How to create passive income from scratch? Proven ways to gain financial independence Passive business without investment.

How to create passive income - 14 working methods + 12 tips for beginning businessmen.

To answer the question: how to create passive income, you need to understand how passive income mechanisms work, how money accumulates in your account, and also what to do in order to start earning money without investing your time and effort?

Features of creating passive income and its difference from active

The main difference between passive income and active income is that it does not require investment of time and labor.

The money arrives into the account by itself.

Of course, you will have to put in some effort to ensure that the profit flows into your account, but it pays off and brings you money in the future.

Active income requires constant work, visiting the workplace and performing one’s duties.

To receive passive income, you need to perform certain actions once to receive it.

Receipts will occur over a certain period of time.

To get rich, you must have at least 1-2 sources of passive income, in addition to the main income received from a permanent job.

Many people talk about this in their books and interviews.

When creating several sources of profit, you can completely leave your work activity “to your uncle” and start your own business.

How to create passive income: 14 best ideas

Create your own website or blog on the Internet and promote it.

In this case, passive income is achieved by paying for advertising.

On average, on one site, a beginner can earn about 12,000 rubles.

But you can sell a site where the total number of visitors exceeds 5,000 people for 200-250,000.

You can not only make passive money from this, but also build a highly profitable business.

An alternative to the website is maintaining a VKontakte group.

One well-promoted group can bring the owner from 8 to 15,000 rubles per month.

What if there are five such groups?

Selling your own seminars and training courses.

This option is suitable for those who have graduated from a higher educational institution and have a diploma with the right to teach.

The most difficult thing is recruiting listeners.

However, if the topic is interesting, people will find you.

To write a book.

Income from the work "royalty" goes to the author until the book is removed from sale.

Create an intelligent product.

For example, a computer program.

By obtaining a patent for it, you can also receive regular royalties from sales.

Or a car.

Even a one-room apartment can generate income comparable to the average monthly salary of a citizen in Russia.

Renting a salon, hairdresser's place.


The average price of one seat in a salon per month is 8,000 in a small city, and the average price of a salon is more than 20,000 rubles.

1. Government payments.

   They can be received by disabled people, large families or people who have retired due to age.

   Bank deposit.

   Investing money in a bank as a deposit is not a great passive income, but for the most part allows you to save money.

   However, it is still quite possible to receive not an extra 3-10 thousand per month from a large amount.

   Sale of securities and mutual funds.

   A good option for long-term capital investment with the aim of making a profit.

   However, it must be approached very carefully.

   Gather all the information about the organization in which you are investing your money.

   Income from shares becomes large only after about 7 years have passed since their acquisition.

   Own business.

   A very good option for receiving passive income, but it requires a lot of effort and time before it starts to generate profit.

   Venture investments and profits.

   To receive venture capital royalties, you must invest in a newly launched company.

   After a few years, you can start receiving a very substantial amount, depending on the amount of the contribution.

   Investing money in investment and trust organizations.

   Profit is generated through the redistribution of capital.

   However, in this case there is a high risk of losing your investment.

   Purchase of housing under construction and its sale after construction.

   A profitable option if you have the funds to purchase one or more apartments under construction.

   You will buy it for 500,000 rubles, and sell it for 1,000,000.

   However, most likely, you will have to make repairs, at least cosmetically.

   When choosing a developer, you should be extremely careful.

   Buy housing only from reliable, well-known developers who have been working in the housing market for several years.

Finding the best option from the many existing ones is not a matter of one day.

You should carefully consider the steps, evaluate the initial capital and decide what is best suited.

Many people, thinking about how to create passive income, do not want to do anything about it.

However, in the beginning you will have to work hard in order to reap the sweet rewards in the future.

12 tips for beginning businessmen to create passive income

To become a free person in terms of finances, not to depend on the opinion and mood of the employer, you will have to work hard.

You are always looking for the best option for investing and starting a business.

Look for new assets that will later turn into liabilities.

• To become a wealthy person, strive to create several sources of passive income.
• Improve your financial literacy.

Be an educated person, read books, attend courses and lectures.

Live the life that rich people lead.

Before investing, study all options, do not invest money at random.

Always have on hand the necessary documents confirming your investment in a company or bank.

• Break your cash capital into several parts and invest in different projects.

Calculate the risks of losing your invested money.

If the risks are minimal, take the risk.

However, if intuition and common sense scream that the investment is not worth making, stop, no matter how profitable the offer may seem.

Think about your future every day.

Decide what you want to achieve.

Open your website on the Internet and develop it.

If there is a lack of capital, the site can be sold for a good amount of money.

• Find a mentor or coach who has already walked your path and can give you some ideas.
• Be prepared for the fact that to create good passive income you will have to work for some time, invest not only money, but also time and effort.

Don't try everything at once.

Focus on one project, and when you finish it, try another.

By focusing on several projects at once, you can get confused and lose your investments.

How to create passive income on the Internet?

Organizing your own financial project is a great way to create passive income.

You can open a business both in real life and on the Internet.

If there is no initial capital, or it is relatively small, the option of creating a business on the Internet is preferable.

Choose the business that you are best at.

This could be website creation, group administration on social networks, copywriting, Forex trading.

To start trading on the Forex exchange, you need to undergo a month of training and conclude several trial transactions.

At the initial stage, invest the minimum amount and develop.

Robert Kiyosaki talks about how to create passive income in the video:

How to create passive income and gain financial freedom?

In books on self-development, achieving success and wealth, millionaires give advice on achieving financial freedom.

We have selected the best ideas:

To avoid remaining poor throughout your life, find time to create passive income, even while working your day job.

In a month or a year, these efforts will more than pay off.

Always strive to create as many sources of passive income as possible.

When you make a profit, invest it again.

Develop yourself.

Financial literacy is a prerequisite for those who want to get rich.

Start by at least reading books by the world's millionaires and billionaires and follow their advice.

People who think about how to create passive income, are already a step above the rest.

Move forward, apply the recommendations we have described and become a millionaire.

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Hello, dear readers! With you again and today we will examine the main topic for everyone who has firmly decided to break out of the trap of financial dependence on the employer and finally begin to create their own small factory for producing money. So, the topic of this material: passive income. By the way, if you are still racking your brains about how to get an active income to begin with, I recommend reading the article:.
Probably everyone has heard this quote from Rothschild:

He who owns the information owns the world!

In relation to our topic, it can be paraphrased:

Whoever has information about how to make passive income owns the money!

And here a somewhat paradoxical situation arises. There is more than enough information about this on the Internet, but what quality is it?
I was surprised to discover that the simplest passive income without investments is social benefits and, in particular, a pension. Imagine, here we are racking our brains about how to create a source of constant profit, but it turns out that everything is so easy - you just need to grow old! But this is not the only misconception that can form in the head of an unprepared reader.

Therefore, in my material I will not just list the most common ways of generating income, but also provide real figures and facts about whether it is possible to earn money from them and how much. Along the way, you will have to debunk a couple of myths about the most popular methods: you will find out why you not only do not make money on bank deposits and real estate, but also lose money. Surprised? It will be more interesting later.

