Passive income - ways and sources of income, types and ideas of investments. New business ideas Where to invest to have passive income

From the article you will learn what passive (residual) income is, what sources of passive income exist, as well as a description of practical ideas on how to create it

Hello, dear readers. Eduard and Dmitry are in touch.

If you are interested in the topic of making money, then you are probably familiar with the concept of “passive income”.

The dream of many people is not to work and still get paid.

If you are one of those people, then this article is for you! Every day today people create this type of income, and the easiest way to create it is on the Internet.

We will consider all the methods described below in the form of an overview, and which one to choose to build your financial freedom is up to you to decide.

1. What is passive (residual) income?

Passive income- income that does not directly depend on our labor costs and comes to us in the form of a stable cash flow.

This type of move clearly illustrates the motto “ Do it once - get it 100 times».

So, for example, you can make money by selling your own knowledge by recording your own educational video course on a topic in which you are well versed. You create such a course once, and then it brings you passive income due to the fact that it is sold many times.

You've probably heard that there are people who have not worked anywhere for years, but live only on passive income, for example from investments. They are called rentiers *

Rentier- a person who lives on interest or dividends, usually from financial assets, renting out property or the products of his intellectual labor.

When we see on TV or in photos gorgeous beaches with yachts, expensive hotels, houses and cars, then one way or another we associate all these things with great wealth and financial freedom.

Passive income is the best way to start living the life of your dreams, travel and manage your time as you wish while everyone is working.

2. Why do the poor get poorer and the rich get richer?

If you look at the life of an ordinary person 30-40 years old, in most cases he spends everything he earns, often has a lot of loans or borrows “a couple of grand” from friends until payday.

All this happens because he does not focus on creating assets that would help solve his financial problems.

Financial slavery flourishes in the 21st century, despite the fact that physical slavery has long since sunk into oblivion.

Here it is worth remembering a wonderful quote from John Rockefeller, the famous American billionaire:

Anyone who works all day has no time to earn money!

John Rockefeller

This is true. After all, people become millionaires in their free time from work, and at work people usually earn money only to cover immediate expenses.

Thus, it is worth understanding that our main asset is time, and rich people know how to use it well.

After all, if you look at the ordinary day of an ordinary person, we will see a picture that repeats itself day after day: in the morning - to work, in the evening - from work, cafe, beer, TV.

At the same time, such a person’s progress in the long term is minimal, especially considering that the majority do not like their work and their income practically does not grow from year to year.

The difference between the rich and the poor is what they do in their free time.

It is the correct use of time that is the key to achieving wealth and passive income, as one of the tools of financial freedom.

After all, in order to create passive income, need very good actively work. Most often, several months or even years. But after that you can quit your job and become a wealthy person.

According to the famous businessman, investor and financial literacy specialist Robert Kiyosaki, wealth is determined not by the size of your bank account, but by TIME, during which a person can not work, maintaining a comfortable standard of living.

In order to understand how you can turn your time into a source of constant passive income, break out of the “rat race” and gain financial freedom, we recommend that you play Robert Kiyosaki’s world-famous financial game “Cash Flow”.

3. Sources and types of passive income

Surely you are eager to find out how you can create passive income and from what sources it can come. Below you will find answers to these questions.

All you have to do is choose the method that suits you and work on it.

It’s interesting that most people say: “But several months or years is a very long time, I’m not ready to wait that long.”

This is the psychological trap. After all, people’s working period usually lasts 30-40 years, after which they receive only a pension and this, without exaggeration, “handout” becomes their only source of existence.

It turns out that we can work for 30 years in a row (in most cases at a job we hate), but we don’t have the patience to take care of our financial future and retire not at 55-60 years old, but let’s say at 30 or 40 years old. enough.

There is no need to deceive yourself, because if you have definitely decided that you want to create passive income and have more free time, then you need to take decisive action to change your life!

That was the introduction, and now to the tools and types of creating passive income.

There are only 4 main types of passive income:

Let's look at each of them and see through which instruments you can earn passive income within each type.

1. Investment or financial passive income

It occurs when we invest money in various financial instruments or items, receiving dividends in the form of profit or interest.

Sources:

• real estate;
• Bank deposit;
• securities;
• our business (when we buy it);
• equipment for rent.

2. Intellectual passive income

Occurs in the case of creating an intellectual product and its further replication. The information business on the Internet, known to many, is built on this principle: record your training course once, and then sell many copies of it.

Sources of passive income:

• royalties for a published book, song, role in a movie;
• patent for an invention (technology).

