Who wouldn’t want to travel to different countries, relax at resorts and do whatever they want, while receiving a constant flow of money, but is this possible? - Of course!
This time we'll talk about how to create passive income from scratch, what methods exist and how long it will take for financial independence.
Passive income- this is profit that does not require your direct participation. But it only needs indirect actions that help create and maintain a constant income.
That is, our task is to do something once, after which we will receive a constant profit and only occasionally make changes that will help maintain or increase our income.
10 ways to create passive income
As always, let's start with the simplest, where the minimum investment is required. And we will end in the most profitable way, which will require the most return.
The simplest and most reliable option is to open a deposit in a bank, where you can receive 6-10% profit per year, depending on the total period and amount of investment.
For example, with a deposit of 100,000 rubles, you can earn 8,000 rubles in a year. But if next year you invest 108,000 rubles, then your income for the next year will already be 9,000 rubles.
If you reinvest over 10 years, you can save 250,000 rubles. Imagine that you invested a million rubles, then in 10 years you will have a net profit of more than 1.5 million rubles from the bank.
Remember that banks may have their license revoked, in which case the state will return the money within 1.4 million rubles to all clients.
2. Investments in HYIPs
There are business projects on the Internet that collect investments from people, and after a short period of time pay them back with high interest.
A more popular name for such projects is . In 2016, we managed to rise from $3,000 to $12,565, that is, we received more than 300% of net profit.
Where there are high profits, there are always high risks. HYIPs often close before you have time to withdraw your money. Therefore, I recommend reading -.
Well, if you don’t want to understand this, then you can just follow our list of HYIPs that pay in 2017.
is the most famous cryptocurrency in the world, which was created for the quick transfer of money without commission and at the same time you can remain unnoticed.
He was mining this cryptocurrency using his computer and having accumulated a decent amount, he waited for the rate to rise in order to sell everything.
At the moment, 1 btc costs $900, and at the beginning of last year, it could be bought for $400. That is, with an investment of 100,000 rubles, you could earn 220,000 rubles in a year (120 thousand net).
PAMM accounts— this is connecting a personal Forex account to an experienced trader, after which transactions will be copied on your account.
Thus, an experienced trader can bring up to 300% of profit in a year, of which 30-60% is taken for himself (commissions for excellent work).
As a result, you can earn from 30 to 180% profit per trader on PAMM accounts. Experienced investors create entire portfolios with up to 20 different PAMM accounts.
5. Earning money on social networks
Social networks are recognized as the most visited sites. And where there are a lot of people, there will always be many opportunities for passive income!
For example, you can do:
- Create a channel on YouTube and earn money from advertising;
- Create and promote VKontakte groups for resale;
- Create a large VKontakte group and earn money from advertising;
- Create an account on Instagram and complete small tasks to earn money;
- Post affiliate program links.
6. Participation in affiliate programs
Few people know that most of the current Internet services can bring in additional money. For example, you send a friend a link to a useful site, and for this you receive a percentage of his order.
affiliate program- this is making a profit from the service where orders are made using your links. You earn from 5 to 50% from this (depending on the service).
But only a few of these build an entire business! For example, you can praise LetyShops on various forums, which allows you to save money on electronic purchases.
If your friend buys a lot of goods on AliExpress, tell him that you can save 5-10% on each purchase if you do this using LetyShops!
And not so long ago I compiled a list of the most that can bring up to 30,000 rubles a month from various forums and social networks!
7. Creating an information business
If you are a true professional in your field, why not write a book and teach other people? We are talking about creating a cool information business that will generate passive income!
To do this, as a rule, they create a personal website where they beautifully talk about what you can achieve if he buys your book or takes an entire course for 30-50,000 rubles.
In addition, you can create a personal channel on YouTube and promote it to 50,000 subscribers. After which you will have many clients.
Several of my friends are already working closely with the information business and I can say with confidence that after a few years you can earn 150,000 rubles a month (from the sale of books alone).
Do you know that about 70% of all light industrial goods are produced in China. They have learned to make high-quality things that are also very cheap.