So, let's move on to the practical part of our opus. The first, most popular and simplest passive income is opening a bank deposit.
There are more than 650 credit institutions operating in Russia, and almost all of them attract deposits from the public. In general, their range of deposits is approximately the same. You can open deposits in rubles, euros, dollars, pounds sterling, less often in Swiss francs and even yuan. There are deposits with the possibility of replenishment and with monthly transfer of interest to a separate current account. That is, in principle, you can put money in a bank and live off the interest, although I do not recommend doing this and I will further explain why.
Average rates of large banks are 7-8% per annum. Players of a lower rank have a slightly higher profitability - 9-10%. But the real rate always depends on the size of the deposit and the term. That is, the larger the amount and the longer the term, the higher the rate.
The profitability is, frankly speaking, modest. At least in my opinion. I think so: why give money to the bank at 8% per year, if you can learn how to work with binary options and achieve a profitability of 80-100% per month. In general terms, I described this method of earning money in the article:. Here is an example of a successful transaction:

Benefits of a bank deposit!

Even a child can receive such passive income in Russia. Of course, a child will not be able to open a deposit personally, but the procedure itself is extremely simple and does not require any special knowledge, so deposits are suitable for everyone. This explains their popularity among the general public.
You don't have to do anything. You just come to the bank once, enter into an agreement, give the money to the cashier and after a couple of years you take it back along with interest.
Reliability. Firstly, your passive income is guaranteed, and you will receive a strictly defined profit specified in the contract. Secondly, it is believed that it is almost impossible to lose money on a deposit, that is, the risks are very low. This is both true and to some extent misleading. Next, I will explain what problems an investor may face in the coming years.

How much can you earn?

The answer is not at all. Surprised? Yes, almost all materials examining examples of passive income tell you how easily you can get an income of 100,000 rubles per year through bank deposits with 1,000,000 rubles. But this is a superficial look at the situation.
To understand why a deposit is not capable of generating significant income, you need to understand several terms:
Money. It is a measure of the value of goods and a means of payment.
The purchasing power of money is the amount of services and goods that you can purchase with a certain amount.
Inflation. This term refers to the general increase in prices of goods and services.
Devaluation. This is what they call a depreciation of a currency, in our case the ruble.
Money itself, that is, banknotes, has no value for you and me. They matter only insofar as we can buy something with them. Right?
Now look. In 2015, according to Rosstat, the official inflation rate was 12.9%. Since Rosstat employs those same storytellers, we make allowances for reality and get actual low inflation at a minimum level of 20-25%. At this rate, the purchasing power of your money is decreasing. That is, a year ago you could buy 100% of some goods and services with the amount you have, but today you can buy 20% less.

Attentiveness test: what is the average deposit rate? By the way, I mentioned it above. In the country's largest banks it is only 7-8% per annum. So, if you had opened a deposit at the beginning of 2015 in the amount of 1,000,000 rubles, by the end of the year you would have been paid 1,080,000 rubles. And the purchasing power of money during the same period decreased only by 12.9%, according to official data. Thus, the purchasing power of your million fell by 129,000 rubles, and the bank's interest amounted to only 80,000 rubles. Net loss – 49,000 rubles.
Yes, nominally the amount has increased by 80,000 rubles, but at the end of 2015 you will be able to buy as many goods and services with this money as you would have bought at the beginning of the same year for 951,000 rubles. So what good is it to you that there are more banknotes (cut paper with watermarks) if you can buy less with them?
Of course, such calculations are somewhat arbitrary, but I do not strive for mathematical and economic accuracy. I just want to show you that if the annual rate on a deposit does not cover inflation, such a deposit does not bring real income at all. Moreover, you are actually losing money. Plus, if you open a deposit for five years at once and withdraw interest every month, the purchasing power of the original amount will be significantly reduced, and monthly passive income will turn from modest to meager relative to real prices for goods.
Another problem is devaluation. In our case, the depreciation of the ruble relative to the bi-currency basket, that is, relative to the US dollar and the euro. For the period 2014 – beginning of 2015. The ruble depreciated by about half against the dollar. This means that if previously you could buy 100% of imported goods with your million, now their quantity has decreased by about 50% in just two years. And our deposit rate is still 8% per annum.
If the figures I have given seem implausible to someone, look at the dynamics of prices for imported electronics. In more than two years since 2014, everything has risen in price approximately twice, and in some places even more.

Why and how to open deposits so as not to lose money?

Despite everything said above, deposits can still be used. Firstly, this instrument is suitable for temporary placement of free money. For example, you are saving money to start a business. If you put money under your pillow, it will depreciate faster than on a deposit, since the deposit rate at least partially compensates for inflation. Secondly, you need to have a certain amount on hand in case of unexpected expenses. For example, they will offer you to buy a small stake in a new promising company, but all your money is already invested in other assets. What to do? This is where your deposit comes in handy. In addition, foreign currency deposits, unlike ruble deposits, can still generate passive income.
And now practical advice on choosing the conditions for placing funds in a bank.

Tip #1. Only systemically important banks. These are the largest credit institutions in the country. Their deposit rates are lower than those of small banks, but the Central Bank will definitely not take away their license. In addition, if such an institution begins to “fall,” it will certainly be supported by funds from some National Welfare Fund or other state fund. I won’t disclose the specific names of banks - I don’t do advertising. But you can look at the ratings of credit institutions yourself.

Tip #2. Select the deposit currency. The ruble is extremely unstable and will steadily slide down in the coming years. Whether you like it or not, this is a fact. What's the conclusion? You must open a deposit in dollars or euros. Indeed, this sharply increases the profitability of the deposit in ruble terms, allows you to completely cover inflation and even get a small profit of about 3-3.5% per annum.
But this is not an ideal option either. Why? There is a risk that the authorities will decide to forcibly convert all foreign currency deposits into rubles at a fixed rate. You understand that this course will not be in your favor. There is only one way out - a multicurrency deposit. According to the conditions of opening such a deposit, you can, if you smell something fried, convert currency in one click directly in the Internet bank. Please pay attention to the conversion fee.

Tip #3. Option to close the deposit early. All deposits are term deposits. The longer the term, the higher the profitability. Therefore, it is much more profitable to open a deposit for 5 years than for 6 months. But there is also a downside to this. If you urgently need money, if you withdraw early, all accumulated interest will be lost. Therefore, you need to choose a deposit with preferential early closure. Some deposits provide for the fixation of income after a certain period. For example, once a year the accumulated interest is fixed and if the deposit is closed early, it will not expire.
Another reason why it is better to choose deposits with this option is the possibility of privatizing part of the funds. Something similar happened in 2013 in Cyprus. There, depositors were forcibly made shareholders of banks and 6.75% - 9.9% of the amount of deposits was confiscated from them. Thus, Russian depositors of Laiki Bank lost approximately $10 billion. The possibility of applying such measures is already being discussed in Russia. So, if there is a risk of a collapse of the Russian banking system, you need to urgently withdraw money before you become a forced shareholder of a bankrupt bank. This is where the option of preferential early closure of a deposit comes in handy.