3. Marketing passive income

Occurs from established marketing systems, such as a commercial Internet site, your network marketing structure, or a personal brand rental*

A personal brand is a set of social achievements of a person that are associated with his person and can serve as a reason for using his name (reputation) for commercial purposes.

For example, many stars of show business, sports and cinema star in advertising and become the “faces” of a particular company, for which they receive a lot of money as a fee for using their name.

Sources of passive income:

• own developed structure in a network marketing company;
• commercial companies using your personal brand;
• your website on the Internet;
• a business whose profit is generated from the work of a marketing system (often an information business).

4. Legal (due by law) passive income

To one degree or another, almost all people talk about the three types of passive income described above, but not a word is said about the fourth, which we conventionally call “legal.”

But it not only has a place, but can also become the most easily accessible of all.

You can receive this type of passive income if your life situation allows you to officially receive monetary and other material incentives from the state at the legislative level.

Have you guessed what we're talking about yet?

Naturally, the most famous type of such passive income is a pension. This is a scholarship for students. But the working part of the population in most cases is deprived of such “goodies”.

Sources of passive income:

• old age pension, disability pension, military pension;
• subsidies (compensations) for utility bills;
• subsidies for starting or developing a business;
• "maternal capital";
• preferential housing for needy citizens.

4. How to create passive income - 7 best ideas

Now you know what types of passive income there are and with what tools you can create passive income.

There are different options for creating passive income, let's now look at the most popular ideas on how exactly you can provide yourself with a regular influx of money without constantly working for it.

Idea 1. Creating a website for making money online

Passive income online is becoming increasingly popular today. If you are familiar with the principles of marketing and have good computer skills, then you can create such an income even from scratch, having only a great desire to learn new things and a certain amount of free time.

For example, now the site HeaterBober.ru, where you are on and reading this article, generates passive income.

Typically, to start regularly earning $1,000 a month from your website, you will need from 6 months to 2 years of regular work on your project, several hours a day.

For some reason, some people think that it’s very easy to make money on the Internet and that by creating your own website, you won’t have to work anywhere else as soon as it appears online.

This is a big misconception. You will have to work very hard on your website, and the most difficult stage here is not to break down, but to achieve regular passive income of 100-200 dollars a month.

If you have (will) have a website that consistently generates passive income, then you can sell it as a ready-made business. Moreover, the amount for which a profitable website can be sold is 20-24 times the amount of its monthly passive income.

So if you have a website that brings in 10,000 rubles a month, then you can sell it for 250,000 - 300,000 rubles.

Thus, you can even create profitable websites for sale and build your own business on it.

It's similar to animal husbandry. You raise a cow and it gives you milk, you can sell it regularly, making a profit, and if you need money in large quantities at once, you can sell the cow itself.

You can earn money on your website in the following ways:

• selling links;
• placing contextual and teaser advertising;
• posting paid advertising articles;
• selling advertising space for banners;
• recommending to buy a product or service using your affiliate link (earnings from affiliate programs);
• selling your own training courses (Infobusiness).

Idea 2. Creation of an intellectual (creative) product

If you have the talent of an inventor, writer or musician, then create your own intellectual product - technology, book or song.

This way, you can earn passive income by replicating them (in the case of a book or song) or renting them out (in the case of technology that can be patented).

For example, the famous writer JK Rowling, the author of the Harry Potter books, now has a multi-million dollar fortune thanks to passive income from her intellectual property.

By creating an “invention,” “industrial design,” or “utility model,” you can also create sources of passive income. After all, it will be yours intangible assets*

Intangible asset- a product of intellectual labor that does not have a material form, but is capable of bringing profit to a person or company by its presence.

Such assets include patents, trademarks, and the business reputation of a company or person.

Idea 3. Renting property: real estate, transport, equipment

Passive income from real estate is the most famous of all rental types of passive income. But there are other ways.

You can rent out almost anything that has value: vehicles, construction, industrial or commercial equipment, and even things worth more than one average salary in your city.

Typically, income from real estate is less than from equipment. For example, there are entire types of businesses where construction equipment and expensive hammer drills are purchased and then rented out.

So a drill or hammer drill worth 20,000 rubles can be rented out for 500-1000 rubles a day! In this case, the payback period for the tool can be less than a month with a large flow of clients.

Idea 4. Receiving government payments in the form of passive income

If you fall into the category of socially vulnerable citizens (disabled person, large family, pensioner, etc.), then you can qualify for compensation payments of both a one-time and permanent nature (the same passive income).