There are really many schemes for making money from China. For example, you can open a company and participate in tenders for the purchase of equipment or open your own store in the city.
Another way to sell goods is through the Avito or Yula platform. Well, in addition, open your own online store.
As a rule, the markup on goods is 40-80% of the original cost. Thus, by selling a dozen products a day, you can achieve a net income of 100,000 rubles per month!
A business such as real estate resale is not suitable for everyone, because for this you need to have a decent amount of money. Realtors are well aware that this is a great way to make money.
For example, in Moscow, apartments at the excavation stage are being snapped up quite quickly, especially if the house is being built in a new area that is just being developed.
After the house is rented out and all the amenities have been completed, the apartments rise in price by 20-50% of the initial cost. Well, after the development of the entire area, apartments will cost 2 times more than the initial price.
Thus, with an investment of 3,000,000 million, in 5 years you can get 6,000,000 million rubles. Therefore, wealthy realtors often buy apartments at the foundation pit stage.
10. Renting office space
One-room apartments in Moscow closer to the center cost 5-7 million rubles, and such an apartment can be rented out for 40,000 rubles. That is, our one-room apartment will pay for itself in 12.5 years.
But smarter people will look towards office space, where for that kind of money you can get up to 70 sq. m and when renting from any company at a standard price of 13,500 rubles sq. m, the premises will pay for themselves in 6 years.
It turns out that buying an office is 2 times more profitable than buying an apartment. By the way, retail premises can pay for themselves even faster!
In fact, there are many more interesting ways to create passive income that never made it into one article. If you want to continue, write in the comments.
1. Keep your money in the bank
If you expect to save or live on the interest from your deposit, then open a bank deposit in a reliable currency. Most banks are included in the state deposit insurance system up to 1.4 million rubles, so choose a bank with the maximum interest rate. If you want to deposit more than 1.4 million, then split the deposits into several. For example, if you save only $100 every month, then by retirement you will have a passive income of more than $1000 (compare with a Russian pension - 3-4 times less), and after death you will leave an inheritance to your grandchildren - more than $160,000. Here we are They assumed that the difference between the interest on the deposit and inflation is 6% (a very real indicator), and you started saving at the age of 23, and the compound interest was taken into account.
2. Store “pocket money” on a bank card with interest
To receive income from the amount you use during the month, store the amount of current expenses for the month on a bank card, which accrues interest on the balance. For example, Tinkoff Bank gives 14% on the card balance in rubles up to 500 thousand rubles. Let’s say that during the month your expenses are about 100 thousand rubles, then over the year you will receive an additional 10 thousand rubles. At the same time, your money on the card is not frozen, unlike a deposit, and you can use it at any time.
3. Participation in affiliate programs
If you are in a business environment, for example, conducting trainings and master classes, then many affiliate programs that companies offer are suitable for you. For example, if you attract 10 clients to the trading platform, you will receive passive income of 15 thousand rubles. every month. At the same time, you will do a good job both for the company of which you are a partner, and for those people to whom you recommend the product, because it will really help them in business.
4. Invest in real estate
This is perhaps one of the easiest ways to invest. According to statistics, about 30% of housing in Moscow is purchased for investment. In addition to the fact that the price of real estate is constantly growing, you can live in an apartment yourself and save tens of thousands of rubles on rent. To invest wisely in real estate, make friends with a smart agent - almost everyone has a friend who works in real estate. He will suggest the right solution. The main thing is not to buy real estate at a time when its price is at its peak.
5. Help your friends create a business for a small share
If you are engaged in intellectual activity, then you are most likely surrounded by intelligent and active people, many of whom want to start their own business. Help them with this! For a small share of the business, for example, 1-5%, depending on the volume and benefits of your work. Usually, novice entrepreneurs willingly agree to such conditions, because they will need help not only intellectually or with advice, but also emotional support. Particularly important is support not just from a third party, but from someone who is vitally interested in the success of the new enterprise.
6. Invest in stocks
Investing in stocks is one of the most difficult types of creating passive income. This requires you to be deeply immersed in the stock market and have an idea of where the industry as a whole is heading. Well, if you receive such knowledge as a “by-product” from your main activity, then investing in securities can create you a good passive income. If you spent $1,000 on Apple stock 12-14 years ago, it would now be worth about $100,000, plus you'd receive about $1,600 a year in dividends.
