Passive income has always attracted people, it's so good to invest in something once, what to create, come up with, to patent, and then do nothing for the rest of your life and live on interest from passive income.
There are many ways to generate passive income. Let's consider and analyze some of them.
How to get passive income
Passive income is always based on some kind of action.. Income cannot come from nowhere. It is imperative that you first take some action., which will give you passive income in the future.
This action is not easy., it is often costly, it takes time to create. But the peculiarity of passive income is, that just once in your life you do something, and then for the rest of your life, or at least for a very long time, you receive passive income.
What should be done, to receive passive income for the rest of your life?
for example, buy an apartment and rent it out. Once bought an apartment, you receive passive income for the rest of your life. Don't want to buy an apartment, buy shares of companies. Every year, being a shareholder, You will receive dividends.
You don't have money and don't want to buy anything. You can create something yourself and patent it and for the duration of the patent you will receive royalties. for example, write a book, come up with a song, music.
No creativity, you can create your own affiliate network, attract partners, invite new people in the MLM structure and receive passive income from your structure. Learn about the pros and cons of building your own network will help you MLM forum.
Now let's look at and analyze the various ways to generate passive income., to determine how relevant and relevant they are.
Rent out real estate
To rent property, you need to own real estate and register a business or self-employment. Renting out of real estate – this is income, which is taxable.
With the development of mortgages, many families prefer to buy an apartment with a mortgage, Since at the end of the mortgage payment period, they receive an apartment in the property, and if a person will rent an apartment, he will never buy his.
However, business travelers constantly come to the city, tourists and people need apartments for a short time, and the hotels are expensive.
At the same time, there is a huge competition in the rental market. To make the apartment attractive to tenants, It must be fully furnished and with appliances. At the same time, the owner bears the risk of, that residents will break or spoil equipment or furniture, and it will be difficult to find business travelers and tourists from another city later and demand something from them.
In this way, renting out apartments – this is business, requiring large material investments, with a very long payback period and very costly, Since the apartments are constantly in need of repair, Purchase of new equipment, payment of utility bills and the influx of visitors, especially, if apartments are rented by the day unstable and has a seasonal character, especially in resort towns.
Buy an apartment at the excavation stage
There have been so many defrauded depositors in the history of Russia, that the state, to protect the rights of depositors, tightened the rules for buying apartments at the excavation stage. All the money now, received from future tenants, frozen in a bank account, and in return, the construction company receives expensive loans from the bank.
In this way, despite, that the residents' money is relatively protected and kept in the bank, the cost of construction due to loans increases significantly and the apartment, even at the stage of the foundation pit, will not have such an attractive price, which were earlier before the enactment of this law.
If you are offered too attractive conditions for buying an apartment at the stage of excavation, then you need to check everything carefully several times and even consult with a specialist. Quite possible, those people, who offer you cheap housing have nothing to do with the builders and are simple scammers.
Rent a car
You can rent your car to taxi services, and also use it as an advertising medium, by placing your banner on it. But anyway, you have to pay taxes on this activity. You can do it yourself, if you are an entrepreneur or self-employed person, or for you income tax in 13% your employer pays – taxi service or agency, whose ad are you wearing. You are accepted into the company's staff and every month you are deducted from your income 13% income tax.
When renting a car to taxi services, you must have extended insurance. It is necessary to conclude an agreement with the taxi service, which will stipulate who is responsible in the event of an accident and the procedure for paying compensation for damage to the car in the event of an accident;.
Take into account, that the car is a means of increased danger and the driver bears all responsibility for causing harm by a means of increased danger, unless otherwise provided by the contract. therefore, renting your car, it is necessary to provide, who will be responsible for the damage caused in the event of an accident.
Despite the high enough risks, related to the special status of the vehicle, as a means of increased danger, this type of passive income requires more initial investment and pays off for a long time.