To do this, you need to carefully study the civil code of the Russian Federation or contact the social security service at your place of residence.

You may not know that you should receive thousands, and possibly tens of thousands per month just for being one of the people described above. Don't neglect this opportunity.

Some citizens even pay bribes in order to receive preferential housing or a disability pension, although they are not people with disabilities.

We do not encourage you to improve your financial situation through dishonest means, but if you have a legitimate reason for government financial support, why not take advantage of it.

Idea 5. Investments in securities, bank PAMM accounts, mutual funds

Investments in various financial instruments are also a fairly popular way to generate passive income.

All these financial instruments were discussed in some detail in one of the previous articles: “”

Although they have their advantages, they are not without their disadvantages. For example, in a bank the income will be minimal and will barely protect your money from inflation.

As for PAMM accounts, mutual funds and securities, here in most cases your income will be unstable (with the exception of bonds) and will not be passive.

Rather, by investing in such instruments you can get speculative profits, but losses are also possible. Be careful!

Idea 6. Network marketing

This is one of the most affordable ways to create passive income by investing your time, since most online companies require no more than $100 to start.

If you have the talent to find a common language with different people, you are friendly and full of energy, then feel free to start in this industry and in just a few months your passive income can be compared to the average salary of a provincial city.

The “parable of the plumbing” about two guys Pablo and Bruno illustrates very well the path of a person in the process of building his passive income in network marketing. One of whom worked for money, and the other at that time created a profit-generating system:

Idea 7. Own business

A great way to create passive income is to organize your own entrepreneurial project.

If you do not have sufficient funds to open your business or do not want to risk money, then the best way for you to organize your business is an online business.

Yes, today thousands of people earn big money on the global network.

If you think that starting a business is the best solution in your case to create passive income, then you should definitely read our articles on this topic:

Thanks to the information from these articles, you will be able to organize your business from scratch in the shortest possible time and subsequently turn it into a stable source of passive income.

For those who want to open their own business with minimal risks, we offer an alternative option: purchasing a franchise, a chain of restaurants serving Japanese and Pan-Asian cuisine.

Why this project? The answer is simple: our good friend named Sergey has already opened a restaurant under this franchise in Maykop and now has a stable profit. The 1.5 million he invested paid off within six months - an excellent indicator for a city with a population of 140,000 people. In megacities, funds will be returned even faster.

Sushi Master restaurants are retail outlets of four formats: “street”, “island”, “food court” and “classic”. The partner receives a ready-made business model, marketing technologies, unique recipes and help from a start-up team. What happens next is a matter of technique.

Here's what co-owner of Sushi Master Alex Yanovsky says about the advantages of the franchise:

Now you know what passive income is, what types it exists, and what you can do to quit your job, gain financial freedom and be able to travel.

To sell something you don’t need, you must first buy something you don’t need, and you don’t have the money. Passive income means receiving profit from previously invested assets. Here, assets are considered not only cash, but also your various opportunities that will allow you to receive passive income without money. What are these passive income business ideas? Read on.

You need to understand that in order to create passive sources of income with constant and stable profits, you need to work quite hard, think, and actively invest in the business. However, in any case, a correctly constructed passive profit scheme will “recoup” all previously invested funds.

Financial investments are the best passive income

Financial investments as a passive business became known immediately after the advent of money. Now, this type of passive business does not lose popularity, and is at the top of any list of ideas for a business with passive income. This type of business is simple - invest money and make a profit. However, this simplicity also brings with it disadvantages - financial investments are a highly risky type of business, in addition to risks, passive income directly depends on the funds invested and their amount, so 10 dollars will not bring 1000 dollars in a month (unless, of course, you want to get an honest and stable income).

Among all the possible investment methods, we highlight - investing in PAMM accounts. This is a fairly new way of investment with stable high percentages of profit on invested funds from 20% to 90% and minimal risks with a competent approach. You can read more details in a special article.

But, nevertheless, author’s development can cost money and generate passive income. We are not talking about creating a musical hit, a movie or something similar. Although, if you know how to do this... We will talk about copyrights for a computer program, information business or photography.

Computer program. If you have programming skills, can build algorithms and solve other extensive problems, you can write a useful program that other users will purchase for money; the more popular your program is, the more passive income you will receive. We recommend that you pay attention to the creation of programs and games for popular mobile operating systems - Android, iOS, Windows. Programs and games for these platforms have extensive monetization opportunities - from purchasing the program itself to built-in mobile advertising. As your mobile program grows in popularity, you will receive a stable source of passive income.