7. Start your own business
This, of course, is already the highest level of creating passive income. According to statistics, only a few percent of people attempt to create their own business, and 90% of companies close in their first year of existence. Entrepreneurship is a special type of activity, very complex, which requires full dedication. But, as you know, the risk of entrepreneurship is overestimated: it is much worse to wake up at 60 and realize that for the remaining decades you will live on a pension from the state, which will only be enough for medicine.
8. Make direct investments in companies
Many serial entrepreneurs, after their third or fifth successful business, realize that they have reached their limit as managers and they are no longer very interested in engaging in the operational management of companies. Then they begin to engage in direct investments in new companies, receiving a share in them for this. For example, Peter Thiel, the founder of PayPal, became the first investor in the then young startup Facebook - he invested $500,000 for 10% of the company. Now he owns 3% of the company, which has grown in value 12,000 times and is worth $6 billion. Peter Thiel (like other successful entrepreneurs) makes many of his next investments through the venture funds he created, in which hired managers help select promising projects and carry out their assessment.
9. Highly profitable investment.
Includes investing money at interest with a high level of return. Basically, this is the transfer of funds into trust management on the Forex market and the stock exchange, investing in PAMM accounts.
10. Don't be afraid to take risks. The higher the risk, the higher the profit.
For example, you can increase your investments 10 times in just a few days or even a few hours, doing this in your free time for an hour a day, by correctly guessing where the quotes of your chosen stock of a well-known company, gold, dollar or any other currency will go. This “exchange betting” is called making money on binary options. A correct forecast can double your investment in just 1 minute. For more details, see the example on the binary options trading platform. You can try this type of investment (or earnings) for free on a demo account.
Conclusion
The first ways to create passive income are the simplest and most accessible to everyone. Start with them. As you master simple tools, move on to more complex ones.
Alexey Zenkov
When someone is looking for an opportunity to earn extra income, most often they are advised to find a temporary part-time job. But what if you don't have the time or energy for this? In this case, you need to find ways to generate passive income - earning money with a small investment of time and effort on your part.
Try index funds
Index funds allow you to earn income from investing in the stock market completely passively. For example, if you invest in a fund based on the S&P 500 index, your money will be invested in the overall market, and you won't have to worry about how to manage your money or whether to sell or buy shares of certain companies. All these points will be managed by the fund, which forms its investment portfolio depending on the state of a particular index.
You can also choose a fund that covers any index. There are funds involved in various business sectors - energy, precious metals, banking, emerging markets and others. All you have to do is decide for yourself that this is what you want to do, then invest the money and relax. From now on, your stock portfolio will run on autopilot.
Make videos for YouTube
This area is developing very quickly. You can make videos of absolutely any category - music, educational, comedy, movie reviews - anything... and then post it on YouTube. Then you can connect Google AdSense to these videos, and automatic advertising will appear in them. When viewers click on these ads, you will earn money from Google AdSense.
Your main task is to create decent videos, promote them on social networks and maintain a sufficient number of them to provide yourself with income from several clips. Shooting and editing a video is not that easy, but once done, you will have a source of completely passive income that can last for a very long time.
Not sure you'll succeed on YouTube? Michelle Phan combined her love of makeup and drawing with video production, gained more than 8 million subscribers, and now launched her own company with a capitalization of $800 million.
Try Affiliate Marketing and Start Selling
This is a passive income technique that is more suitable for owners of blogs and active Internet sites. You can start promoting any products on your website and receive a fixed fee or a percentage of sales.
Making money this way is not as difficult as you might think because many companies are interested in selling their products in as many places as possible.
You can find partnership offers either by contacting manufacturers directly or on specialized websites. It is best if the advertised product or service is interesting to you or matches the theme of the site.
Make your photos profitable online
Do you like photography? If so, you may be able to turn this into a source of passive income. Photo banks, such as and, can provide you with a platform for selling photos. You will receive a percentage or flat rate for each photo sold to a website client.
