What is passive income and how to create it for an ordinary person? How can you live on the percentage of your investment and never work again. Read about all this below.

1. What is passive income

Passive income- this is a constant and stable source of income that does not require any time costs (or they are minimal)

The main idea of ​​passive income is to create eternal sources of income for yourself and continue to receive profit from them on an ongoing basis. That is, we once created something and then we do nothing in order to receive money. For example, the work we are all used to is an active source of income, since payment is made only when the employee goes to work. Therefore, you need to constantly spend your time.

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

The earlier you think about creating a passive income, the more opportunities you have. You will be able to accumulate funds faster and more to implement your plans. And the majority have plans: to create financial freedom for themselves and no longer work, but do what they like.

The benefits of passive income

For example, you can set aside money for a bank deposit every month and save a good amount in a year. For 3 years, this amount will be even more solid and perhaps even a percentage of it will be enough for you for some needs.

3.1. The 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.

For example, if we put 1 million rubles at 10% per annum, then in a year the amount will be 1.1 million rubles. Now, putting the same money in the bank at the same 10% per annum, in two years the amount of 1.21 million rubles will be in the account. During the second year, the capital grew by 110 thousand rubles, and not by 100 thousand rubles, as in the first year.

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.

I cover this topic in more detail in this article:

• Develop your financial literacy. To do this, read books about investment, trading, the philosophy of wealth. You can start with Robert Kiyosaki and continue with exchange literature.
• Create new assets regularly. Look for new opportunities, they are always there.
• Create multiple sources of passive income. Relying on just one carries risks.

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 difficult at all and can be done by anyone:

1. Pay yourself. As soon as you have received a salary, first of all set aside a part of the funds for yourself (at least 10%). Usually people, on the contrary, repay debts and spend money, and save what remains. This is a habit of poor people, eliminate it from your life.
2. Save what you put aside. This rule implies that deferred funds cannot be spent.
3. Multiply money. It is necessary to invest money in reliable assets in order to constantly increase your capital. We will talk about the sources of passive income below.
4. Save the multiplied. The resulting profit is best reinvested so that savings grow faster. No need to invest in dubious and overly risky assets.
5. Create several types of assets to minimize your risks. Whatever your total reliable income, it will be even more reliable if you distribute money among several such sources.

4. Sources of passive income

There are many sources for creating passive income. Each of us has our own knowledge, skills, opportunities, wishes, therefore, only you can decide for you what exactly to do. We will only consider in detail the basic options for stable sources of money (for sure, you have already heard about many). We will focus on a mathematical basis to calculate how profitable each option is.

How many sources of passive income you will have is up to you. I can only say that the more of them, the more reliable and richer your life. Therefore, follow the Pareto principle: 20% bring 80% of the result. Put in small efforts in different industries to reap the greatest rewards.

4.1. Bank deposit - a source of passive income

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

There are a lot of offers on the market of bank deposits. Each bank offers its own line of deposits. If you spend literally 10 minutes, you can choose the most profitable for you. This can increase the yield by 1-3% per annum.

You don't have to worry about losing money. All deposits are insured by the DIA for the amount of 1.4 million rubles (including interest). That is, it makes no sense to deposit 1.4 million rubles in one bank. It is better to put a little less, so that the interest that will accumulate will be insured. For example, if we are talking about a rate of 8% per annum for a year, then it would be logical to put the amount of 1.27 million rubles and sleep peacefully.

How much can you earn

The yield on the deposit will change at each moment of time, so you should check the relevance of the information. As of 2018, you can find deposits with a maximum rate of 8%. In more reliable banks at 7% per annum. These are almost the smallest rates on deposits in the new history of Russia. Previously, there were always offers at 10-12%.

• Reliability of investment (the amount is insured by DIA)
• predictable income
• No action required from the investor
• You can invest any amount
• There is no way to "break loose" and spend money, because. it is necessary to break 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 can not store solid amounts of more than 1.4 million rubles in one bank

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

• Tinkoff. 6% per annum on the 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 the balance. Amount up to 300 thousand rubles.

Summing up, 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. Real estate

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

Real estate can be earned 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.

There are the following types of real estate investments:

• Residential (apartments)
• Commercial (garages, office space, 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 need any repairs. However, this situation occurs 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 because of its high cost. Objects are different, but usually a good place costs as much as 3-5 one-room apartments. Therefore, many people would rather choose the option of buying 3 apartments than one such object.

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

What is the yield

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

Of course, it is worth counting on the fact that real estate will rise in price over time, but this is an extremely long process. For the growth of its value in the country as a whole, there must be economic growth. Otherwise, due to wage cuts and high inflation, no one runs the risk of getting into mortgages, even with low rates.