Information business. It's much easier here than in the previous method. All you have to do is apply your area of ​​knowledge in the right and necessary direction. How it works? If you have knowledge, then you can easily sell it in the form of consultations, information assistance and courses. You can sell them in offline business, which negates passivity - you need to travel, answer calls, etc. Or you can create your own information channel - paid periodic newsletters, webinars, participation in information sales platforms. With a successful combination of circumstances and the right approach, once created, the material can be sold endlessly, maintaining its relevance.

Read also:

Photo. Whether you have a talent for photography or not, but having learned it, you can sell copyright photographs many times through special exchanges. These can be thematic photographs - look at photo banks with desktop wallpapers, event photographs - news, etc., and spontaneous photographs - natural events.

Many news projects, publishing houses and other writers are willing to pay for a good photograph to accompany their material.

Today you can hardly find a person who will refuse a good source of passive income that brings in money. By properly building your system of passive or additional income, you can live in the mountains, sail on a yacht, travel or do any other activity and get money at the same time.

Earnings can be either active, requiring the performance of certain work, or passive, in which actions aimed at making a profit were performed only once, and the money for them will “drip” over the next very long period of time. So, twenty methods of generating passive income.

1. Selling digital photos

A person who loves to travel, photograph beautiful landscapes, attractions and people can receive a completely stable source of passive income. To do this, you need to register with photo banks, such as Shutterstock and iStockphoto, go through moderation and post your work.

For each photo sold you will receive a cash reward minus a % commission from the photo bank.

Each successive purchase of the same photograph will generate income for a long time for the person who posted it on the photo bank site. The web platform solves all the automation of the buying and selling process of your photos. Photographs of commercial subjects are in good demand.

2. Index funds

An index fund is a portfolio of securities (shares) that are the basis of any index. Investments placed on the stock market associated with the purchase of certain index funds allow you to receive very solid passive income over a long period of time.

For example, the owner of free funds decided to increase his capital. To do this, he invests in a fund based on the S&P 500 index. The funds will be directed to the general flow, and the investor will not have to think about investing additional funds, selling or buying shares. These issues will be decided by the fund manager, and the investor will only receive the dividends due to him.

3. Shares of highly profitable companies

Creating a portfolio of shares of highly profitable companies will allow its owner to ensure a comfortable existence for many years. This method of investing free funds will bring annual profits that are an order of magnitude greater than the amount from interest rates on bank deposits. Purchasing shares requires cooperation with a brokerage house.

P.S. Despite the possible high returns on the stock market, unlike a bank deposit, there is no guarantee that you will still receive this profit and not go into the red.

4. Affiliate marketing

This method of passive income is best suited for owners of online thematic blogs or full-fledged websites. Affiliate marketing involves posting offers for the sale of certain consumer goods on a network resource. Promoting products or services in this way allows you to receive either a pre-agreed fee or a certain percentage of the sales amount.

Making a profit through affiliate marketing is absolutely easy. Currently, there are thousands of companies on the market who want to expand the geography of their business. To take part in the affiliate program, you should directly contact a representative of the seller of the selected product or service, or register on one of the sites on a similar topic.

To implement this method of income, you need to get a video camera and learn how to shoot interesting videos, and then post them on the video hosting site called YouTube. Videos can have a wide variety of content - educational films, comedy stories, music videos, etc. Ads from Google AdSense should be connected to the downloaded videos, as a result of which after each user clicks on this banner, the owner of the video will receive payments from the service.

It is very important to ensure that the video posted on YouTube is widely viewed, since the amount of cash payments depends on the number of views. Promotion of the created video can be done through the vastness of social networking sites. It should be noted that finding an interesting story and then shooting and editing a high-quality video is not so easy. However, if this process is mastered at a high level, you can provide yourself with a flow of very decent amounts of money for a long time.

Of course, to create an e-book, you must have certain knowledge, be able to express your thoughts competently and clearly for the reader, and also avoid grammatical and punctuation errors in the text. This is not so simple, however, if a person can do all this without problems, why shouldn’t he become the author of an e-book on a specific topic?

The created e-book will bring profit not for one or two years, but as long as the topic disclosed by the author is relevant. An e-book can be placed for sale on your own website or on a specialized resource that sells electronic literature.

7. Royalties from the sale of a printed book

This method of income, like the previous one, requires a certain amount of time and writing skills. However, when the work is completed, the created book will go on sale for free, and the author will be able to provide himself with a long-term source of passive income.