In this case, each photo represents a separate source of income that can work over and over again. All you need to do is create a portfolio, upload it to one or more platforms, and that's where your active work will end. All technical issues of photo sales are resolved using the web platform.
Buy high-yielding stocks
By creating a portfolio of high-yield stocks, you will receive a source of regular passive income with an annual interest rate that is much higher than the interest on bank deposits.
Don't forget that high-yielding stocks are still stocks, so there's always the possibility of capital overvaluation. In this case, you will receive profit from two sources - from dividends and return on invested capital. To purchase these shares and complete the appropriate forms, you will need to create a brokerage account.
Write an e-book
Of course, this can be quite a labor-intensive process, but once you write a book and publish it on marketplaces, it can provide you with income for years. You can sell the book on your own website or enter into a partnership agreement with other websites that are similar in theme to the book.
Write a real book and get royalties
Just like writing an e-book, there's a lot of work involved at first. But when the work is completed and the book goes on sale, it will become a completely passive source of income.
This is especially true if you manage to sell your book to a publisher who will pay you a royalty on the sales. You will receive a percentage of each copy sold, and if the book is popular, these percentages can add up to significant amounts. Moreover, these payments can last for years.
Mike Piper of ObviousInvestor.com recently did just that. He wrote a book, Investing Plain, which was sold only on Amazon. The first book became so profitable that he created a whole series. These books total .
Get cashback on credit card transactions
Many credit cards offer cash back ranging from 1% to 5% of the purchase price. You still go shopping and spend money, right?
Such bonuses allow you to provide yourself with a kind of passive “income” (in the form of reduced spending) from actions that you perform anyway.
Sell your own products online
The possibilities in this area are endless: you can sell almost any product or service. It could be something you created and made yourself, or it could be a digital product (software, DVDs, or instructional videos)
For trading, you can use a specialized resource, if suddenly you do not have your own website or blog. In addition, you can enter into a partnership agreement by offering goods to sites on relevant topics or using platforms like (American marketplace for selling digital information products - editor's note).
You can learn how to sell products online and earn quite a lot from it. This may not be completely passive income, but it is certainly more passive than a regular job that you have to go to every morning.
Invest in real estate
This method falls more into the category of semi-passive income, since investing in real estate involves at least a small level of activity. However, if you have a property that you're already renting out, it's mostly just a matter of maintaining it.
Additionally, there are professional property managers who can manage your property for a commission of approximately 10% of the rent. Such professional managers help make the process of receiving profits from such investments more passive, but they will take part of it.
Another way to invest in real estate is to pay off a loan. If you take out a loan to buy a property that you will rent out, your tenants will pay off that debt a little each month. When the full amount is paid, your profits will increase dramatically, and your relatively small investment will turn into a full-fledged program for quitting your day job.
Buy a blog
Thousands of blogs are created every year, and many of them end up abandoned after some time. If you can acquire a blog with enough visitors—and therefore enough cash flow—it can be a great source of passive income.
Most blogs use Google AdSense, which pays once a month for advertising placed on the site. To provide additional income, you can also enter into partnership agreements. Both of these income streams will be yours if you own a blog.
From a financial perspective, blogs typically sell for 24 times the monthly income the blog can generate. That is, if a site can earn $250 per month, most likely you can buy it for $3,000. This means that by investing $3,000, you can receive $1,500 annually.
You may be able to buy the site for less money if the owner really wants to get rid of this asset. Some sites contain “eternal” materials that will not lose relevance and will generate income years after publication.
Bonus tip: If you buy such a site and then fill it with fresh content, you will be able to increase your monthly income, and you will be able to sell the site again after some time for a significantly higher price than you paid when buying it.
Finally, instead of purchasing a blog, you can create your own. This is also a good way to earn money.
Create a website that sells
If there is a product that you know a lot about, you can start selling it on a specialized website. The technique is the same as when selling a product of your own making, except that you do not have to deal with the production itself.
After some time, you may find that you can add similar products. If this happens, the site will begin to generate significant profits.
If you can find a way to ship products directly from the manufacturer to the buyer, you won't even have to get your hands dirty. This may not be 100% passive income, but it’s very close to it.