Put money on deposit
Due to the economic crisis, refinancing rates are constantly decreasing, to give people and businesses cheap loans to support the economy. But it also means, that deposit rates are decreasing every year.
At the moment, deposit rates are lower, than the inflation rate, meaning, that deposits are not profitable, but are unprofitable by nature.
The lower the refinancing rates, cheaper and more affordable loans, Deposits are all the more disadvantageous for depositors. Deposits are a means of preserving capital and that is very controversial, since you lose your money, but not by any means a means of accumulation and passive income.
Buy dividend stock
The lower the refinancing rates and income on bank deposits, the more investors pay attention to buying shares, After all, stocks bring at least some income. But in this case, special attention should be paid to the choice of stocks for investment.
You should also consider, that due to the crisis, many companies suffered losses and did not pay dividends. Part of the companies, have shown positive results, refused to pay dividends to shareholders and decided to use all the profit received for the development of production.
The economic crisis hits all sectors of the economy and, first of all, shareholders of companies suffer from the consequences of the crisis..
Invest in mutual funds
PIF – mutual investment fund, It is a complex complex product, which consists of various assets, managed by a professional investment manager.
Investment brokers and managers develop their own mutual funds depending on the level of profitability and risk, offering our clients comprehensive products.
A feature of a mutual fund is that, that it is run by a professional, who forms it and is responsible for it, which means, that the risks are less, than buying shares on your own.
If you buy mutual funds through major brokers, their managers are usually extremely conservative, which means they try to select the most stable assets, so that their clients do not lose their savings. Profit on such mutual funds is not high, but she is higher, than deposits in banks.
If the fund has been on the market for a long time, then its managers try to minimize the risks of their clients by reducing their profits.
Get cashback by card
The goal of any bank is to motivate its customers to buy as much as possible, after all, the bank receives money from stores for each payment made with the card and the bank is ready to share part of this money with its users, paying cashback.
The more you buy, the more refback you get. But consider, what refback – this is just a refund of a small part of the amount you spent, but not an independent source of passive income. As soon as you stop buying things in stores, You will immediately stop receiving refback.
Bad passive income options
Not all ways to generate passive income are equally good. but, there are ways to get passive income, which are extremely risky, require large investments and pay off for an extremely long time.
Before embarking on such activities, it is necessary to carefully calculate everything, so that your passive income does not turn into debts and losses, which you will repay for a long time from other activities.
You can also find out about the prospects of this or that type of earnings by visiting forum about earning schemes on the Internet.
Own business
As known 90% all own business is closed in the first year of its existence. This is because, that people before starting a business, invest money in it and take a loan, do not calculate everything in advance, do not study the market, do not make preliminary calculations.
Potential businessmen often try to make money in those areas of activity, they don't understand or enter the market, where there is huge competition and all niches are occupied.
And in the end, taking loans and investing large amounts of money, entrepreneurs are closing, and then have to pay their debts for a long time.
Blog, website, YouTube channel
On the Internet you can find a lot of information about how it is profitable to have your own blog., site or YouTube channel.
But the problem is, that there is huge competition in this market and only a few achieve real success, while, how there are a huge number of channels and sites, which are useless and do not bring income to their owners. You can buy a ready-made channel or website, but even buying a promoted channel does not mean, that he will bring you profit in the future.
Channel promotion requires knowledge and money. Without knowledge and experience, you can waste money and, as a result, not achieve the result you need..
Network marketing
The point of network marketing is, that you create a network of users yourself, And then these people are already working for you, And you get income from their purchases and actions. But the problem is, that not all people are able to sell goods and many people quickly get bored with this business. And if the people you attracted stop promoting the product, sell it, then you will stop and you will receive your income and the network you built will collapse.
therefore, to passively receive income from network marketing, you need to constantly maintain your network, expand it, add new users, make contacts. And this is already active income, not passive.
There are many ways to generate passive income. But each of these methods has both advantages and strengths., and disadvantages, which should be paid attention first of all, before you start earning on passive income.