Tip #4. Confirmation of source of income. In connection with the strengthened fight against money laundering, banks will have the opportunity not to give depositors their money if they cannot explain the origin of the funds and document that they have paid all required taxes on this amount. So, prepare your documents in advance.

Method number 2. Apartments. Gold. Diamonds. How to create passive income from valuable property?

The next most popular passive income with investments after a bank deposit is real estate. But in fact, any property that tends to increase in value over time can act as an asset. This may include:
Antiques.
Art objects.
Precious metals and stones.
Collectibles from coins and stamps to vinyl records and comic books.
Of course, in order to create a portfolio from antiques or paintings, you need to have a deep understanding of this. Personally, I cannot boast of such knowledge. But if among my readers there are experts or at least amateurs, then you can try. The main principle is simple: invest in something that you think will appreciate in value in a few years. Moreover, the profitability can be simply fantastic. So, in 2014, a certain Darren Adams sold the first issue of Action Comics on eBay for $3.2 million. And, by the way, it initially cost 99 cents, although this was already in 1938.
I will not stir up topics that are unfamiliar to me, so as not to mislead you, and I will tell you about those types of property suitable for building passive income, which I know first-hand.

How much can you earn from real estate?

If we talk about Russian real estate, the answer is the same as with bank deposits - not at all. It made sense several years ago to extract passive income in Russia from Moscow and St. Petersburg real estate. But now the situation is fundamentally different. In order not to be unfounded, I will explain in detail how real estate buyers and landlords usually earn money.

On transactions with housing you can receive residual income three times:
At the construction stage, an apartment costs 15-30% cheaper than at the time the house was put into operation. That is, in 1-2 years, while construction is underway, without doing anything, you can increase your investment by a third. The only catch is the long-term construction. Therefore, you need to choose only properties of large developers and builders who have access to borrowed capital.
Rental income. Actually, this is the rental of housing. After expenses, the average annual return is approximately 4-6%. Note that this is even less than the interest rates on deposits.
Increase in price of the object. If in the case of deposits inflation “ate up” our money, here it plays into our hands - real estate rises in price along with all other goods by about 10-12% per year. But even in this case, not everything is so simple, which I will discuss below.

So how much can you earn? If you successfully buy an apartment in a building under construction at the foundation pit stage, in 1.5-2 years you will receive an increase of 7-15% per annum. Not much, but not bad. Then, every year, the property, subject to the growth of the real estate market as a whole, will increase in value by up to 12% per year. Passive income from renting out an apartment is about 5% per year. Thus, in 5 years, ideally, you can return on average 70% of the money invested. That is, the total return is about 14% per annum.
This is barely enough to cover inflation. But in reality you will not receive such income. Why?

There are several reasons:
New buildings no longer bring such high returns during the period of construction of the house, and the risks of running into long-term construction are constantly growing.
When renting out housing, a lot of side expenses arise, including the cost of finding tenants, purchasing and periodically updating furniture, major and cosmetic repairs, taxes, and finally. Also, don’t forget to take into account periods of downtime when there is no tenant yet and utility bills continue to trickle down. As a result, the real rental yield barely reaches 3% per year.
Property markets around the world tend to develop into what are known as bubbles. While these same bubbles were forming, Moscow new buildings were steadily increasing in price by 10-12% per year. But in 2015, the holiday ended - the balloon began to deflate, and at a rate of 14.5% per year in rubles and as much as 33.6% in dollars.

Thus, in 2015, Russian real estate owners received negative returns. Rental profits are pitiful, and the assets themselves have fallen in price by a third in dollar terms. As you can see, dealing with real estate is even less profitable than opening a bank deposit.
Does all this mean that you can’t make money in real estate at all? Not really. You can create a good passive income business from housing in the EU countries, USA, Canada, as well as in popular resort regions.
In Europe, the average rentier profit is 3-5% per year per property. The numbers seem to be the same as in the case of Russian apartments, but in euros. This means that the profitability of European real estate will completely cover not only official, but also real ruble inflation and will even bring quite tangible income. In addition, investing in housing allows you to protect your investments from the consequences of ruble devaluation.

How to make passive income in real estate correctly?

If you do decide to invest in housing someday, here are some recommendations:
in the coming years, buy housing only abroad;

Why do I recommend using gold as a source of passive income?

Gold does not have a fixed price or any stable rate of return. Therefore, in certain periods one can observe a decline in prices for the yellow metal. However, if we take long-term dynamics, gold has been steadily growing in price since 1938, when its rate was set free to float.
Now about the size of profitability. In the period from 04/01/2015 to 04/01/2016, that is, in exactly one year, gold at the rate of the Central Bank of the Russian Federation increased from 2,185 rubles to 2,691 rubles per 1 gram. The annual return was 23%. As you can see, this figure completely covers official inflation and gives a good profit. Of course, the numbers in dollars or euros are not so impressive, but you can get decent passive income there too.


If we consider the long-term perspective, then over the 7 years from 04/01/2009 to 04/01/2016, a gram of gold at the rate of the same Central Bank of the Russian Federation increased in price from 1,001 rubles to 2,691 rubles. The cumulative price increase for the entire period is 169%! Thus, the average annual passive income is 24%. And note, this takes into account local declines in the gold rate.
In my opinion, this is one of the best tools for conservative investments. Buying gold, like opening a bank deposit, does not require special knowledge, while these instruments are incomparable in terms of profitability, and the risks of investing in the precious metal, it seems to me, are much lower than those of deposits of Russian banks.
The only problem with gold is that it is advisable to invest in it for a long time. That is, they bought a bar or coins and forgot them in a safe or safe deposit box for 5-10 years. Essentially, these are strategic investments. If you want to start receiving passive income right now and monthly, then precious metals are not suitable for this. Then it’s better to try binary options: . Moreover, this tool allows you to make money on gold, too, only through short-term speculative transactions.
Either way, gold is definitely worth using to diversify your asset portfolio. This will significantly reduce risks for assets with higher returns, but, accordingly, with increased risks.
Let's move on to the practical side of the issue: how to get passive income by investing in gold? There are two options: buy coins or bars, or open an impersonal metal account.
In the first case, directly upon purchase of coins or bars, VAT of 18% will be included in the price. That is, at first it can be considered a net loss. However, as I noted above, gold is suitable mainly for long-term investments. So, if we spread this 18% over 10 years, we get 1.8% per year. With an average return of 24% per annum, these are quite acceptable losses. Plus, when selling, if you follow all the rules, you will have to pay personal income tax - 13%. This is another 1.3% per year. The total total passive income minus taxes when investing in gold for 10 years will be 209%. In my opinion, it's not bad that even with annual inflation of 13% you end up with a 79% gain.
Now let's say a word about the impersonal metal account. You can open it at most banks. The account will count your gold in grams. In theory, you can pick it up in kind at any time or sell it to a bank and immediately receive cash. True, in reality, banks are not very willing to issue gold to the client and often delay the fulfillment of this legal requirement of the account holder. Again, the question arises about trust in the banking system as a whole and a specific credit institution in particular. By the way, the deposit insurance program does not apply to compulsory medical insurance.
And one could say that buying gold in kind is definitely better. Agree, it’s nice to hold your own gold bar in your hands. However, there are three “buts” at once. Firstly, when opening a compulsory medical insurance you do not have to pay VAT. Secondly, you can open a fixed-term account that accrues interest. That is, passive income will be a little higher, although interest rates on compulsory medical insurance are more than modest - on average 1% per year. A small thing, but still nice. Thirdly, there is the issue of security. Bullions or coins need to be stored somewhere. You can rent a safe deposit box, but these are additional costs and again a meeting with the bank. So all that remains is to bury your treasure on some island.
By the way, there is an alternative to strategic investments in gold - speculation on fluctuations in precious metal rates. Forex brokers provide this opportunity, but there is one catch: to trade gold, you need a fairly large capital, and errors in predicting changes in quotes can lead to the loss of your deposit in a matter of minutes. Therefore, I would advise choosing binary options. They also allow you to work with gold, but the size of the entrance ticket and the risks are much lower there, although the potential passive income remains at the same level. You can find out what binary options are from this article:.