8. Bonuses from credit card transactions

Every modern person has at least one credit card from one bank or another. Many commercial banks hold promotions under which it is recommended that payment for purchased goods be made not in cash, but by credit card. In this case, the bank compensates the cost of the purchase by returning the amount to the client’s card account, the amount of which ranges from 1 to 5% of the cost of the purchased product. Thus, such shares of commercial banks can be regarded as a source of passive income.

9. Selling homemade goods online

With the right approach, you can sell any product or service online. These can be hand-painted paintings, embroideries, macrame and other similar products, or they can be digital products - programs, educational videos, etc.

It is best to sell your own products from your personal website. However, if there is no network resource, but there is a product intended for sale, you can use the capabilities of specialized specialized sites or social networks.

Perhaps, to some readers this method will not seem entirely “passive”, since in order to make a profit you will have to work constantly. However, there are hardly people who will not agree that the implementation of such a source of income is much more pleasant than waking up every day early in the morning and subsequent monotonous stay in a boring workplace.

One of the most popular sites for selling handmade goods is etsy.com.

10. Real estate investment

Investments in real estate cannot be called an absolutely passive method of income, since it still requires at least minimal activity. If there is real estate that is rented out to tenants, it is necessary to maintain its condition at the proper level, i.e. carry out cosmetic and, if necessary, more serious repairs in a timely manner.

Of course, you can entrust the rental business to professional property managers, but in this case they will have to pay monthly fees in the amount of 10% of the monthly rent.

One of the options for investing in real estate is to take out a loan to purchase premises, which will later be rented out. Tenants, by paying monthly rent, will gradually pay off your debt obligations to the bank. After full payment of the loan amount, you become the full owner, which means that the profit received in the future will go only to the accounts of the property owner.

Every year, tens of thousands of thematic blogs are created on the World Wide Web. For a variety of reasons, approximately half of them end up abandoned. In this situation, you need to find the owner of the resource, contact him, and then agree to purchase his brainchild.

If you have sufficient knowledge to conduct a qualified blog, which will ensure a growing flow of readers, then in the very near future advertising posted on the pages of the resource will become a good source of passive income.

12. Creating your own sales page

If you can provide the buyer with a lot of useful information about a particular product, it’s time to create a specialized selling website and start selling. The algorithm for making a profit is similar to the method of selling goods of your own making, with the difference that you do not need to produce anything. If you can organize direct delivery of goods from the manufacturer to the buyer, your profits will increase significantly.

13. Investment trusts

If you have decided to invest in real estate, however, you lack the necessary knowledge and time, you can contact the specialists of a specialized investment trust. In this case, you will simply need to buy a share in the trust. Everything else will be done by professionals, based on whose work you will receive monthly dividends. At the request of the owner of a share in the trust, it can be sold at any time at the most favorable price.

14. Passive business partnership

Sooner or later, even the most successful companies have financial problems. A lack of money may be caused by the owner’s desire to expand the scope of his activities or buy additional assets. In this case, you can provide him with your services in the form of issuing the required amount.

At the same time, you need to agree with the owner of the company so that he does not pay his debt with money, but puts at your disposal a certain number of shares equal to the amount of the debt. As a result, the owner of the company will expand his business, and part of the profit received will go to you.

Every type of business needs advertising. Private plumbers, electricians, refrigeration technicians, electronic repair specialists, etc. They will always be happy if more people than currently know about their professional activities. This significantly expands the circle of their potential clients.

Therefore, you need to make a list of small businessmen you know and contact each of them with an offer, according to which they will transfer you a certain percentage of the profit received in the course of servicing the client you brought.

16. Rent out your unused property on Airbnb

Thanks to Airbnb, residents of different countries and continents have the opportunity to travel all over the planet and pay for accommodation in selected cities at amounts much cheaper than even the most inexpensive hotels. By registering in this program, you will be able to rent out your living space to foreigners and receive very decent money for it. This method of passive income is ideal for residents of resort towns and places with many historical attractions.

17. Creating applications for smartphones

Nowadays, every person has at his disposal a smartphone, stuffed with a wide variety of applications. Applications are designed to make life easier for smartphone owners. If you can create an application that is not yet on the market, multi-million dollar income is guaranteed in the very near future. Don't know programming languages? No problem - sign up for relevant thematic courses. Once created, the application will generate income as long as people buy it.