Invest in real estate investment trusts (REITs)
Let's say you decide to invest in real estate, but you don't want to devote any attention or time to it. Investment trusts can help you with this. They are something like a fund that owns various real estate projects. The funds are managed by professionals, so you don't have to interfere with their work at all.
One of the main advantages of investing in REITs is that they typically pay higher dividends than stocks, bonds and bank deposits. You can also sell your interest in the trust at any time, making such assets more liquid than owning real estate on your own.
Become a passive business partner
Do you know a successful company that needs capital to expand its business? If so, you can become something of a short-term angel and provide that capital. But instead of giving a loan to the owner of the company, ask for a share of the shares. In this case, the owner of the company will manage the work of the company, while you will be a passive partner, also taking part in the business.
Every small business needs a source of referrals to support sales. Make a list of entrepreneurs whose services you use regularly and whom you can recommend for cooperation. Contact them and find out if they have a system for paying for referrals.
The list could include acquaintances: accountants, landscape designers, electricians, plumbers, carpet cleaners—anyone. Be prepared to recommend the services of these people to your friends, relatives and colleagues. You can earn a commission on every referral just by talking to people.
Don’t underestimate referral programs in the professional sphere either. If the company you work for offers bonuses for referring new employees or new clients, take advantage of it. This is very easy money.
Rent out your unused property on Airbnb
The concept appeared only a few years ago, but very quickly spread throughout the world. Airbnb allows people to travel the world and pay much less to stay than in regular hotels. By participating in Airbnb, you can use your home to host guests and earn extra money just from renting.
The amount of income will depend on the size and condition of your home and its location. Naturally, if your home is located in an expensive city or near a popular resort, the income will be much higher. This is a way to make money from free spaces in your home that would otherwise be empty.
Write an application
Apps can be an incredibly lucrative source of income. Think about how many people have smartphones today. Yes, almost everything! People are downloading apps like crazy—and for good reason.
Apps make people's lives easier. Whether it's helping you post pretty pictures or keeping track of tasks, there's always an app that's useful to someone.
You might ask: If there are so many apps out there, why would you try to create another one? Is there too much competition? This is all true, but fresh, creative ideas can benefit. If you can come up with something unique, you can make money from it.
Don't know how to program? No problem, you can learn. There are a lot of different courses on the Internet, including free ones. Alternatively, you can hire a developer to create an app based on your idea.
The end result is an application that will potentially generate relatively passive income.
Create online courses
Every person is an expert in something. Why not create an online course about your passion?
There are several ways to create and deliver your own online courses. One of the easiest ways is to use sites like
Due to numerous requests from readers... So get ready, pour yourself some tea or coffee, make yourself comfortable - this will be a voluminous, but very useful article! 🙂
How would your life be different if you made a few hundred or thousand dollars a month without actively working?
Perhaps you could get busy which you have always dreamed of. Maybe you would travel more around the world. Perhaps they would move to live in another country with a better climate and quality of life. Some would spend more time with their family and take more care of their health. And someone would combine All the above! And passive income just allows you to realize these ideas.
The idea of passive income is so attractive for people all over the world precisely because it allows a person do more of what he likes and minimize what he doesn’t like.
Clarification
I want to immediately clarify one point - I have not come across any “passive” income. Almost every passive income requires some work, at least in the beginning, after which it can generate income for a very long time without requiring your active involvement. 
So, let's look at the main types of passive income.
Rent out real estate
You can purchase residential or commercial real estate for rent, or you can rent out the property you already own (for example: an apartment, house, cottage, garage, basement, attic, etc.). You can even rent out part of your home (for example, one of the rooms, using the service . You can get confused and pass through).
Rent out your home and move into a rented one yourself
Don't want to share your home with anyone? You can rent out your own, more expensive housing, and also rent another, but cheaper one yourself. The difference in these rents will be your additional passive income.
Sell your accumulated trash and junk
If you think that these are pennies that are not worth spending time on, look at how my wife and I for thousands of dollars! Many of these things have been stored since student days and have cluttered our house for years.