Method number 3. Creating an intellectual product!

Alas, it is almost impossible to create residual income without at least minimal investment. Actually, there is only one way: to create something valuable. The choice seems limited, but in fact it is extremely wide. You can make money from writing, inventions, photography, blogging. Particularly successful mobile application developers are making good money these days.
Of course, there is no single monetization recipe for all of the above endeavors, but in many cases you can find at least an approximate strategy for creating and promoting a sought-after product. The Internet is literally teeming with recommendations on how to earn passive income on the Internet by blogging or creating an information site, or how to make a fortune as an iOS application developer. I admit, I am far from an expert in these matters, and the format of the material does not allow us to consider in detail all the many quite sensible recommendations for creative people who want to create a source of passive income.
Here I will give several examples of how real people, like you and me, create billions of dollars in capital from scratch and how much they manage to earn:
YouTube blog author Felix Kjellberg's videos are regularly watched by 40 million subscribers. The channel's annual revenue is $12 million.
Ethan Nicholas, a developer from North Carolina, USA, earned $800,000 from a simple iShoot game.
Canadian Danielle Fong has come up with a new way to accumulate and store energy obtained from wind generators and solar panels. Peter Thiel and Bill Gates have already invested over $30 million in her startup.
German photographer Andreas Gursky managed to earn $4.3 million from the sale of one photograph alone. Of course, his income is not limited to this.
Damien Hirst, one of the most successful artists of our time, is worth about $1 billion.
Probably the well-known writer JK Rowling earned $1.5 billion from her wizard Harry. This is the total income from the sale of all copies of the book series and the film adaptation of bestsellers
Unfortunately, such methods of passive income do not offer any guarantee of commercial success. So doing photography, painting or writing makes sense mainly for the soul, and turning the results of creativity into millions and even billions of dollars is mainly a matter of chance.
As for the practical side of the issue, do not forget about such little things as copyright registration. In particular, to obtain a patent for an invention or utility model, you need to contact the Federal Institute of Industrial Property. And if you've written a book and want to protect your interests before pitching it to publishers, print it out, dated, and mail it to yourself.

Method number 4. How to become Warren Buffett: passive income on securities!

Where can I get money to start my own business? This is exactly the problem that 95% of new entrepreneurs face! In the article, we revealed the most relevant ways to obtain start-up capital for an entrepreneur. We also recommend that you carefully study the results of our experiment in exchange earnings:

Warren Buffett is the most successful investor in the world. The fortune of this Oracle of Omaha in 2008 was $68 billion. Only a genius could repeat such a success, but history knows thousands of other examples when multimillion-dollar fortunes were created on securities. Can you use this method? To answer this question, let's first get a basic understanding of the main types of securities.
Stock. Companies use this type of securities to attract investment capital. In this case, each shareholder becomes, in fact, a co-owner of the enterprise, although the share of the majority of shareholders, of course, is negligible. Stocks generate income in two ways. Firstly, there are dividends. At the end of each reporting period (usually a year), the company sums up its financial activities and decides on the distribution of profits. The latter goes to shareholders in accordance with the size of their stake.
Secondly, you can receive passive income from the rise in price of shares during the period that elapses from the moment of purchasing securities to the moment of their sale. Of course, there is a risk here, and quite a high one, that stock prices will fall, that is, instead of profit you will receive losses.
There are two types of shares: ordinary and preferred. The former give votes at the shareholders' meeting, the latter provide their owners with higher income, since they involve the payment of either a fixed amount or a strictly defined percentage of the profit.
Bonds. These securities are debt obligations. Essentially, the issuer (the person issuing securities) borrows money from you for a certain period, after which it undertakes to buy back its bonds from you, usually with a certain fixed income. Bonds are also perpetual and with periodic coupon (income) payments throughout the life of the debt obligation.
The advantage of this type of securities is that you are guaranteed to receive a certain return. The risk is limited only by the solvency of the issuer. That is, if the state or company does not decide to declare itself bankrupt, the money you paid will definitely return to you, and at the same time the income established by the issuer. It should be noted that bond yields depend on the degree of risk, but they are usually low.
Now let's discuss derivatives - derivative financial instruments. These are securities for securities or for goods. Unclear? Now let's look at everything in more detail, and you will understand.
Futures. These are contracts for the purchase or sale of certain assets. They indicate the quantity of goods, currency, shares or bonds, delivery time and price. When the contract expires, either the actual delivery of the asset or cash settlements take place. That is, you do not have to pick up the goods themselves; you can receive monetary compensation.
The essence of operations with futures is to buy a contract with a lower strike price, and sell it when the market price of the underlying asset, and with it the contract itself, increases significantly. For example, you bought Brent oil futures with a strike price of $28 per barrel, and after a couple of months it rose to $35. We sell the contract and take profit. By the way, oil futures are one of the most popular investor instruments.
The advantage of futures is that the value of the contracts is much lower than the value of the underlying assets. This allows you to get by with a smaller initial investment and get more passive income than, say, from investing directly in stocks. Meanwhile, losses in the event of a change in prices for the underlying asset not in your favor will be higher.
CFD. This is another contract, but this time not for the delivery of the underlying asset, but for changing its price. One side bets on an increase in quotes, the other on a decrease. When the contract matures, one party pays the other the difference between the current value of the underlying asset and its price at the time the contract was concluded.
For example, when a CFD was concluded, the cost of the underlying asset (stocks, commodities, bonds, etc.) was $100. You bet on an increase. Now, if the underlying asset is worth $110 when the contract matures, the other party will have to pay you $10.
The list of existing securities, of course, is much wider, but I have listed the most popular types of assets, and this is quite enough for everyone who is interested in how to receive passive income from investing in securities.

How much will you earn on securities?

Let's start with bonds. The profitability, frankly speaking, is modest. For example, on Gazprom's currently in circulation medium-term ruble bonds, the annual yield is only 7.55%. For some VTB 24 bonds with a par value of 1000 rubles, the income is 9% per annum with payments 4 times a year. A little better, but the problem is the same as with bank deposits - your passive income will not cover even inflation.
Now on to the shares. As an example, I will take one of the most profitable stocks in the world at the moment - Apple securities. The cost of one share of the company in April 2016 reached $108. Dividends for 2015 were 47 cents per share. You understand, it’s not a lot, at least if you don’t have several million dollars to invest.
In fact, dividends are never big. The main profit comes from rising quotes.