18. Conducting online courses

Any person is a highly qualified expert in one field or another. Why not take advantage of this? Create online courses, present your unique knowledge on their pages, upload videos to YouTube pages and earn money. By the way, online courses can be made not only in the form of short films; a well-created audiobook will be in no less demand.

19. Online manual

If you don’t know how to make high-quality videos or don’t have the skills to write texts, you can create an interactive guide where you will tell your subscribers in real time how to do this or that job. The resources of the Internet are practically inexhaustible; every minute there are millions of users online, among whom there will be at least several hundred people who will be interested in the topic you propose.

20. Make money from your hobby

You can make decent money by telling your page visitors in real time what you are currently doing. This could be games, online shopping, making some crafts, making money on the stock exchange, etc. Network communication with a real person in real time is always interesting, so there will be no end to subscribers.

Passive income is such income that does not depend on a person’s regular activities. The simplest example would be a deposit in a bank: it consistently brings interest to its owner. Regardless of the depositor’s age, illness or desire to go to work, interest will be accrued to him.

Active income depends entirely on human actions. To receive it, you need to engage in some kind of activity: produce goods, sell them, provide services, extract minerals and much more.

When expanding the concept of stable passive income, one should not forget about the risks. Using a deposit as an example, we can highlight the following risks for depositors:

• currency depreciation;
• bank bankruptcy;
• force majeure circumstances.

There are also a number of inconveniences: interest is accrued after a certain period of time (for example, once a month), and the invested money cannot be used until the end of the deposit period.

Therefore, before creating a passive source of income, it is necessary to take into account all possible risks of the activity.

Proven Ways to Create Passive Income

Before you create passive income from scratch, it is recommended that you familiarize yourself with existing methods of such passive income. This will help you see all the advantages and disadvantages of the main options for passive sources of income. The article will discuss effective and proven sources of passive income. They can be used as a basis for building your business.

It is necessary to take into account that, having a certain amount of funds, it is somewhat easier to build a source of stable passive income. Without money, you will have to spend your own time and effort to realize your dream.

Registration of business and delegation of powers

This is the most effective way to earn passive income. It has a minimum of disadvantages if the business is properly organized. To create it you will need the following:

• organization of the enterprise;
• business development;
• reaching a stable level of income;
• selection of a candidate for the position of manager;
• making a profit with minimal time spent on monitoring key documentation and making important decisions.

Of course, there are risks here. Among them, the main one stands out: the responsibility and integrity of the manager. The further success of the company or organization will depend on his daily decisions. To select a suitable candidate, they most often resort to proven personnel who have worked at the enterprise for a long time.

It's not easy to create and grow a business. This requires a lot of time, money and skills. However, there are many situations when a skillfully chosen niche for running a business allows you to quickly develop it.

What you need to start your own business:

• business plan;
• starting capital (in most cases);
• official registration;
• rental of premises;
• hiring employees (if required).

Any enterprise carries risks for the entrepreneur. No one can be sure that the activity will generally generate income and not losses. Therefore, you need to weigh everything correctly before creating your own business. If everything is done correctly, the entrepreneur will have success and the opportunity to receive passive income.

Selling your intellectual property

This activity option is suitable for those who have knowledge and skills in certain sciences or specialties. How to create passive income from scratch, having the opportunity to create popular information products? They need to be implemented.

What can be considered intellectual property:

• artistic, literary and scientific works;
• created unique industrial designs;
• developed software;
• invented objects or technologies in all sectors of life.

As can be seen from the list, intellectual property can be in any field of human activity. Passive income can come from either a written book or a unique invention that helps increase equipment productivity, for example. In order for property to be individual, it must be documented. For this purpose, patents are issued and copyrights are assigned. By owning them you can make a profit from the sale of your goods/services.

The simplest example for considering the option of making a profit would be a written book. The author of the book will sell copies of the books himself or by entering into an agreement with a publishing company. The owner of the rights will receive a profit from each book sold. If it is in demand, it brings profit. If it is in demand for a long time, it brings profit for a long time.

This doesn't just apply to books. Increasingly, people are resorting to creating various programs on PCs or mobile devices. One completed project can generate passive income until another, cheaper or more useful one comes on the market.

Accordingly, to create such a source of income, a person needs:

• come up with/create something unique and in demand for society;
• confirm your rights to the invention;
• realize the product of your activities.

Disadvantages: it takes a lot of work to create unique works/techniques/technologies; the property may be unclaimed and will not bring significant profit.