Turn your car into a means of earning money
You can rent out your car to taxi services, or you can use it as an advertising medium. Similar services have been present in big cities for a long time.
Deposits
Deposits are one of the easiest and an understandable way for the population to save money and earn passive income. It's simple - you give the bank your money for a certain period, for which the bank charges you interest. The return on deposits is usually low and does not cover inflation, therefore, this method of earning money is only suitable for short-term strategies.
If you know a subject (no matter what topic!), write an e-book and sell it on your website or on special platforms for selling e-books. Writing a book takes from a few days to 2-4 months, but once you write it and post it on book platforms, it can provide you with passive income for years.
Create a video training course
The idea is the same as with an e-book. If you are an expert in some field, record a training video course and sell it on special educational platforms (see the complete list of platforms for creating video courses ) or on your website.
Create or buy a ready-made online store
If you already have goods for sale or you know how to arrange supply, sales and delivery, it’s time to think about your own online store. There are services that allow you to automate delivery, storage, accounting, sales, payment acceptance, discounts and promotions, and even marketing.
Start your YouTube channel and make money from advertising
You can shoot simple videos (including on a mobile phone) - music, educational, comedy, movie reviews, equipment - anything!YouTube will show people ads before or while playing your videos, and you will receive money (with monetization enabled and AdSence connected).
Earn money from advertising on your site
If you have your own website, you can (should) enable advertising (AdSense or any other). This is done in different ways (read on the Internet) and is generally very simple. People come to your site, read or watch something, and are automatically shown an ad. You get paid for views and/or clicks from your readers. See examples of advertising at . Subscribe to my articles to see how it works in the articles :).
Credit card bonuses - No No No!
My readers know very well my opinion about plastic cards - do not deceive yourself with the attitudes “I pay off the debt on the card every month” or “I earn miles or cashback” and other nonsense. Just ask yourself the question, from what…. does the bank give you free money, miles, cashbacks and other goodies? 🙂 I explain in detail here: In a nutshell, try to get rid of this source of “income”, because... in the end you will lose much more than you earn. Trust the person who had more than 20 mega-cool cards))) Also read and watch:
Do you like photography and are you good at it? Then you can sell your pictures or videos through photo banks such as Shutterstock, Depositphotos and iStockphoto You will receive a percentage or flat rate for every photo or video sold through these photo banks. You upload your photos and videos to one or more platforms, and that's where your activism ends.
Microloans - NO NO NO!
Microloans are a disgusting tool for robbing financially illiterate and desperate people. People take a small amount “before payday” at 100-200 percent or more per annum, thinking “just think, the interest will be only 500-1000 rubles. It’s just pennies.” There are platforms that offer you to become a lender and receive a certain percentage from it. I won’t give links because... I am categorically against earning money that drives other people into a financial abyss.
Accelerated repayment of loans and debts
Every penny you pay to the bank is a penny that could be (passively) making you money! Debts, like termites, devour and destroy the financial well-being of a family. It is important to understand that for every dollar (ruble, etc.) returned ahead of schedule, interest will not accrue (for months or years in the future) and all these months or years you will be able toearn interest yourself rather than pay it to the bank.
Example: If instead of a 20-year mortgage, in the amount of 3 million rubles. (~ 50 thousand dollars. This is a studio or one-room apartment in St. Petersburg), taken for 20 years, at 12%, set aside the same money that you will pay monthly to the bank (the monthly payment will be 33 thousand rubles), at, say, 8% - in 20 years you would have accumulated an amount approximately equal to 20 million rubles (~300-350 thousand dollars) due to ! This amount would be enough to provide you with an income of 1.5 to 3 thousand dollars for the rest of your life per month! With that kind of income, you could live well in any country from east to west! By the way, this amount would put you in the 5-10% richest people on the planet! Make sure of this .
Change jobs
If you are sure that you are being paid below the market, attend interviews and change jobs! Thus, you will provide yourself with additional income for many years in the form of the difference between the old and new salaries. This can be very scary to do, because... We, people, become attached to the team, to the work being done, to status, to various bonuses, to stability, etc. We are afraid to take risks and change something. However, every fear has a price! If you're losing hundreds or thousands of dollars a year, it's time to stop being afraid and start taking action!
