💸 Passive Income: How to Create a Source of Financial Independence 📈
Every person strives for independence. And independence in the modern world depends only on finances. A person can be completely free without money, but such freedom will not make him happy. You can’t live without finances today, and this means going to work every day. But what kind of freedom can there be if you have to go to work? All this seems like a completely hopeless situation and is one of the reasons for poverty. There is still a way out of this vicious circle and the solution to this problem is to create a source of passive income.
Examples of passive income sources
What is passive income? This designation implies income that you will receive regardless of the efforts made. That is, this type of income does not imply direct participation in the process of earning money. Intrigued? Meanwhile, the progressive part of the population has long been putting passive income sources at the forefront of their wealth. But how to create a source of passive income and what can act as such a source?
Copyright
The first example of a source of passive income is copyright. This is the right to the fruits of intellectual activity. When registering a copyright, you receive a patent for an invention or a copyright certificate for works. Then you receive a percentage of all sales of the invention, while you do not participate in the production and sales process.
Despite its external attractiveness, from an economic point of view this source of passive income does not present any particular interest. After all, science and creativity are not directly related to the financial sphere.
The way to create such a source of income is to register a patent for an invention or a work of art in a patent office. However, some authors have become millionaires only by selling their own books. So do not discount such a source of passive income!
There is no need to focus on patent offices, there are many ways to make money from copyright. A good photographer can put his work in photo banks, which pay a percentage or a fixed amount from the sale of each image. Examples of such photo banks are: Shutterstock and iStockphoto.
Financial investments
Financial investments are directly related to the sphere of economics, therefore they are of the greatest importance for a person who wants to gain financial independence. The source of income here is the percentage of investments. Thus, if the money is invested in a promising business, then such a source constantly brings its owner good passive income. But the money for such an investment still needs to be earned!
The easiest way to create a source of passive income is to open a bank deposit. A person only needs to sign a deposit agreement with the bank. All other transactions occur without his participation. All that remains is to receive interest on a bank account every month! This category also includes the purchase of securities, such as investments in bonds and shares. But here it is worth remembering that the more tempting the offer, the higher the associated risk.
Property rental
The next source of passive income can be renting out property. Moreover, this can be both movable and immovable property. A sports equipment rental point can bring in excellent income. However, this format is related to business, and not to the sphere of passive income. And if you rent out an apartment and meet with a client only once a month and only for the purpose of receiving rent, then such income can be considered passive. The money goes, and your personal time remains completely free!
The method of creation in this case is the acquisition of the right to property, in other words, its purchase. The right object and skillful management allow you to give the income a passive character. Large objects, such as an apartment, a car, a land plot, are perfect for this type of investment. The task is to spend as little time as possible and at the same time get the maximum profit!
Trust management
If you have a certain amount of money and transfer the right to manage it to another person, then the income received can also be considered passive. This option is especially relevant for those who do not have the knowledge to increase money, but have formed capital. However, such an investment is associated with a high degree of risk. An example of such investments can be investments in mutual funds or PAMM accounts
It is necessary to find an organization or a person who is ready to implement such a project. You invest your capital, and then return it from the profit and then receive your percentage. Only the person must be a professional in his field, because you cannot trust a mason to buy jewelry. You must also trust him completely. The lucky one is the one who can find such a person.
Projects on the network Internet
Creation your own website or actively participating in an existing project can eventually lead to
earning money on website traffic.
There are a large number of sites that offer to publish author's articles and pay a certain amount for each view. reward for each view. It is unlikely that you will be able to make a significant amount here, but there is a reason to think. Why not create such a site yourself and not use someone else's work. The income of the site owner is always much more than the remuneration of the authors. But without the necessary skills, you will have to hire a trained person to administer the site.
To create such a source of passive income, you need to be not only a simple user, but also a good observer. Here it is important to notice all the nuances, features of the work and functioning of various resources on the Internet. Based on the knowledge gained, you can implement your project. And the transfer of administration will make such a source of income completely passive.
Own business
It would seem that owning your own business implies full employment. Experienced businessmen have long been reaping the fruits of their labor. If the first task of an entrepreneur is to implement a project, then the second task is to select personnel that will allow you to completely retire from business without risks to the profitability of the business.
A period of prosperity is always a consequence of a period of active work. It should be understood that to create a passive source of income you will have to work hard, but the results will justify all the efforts! Well, and a lot depends on the person you can trust to run your business.
The path to creating a passive source of income is unlikely to be easy. Money is conquered only by determined and persistent people. But if you have enough patience to create such a source of income, the result can exceed all expectations.