Building your own retail network

Such a network can provide its owner with constant passive income. All actions will be performed by network participants, and its creator will receive ever-increasing profits. To do this you need the following:

• create your own unique products (services are provided less often);
• formalize a production and sales enterprise or cooperate with a manufacturer;
• to interest those wishing to become members of the network;
• sell them to other network participants;
• form the price of the product in such a way that part of the profit goes to the owner of the network, and part to the seller of the product.

Anyone who wants to make money in such a network must sell these goods. The more he sells, the more he earns. The main key to success is high-quality and in-demand products at competitive prices. This could be anything from cosmetics to food, medical products or unique services.

The main difference from most network marketing companies should be the following:

• providing guarantees to all network participants;
• using only safe products;
• availability of contacts for communication with management and all comprehensive information about the activities of the organization.

These factors will increase sales and employee engagement.

5 (100%) 1 vote[s]

What is passive income and how can an ordinary person create it? How can you live only on the interest from your investments and never work again? Read about all this below.

1. What is passive income

Passive income- this is a permanent and stable source of income that does not require any time investment (or it is minimal)

The main idea of ​​passive income is to create eternal sources of profit for yourself and then receive money from them on an ongoing basis. That is, we created something once and then we don’t do anything to receive funds. For example, the work we are all familiar with is an active source of income, since payment is made only when the employee goes to work. Therefore, you need to constantly waste your time.

The simplest example of passive income is renting out an apartment. You are paid monthly rent. In order to receive this money, no further action is required from you.

The sooner you think about creating passive income, the more opportunities you have. You will be able to accumulate more funds faster and more to implement your plans. Most of us dream of creating financial freedom for ourselves and no longer working, but doing what we love.

Benefits of Passive Income

For example, you can put money aside in a bank deposit every month and save a good amount over the course of a year. Over 3 years, this amount will be even more substantial and perhaps even a percentage of it will be enough for you to meet some needs.

3.1. The accumulative effect of compound interest

In mathematics there is such a thing as compound interest. Simply put, this means that over time, your savings begin to grow not linearly, but exponentially. This can be easily achieved by reinvesting the income received.

My wealth is the result of a combination of several factors of life in the United States, good genes and the accumulating effect of compound interest. Warren Buffett

For example, if we deposit 1 million rubles at 10% per annum, then in a year the amount will be 1.1 million rubles. After two years, the account will have an amount of 1.21 million rubles. In the second year, capital increased by 110 thousand rubles, and not by 100 thousand rubles, as in the first year. Even in such a short period of time, it is already noticeable that capital is beginning to work for us even more efficiently.

I agree with those who say that this is insignificant. However, if we take a calculator and calculate what will happen in 10 years, in 20 years, it turns out that the effect is already huge.

To double the original amount of money at a constant interest rate of 10% per annum, it will take not 10 years, but only 7.25 years. It will take 11.5 years to triple.

• Develop your financial literacy. To do this, read books about investing, trading, and the philosophy of wealth. You can start with Robert Kiyosaki and continue with specialized stock market literature.
• Create new assets regularly. Look for new opportunities, they are always there.
• Create multiple sources of passive income. You shouldn't get attached to just one.

3.3. Rules: how to become rich from scratch

There is a basic set of rules that everyone who wants to become rich should follow. They are not at all complicated and anyone can do them:

1. Pay yourself. As soon as you receive your salary, first of all set aside some of the funds for yourself (at least 10%). Most often, the population, on the contrary, pays off debts and spends money, and saves what remains. This is a habit of poor people, eliminate it from your life.
2. Save what you put aside. This rule implies that the funds set aside cannot be spent.
3. Increase your money. It is necessary to invest money in reliable assets in order to constantly increase your capital. We will talk about sources of passive income below.
4. Save what you have multiplied. It is best to reinvest the profit received so that your savings grow faster. There is no need to invest money in dubious and overly risky assets.
5. Create multiple types of assets to minimize your risks. Whatever your total reliable income is, it will be even more reliable if you distribute your money among several such sources.

4. Sources of passive income

There are many sources of passive income you can create. It all depends on the individuality of each of us. We all have slightly different knowledge, skills, capabilities, wishes, so only you can decide for you what exactly to do. We will only consider in detail the basic options for stable sources of money. We will focus on a mathematical basis to calculate how profitable each source is.

How many sources of passive income you will have is up to you to decide. I can only say that the more there are, the more reliable and wealthy your life is. Therefore, follow the Pareto principle: 20% brings 80% of the result. Make small efforts across different industries to reap the biggest benefits.

