals, paying attention to mutual funds, which will be discussed below.
8. Passive income on the Internet
- an investment project created on the principles of a financial pyramid, operating on the Internet. The income of investors consists of the funds of newly attracted investors. Investing in HYIP will not allow you to relax - in order not to lose everything, you need to regularly monitor the status of the project.
7. Highly profitable investment
If the investor is not attracted by the independent acquisition of shares or the game on the currency exchange, then the funds can be invested in the most or transferred to an experienced trader. Naturally, the owner of a PAMM account will withhold a commission from income for their services, but professionals better navigate the market and know the most profitable ways to invest.
6. Playing on FOREX
To play FOREX, you need to go through a minimum training in order to master the principles of trading. In addition, trading requires constant attention, which makes income no longer completely passive. However, with a combination of financial literacy with a certain amount of intuition and luck, Forex earns fortunes.
An excellent option for obtaining passive income, however, it requires an impressive investment at the initial stage. After all, not everyone has real estate to rent. If there is an object, then it can provide a stable income from several tens to several hundred thousand rubles a month.
4. Building your business
If at the initial stage a new business requires a full commitment of energy and time, then after a while a successful business can start working like a well-functioning mechanism that does not require the constant presence of the owner. we presented earlier.
Sites allow their owners to earn money by placing ads. However, in order for a web page to become a source of passive income, it must be filled with interesting and useful content, promoted on the network, and then maintained in this state.
Unlike a bank deposit, mutual funds offer a higher return. True, the risks here are higher, however, they allow you to entrust funds to professionals, as well as determine an investment strategy. As a rule, large companies offer several mutual fund options - from the most reliable ones with a lower income to high-risk, but more profitable ones.
1. Bank deposit (Deposit)
The list of passive income sources is headed by the simplest and most understandable way to invest. Currently, deposit insurance covers funds in the amount of up to 1,400 thousand rubles. If you plan to invest more money, then it is better to distribute them among the most.