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

• Low yield
• Low liquidity (when selling, you will have to look for buyers for the average market value, plus another 2-3 weeks to complete the transaction)
• There are real estate overheads
• Large investments (apartments cost at least several million rubles)

4.3. Securities

The securities market is traditionally considered one of the most profitable options for increasing money. Yields here are on average 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 high liquidity allow you to quickly and efficiently manage your capital. Anyone can enter the market, and for this it is enough to have a small investment. I would recommend entering the market with amounts from 100 thousand rubles.

To open a brokerage account online, you can use the following brokers:

These are leaders in the provision of brokerage services in the market. I recommend working with them. They have low commissions, a wide range of trading instruments.

Many do not like to go to work from 9 to 6, and how to live without hired work is not taught at school. However, the idea of ​​sustenance by interest and dividends exists in the minds of the masses. Financially literate people have heard about the sources of passive income, and real purposeful businessmen are looking for how to create passive income from scratch.

What is passive income?

The idea of ​​passive income comes from researching and studying the topic of financial independence. It is those who set out to get rich or achieve financial freedom who seek to build passive income, which is also residual income.

Passive income is a profit received by a person without the need to perform daily “active” work, to conduct a permanent professional activity. Namely: work from 9 to 6 in the office or freelance (remote work), exchanging your precious time for money. In any variant of earnings, where the employee's time is exchanged for the employer's money, one can speak of labor or "active" income.

The word “passive” hints that you don’t have to work regularly to make a profit. That is, a person lives freely at his own discretion, and money “drops” to him. However, this understanding is deceptive. As will be shown below, to create sources of passive income, you also need to sweat, however, often - one-time, or very little effort is required to maintain stable profitability.

Sources of passive income

The main sources of passive income by type of ownership are:

• bank deposits;
• securities and bonds;
• real estate;
• copyright.

Additional sources of passive income:

• raw materials;
• business operating "on its own";
• franchise;
• investments in third-party business systems.

For an employee, the possibility of having more than one source of income, a salary, is new and unfamiliar, and therefore often suspicious. However, if you look at it, having more than one source of income is exactly the way to improve your own well-being and increase capital.

Those who are looking for how to create passive income do not always understand the possibility of creating multiple sources of personal income. This means you don't have to leave your job to earn passive income. You can build these incomes in parallel. Moreover, the options for passive income are numerous, and one person can have as many types of this income as desired and manage to build.

Types of passive income

If all residual income is divided by type of profit, then the following types of passive income can be distinguished:

• dividends- from investments in securities;
• interest- from bank deposits and other investment organizations, from bonds (government securities);
• royalties– for created objects of intellectual property or received a patent;
• rental income- from the lease of real estate;
• royalty- for the sale of the franchise.

And several types of profit without special names. These are the following categories:

• operating business income- (also called dividends in the West) profits from a business for which the founder or board of directors does not need to work personally;
• profit from venture investments- income from investments in business systems built by other people; Here, the investor invests in a startup or a nascent business project, and after its promotion receives a return of funds with interest and / or regular profit from the activities of the new company.
• percentage of sales- a separate category of income that freelancers and businessmen may have. We are talking about additional profit from the volume of goods sold without the participation of the recipient of income. For example, a copywriter who writes a sales text is paid a fee in the form of a percentage of the sales profit from each use of this text by the customer during the year or other agreed period.

Passive income without investment

Is it possible to create passive income from scratch? From the considered types of passive income, it becomes obvious that some sources are built without investing money, others do not allow it.

4 ways to create passive income without investments:

1. create an object of copyright;
2. create a business system that does not require the participation of the founder;
3. create a business and sell a franchise;
4. accumulate capital to obtain residual income in other ways.

Creating a copyright object

This way to create passive income from scratch is suitable for creative people: composers, songwriters, writers, as well as inventors.

Having once created a beautiful musical composition, song, or written a novel, the author receives a reward for using his work or its elements. The list of what belongs to the objects of copyright is in the relevant law of the Russian Federation.

The patent also allows inventors to receive remuneration for the use of the result of their intellectual work.

This method is good because you need to make an effort once, and then receive a fee. However, it is clear that not everyone can create a worthwhile work of art, and copyright compliance will have to be monitored.

Creation of a business system without the constant participation of the founder

This method is a passive income business. Creating a company that benefits people, and the owner and founder - income, is real, although not easy. The vast majority of small businesses belong to the type of enterprises where the owners are employees in the positions of directors and managers.