Ask for a raise
You can change your job for a new one, or you can ask for a raise. If you find out (and don’t just think so) that you are objectively worth more, if you bring value to the company that you can evaluate and show to management, if you are not easy to replace, ask for a raise. Read: .
Get everything from the state!
Take everything from the state what it provides by law. You may not pay (that is, you will return this tax to your family) tax on purchased real estate (up to 260 thousand rubles or 4,300 dollars), for interest on a mortgage (390 thousand rubles or 6.5 thousand . dollars), for training and treatment, etc.
My wife and I, for example, used tax deductions when purchasing real estate. This returned 130,000 rubles to the family (more than 5 thousand dollars in old money). We received all possible benefits for children, including maternity capital (450 thousand rubles or 7.5 thousand dollars).
In addition, you can getsubsidies(compensation) from the state to pay for communal services, to create/develop a business, payments to mothers under Maternity Capital certificates, try to get preferential housing (for some categories of citizens),social benefits for the birth of a child, etc.
You can buy a blog or a ready-made online business
Thousands of blogs and online businesses are created every year, and many of them end up abandoned after some time. If you can find and purchase a blog/online business with a sufficient flow of visitors, then you can make good money from it. Blogs typically sell for 24 times monthly income, giving a 4.2% (100/24) return (typically in dollars) - which isn't very high, but not very low, considering the rates on dollar deposits in banks. Plus, a blog or online business can be developed and earnings increased.
Participation in reviews, clicks and other online manipulations
Many advertisers pay money for certain actions on the Internet, such as: click on a link, leave a review, like, repost, fill out a form, etc. Accordingly, there are services (eg seosprint, v-like.ru, socialtools.ru, sarafanka.com, prospero.ru, smmka.ru, etc.), which can automate the process and connect advertisers with people who want to earn money in this way. However, calling such income passive can only be conditional.
Stock
A share is a A security that gives its owner the right to a share in the company and to receive part of the profit in the form of dividends.
Company shares can be purchased through a broker. The entry threshold is usually very low. Earnings will consist of two components - the increase in the value of the stock (bought cheaply and sold more expensive) and also from dividends that companies (though not all) can pay to the owners of their shares. However, I do not recommend that non-professional investors buy shares of individual companies, because... Without significant experience and knowledge, such purchases will be similar to betting in a casino. The best solution for an inexperienced investor would be mutual funds or structured products offered by brokers. Such funds/products include many stocks, so a sharp drop in the value of one share will not significantly affect the decline of the entire fund/product.
Bonds/bonds
A bond is a fixed income bond.Essentially, it is a loan agreement between a lender (usually national governments, municipal governments and private companies) in which you lend a certain amount, for a certain period and at a certain interest rate.
The riskiness of this instrument as a rule, very low, but the profitability is also low. However, you can (often) make more money on bonds than on bank deposits. You can also buy bonds through a broker, but the entry threshold can be high, from a couple of thousand dollars.
Mutual funds
mutual funds or Mutual Investment Funds are a pool of money from a large number of investors (like you, for example), which is managed by a management company in order to increase the value of this fund.
Mutual funds can be selected to suit every taste- industry, “blue chips”, etc. The value of your share (the part you purchased in the fund) can go into deep minus and rapidly grow upward. Therefore, this is a long-term instrument, for investing for 5-10 or more years. The entry threshold can start from several tens of dollars or thousands of rubles.
ETFs and index funds
In developed Western markets(for example, American or European stock markets) you can invest in ETFs ( Exchange Traded Funds ) or to index funds (the same ETFs linked to a specific index). These instruments, as a rule, are tied to a certain type of asset (for example, blue chips, shares of fast-growing companies, oil sector companies, stock index of the largest American companies (for example, S&P500), etc. There are a great variety of them and you can choose to suit every taste and attitude to risk!
There are also ETFs on the Russian stock market, incl. denominated in dollars, but the choice is terribly small (there are about 15 of them at the time of writing this article).