So, 6 years ago, that is, at the beginning of 2010, the cost of an “apple” share was only about $28. Thus, during this period, the company’s shareholders received a passive income of 285%, not counting dividends. The average annual return was more than 47%. Not weak, right?!
But I emphasize once again that Apple shares are one of the most successful examples on the market. Most corporate securities, unfortunately, cannot boast of such indicators. In addition, there is always a high risk of a significant drop in quotes, and it is not always possible to predict it accurately enough.
The profitability of futures and CFDs depends directly on you and your skills in predicting changes in the rates of underlying assets. So it makes no sense to give specific numbers here. Let me just say that successful derivatives traders earn very, very impressive capital.

How to buy stocks and bonds?

Some securities can be purchased directly from the issuer. In other cases, you will have to turn to the services of professional market participants - brokers.
All companies set their own minimum initial investment. Most brokers won't lift a finger if you come in with less than $50,000, but you can find companies with entry fees starting at $200. True, with such a modest amount you can’t really go wild, and you can’t count on big profits from a long-term investment of a couple of hundred dollars in securities.
Although you can start with this, I would recommend getting into binary options with a small capital. This tool allows you to work with both stocks and bonds, but the investment required is many times less than if you were buying securities, and the profitability is many times higher. In order not to be unfounded, I publish on my transactions.
When choosing a broker, it is very important to check its reliability, quality of technical support, and most importantly, inquire about the amount of commissions for transactions, deposits and withdrawals of funds.

Just the truth: can you make money on securities?

For a private investor, the easiest way to invest in securities is to buy and forget for several years while income accumulates. This is strategic investing. The problem is that for a long-term investment of capital in science, you need to look for a “safe haven”, and there is currently no such place anywhere in the world. Thus, in the early days of 2016, we could observe the largest collapse of the Dow Jones index since the Great Depression. And, by the way, this index takes into account the prices of shares of the 30 largest US companies, such as Coca-Cola, Boeing, General Electric, Intel Corp., Nike, etc. So investors received multi-billion dollar losses as a New Year's gift.
One might, of course, think that the range of securities is not limited to American companies. But in other countries the situation is no better. In particular, on the same days when the Dow Jones suddenly fell ill, its Chinese comrade, the Shanghai Composite stock exchange index, collapsed even more.
So, there are virtually no “safe havens” for capital in the stock market today. True, you can try to identify the money in shares of “new economy” companies. These include payment systems, search engines, social networks, software developers, and device manufacturers.
If you absolutely do not understand anything about all this and are not too eager to constantly monitor economic and political news, it is easier to transfer the money to trust management. Brokers and management companies offer different investment strategies, provide diversification of the package and its adjustment depending on the market situation. Of course, for all this happiness you will have to pay a commission, but this is easier than delving into all the jungle of strategic analysis of the stock market yourself.

Mutual investment funds.

This is an alternative to direct trust management of your money in a personal account. We are talking about collective investment here. The fund sells its shares, thereby forming the total investment capital. This money is invested in assets: stocks, bonds, real estate, etc. The fund's natural goal is to extract as much profit as possible from these investments. Income is divided among shareholders in accordance with the number of shares.
The main advantage of mutual funds is the ability to invest in expensive assets with a small amount. For example, you have 30,000 rubles. With this money you can buy only 4 shares of Apple. It seems good, but the risks are extremely high - remember, we talked about diversification. You can go another way: buy 3 shares worth 10,000 rubles each, choosing a mutual fund with a strategy of investing in “new economy” companies. Our beloved Apple, Facebook, Microsoft and many other interesting things will be there. Of course, having lower-yielding securities in your portfolio will reduce your overall return. But, at the same time, risks will also be reduced, many times over, and we must always strive for a reasonable balance of risks and profitability.

Method: 5. Passive income from your own business!

I think there is no point in talking about how much a successful entrepreneur can earn, given that everyone knows the clearest examples: Jobs, Gates, Branson, or personally my idol Elon Musk. The only question is how to turn a business from an active income, when you spend days and nights in the office or travel around cities and villages visiting representative offices of your company, into a passive income business.
In general, there is no great science here. First, you need to clearly formulate the company's mission, core values ​​and strategy. Secondly, it is necessary to adopt a process approach to the internal organization of the enterprise. That is, all the work of the company should be divided into separate simple processes and written down in the form of job descriptions for each employee. Such a system involves the creation of control points, the verification of which is sufficient to monitor the company’s activities and its results. In this way, you will be able to manage your company with minimal time investment. She herself will work like a clock. All you have to do is course correct.
When the company has already been built and brought to cruising speed, there is no need to manage it yourself. You can hire a CEO (Chief Executive Officer) and shift the burden of leadership onto him.
Of course, such methods of passive income involve one pressing problem - the question of finding initial capital arises. I outlined my thoughts on this topic in the article:

How to create a business empire through franchising?

Imagine you have created a company. Successful. Effective. Profitable. But I want more. Give up the dream of transferring your business to passive mode, and at the same time giving up your dolce vita for profit from an autonomously operating company? Roll up your sleeves again and take on the development of the enterprise, expanding its presence in other regions? To do this, you will have to spend months on business trips, increase your administrative resources, and with it, by the way, costs will also increase. In addition, the problem of raising money to expand the business will arise. You can use my modest recommendations: . However, for the full-scale development of the company, it is unlikely that it will be possible to do without borrowed funds.
This path has a much more profitable and simpler alternative - franchising. Its essence is that you sell your ready-made business model along with the right to use all technologies, brand, and documentation templates to other entrepreneurs. They, in turn, open representative offices of your company in the regions at their own expense.
This solves three problems at once. Firstly, franchise buyers invest in the expansion of the company. Secondly, they also provide management of enterprise divisions without the need for strict centralization and constant control from the center. Thirdly, unlike hired managers, franchisees treat the company's division as their own business. He is personally interested in achieving maximum efficiency and profitability of the enterprise. As a result, there is no need to inflate the management staff to control the work of regional divisions and rack your brains over methods of stimulating managers.
What do you get? Firstly, the franchise buyer pays an immediate lump sum fee. Secondly, you will receive royalties from the profits of all branches - this will be your passive income. The parent company requires precise step-by-step instructions for opening a company, technology for creating a product and sales, a marketing strategy, in a word, everything that you should have done in the process of creating your enterprise. Additionally, you only need to organize a small department that will promote the franchise, interact with potential buyers, as well as advise them and help them solve problems.
How to create a passive income business through franchising is approximately clear. The question remains - how much will you earn? It is hardly possible to estimate the potential profitability of the network. It all depends on the quality of the business model and development strategy. But as a sample, I will list several well-known brands, the development of which is carried out using this technology: KFC, Subway, Traveler’s, 2GIS, Yves Rocher, Well, Expedition, Sbarro.
Now a more concrete example in numbers. The lump sum fee for purchasing a Subway franchise is 600,000 rubles. Monthly payment to the franchisor (royalty) - 8% of revenue plus 1.5% of turnover as an advertising fee. The turnover of one point varies between 5-9.5 million rubles, and the total network in Russia is 673. Thus, the total income from the entire network is more than 390 million rubles, excluding advertising fees.

