If you have opened this article, most likely, it is because you are looking for useful information on passive income.
Here you can find ideas and tips that will help you deepen your knowledge on this topic.
Let’s start by drawing a starting line: remember, to get this type of income, some sacrifices will undoubtedly be necessary, but it will be worth it.
In fact, the common problem is that many believe that passive income can be generated in a short time without having to make any effort.
Don’t you think it’s absurd too?
If this were the case, we would all have embarked on this path and stopped working for a long time.
In fact, those who think so are very wrong as it works exactly the opposite.
First, you work on your own project, your own business, or make investments, and only after a while will you begin to see the first results.
In this article, I talk about how to avoid falling into the “false myths” of easy money in a short time and how you can get excellent results with a small investment, commitment, and patience.
What exactly is meant by passive income?
Passive income is all economic income that, regardless of direct commitment, is received periodically, predictably and without our direct action.
This revenue can come from a multitude of different sources.
The most common examples are:
- Royalties derived from the sale of one’s own book
- Earnings from advertising on your website
- The monthly rent paid by the tenant of a property we own
Analyzing these first examples, however, we can see some similarities that distinguish a large part (if not all) of automatic revenues. Before obtaining them, investing time and/or money is usually necessary.
This means that the false myth that they are effortlessly received and make you rich overnight is wrong.
Let’s take some examples:
- To obtain an income from a book. It is necessary to write it.
- To make money from your website. You need to make it grow.
- To enjoy the income from a rental. You must first purchase the property.
You have to be willing to put in a lot of effort and work hard if you want to earn one or more passive income in the future.
The advantages of having passive annuities
The great advantage of having an annuity or passive income is that you have more free time, which automatically affects your ability to generate additional income.
In fact, if you are an employee, you usually have to work to get a salary.
If, on the other hand, you are able to generate passive income, then you can free up some of your time that you can reinvest in creating new annuities.
An added benefit is the ability to have more control over your automatic source of income.
In fact, you will decide if and when to rent the property, whether to grow your website, how to manage it, etc.
Last but not least, the advantage of not having to work 8/10 hours a day to collect the money needed to support you and your family is peace of mind.
In fact, if you manage to make the most of your earnings, you will have more time to dedicate to yourself and your loved ones, no longer having to use the cliché: “work to live” to describe yourself.
Let’s now pass to the heart of the article:
How to have passive income
There are many paths that can be taken to be able to have passive income.
From the more classic and traditional ones like renting apartments to the more risky ones like online investments.
But not only.
There are many others, in fact, which are usually not thought of but which generate results.
If you are looking for how to have passive income, keep reading this article.
Below you will find a list of the most popular and effective types for having passive income.
What are the types of passive income? How can you understand which one is best for you?
There are many ways of generating passive income.
For this reason, to facilitate our work and orient ourselves better, we can talk about physical or material income and passive digital income.
Here are some examples:
Invest in real estate
Perhaps the most commonly proposed option, but also one of the most profitable.
Indeed this requires a strong initial investment, especially since it is necessary to inquire (and TRAIN) to understand which properties it is best to buy, how to obtain loans to invest in properties, etc.
Buying and selling stocks (trading)
Stock trading is considered a way to generate passive income because it consists of making a profit based on the fluctuations of the financial markets.
Many methods are used, such as buying a financial asset and waiting for it to increase in value.
It is also possible to play on the stock exchange from home by opening an account on a broker site, buying a publicly traded stock, and waiting for its value to rise.
MeteoFinanza, in its updated list of 2019, suggests eToro as one of the best online brokers and also defines it as one of the leaders in the social trading sector.
It is a platform particularly suitable and recommended for less experienced traders.
Earning from copyright
These can come from a lot of different sources, including writing a book, writing a song, selling photographs you created yourself, etc.
Through the writing of a book, the commitment and hard work that you will invest in previously (during its writing), it will be rewarded over time, after publishing it.
As for the photographs, for example, you could publish them on special sites that make you earn every time some user downloads your image.
Create video courses
This is a great way to generate passive income by selling information in video format.
The subject of the videos can range on many different themes, to be chosen according to the skills that you want to share with your audience.
Making money with advertising
When used in the right way, running a blog gives you several ways to make money by monetizing your business.
The best-known way is to insert advertising banners within the blog.
Their operation is very simple: insert the banner on the page of your blog that you prefer, and on which the user will click.
Subsequently, the advertiser will pay in proportion to the clicks obtained or the sales generated through your site.
I must say that this method of earning is now considered outdated.
It’s very simple.
To generate decent passive revenue from advertising, you need to get a lot of traffic to your site.
With this amount of traffic, it is, therefore, more profitable to advertise your own or affiliate products as the margins are usually higher.
Generate passive income with kindle self-publishing
Similar to what I wrote above about writing a book but with a lot more positives in my opinion.
There has been a platform dedicated to self-publishing on Amazon for many years now that allows you to publish your book independently and start earning after just 24 hours.
Thanks to the very high number of people subscribed to the Amazon Prime program, the audience to which you can refer your subscriber is huge.
We are talking about 100 million subscribed users.
It is therefore a definitely better solution than waiting months or years for the whole process linked to finding an agent, working with a publisher, etc.
Creating software is another way to generate passive income.
Obviously, to do this, the ideal would be to have technical programming knowledge behind you so as not to have to immediately depend on other professionals.
Once you have created your software, you can sell it by eventually dividing it into packages, in order to form multiple plans that your customers can choose from and then pay monthly or annually.
All this obviously connected to specific marketing campaigns to acquire new customers and keep them over time by decreasing the so-called Churn Rate.
Create automatic passive income
To make a small summary, if your goal is to be able to create recurring passive income that does not require your work, then it will be clear to you that this cannot be achieved without any effort.
Depending on how hard you work, you will have very different results.
For this reason, creating automatic passive income, unlike what many believe, takes a lot of work.
A job in which you have to give your best, especially at the beginning, not only to build the system behind an income but also to acquire the skills necessary for everything to work.
In fact, in the long term, the effort required to obtain income will be less and less.
But we must not fall into error and think that, once you have reached certain results, you no longer need to update or take care of these sources of income.
This is precise because creating and managing multiple sources of income is not a short-term strategy.
If you don’t know how to start then choose from the list of strategies you can read above, the ones that inspire you most and seem interesting to you.
Try to use them, dedicate time, commitment, constancy, and concentration and the results will come.
Instead, keep all those strategies for creating automatic passive income that seems more boring or difficult to you, in order to make the time spent a pleasure and not a duty.
Getting passive income is not a walk in the park as many belief.
In fact, previous investments, work, and commitment are necessary in order to have a good basis for automatic collections in the future.
I told you about some of the most used methods including:
- Invest in real estate
- Buying and selling stocks
- Earning from copyright
- Create video courses
- Making money with advertising
- Kindle self-publishing
- Create software