The foundations of financial literacy are income diversification, that is, the ability to receive money from different sources. In free time, the question of which ideas for generating passive income will be relevant today, especially popular. We talk about the options in the article!
Passive income is income that requires minimal effort and participation. Unfortunately, doing nothing will not work: at first, you will have to invest money, time or effort. And sometimes all together. But you shouldn't be upset: over time, the business will run like clockwork and you can do other things.
We do not offer exchange or apartment rentals, but we advise you to consider the safest types of passive income and how to earn it.
4 types of passive income
There are 4 types of passive income. First, these are working capital assets. This is a story that “to sell something you don't need, you must first buy something you don't need”. In our case, you first need to buy something that you need, that is, profitable. This, for example, real estate, a franchise or an established business.
Second, you can create an asset yourself. That's what advanced investors do – they create money. This takes time and skill, but this option holds more promise than the others. This type of passive income includes, for example, websites, apps, books.
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Third, is cost reduction. This is how you create spending income. Changing your habits won't be easy, but it will free up money for more profitable options.
Finally, the last option: leasing and selling assets. Working capital assets and created assets can be leased and resold when they increase in price.
Let's move on to the most interesting – ideas.
ideas to generate passive income
Basic needs for nutrition, safety and health services are relevant now. In addition, there is a need to improve the quality of remote work, new services, help in overcoming fears.
Passive investment income
There are several investment options. First, there are actions. You can follow Warren Buffett's strategy: he didn't sell stocks while he was profiting from the business. By finding some profitable stocks and holding them for 3, 5, or 10 years, you can sometimes increase the starting value several times over.
A more reliable option is bonds. Their essence is that when you buy bonds, you are, so to speak, lending to the state or a private company. After a few years, you get your money back with a small percentage. They are usually a little more profitable than a bank deposit.
If you are willing to risk a little more, invest in cryptocurrency assets. It is better to distribute the amounts among the best number of startups or currencies. These are risky investments: they are less reliable, but they can literally increase the amount of money invested hundreds of times. For example, Bitcoin grew by almost 700% in just a few years.
Information business and earnings on social networks
If you are a pro at anything, make money from your knowledge. Create instructions, manuals, write books, record video tutorials or online courses. Take care of the quality. First of all, you should give specific answers to questions and practical solutions to problems, pay attention to the audience level. Work on the presentation of information: structure, simplicity, fun.
The big advantage of this method is that you can only do something once, but still sell it to many people over a long period of time. Also, the sales engine can be automated and will work without your participation.
if you've been thinking how to create your course so we recommend that you learn more about marketing, analytics and website development. Basic knowledge is easy to find on the Internet.
If you're still not confident in your infobusiness skills, monetize your website, blog, or channel. Place ads on it, sell your services, organize affiliate programs. If you don't have time to create a new blog, buy a ready-made one: there are offers on special exchanges.
Buy profitable websites and build apps
You can create a profitable website yourself, but you will have to constantly spend time on it for at least a year. On the other hand, you will spend a maximum of 30 to 40 thousand reais on this, and if you understand the topic, you will receive about a million and a half a year, doing almost nothing. It all depends on your motivation, financial and time possibilities.
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Recently, a passive income source like buying a ready made website has gained popularity. There are non-profit and for-profit projects, so websites are constantly selling and buying.
Sometimes it's even more profitable to buy a website. This can be done on exchanges like Telderi or Flippa.
An even more relevant option is the development of mobile applications and games. The demand for quality services grows every year: people use them to monitor their health, productivity and finances. There are application designers with which you can implement an idea with no programming skills. However, remember that if you want to compete, you still need to refine the product: on your own or with the help of a programmer.
property for rent
Turns out we need a few things once a year. In this case, it is more profitable to rent than to buy. Rent construction tools, evening dresses and even books.
There is another option: buy a cheap car, maybe not even a new one, and take it to a taxi or rental service. Before that, make sure you understand the legal side of the issue, find out everything you can about the taxi company or company. In large cities, this idea brings in net profit of 30 to 40 thousand per month. It is true that there are risks: if in some companies the repair and maintenance of cars is assumed, in others you will have to do it yourself and at your own expense.