MLM. Is it possible to create passive income through network marketing?

About 20% of American millionaires made their fortune through network marketing. Here is the answer to the question about the possibility of making money on MLM. I think that today it has become even easier to use this model of building a business than 10-15 years ago. This is due to the relative simplicity and availability of tools that allow you to quickly develop a network of partners via the Internet.
Network marketing, in fact, is one of the options for business development strategy. The same franchise, only simpler and much more accessible to partners. This option is suitable for products whose sale does not require a retail outlet or office.
Yes, for many such examples of passive income cause some irony. But this is rather due to the somewhat intrusive and even clumsy nature of the work of distributors. In fact, the model is quite working. Without significant investments, you get a product that you can sell without organizing a point of sale, recruiting staff and other difficulties. You just make each of your regular customers a partner, he continues to buy products himself and sell them to his friends, and for this you receive income without the slightest movement.
MLM has enough advantages:
Minimum initial investment. In most cases, you can get by with $200-300. That is, your risks are limited only by this amount.
There is no paperwork, and, therefore, there is no need to spend money on the services of a lawyer, accountant, etc.
There is no need to master the intricacies of the art of personnel management. In fact, you have many people from whose purchases and sales you generate income. Moreover, they all act independently without additional motivation, as is the case with a franchise.
No hassle with the tax service, numerous inspections by regulatory authorities, business disputes with counterparties, etc.
You can create an extensive multi-level structure in literally 2-4 years, and then it will, at least for several years, generate impressive passive income without much effort.
Of course, a lot depends on the choice of brand. For example, I don’t see the point in joining such painfully familiar structures as Avon, Amway or Herbalife. It seems better to bet on a brand that has been promoted abroad, but is new to the Russian market. This way you will have a better chance of creating a large pyramid of partners.

Method number 6. Don’t know how to create your own business? Make money on someone else's!

We have looked at almost all the examples of passive income that I wanted to discuss in this material. The last one left is investing in someone else’s business. It would probably be more correct to call this investing in venture capital, that is, high-risk enterprises, since we have already touched upon investing in shares and bonds of developed, stable companies above.
The idea here is to find a promising startup, help it with money in exchange for shares and either regularly receive some share of the enterprise's profits, or wait until its securities increase in price many times over and sell them. There are many examples of successful investments in venture capital companies. Of course, the most famous are large investors. So, Jim Goetz turned $60 million into $3 billion by investing in WatsApp. Douglas Lyon made a fortune of $2.2 billion from Google, YouTube, WatsApp. Peter Thiel earned roughly the same amount from PayPal and Facebook.
All these respected people, as you understand, “graze” in Silicon Valley, where you go with your $1000 and they will drive you out like a beggar. However, this does not mean that you cannot, with a small amount of money, join the ranks of venture investors.

How to become a venture investor?

Try on the role of a business angel. In my opinion, for a non-professional investor with a small capital, it is better to choose other methods of passive income, since this option is the least profitable and at the same time extremely risky. The bottom line is that you find budding entrepreneurs among your friends or just online and provide them with financing. The chances of success are extremely low, unless you yourself are an experienced businessman and are ready to take part in the project.
Crowdfunding platforms. Angellist and StartTrack and other platforms allow you to invest a relatively small amount in several startups at once, and transactions are carried out through a special online service. An additional advantage is the ability to focus on the decisions of other investors, including professional ones, when choosing projects.
Syndicated deals. These are joint operations of groups of investors existing on the same crowdfunding platforms or investment funds. This approach allows you to invest capital together with professional players and gain access to higher quality and promising projects. The disadvantage of syndicates is the commission for related services.
Venture funds. If you don't already have, say, $1 million, then this option won't suit you. But we are working for the future, right? So this method is worth considering. It’s good because you don’t need to understand existing projects and personally select startups - professionals do everything for you. You are only required to transfer money to the fund for 5-7 years.
When considering venture investments as passive income, keep in mind that to ensure an acceptable level of risks, you need to distribute capital between at least 10 projects. At the same time, it is necessary to select only high-quality startups. To do this, follow competitions for venture projects, and also read articles in the media with selections of promising companies.

Passive income. How it works?

Each of us has a basic set of resources: time, physical strength, the ability to perform simple tasks. Many can also boast of a good education, experience in some field and simply a smart head, which in itself is not as common as we would like. So the difference between a dollar millionaire and an ordinary hard worker who lives from paycheck to paycheck is how they manage these resources.
An employee, the vast majority of whom, essentially makes a direct exchange of their time for money. Moreover, the cost of each hour or day directly depends on the value of his skills, knowledge, experience, and productivity. And this is called active income. Rich people, in turn, directly or indirectly invest available resources in the creation of assets - values ​​that can generate income without further investment of the owner's resources. Therefore, passive income is also called residual income from the Latin word residuus - remaining, preserved. The work has already ended, but the profit remains indefinitely.

Why does this method of extracting financial benefits bring in many times more money than regular hired labor? It's simple: you can create a package of assets, the total value of which for the market will be hundreds of times higher than the value of your personal time with all the skills and knowledge combined.

3 types of sources of residual income!

What can act as assets? I have already given specific options for passive income above, but now I will try to explain the essence. So, I would divide all assets into three categories:
The first type is things that become more expensive on their own. That is, receiving passive income or other currency is earning money from the difference between the price you paid when purchasing the property and its value, say, in a year or simply by the time you decide to sell this property. For example, you bought shares at $15 per share, and after 5 years they are already worth $115. The total return is 766%. This is a brilliant result, I tell you.
In the second group I would include property that can be sold an unlimited number of times. An example is a patent for an invention. You can sell the right to use your invention to multiple companies during the life of the patent. At the same time, you worked only once - when you created your invention. And it can bring stable passive income for decades.
The third category is assets that themselves create new value, and you receive income from its sale. Any company can serve as an example. Once you have created a successful business, you can retire, but the activity of the enterprise itself will not stop. It will continue to produce goods or provide services, make a profit from their sale, and part of it will safely end up in your fattening pockets.
I would like to note that this is not a free retelling of some scientific classification, but my own view of the types of passive income. And I’m telling you all this so that you understand the general principles of asset formation and can find and choose for yourself the most convenient and interesting methods of creating sources of residual income, without limiting yourself only to my or someone else’s advice. In the end, you have to do something that you really enjoy, otherwise you won’t be able to achieve truly great success.

What's stopping you from creating passive income?

