Site Loader
111 Rock Street, San Francisco
Types of passive income and how to create passive income

The girl lies on the sea in a sun lounger

Now let s talk about the types of passive income and how to create passive income that will bring good profit to the owner of this type of income.

The content of the article:

  • What is passive income
  • The main types of passive income
    • 4 types of passive income
  • Recommendations on the road to monetary independence
  • Tip # 1
  • Tip number 2
  • Council number 3

What is passive income

Passive income is the sweet dream of many. You can just do nothing and make a profit. In order to achieve this state, you first need to work hard.

Residual income, also want to receive people who have the main type of employment, but for one reason or another, they expect to earn more.

First you need to decide on the meaning of this concept. Passive income is considered to be independent of the expended strength and energy.

So, For example, the one who created any intellectual asset will be able to receive money from its implementation again and again. People who live off investment income are called rentiers.

The main types of passive income

Below is some useful information about the main types of passive income.

4 types of passive income

  1. Legal
  2. Marketing
  3. Intellectual
  4. Investment

Next, we will dwell on each of them in detail and look at them from the inside.

With legal the matter is simple. A striking example is the well-known “pension”.

That is, this is the income to which a person has the right under the law. Student scholarships, pensions, subsidies of various forms, benefits for various groups of the population – all this is passive legal income.

It is almost impossible to influence this kind of profit from the inside. It will not be possible to increase or postpone the terms of its receipt.

Marketing income arises from the commercial implementation of a personal brand.

For example, movie and pop stars receive huge royalties for their fame.

Profit with this type of income grows exponentially, accumulates like a snowball that cannot be stopped. They get paid for being in advertising, this gives them even more popularity, and they start earning even more thanks to this.

Intellectual income associated with the creation of an intellectual product and its implementation. Its sources include royalties for books, music, films, inventions. The sale of such property can bring its owners, both insignificant hundreds of rubles and millions of dollars.

Investment income… If you receive money from investing in real estate, deposits, securities, your own business, this type of income can be considered investment.

Difficulty getting this type of income is that in order to receive it you need to have a sufficient amount of money. Some money begets others.

Recommendations on the road to monetary independence

It is not enough just to know about the ways to get additional funds.

It is important to motivate yourself to take action. After all, effort produces results… The following tips can help you on your way to your dream.

Tip # one

The person himself is the main asset. He must spend every minute on self-development. He must discard everything that does not make him stronger, smarter, better.

Only by intensively progressing every day can you come to success.

Tip no. 2

In business, there is such a thing as diversification. If the business has multiple sources of income, it will never go broke. Even in a crisis, such a business will be sustainable due to the distribution of the load between the directions.

Therefore, it is important to strive for having multiple sources of income.

Tip no. 3

Asset creation is the key to future well-being. Those who have a habit of saving money never get into difficult financial situations. Setting aside 10% of your profits from each source is a healthy habit for prudent people.

On the road to passive income, the goal will be to minimize liabilities and raise asset levels.

About creating passive income there are no secrets for a long time. Books are written about this, videos are shot, business coaches conduct seminars.

The main resource is always time and knowledge… Before you get something, you need to create something, no matter in material or non-material form.

Did you like the article? Share with your friends:

Post Author: Rachel Reinbauer

Leave a Reply

Your email address will not be published.