You can buy these instruments (in Russia) through brokers, which provide access to foreign markets and instruments.These are very cool toolsallowing you to earn 5-10 percent or more in dollars and get rid of country risk, which is very important for you and me :) Like mutual funds, ETFsThese are long-term instruments designed for investment for 5-10 years or more. The entry threshold is from a couple of hundred to several thousand dollars. These are my favorite passive income tools!
“A dollar saved is a dollar earned!” B. Franklin.
Perhaps none of the methods described above suited you, but there is one way to make money that is available to everyone! This . Saving on yourself is unpleasant. However, saving is “smart” when you save money, but do not noticeably change the lifestyle to which you are accustomed - even exciting and reckless. Hundreds of smart saving ideas .
Investment in yourself loved one!
In all my materials I write and say that money is always a tool (like an axe, hammer or brick), but not an end in itself. Therefore, the most inexpensive investments with the highest short-term and long-term returns are investments in yourself, such as:
- investment in relationships with your spouse, children, relatives, friends. For example, an unsuccessful marriage can put an end to all your investment desires for years and decades and ultimately ruin you. What do you do to keep your relationship alive?
— investments in health- these investments bring income, ranging from savings on the costs of doctors and medications, and ending with the fact that a healthy body greatly affects the health of the “brains”, your thoughts, mood, motivation, which, in turn, affects everything in including the ability to earn more and invest better. Watch me play sports for free.
- spiritual development- we, as a rule, leave this aspect to the very end, although in life it is almost the most important. Your spirit, your mood, your attitude towards life and other people, your life goals influence everything!
What type of passive income should you choose?
Not one alone!None of the tools described above separately will be the right and good solution for generating confident and reliable passive income. Remember - “don’t keep all your eggs in one basket”! As a rule, it is necessary to combine some the tools described above. Something like - part of the assets in cash, part in bonds, part in real estate, part in mutual funds/funds or structured products. At the same time, part of all assets must be in the national currency, and part must be pegged to (for example, the dollar).
Test before invest!And one more thing - no matter what you choose - “test before invest” & “try small” - which means “test, then invest” and “try on a small scale”. You don’t need to use all your money to buy one instrument (for example, shares of a company or mutual fund) that you have not tried before. Buy it for a small amount, try it, make sure everything works well and then increase your investment in this or that tool.
Break down the risks over time!An additional strategy could be to enter a particular instrument gradually - for example, buy such and such an ETF for a certain amount every month. This will help you reduce (but not eliminate) the risks of getting into a bad instrument and losing money.
When should you start creating passive income tools?
The earlier the better! Preferably from school, student, or at least your first job. But, if you haven't done it then, it's never too late to start doing this. It’s just that the sooner you start, the more powerfully (in your place) compound interest will work, whose power grows like a snowball, only after some time. Read the amazing story of Susan, Bill and Chris and you will understand what I mean.
BUT! There is one limitation.I recommend starting to invest only AFTER how you pay off all debts (except the mortgage) and create equal to 6 monthly income (or expenses, if that’s easier for you:). And only after that you can and should engage in investments, making money, etc.
One of the most effective tools for solving these two problems (getting rid of loans and forming a fire reserve) is.
Conclusion
As you can see, there are many types of passive income. Some are very easy to understand and cheap to get into, some are a little more complex and more expensive. You don't need to limit yourself to one tool and you don't need to try to fit into too many of them.
The main thing is not to “sit” forever in the asset, who earns less than inflation (like cash under your pillow or money on deposit), and learn to invest your money in profitable (and passive) instruments. And then, one day, your passive income will start earning more than active income, and you will be able to do what brings you joy for the rest of your life!
It will be useful!
Call to action
What can you do right now? Two things:
First.On your own or with help, make an annual budget for your family, set yourself the goal of “expeditiously paying off all debts except the mortgage” and “forming a Fire Reserve” of 6 months and make these two goals part of your budget.
And the second one!Meet with 2-3 large brokers in your country and city and ask them to tell you about the tools described above, taking into account your financial capabilities and risk tolerance. This conversation will be very useful and will charge you with the necessary motivation to engage in passive income!
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