Sorry, but now I'm going to be smart. Or rather, demonstrate your modest knowledge of economic theory.
In the interpretation of the Austrian school of economics, capital is defined as resources that we do not consume right now, but use them in order to obtain a higher level of consumption later, in the future. And profit, in turn, is a payment for the risk of losing these very resources, as well as for the fact that you will have to be patient a little and postpone the moment of consumption until later.
Actually, these definitions contain four main problems that prevent you from creating residual income.
Problem #1. We absolutely do not want to endure and postpone the sweet moment of consumption for the future. We want to eat, drink, use everything right now. Life, in fact, constantly offers you a choice: grab one dubious-looking caramel right away or wait a week and get a whole box of delicious chocolates. So what do you usually choose? There will be no hints here - answer yourself, only honestly.
Problem #2. Poor time management. Instead of correctly scheduling and investing part of the time in our assets, that is, future consumption, we either give this time to our uncle, for whom we work overtime and on weekends for a “thank you”, and often without any thanks, or we bring precious hours and days as a sacrifice to the gods of the Sofa and TV. There is only one way to overcome this problem - time management. It must be said that time management is a whole science, although it is easy to understand. I advise you to read books on this topic by a recognized guru in this area, Brian Tracy.
Problem #3. Poor financial management. Remember Matroskin’s phrase: “To sell something unnecessary, you must first buy something unnecessary. But we have no money!” Here comes the third problem of creating residual income. For this you need at least a small capital, but where can you get it? I have already outlined some of my thoughts on this topic in the article. In general, you need to learn to plan your budget and save. Just make it a rule to save, say, 10% of all your income every month, and no matter what happens, stick to this principle.

This rule is directly related to the third problem of residual income, that is, risks, and is expressed in just one word - diversification. The essence of this approach is to distribute your capital across several assets with different levels of risk. For example, you can build a portfolio of stocks, bonds and precious metals.
Why is this necessary? – This is how we achieve risk minimization. For example, if you invest all your money in shares of a promising young company, then there is an extremely high probability of losing all your capital if the company does not live up to expectations. But you can do it differently. Part of the money goes into high-risk securities. Another part is in gold. The risks here are much lower and in the long term the yellow metal shows stable and very decent growth. And finally, put another part of the money into bonds, which have a small but fixed amount.
Having such a portfolio, on the one hand, you provide yourself with the opportunity to receive high and stable passive income from stocks. On the other hand, you protect yourself from a complete loss of capital with bonds and gold. Thirdly, at least part of the invested funds will certainly bring some return, which will compensate for potential losses from loss or fall in the price of other assets.

What passive income options did I choose?

You can learn about my entrepreneurial story from this little autobiography: . In short, I have already built my own business, and it is this that serves as my main source of passive income. But, since marking time is not good for a real entrepreneur, I, firstly, planned to expand my company, and secondly, I mastered a new way to increase my capital - trading on the binary options exchange.
This option is not entirely suitable for receiving passive income itself, since it requires the trader’s personal participation in each transaction. However, I will still say a word about it, because, in my opinion, binary options have several advantages over each of the above methods of making money:
Low entry ticket price. Unlike the minimum required costs to create your own business or a diversified portfolio of stocks and bonds, $300-500 is enough to get started with binary options. Of course, to ensure good returns and minimize risks, it is better to allocate a slightly larger amount.
High returns, many times higher than inflation. Profit from speculation with binary options can reach or even exceed 100% per month of the initial capital. None of the above methods brings such income.
Anyone can master working with binary options and achieve consistently high profits in 1-2 months.
However, I should immediately upset fans of freebies - it is not here. It will not be possible to do without preliminary study and quite a lot of painstaking work at the very beginning. You can learn more about how to get started from this article:. But then you can make several profitable trades a day quite easily, spending no more than an hour in total. Here is one example of my transactions:

I hope my recommendations on creating passive income will help you decide on ways to develop your personal financial empire and avoid common mistakes. I wish you good luck and all the best.
Sincerely, .

Passive income is a method of making money that does not require constant effort and work from you; you get your money even when you just sit in front of the TV and drink tea with sweets.

Surely you have noticed that most rich and successful people receive a considerable profit every month almost out of thin air. In fact, money doesn’t just “drip” into anyone’s bank account. It's all the result of hard work. Let's try to understand this issue together and learn how to use passive income with a minimum of effort.

What is passive income

The vast majority of people are accustomed to living by standards. The monotonous “home-work-home” lifestyle suits many people. Some men and women, wanting to earn additional income, take a second or third job. But with such an approach it is hardly possible to become a successful person. In order to live for your own pleasure and not think about whether you will make it to your salary, you need to find a source of passive income.

Passive or residual income- This is a type of income that does not require active human action to obtain. Simply put, a certain amount of money is deposited into your bank account every month for work previously done. That is, you invested money in a business, or successfully sold your creation and now throughout your life (or several years) you receive a reward.

But in fact, organizing and receiving such income is not easy. You will have to make a lot of effort. This may take years. But it's worth it. Still, what is the point of getting money this way?

In order to receive dividends or interest, you must have an asset. And it is precisely these types of assets that we will now talk about.

There are several types of passive income.

• Intellectual. Occurs when creating a certain intellectual product. It could be a book, a song, an invention, a video. Subsequently, the author (rentier) receives a royalty and a percentage of each copy sold, a patent.
• Investment (financial). To obtain this type of passive income, you need some capital, which is invested in real estate, securities, shares, etc. Such deposits are a source of interest and dividends.
• Marketing. By creating a marketing network, a personal website or your own brand, you can receive a certain amount of money every month.
• Legal. This is a type of income that many citizens are entitled to by law. Namely, pensions, social benefits, financial assistance. So, if you are part of a group of people who rely on social services. payments, then by filling out the appropriate documents at a government agency, you can regularly receive money without making any effort. We won’t talk about this species, because it’s already clear to everyone.

A person who lives on money received from passive income is called a rentier. He most often owns real estate that he rents out, financial assets, or intellectual property.

What are the differences between passive and active income

Modern man is accustomed to surviving thanks to active income. But this is due to the fact that not everyone knows and understands the difference between active and passive income. In order to start a new life, or leave everything as it is, let's find out how passive income differs from active income.

1. Active income is received by an employee, a specialist, an employee for some work done. This could be salary, advance, bonus, etc. But if a person stops working, then he is not paid any money. Passive income does not depend on whether you worked this month or not, and you receive payments in any case.
2. In order to receive dividends and interest, you must have initial capital and assets. To receive active income, you do not need to have any valuables.
3. Active income limits a person's actions. For this type of income, you can work one or two jobs. While passive income does not limit the actions of the owner. Those. Financial capital can be divided into several parts and invested in different projects.
4. The risk of being left without a livelihood is higher when receiving active income. So, when you quit your job, you will stop receiving any payments, i.e. losses will be 100%. Having passive income and investing assets in several projects at once, you will never be left without money. If one project fails, you receive income from the rest.
5. Active income is preferred by people who do not understand financial issues. Therefore, they most often never achieve financial stability. Holders of passive income live for their own pleasure and do not need anything thanks to financial independence and prosperity.

Sources of Passive Income

So, we have already found out what passive income is, what types it is divided into and how it differs from active income. It's time to find out how and thanks to what you can create a source of passive income.

Let's look together at the most popular and accessible ways to get “easy” money.

Renting out real estate

One of the most popular and widespread ways to generate passive income. To obtain rental income, you must at least have real estate, or a considerable amount of capital, for which you can buy residential or non-residential space.