Being the head of your own company is not bad and even prestigious, but it does not bring you closer to the goal of creating passive income from scratch. After all, what is passive income? This is the profit from a one-time invested effort, which a person receives consistently over many months or years. And if the founder works in his organization, he receives a salary. Therefore, this method will only work if the business is built as a complete system with all the necessary employees, including a third-party CEO. Then the founder will rightfully be able to say that he has created passive income.

Starting a Business and Selling a Franchise

Income in the form of royalties from the sale of a franchise will become available only after the creation of a franchise, and for this you need to either already have a ready-made and well-established business, or build such a business.

The idea is implemented from scratch, but the result does not fully fall under passive income without investments, because you will have to invest a lot of time and effort to create your own company. From the point of view of the fact that it is possible to manage only with effort and time, without financial investments - yes, this is possible, even if you have to attract third-party investors in order to finance a new organization.

Capital accumulation: money makes money

One of the most popular passive income ideas to get rich and financially independent is the idea, “Money makes money.” It describes the simple fact that it is not necessary to invest man-hours in order to earn more, even passively.

However, in order to invest money, and they began to bring more profit, it is necessary to raise start-up capital. It won't work otherwise.

Therefore, technically it will be passive income from scratch, because you need to start somewhere, but in fact you will have to save and save. You can start with 10% of each receipt of labor income, that is, wages, or any other income that is available. Thus, a sufficient amount will gradually be collected for investments in bank deposits, the purchase of securities or bonds.

You can combine capital with someone close to you and invest a larger amount in rental real estate or venture capital investments. It is important to have a detailed understanding of the subject of investment.

Top 10 Passive Income Ideas

Let's dwell on the most popular ways to create additional income without a constant investment of time.

1. Bank deposit

With the most modest percentages and additional profits, this type of passive income remains and will remain very popular for a long time. for a long time. There are several good reasons for this: firstly, the banking system is growing and strengthening, the population is accustomed to trusting banks, their activities are in most cases understandable to citizens.

Secondly, banks provide guarantees - although this sounds especially doubtful in Russian realities, the invested capital is still protected from loss or theft. With the development of insurance companies, each deposit is either insured by default or can be insured at the request of the depositor.

The choice among banks is wide, deposit options are diverse, so passive income is real even with investments of 3,000 rubles or more. There are special deposits with a higher percentage for pensioners.

2. Securities (mutual funds)

Usually passive income, the ideas of which are taken from Western popular science publications, includes profit from securities. Provide access to them and make such investments convenient for the population Mutual investment funds - mutual funds.

Although the method was especially popular before the crisis of 2008-2010, one cannot count on quick profits, because investing in shares is arranged in such a way that such income becomes tangible after a long time. Therefore, if a couple of millions in US currency are not available, then investments will have to be held for several years or decades.

3. Renting out housing or offices

You can earn a steady income from rental property. This will be precisely the residual income, since one-time efforts are required to find a tenant and repair the premises, otherwise maintaining a good condition of residential or non-residential property will require a minimum of time.

This is perhaps one of the most popular ways of obtaining additional unearned income for the population, since it does not require special education, and the amount of income can be very significant.

4. Opening your own business

In order to create passive income without investing money, many former employees are retraining as businessmen and entrepreneurs. Indeed, if you create a business that works autonomously, with its own manager and hired labor, then you can get a good income.

5. Venture investments

Passive business income is one of the most highly profitable types of investments. At the same time, the risks are great, because any company can close or suffer losses. Moreover, not every person is a born entrepreneur.

For those who are interested in how to create a passive income with high interest on invested capital, but do not think of themselves as an entrepreneur, the way out is to invest in other people's companies. If you understand who to invest in, then the passive income of the investment will be very high.

6. Create a work of art

By writing a book, writing a song or music, making an invention, you can create passive income from scratch. After all, the royalties for the subject of intellectual property will come automatically, without requiring new creative research.

7. Investments in high-risk companies

These include Forex brokers, "HYIPs" and other companies that take citizens' money and promise high interest rates. The money will go to trading on the stock exchange, which can give a high increase, but is very risky, which the firms themselves do not like to report. If you make such investments, passive income will be 18-70% per annum and even more.

8. Site creation

Your own website can be used as a source of passive income. There are plenty of web resource development scenarios here. For example, promote an information portal and turn it into a platform in the form of an advertising platform. Advertising revenue is passive income.

In order to sell something you don’t need, you first need to buy something you don’t need, and you don’t have money. Passive income implies a 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 a constant and stable profit, you need to work hard enough, think, actively invest in a business. However, in any case, a properly built passive profit scheme will “beat off” all previously invested funds.

