Today I want to write about financial issue i.e. income and financial independence as well, what is a passive income and what it looks like in practice. Starting the article, we should think how many times comes to our mind the thought that we work as oxen, and the only thing we have so far is the proverbial hump on the back. Each of us wonders how to save money? How to well invest? Whether it will be then a passive income?
So to answer unequivocally – yes and no. So what is the most important in revenues, how to distinguish them? First of all, a lot depends on our approach to financial issues. And, in the beginning of my article with full responsibility, I can say that many of us take the wrong topic. Therefore, at the very beginning of my article I emphasize the phrase – first of all you need to work smart, not hard. If hard work would be a measure of the wealth, the richest people would be slaves. So step by step, I first explain a few important issues.
I will try here to answer what is passive income?
This is primarily seasonal, or monthly income without constant involvement of your own work. And this in turn means that the work that was once done brings effects in the form of money regardless of whether we do it still. Of course, the income of this type can be not only work, but also committed capital, which in practice works with us. It can be said that the money in this case work for us, not we work for money. It is also worth mentioning about people achieving passive income without the contribution of their own work, they are called men of leisure. Otherwise, these are people financially independent.
In other words, it is the sum of the impact on the profits from the passive income exceeding the cost of living. It is a very beautiful vision, but it is realistic to achieve? We can confidently say that yes, although it is a difficult thing to do and it takes time. As you can see, not everyone will achieve success, just as not everyone will be financially independent, not everyone is a man of leisure or not everyone will live with interest. Everything depends on us, it is true, but you should also have a lot of luck.
A nice and key statement, which binds to the passive income is – ,,if you want to earn big money without a job, you must first learn to work without money”. It might seem that this is something so simple and yet so real and difficult. Every nation in the world probably is accustomed to the fact that for the work you get payment and it is usually at most up to a month after the work.
Passive income, in turn, may require up to six months of work whatever how little at a time brings us a source of revenue that we create. If our business is well thought, so monetary gratification certainly overflows into our account with a slight or a clear shift over time. Therefore the best start to think ahead – it always pays off. I will present here examples of how ,,make money ” through passive source of income.
The ways to passive income:
- The first good way to earn money is real estate. In this case, anyone who even once come across the idea of financial independence by renting a house, apartment, buying and selling real estate, knows that this is one of the safest forms of investing their capital. Here I highlight that real estate is number 1 when it comes to long lasting income.
- The second way to passive income is to issue your own product, it is often the book, ebook, music album. There are many opportunities especially in the Internet age. It is worth mentioning that thanks to it, we can derive gains from profits stretched in time. So in this case, we do something once, and then we take pleasure and profits from this, if we will be able to sell it.
- MLM is another way to passive sources of income, this system may be hated by many, in turn it my be loved by others. Network marketing, or de facto, making money on the Internet is not a simple matter. Therefore, we must first develop yourself what you think about this type of income. Each of us surely knows several people who made it, therefore we should not give up this form, but to earn via the Internet, you should to work hard so that later effects were really impressive. But here we must ask ourselves – whether the resignation from working in your strukture will be profitable for the Internet business?
- Interests on bank deposits is the next, but little aggressive investment. In this case, you have huge capital, but for less aggressive investors, this is a really great option. The only minus is that, compared with inflation, real earnings over the years are really negligible. In order to profit gave us a true passive income, we would have a really big amount. It can be said that someone who has achieved such a result would not certainly give all his savings on deposit, as it would be complement and not the main source of passive income.
- Own web page, it is an idea really for every blogger around the world – people, who wants to express themselves. The condition is one; you should treat this as gainfully activity. Only then is a chance that we can make really big money. A good example are people setting up websites for fun, or for the need to share their thoughts. If in addition we have to gain passive income – why not?
How to make money on partnership programmes?
When we have a situation in which we own and manage our own product eg. e-books, or video course, we can withdraw from it certain percentage in return for recommending and selling it to others. In this case, the higher the commission for the partner recommending our product, the more likely he will promote it. With such treatment, selling a book or the Internet software, we are able to earn much more by using the power of affiliate marketing. Then we can also recommend products to others and earn a portion of the commission. Here it is one thing important to remember, you should do this carefully in order not to hurt the Internet users.
I think that everyone will agree that if we can help people earning from this activity, this is a great option for us. Of course, the so-called option – a win-win in today’s world is a rarity, so we need to do your best and when someone will appreciate us, the satisfaction will be enormous and a pretty good income. Money from copyright or patents, licenses and various companies’ patents get through a specified percentage of the sales of each of our sold product (eg. book, e-book etc.).
The situation looks the same for creators of new Internet or telephone software or creators of computer games or even board games. Therefore, creating a company and having good managers – we can get profits practically doing nothing. That is why these ways to make money via the Internet are the most popular.
A list of popular systems and partnerships in the UK:
It is worth mentioning that the rule specifying that money work for us and not we work for money, requires putting the right amount of money to benefit from them a certain percentage. We are talking about interest from investments, dividends or bond coupons, of course, it requires advanced knowledge and time. The biggest advantage, however, of this treatment may be passive income.
Who is able to build a source of passive income?
Here, similar as in e-business and e-marketing, theoretically anyone can create your own business or create your own product, but 68 percent of people are subjected to at the outset because they are not prepared to sacrifice a certain amount of time to succeed. On the other hand, the remaining 25 percent, somewhere around 6 months did not see satisfactory results, thus they throw everything into the corner and follows the old path. Therefore, answering the above question: not everyone is able to build a source of passive income, because not everyone has such a strong character to take matters into their own hands. Of course, some prefer to be led by others. That is why it is important to think about what is best for us, being poorly paid man in someone’s company or be the boss of your own business.
Certainly a major key to success in building your own source of income is perseverance and an appropriate consequence. If we will add appropriately-positive energy and activity with passion to these factors, then we will have brought enormous success in virtually every industry. Since time people in order to free themselves from their unfavorable financial situation, instead of looking for additional work or working more than an hour, they are looking for opportunities to build their own source of passive income.
According to the theory of a researcher, the main reason of the fact that the wealthy will be still richer and the poor will become even poorer is the poor financial education. It is here that the main pillar is the fact that rich people are investing in new sources of passive income, and the poor, in turn, are looking for stability and part-time job, which is sometimes very precarious and worst paid. There is a lot of truth, sense and logic, because when we build a source of passive income, we are not dependent on the whims of our boss or banking crisis and we welcome people looking for work (theoretically these poorer), we also have more time for yourself and their loved ones.
In retrospect, education has more value than money. Robert Kiyosaki
„Rich Dad, …
Good ways to make money via the Internet
Making money via the Internet, as previously mentioned, is not a simple and easy matter. Of course, when we type „how to make money online” in the search we will find wonderful ways to become a millionaire. It is a pity that most of these methods are exposed to failure. So it’s best to invest in advertisements on social networking, blogs, fanpage etc.
Rather, it is an open market for each Internet user, only it depends on us how we use it. In conclusion, passive income only in theory can be for everyone, in fact you should have a lot of time, money and you should be very creative to achieve success in this segment income. However, I will try to show a few possibilities and how to get passive income.