4.1. Bank deposit is a reliable source of passive income

A bank deposit is the most popular means of saving and accumulating funds among the population in Russia. The interest that banks offer is certainly not as high as we would like, but nevertheless, this is really the most reliable way to slightly increase your capital in the absence of any action.

There are a lot of offers on the bank deposit market. Each bank offers its own range of deposits. If you spend literally 10 minutes, you can choose the most profitable one for you. Don’t be too lazy to do this, because there are always lucrative offers in banks where the yield will be slightly higher (at least by 1-3% per annum).

There is no need to worry about the funds being lost. All deposits are insured by the DIA in the amount of 1.4 million rubles (including interest). There is no point in putting exactly 1.4 million rubles in one bank. It’s better to put in a little less to insure the accumulated interest. For example, if we are talking about a rate of 8% per annum for a year, then it would be logical to deposit the amount of 1.29 million rubles and sleep peacefully (at the end of the term the deposit will have 1.3932 million).

The return on the deposit varies due to the economic situation. You should check the relevance of the information. As of 2019, you can find deposits with a maximum rate of 8.5%. In more reliable banks at 7% per annum. These are almost the smallest deposit rates in the modern history of Russia. Previously, there were always offers at 10-12%.

• Investment reliability (amount insured by DIA)
• Predictable income
• No action is required from the investor
• You can invest any amount
• There is no opportunity to “break out” and spend money, because... it is necessary to terminate the deposit agreement and then the accumulated interest will “burn out”

• Low yield
• It is impossible to close the deposit ahead of time without losing interest
• You cannot store substantial amounts of more than 1.4 million rubles in one bank due to the risks of its closure

I also advise you to partially store your money on debit cards, which give interest on the balance. These cards also give you cashback on any purchase. I use these cards myself:

• Tinkoff. 6% per annum on balance. Amount up to 300 thousand rubles. You can transfer any amount to a special savings account at 5% interest.
• Benefit (HomeCredit Bank). 7% per annum on balance. Amount up to 300 thousand rubles.

To summarize, we can say that it makes sense to have some part of the money on deposits, because... it is a liquid and reliable asset.

4.2. Renting out real estate

Real estate has always been and will be in trend among investors. Such purchases can be visually seen and felt. However, their profitability is extremely low, but first things first.

You can make money in real estate in two ways:

1. Rent
2. Resale

For passive income, the first option is considered, since the second method is more risky and requires a constant search for new good offers on the market.

The following types of real estate investments are distinguished:

• Residential (apartments)
• Commercial (garages, office premises, warehouses)
• New buildings (investments in the construction of new facilities)

Large investors buy commercial real estate more often, since the yield from renting out non-residential premises usually brings more profit, and also does not require any repairs. However, this situation arises only during favorable periods of the economy, when GDP is growing steadily and inflation is within acceptable limits.

It is difficult for an ordinary person to buy commercial real estate due to its high cost. Objects vary, but usually a good location costs 3-5 one-room apartments. Therefore, many would rather choose the option of purchasing 3 apartments than one such property.

Since 2014, the economic situation in Russia has been quite difficult. Real estate prices are not rising. Therefore, many who invested in commercial real estate are now at a loss. Residential prices also fell, but with slightly less losses for the investor.

The rental yield is a modest 4-6% per annum. This is even less than on bank deposits. At the same time, there are still risks of damage to property by tenants and periodically you will have to invest in repairs (rarely, but such moments still happen).

Real estate will rise in price over time, but you can hardly count on it, since this is an extremely long process. For its value to increase, there must be economic growth in the country as a whole. Otherwise, due to salary cuts and high inflation, no one risks taking out a mortgage (most apartments are bought on credit), even with low rates.

• High reliability
• Real estate can actually be seen with your eyes, which is very important for many people
• Stable rental income
• An excellent option for risk diversification

• Low yield
• Low liquidity (when selling, you will have to look for buyers at the average market price, plus another 2-3 weeks to complete the transaction)
• There are overhead costs for maintaining the property
• Large investments (real estate costs several million rubles minimum)

4.3. Investments in securities

The securities market is traditionally considered one of the most profitable options for increasing money. Returns on average are at the level of 8% -20% per annum, provided that you act on the “buy and hold” principle. If you engage in trading, you can significantly increase these numbers and get 30%, and even 100%.

High profitability and greater liquidity allow you to quickly and efficiently manage your capital. Anyone can enter the market, and all it takes is a small investment. I would recommend entering the market with amounts starting from 100 thousand rubles.