Financial investment is the best passive income

Financial investment 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 passive income business ideas. 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 invested funds 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 ways of investing, we highlight − investing in PAMM accounts. This is a fairly new way of investing with a stable high percentage of return on investment from 20% to 90% and minimal risks with a competent approach. You can read more details in a special article.

But, nevertheless, the author's development can cost money and bring passive income. It's not about creating a musical hit, a movie or something similar. Although, if you know how to do it ... It will be about copyright in a computer program, information business or photography.

Computer program. If you have programming skills, know how to 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 you will receive passive income. 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 buying the program itself to built-in mobile advertising. As the popularity of your mobile application grows, you will receive a stable source of passive income.

Information business. This is much easier than the previous method. You just need to apply your area of ​​expertise in the right and right direction. How it works? If you have knowledge, then you can easily sell it in the form of consultations, informational assistance and courses. You can sell them in an offline business, which denies passivity - you need to travel, answer calls, and so on. Or you can create your own information channel - paid periodic mailings, webinars, participation in information sales platforms. With a good combination of circumstances and the right approach, once the created material can be sold indefinitely, maintaining its relevance.

Read also:

Photo. Possessing the talent of photography or not, but having learned, you can sell copyright photographs many times through special exchanges. These can be thematic photos - look at photobanks with wallpapers for your desktop, event - news and so on, and spontaneous - natural events.

A lot of news projects, publishers and other writers are willing to pay for a good photo to accompany their material.

A fairly large percentage of contemporaries are looking for options for passive income. People start caring about their future when they are young. Life on a small pension or, roughly speaking, "survival" no longer appeals to anyone. Preference is given to a certain amount of work done, for which long-term systematic payment is made in the future. This allows you to do what you love and not visit an unloved job, enjoy life and realize your potential, forever overcome the problem of all modern humanity - lack of time.

Deposit is the most common passive income

The most common investment instrument is a bank deposit. Depending on the size of the amount deposited into the account of a financial institution, passive income depends. Options for partnership schemes are very diverse, and each bank offers its own terms of partnership. The main essence of the partnership is that a person gives his capital to the bank for savings, and the institution pays its client a certain percentage of the amount provided for a specified period of using the funds.

Advantages: active participation of the investor in the process of capital increase is not required. High guarantees of safety and security of the deposit.

Disadvantages: a low percentage, which is completely absorbed by inflation. The rationality of the direction is justified only if the start-up capital is large enough.

Investment projects

Considering the options for passive income, it is worth noting Here, risks are added to the high probability of large profits. In this direction of investment, the purchase of shares of successful and developing companies dominates. There are only two scenarios for the development of events: the flourishing of the selected company and the accrual of solid dividends to the investor's account or the bankruptcy of the organization with all the ensuing consequences. In order to avoid adverse developments, investors are strongly advised to contact specialized professional investment centers, where experts will suggest the most profitable and less risky areas for investing.

Benefits: High return on investment.

Disadvantages: high risks, the need to have a large amount of funds.

Buying a property

Considering options for passive income in Russia, you can focus on the acquisition of real estate. You can consider not only the purchase of residential square meters, you can pay attention to commercial facilities. The property can be rented out. A very promising direction is investing in the purchase of foreign real estate. In Western countries, almost 90% of the population lives by renting out their residential property. Incomes cover not only the minimum expenses of the family, but also recreation and entertainment.

Advantages: complete absence of risks, each project pays off in full when it is re-sold by the investor.

Disadvantages: to buy square meters you need a lot of capital.

Secondary investment options

Secondary options for offline passive income are the creation of an intellectual product, network marketing, and each of the areas requires not only specific knowledge and professionalism in a particular area, but also significant efforts at the stage of primary construction of a source of profit.

A smart product means releasing something that people will be willing to pay money for all the time. It is enough just to formalize the discovery officially and patent it. Revenue will be a percentage of sales. Passive income without investments based on network marketing is only possible if you get to the top of the pyramid, but this will require a lot of time and effort, going from start to finish. Ultimately, you won’t have to work at all, since income will be generated from the labor of people from the very bottom of the structure.

Advantages: the ability to form a powerful one without the need to maintain it.

Disadvantages: high labor costs in the early stages of work.

Internet to help you

Thanks to the spread of the world wide web, there are a huge number of opportunities to form a permanent and stable source of good income without leaving home. The number of directions is unlimited. These are not only affiliate programs, own websites, but also investing in successful managers in the stock markets, and much more. Passive income on the Internet is remarkable in that it is available to almost everyone, including young parents and students who do not have the opportunity to work full time. A big plus is that all materials on organizing a source of profit can be found on the Internet, and by following the instructions clearly, the result will not be long in coming. In this case, no special education, and even more so diplomas from the university, is required.

