10 / 11 / 2020
Passive income - what is it and how to achieve it? In business, passive income seems to be a dream source of money which, without the contribution of time and work, contributes to the budget. As an entrepreneur you have surely heard this term more than once, but what is the passive income, what does it mean, and is it, in reality, completely passive? How to create sources of passive income, which over time will not require any or a minimum of commitment, and will constantly generate income? Moreover, what are the most popular options to obtain such income. We will try to answer all these questions in the following article.
The definition of passive income
Passive income is the income that we can achieve without the constant involvement of our own work. In the case of passive income, once a job, time or money is put into a business, idea, work or property, it will bring us financial benefits for a long time. In the model example, the idea of passive income is a situation in which, having earned the so-called financial freedom, we do not have to engage our time or work in order to derive financial profits from our actions. It is enough that once in a while we monitor the business, but we do not have to put our energy into the passive income every day, as in a full-time job.
Ideas for passive income
There are many ways to achieve passive income. They differ from one industry to another, the initial costs we have to bear, the risks, and the time frame for using a given passive income. Therefore, there are many ways to achieve passive income - some of them require high initial expenses, others are not related to this need at all.
Below we present the most popular ideas for achieving passive income:
- Real estate - buying a flat and renting it, every month receiving payment from the tenants, but we also have remember that we need to bear certain costs, for example tax, rent, repairs.
- Land - a similar method is renting land, and we can earn money by increasing its value.
- Interest on bank deposits - a large amount of money on a deposit means that we can earn on the interest it generates.
- Copyright, patent and license income also allows us to make regular profits. Patenting an invention and earning money by licensing it to use.
- Income from network marketing - multi-level marketing (MLM) - after building our own structure of associates we can receive commissions on their turnover.
- Blog - Create a blog to sell affiliate links and sponsored articles on it - you can create a blog on any subject, and when it is popular, sell links placed within it.
- Outdoor advertising - provide space for advertising, for example a billboard in your garden.
- Investing in the stock exchange - if you have capital, you can try your hand at the stock exchange. This is a fast but also risky way to earn money without a lot of work.
- Deposits - this is a less effective but safe way to earn money.
- Book, application, course - writing a book, creating a course or application and making profits from its sale.