Investments on the stock exchanges

Investing on stock exchanges is the simplest and least costly passive income. Options for inexperienced players in the foreign exchange market are not very diverse and are more limited to deposits in PAMM accounts. Simply put, the deposit is transferred to the management of a qualified trader, who, for a certain percentage of the profit, increases capital using trading instruments. Depending on the qualifications of the trader, the amount of profit from the money invested can vary from 150% or more per year. Funds can be reinvested or withdrawn. The main thing here is to study the principles of choosing PAMM account managers. There are risks of losing your deposit or part of it, but it is quite possible to minimize them by differentiating risks and allocating capital.

Advantages: the opportunity to receive income from the first month of investment.

Disadvantages: an incorrectly made decision on the direction of investment can lead to a drain on the deposit.

Personal site

Studying passive income on the Internet, it is impossible not to say about creating your own website. A popular and interesting project can bring good profits. A resource that has traffic (a constant flow of visitors) is in demand for advertising, affiliate programs and network business. If at the first stages of project development you have to spend a certain percentage of the total income and a lot of time, in the future it is practically not necessary to spend energy on maintaining the profitability of the site.

Many argue that to create a website, you need to learn a programming language and the structure of SEO optimization. In fact, the finished frame can be ordered from an agency or a freelancer. SEO optimization can be carried out independently. As an alternative to creation and promotion, it is the purchase of a ready-made working portal with a certain profitability. All that remains is to maintain the existing one in working condition.

Advantages: the level of income is unlimited. It all depends on the activity of the project creator.

Disadvantages: It takes time to learn a new area.

Public pages

Creating a public page on a social network is another promising passive income. Options without attachments are not so common, but this is exactly one of them. Specialized skills for registration of a public are not required. The constructor is at the disposal of the network user. It is enough to fill the project with interesting information and attract as many group members as possible. In the future, the prospects for earning the following: paid advertising, banners, informers, links. The most popular topics are women, men, relationships, sports and cooking.

Video blog on YouTube channel

The most popular options for passive income in the US are the creation of various kinds of video blogs, including on the YouTube channel. Profit will drip through advertising, which will be distributed within the blog. This prospect opens up opportunities not only for trading links and selling advertising, but also for direct cooperation with the advertiser. Customers are willing to pay impressive fees for reviews of their own products, for its description in a positive way. It is quite natural that the more subscribers there are on the channel, the higher remuneration its owner can count on.

Benefits: Unlimited profit threshold.

Disadvantages: the need to constantly maintain the popularity of the channel.

Why are people afraid of passive income?

Considering the options, users are repelled by the fact that there is a certain time gap between the work done and the pay. People are accustomed to constantly perform a certain amount of work and immediately receive their reward. Working for the future scares most. An important role is played by the fears associated with the fact that the resources expended will not be rewarded. No one is used to wasting time and investing money without knowing what the result will be.

In Western countries, passive income options are actively considered by millions of people. They prefer a one-time investment of funds and the loss of time in order not to think about the level of their material well-being in the future. Everyone wants to get away from daily, monthly and yearly visits to one workplace. A stable salary, which is the guarantor of stability, is gradually losing its attractiveness. It is in fashion to search for alternative ways to earn money, with big profits and minimal effort and time.

Passive income is a method of making money that does not require constant effort and work from you, you get your money even when you just sit in front of the TV and drink tea with sweets.

Surely you have noticed that most of the rich and successful people monthly receive not a small profit almost out of thin air. In fact, money doesn’t “drop” into anyone’s bank account just like that. It's all the result of hard work. Let's try to understand this issue together and learn with a minimum of effort with the help of passive income.

What is passive income

A large mass of all people are accustomed to living by standards. The monotonous lifestyle of "home-work-home" suits many. Some men and women, wanting to earn additional income, get a second or third job. But with such an approach, it is hardly possible to become a successful person. In order to live for your own pleasure and not think about whether you will “reach out” to the salary, you need to find a source of passive income.

Passive or residual income This is a type of income that does not require active actions of a person. Simply put, every month a certain amount of money for previously done work is credited to the bank account. That is, you invested money in a business, or successfully sold your creation, and now you receive a reward throughout your life (or several years).

But in fact, it is not easy to organize and receive such income. You will have to put in a lot of effort. This may take years. But it's worth it. And yet what is the point of getting money in this way?

In order to receive dividends or interest, you must have an asset. And it is these types of assets that we will now talk about.

There are several types of passive income.

• Intellectual. Occurs when a certain intellectual product is created. It can be a book, a song, an invention, a video. Subsequently, the author (rentier) receives a fee and a percentage of each copy sold, a patent.
• Investment (financial). To obtain this type of passive income, some capital is required, which is invested in real estate, securities, stocks, etc. Such deposits are the source of interest and dividends.
• Marketing. By creating a marketing network, a personal website or your brand, you can receive a certain amount of money every month.
• Legal. This is the type of income that many citizens are entitled to by law. Namely, pensions, social payments, material assistance. So, if you are part of a group of people who rely on social services. payments, then by filling out the relevant documents in a state institution, you can regularly receive money without making any effort. We will not talk about this species, because it is already clear to everyone.

A person who lives on money from passive income is called a rentier. He most often owns real estate, which he rents out, financial assets, or intellectual property.

What is the difference between passive and active income

Modern man is accustomed to survive thanks to active income. But this is due to the fact that not everyone knows and understands the difference between active and passive profit. In order to start a new life, or leave everything as it is, let's find out how passive income differs from active income.

1. Active income is received by an employee, a specialist, an employee for some work done. It can be salary, advance payment, bonus, etc. But if a person stops his labor activity, then he is not paid any money either. Passive income does not depend on whether you worked this month or not, and you receive payments anyway.
2. In order to receive dividends, interest, you must have initial capital, assets. To receive active income, you do not need to have any valuables.
3. Active income limits a person's actions. For this type of income, you can work one or two jobs. While passive income does not limit the actions of the owner. Those. financial capital can be divided into several parts and invested in different projects.
4. The risk of being left without a livelihood is higher with active income. So, when you leave your job, you will no longer receive any payments, i.e. loss will be 100%. Having passive income and investing assets in several projects at once, you will never be left without money. In case of failure of one project, you receive income from the rest.
5. Active income is preferred by people who do not understand financial matters. Therefore, they most often never achieve financial stability. Owners of passive income live for their own pleasure and do not need anything due to financial independence and prosperity.

Sources of passive income

So, we have already found out what passive income is, what types it is divided into and how it differs from active income. It's time to find out how and why you can create a source of passive income.

Let's take a look at the most popular and affordable ways to get "easy" money together.

Renting out real estate

One of the most popular and common ways to earn passive income. To receive rental income, you must at least have real estate, or a rather large capital, for which you can buy residential or non-residential space.

After acquiring square meters, you will need to work hard to make repairs, purchase the necessary furniture. Real estate can be both residential and commercial. In the first, people live and relax (houses, apartments), and in the second they work (offices, industrial premises).

With this type of income, you receive a certain amount every month, but from time to time you will have to make repairs and monitor the condition of the premises. This can be avoided by using the services of specialized firms. They will take over most of your duties, and in return they will demand about 10% of the rent of the premises.

Leasing of special equipment, equipment for rent

Renting out special equipment as well as renting real estate is a profitable business. Very often, this type of income brings more profit than renting real estate. All due to the fact that special equipment and equipment can quickly pay off. So, for example, if you have any expensive construction tool, then regularly renting it out, it will cover the cost for several months.

You can rent any movable property, the cost of which is higher than the average salary in your city. It can be the most diverse equipment (commercial, industrial, industrial), machines, inventory.

For example, one acquaintance for his factory periodically rents a car with a tower (boom) to repair power supply systems, raising electricians to the desired height to the cables. For a day they give more than 5000 rubles. Calculate the profits yourself.

Owning such equipment, you can live comfortably for more than one year.

Renting advertising spaces

Everyone knows that advertising is the engine of commerce. It is thanks to the bright promotions that trading companies have become successful. Our people are arranged in such a way that they buy and use exactly those products and services that everyone hears about. This is what many advertising companies use. They try to place ads in all sorts of places. It can be cars, public transport, billboards and even residential buildings. So why not make money on it?

Renting advertising space is a great passive income option for lazy people. All because you need a minimum of effort. This is to find an organization and offer your services for advertising on your car, house facade, balcony, etc. After that, an agreement is concluded, you place the specified type of advertising (posters, stickers, etc.) and you receive the agreed amount. The only negative may be the limited terms of your agreement. But you can always find an advertising company that wants to work with you.

Bank deposits (deposits)

One of the least labor-intensive ways to generate passive income is bank deposits or deposits. They require a minimum of effort. You will only have to find a reliable bank with the highest possible interest rate. Everything else is done by employees of the financial institution. The only condition is the presence of a certain capital, which should be invested. The larger the amount, the larger the amount of interest.

If you have several million at your disposal, then having made a profitable investment, you may not work at all. But if the amount is not large, then, accordingly, the income will be minimal. Very often, people with a small income set aside a certain amount every month for several years. As a result, their children have a good passive income.

But this type of income has a significant disadvantage. This is inflation. It is because of her that investors lose up to 10% of their income, because. money depreciates every year. This must be remembered before concluding a long-term contract.

Intellectual or creative product

This type of earnings will appeal to talented and gifted people. It is they who can create some intellectual or creative product. It can be a book, a song, a poem, some invention.

After writing the book, you will need to contact the publisher, where they will accept the manuscript (if it is really worthwhile). After the publication of your masterpiece, royalties will be paid and a percentage of each sold copy of the book will be deducted monthly. It all sounds very nice and simple, but in fact, this type of earnings has very tough competition. Therefore, only brilliant authors who are loved by millions of readers receive the maximum cash payments.

If you create any technology, you will have to patent it. If the invention is useful and its mass production begins, then your children can also receive passive income.

Own business

If you feel the huge potential of a leader in yourself, then you can try. In order for it to bring passive income, it is necessary to work actively for several years.

First you need to understand what exactly you want to do. This should be an area of ​​activity that you know well. Let's give a simple example, if a man is well versed in cars and loves transport, then it would be a great idea to open your own service station.

When the idea is "ripe", get and. Then start the business.

When you realize that your business has become successful and brings a stable income, you can think about how to delegate it (transfer certain powers to another person) and receive passive income.

In order to retire and “skim the cream” in the form of cash, you need to remember that the company you built should work like a well-functioning mechanism, and the person you entrust the management of the company will not let you down and justify the trust placed in you.

Based on the experience of many companies, we would not recommend completely withdrawing from business. This leads to bankruptcy in 90% of cases.

Selling a franchise and receiving royalties

Owners of large well-known companies can count on such a source of passive income. It does not require any capital, but to obtain it, you will have to work fruitfully for more than one year. Let's take a closer look at franchises and royalties.

In simple terms, a franchise is a rental of a brand, trademark, company management method, slogan, etc. some unknown organization. Thanks to this, the production and sale of its products under the logo of a well-known brand is carried out. As a result, the turnover and income of the start-up firm are rapidly increasing.

After the sale of the franchise, royalties (an agreed amount of money) are regularly paid. It can also be a certain percentage of the income of the firm that bought the franchise.

At first glance, everything seems easy and simple, but in order to receive passive income, in this way, you need to build a large business or a brand that will be heard.

Investing in a third party business

People with solid capital and assets can count on passive income by investing in a third-party business. The more you invest, the more interest you get.

In order to invest in a third-party business, you need to study the business plan well, calculate all possible risks, and regularly monitor the company's activities. Only in this way you will save your investments and not be deceived.

Investing in any business is a very risky undertaking. In order not to lose all the money in case of bankruptcy, do not rush to invest all your savings in one project. It is better to invest in several organizations at the same time. Thanks to this, in case of failure of one project, others will bring passive income.

Creation of a mobile application

In today's age of progressive technology, most people have a mobile device that supports various applications. Mobile apps make life easier for millions. Everyone downloads an unlimited number of them and recommends to others. Therefore, anyone can create their own application that will bring decent passive income.

• First, you need to get an interesting idea. She can help you get rich. Due to the high competition, it is sometimes difficult to surprise users, but if you do succeed, you are guaranteed success.
• Second, create an application. To do this, you need to contact specialists who, for a certain fee, will be happy to help you.
• Thirdly, place the finished product on the platforms. For starters, don't overcharge the app. Set the minimum amount. And when thousands of people like it, gradually raise the price. Or make it free, but with paid add-ons or ads.

Creating a mobile application is a fairly simple source of passive income. In most cases, it does not require large investments, and the income received can pleasantly surprise you for several years.

Creating a YouTube channel

Probably every PC user at least once watched videos on YouTube. This is really a very convenient site where you can find any information of interest (master classes, training videos, funny videos, etc.). Millions use this service every day. So why not make money on it?

To get passive income with YouTube, you just need to create your own channel and upload interesting, and most importantly, useful videos. It can be varied, ranging from a video of funny animal behavior to a master class on repairing a washing machine. It all depends on what you can do.

Very often, a start-up company lacks recommendations that will ensure regular sales. If you have a wide circle of acquaintances and close cooperation with a large number of firms, then passive income from recommendations is created just for you.

So, communicating, you will find out that someone needs the services of an electrician or a designer. You can recommend this or that company and receive a monetary reward or a certain percentage for this. The main thing is that in this organization there are payments for recommendations.

Maybe the amounts will not be sky-high, but it's better than nothing. The lack of start-up capital is the main advantage of this method of obtaining passive income.

Passive income on the Internet - your website or blog

I started to deal with blog sites (article sites) a long time ago, but I did not turn them into passive income. I developed them for sale or temporary income from advertising and as a rule they did not stay with me for more than 1 year. But now that I already have several main activities, why not slowly start acquiring assets with passive income. So I created a website a few years ago, which now brings more than 100,000 rubles. only on contextual advertising without my participation. And what's more, I did not stop there and made several more sites that are now generating income.

What is good passive income from websites?

The fact that articles will be read constantly and search for information constantly. Having written an interesting article 1 time, it will bring you a lot of traffic from search engines and will bring readers constantly. And that means income. Blog development is about creating interesting content (articles for example) and attracting readers. When there are readers, you place contextual advertising and earn on clicks on it. It's very profitable. Having swung a blog a little, you will already be making a profit, and with each increase in readers, the profit will grow. And then you can do nothing and only occasionally publish articles, and the money will still drip in this plus. Or you can put the editor in charge of your site or several, as we do.

If you plan to develop this direction, then read the section on. There you will find useful information, and if it is not enough, then ask questions, we will add.

Investments in the purchase of information sites

If you do not want to create a source of passive income in the form of a site, as I described above, then you can buy sites with income. But for this, you must at least understand the topic and go all the way from creating your sites.

Affiliate programs as passive income

I already wrote an article about . And this source of income can be made passive. If you work well in this direction and a lot of people will be registered using your affiliate links in those services or stores on whose affiliate program you earned, then all further actions of these people will also be paid to you.

I still get money from many of the services I referred people to a few years ago. This is a small income, but comparable to renting an apartment in Omsk.

We hope that everyone who reads this article has already understood the importance of passive income and the main differences from active income. Now let's try to figure out together how to achieve this coveted financial independence.

1. Start with yourself and educate yourself. In order to make assets, capital, business work productively, you first need to study the theoretical part. Start reading books by famous financial experts (eg Robert Kiyosaki, Bodo Schaeffer, Robert Allen, etc.). Thanks to this, you will better understand all the nuances and details of financial activities.
2. In your free time from your main job, start looking for a source of passive income. Maybe you'll invent something new, patent your creation, and be rewarded for life, or maybe you have another hidden talent that will help you gain financial freedom. To make your work enjoyable, try to turn your hobby into a source of income. For example, an amateur photographer can sell his work on specialized platforms on the Internet, and a programmer will create an Internet application that will be downloaded by millions of people.
3. If you still found a way of passive income that suits you, do not stop there. Try to develop and discover new ways of earning. For example, having profitably invested money in a bank, you can still upload videos on YouTube, review existing construction equipment and rent it out.

Why the poor stay poor and the rich stay rich

The subconsciousness of most people of our time contains information that in order to feed their families and provide for themselves, they need to learn some profession, and then plow all their lives in a factory, mine, office, etc. At the same time, to fully relax only once a year on vacation. That is why the plan is moving the average person in our country.

At the same time, more successful and financially literate people have long understood that a decent income can bring not active, but passive income. Naturally, they understand that in order to regularly receive money, putting a minimum of effort, you need to work actively for a certain time. This period may be several years, but such a person is aware that he is working to create passive income that will ensure a comfortable old age.

Poor people work only to satisfy their needs. At the same time, they do not even think about creating some kind of capital that can bring money. In the best case, a person gets a job in another, or additional job.

The difference between the poor and the rich is how they spend their free time. A wealthy person gets richer every minute due to passive income, which brings profitable investments. Low-income people drink beer, watch TV and complain about the life of the people around them.

One well-known businessman and financial analyst said that a person's success is not measured by the amount of a bank account, but by the amount of time that he can not work. It really is. After all, you can deny yourself everything all your life, limit your desires and needs, while collecting savings in a three-liter jar. But such a person can hardly be called happy, successful and enterprising.

How to achieve financial freedom and independence

In order to live for your own pleasure, you need to make money work for you. This is possible if you work hard for a while. During the period of activity, we do not call for work 24 hours a day. It is enough to look for methods of alternative earnings in your free time, which in the future will bring passive income. The more such sources there are, the less work will have to be done.

It can be quite hard at first, but remember that thousands of people like you do not live on a beggarly wage, living on bread and water. They do not know the feeling of hunger and need. And all because they understood in time how exactly you need to make money.

Conclusion

Now you know everything about passive income! You might also find the article on . Do not be afraid to experiment, because everyone has one life. And it depends only on you and me how we will live it. It's never too late to start changing your life. It is within the power of both a teenager and a pensioner. The main thing is to believe in yourself and not give up, and then you will definitely succeed!

The choice is yours! And I'm waiting for comments under the article.