After acquiring square meters, you will need to work hard to make repairs and purchase the necessary furniture. Real estate can be either residential or commercial. In the first, people live and relax (at home, apartments), and in the second, they work (offices, industrial premises).

Having this type of income, you receive a certain amount every month, but periodically you will have to make repairs and monitor the condition of the premises. This can be avoided if you use the services of specialized companies. They will take on most of your responsibilities, and in return they will require about 10% of the premises' rent.

Renting out special machinery and equipment

Renting special equipment, just like renting real estate, is a profitable business. Very often, this type of income brings more profit than renting out real estate. This is because special equipment can quickly pay for itself. So, for example, if you have any expensive construction tools, then regularly renting them out will cover the cost in a few months.

You can rent out any movable property whose value is higher than the average salary in your city. This can be a wide variety of equipment (trade, production, industrial), machinery, inventory.

For example, one acquaintance of his plant periodically rents a car with a tower (boom) to repair power supply systems, lifting electricians to the required height to the cables. They give away more than 5,000 rubles per day. Calculate the profits yourself.

Owning such equipment, you can live comfortably for more than one year.

Renting advertising space

Everyone knows that advertising is the engine of trade. It is thanks to bright advertising campaigns that trading companies have become successful. Our people are designed in such a way that they buy and use exactly those products and services that everyone knows about. Numerous advertising companies take advantage of this. They try to place advertisements in all sorts of places. These could be cars, public transport, billboards and even residential buildings. So why not make money from it?

Renting advertising space is an excellent passive income option for lazy people. This is because it requires minimal effort from you. This is to find an organization and offer your services for advertising on your car, the facade of a house, a balcony, etc. After which an agreement is concluded, you place the specified type of advertising (posters, stickers, etc.) and receive the agreed amount. The only downside may be the limited duration of your agreement. But you can always find an advertising company that wants to cooperate with you.

Bank deposits

One of the least labor-intensive ways to generate passive income is bank deposits or deposits. They require minimal effort. You just have to find a reliable bank with the highest interest rate. The rest is done by employees of the financial institution. The only condition is the availability of a certain capital that should be invested. The larger the amount, the higher the interest amount.

If you have several million at your disposal, then having made a profitable investment, you don’t have to work at all. But if the amount is not large, then the income will be minimal. Very often, people with little income save a certain amount every month for several years. As a result, their children have a good passive income.

But this type of income has a significant disadvantage. This is inflation. It is because of this that investors lose up to 10% of their income, because... Every year money depreciates. You need to remember this before concluding a long-term contract.

Intellectual or creative product

This type of income will appeal to talented and gifted people. They are the ones who can create some kind of intellectual or creative product. It could be a book, a song, a poem, or some kind of invention.

After writing the book, you will need to contact the publishing house, where they will accept the manuscript (if it is really worthwhile). After the publication of your masterpiece, a royalty will be paid and a certain percentage of each copy of the book sold will be deducted monthly. This all sounds very beautiful and simple, but in fact this type of income has very tough competition. Therefore, only brilliant authors who are loved by millions of readers receive maximum cash payments.

If you create any technology, you will have to patent it. If the invention is useful and its mass production begins, then your children can also receive passive income.

Own business

If you feel great potential as a leader, then you can try. In order for it to generate passive income, you need to work actively for several years.

First you need to understand what exactly you want to do. This should be an area of ​​activity that you know well. Let's give a simple example: if a man is well versed in cars and loves transport, then opening his own service station would be a great idea.

When the idea is “ripe”, get it. Then start your business.

When you realize that your business has become successful and brings in a stable income, you can think about delegating it (transferring certain powers to another person) and receiving passive income.

In order to retire and “skim the cream” in the form of cash, you need to remember that the company you have built must work like a well-oiled machine, and the person to whom you entrust the management of the company will not let you down and will justify the trust placed in you.

Based on the experience of many companies, we would not recommend completely withdrawing from business. This leads to bankruptcy in 90% of cases.

Selling franchises and receiving royalties

Owners of large well-known companies can count on such a source of passive income. It does not require any capital, but to obtain it you will have to work fruitfully for more than one year. Let's take a closer look at franchises and royalties.

Simply put, a franchise is the rental of a brand, trademark, method of company management, slogan, etc. some little-known organization. Thanks to this, they produce and sell their products under the logo of a well-known brand. As a result, the turnover and income of the start-up company quickly increases.

Once the franchise is sold, royalties (an agreed upon amount of money) are paid regularly. It can also be a certain percentage of the income of the company that bought the franchise.

At first glance, everything seems easy and simple, but in order to receive passive income, you need to build a large business or a brand that will be well-known.

Investing in a third party business

People with substantial capital and assets can count on passive income by investing in third-party businesses. Moreover, the larger the amount you invest, the higher the interest you will receive.

In order to invest money in a third-party business, you need to thoroughly study the business plan, calculate all possible risks, and regularly monitor the company’s activities. This is the only way you will protect your investments and not be deceived.

Investing in any business is a very risky undertaking. In order not to lose all your money in the event of bankruptcy, do not rush to invest all your savings in one project. It is better to invest in several organizations at the same time. Thanks to this, if one project fails, others will bring passive income.

Creating a mobile application

In the modern age of advanced technology, most people have a mobile device that supports various applications. Mobile apps make life easier for millions. Everyone downloads an unlimited number of them and recommends them to others. Therefore, anyone can create their own application that will generate decent passive income.

• First, you need to have an interesting idea. She is the one who can help you get rich. Due to the great competition, it is sometimes difficult to surprise users, but if you succeed, you are guaranteed success.
• Secondly, create an application. To do this, you need to contact specialists who will be happy to help you for a certain fee.
• Thirdly, place the finished product on the platforms. To begin with, you should not overprice the application. Bet the minimum amount. And when thousands of people love it, gradually raise the price. Or make it free, but with paid add-ons or advertising.

Creating a mobile application is a fairly simple source of passive income. In most cases, it does not require large investments, and the income received can pleasantly surprise you for several years.

Creating a channel on YouTube

Probably every PC user has watched videos on YouTube at least once. This is really a very convenient site where you can find any information you are interested in (master classes, training videos, funny videos, etc.). Millions use this service every day. So why not make money from it?

To earn passive income using YouTube, you just need to create your own channel and post interesting, and most importantly, useful videos. It can be varied, from videos of funny animal behavior to a master class on repairing a washing machine. It all depends on what you can do.

Very often, a start-up business lacks recommendations that will ensure regular sales. If you have a wide circle of acquaintances and close cooperation with a large number of companies, then passive income from recommendations is created just for you.

So, while communicating, you will find out that someone needs the services of an electrician or designer. You can recommend this or that company and receive a monetary reward or a certain percentage for this. The main thing is that this organization includes payments for recommendations.

Maybe the amounts won’t be exorbitant, but it’s better than nothing. The lack of start-up capital is the main advantage of this method of generating passive income.

Passive income on the Internet - your website or blog

I started working on blogging (article) sites a long time ago, but I didn’t turn them into passive income. I developed them for sale or temporary income from advertising and, as a rule, they did not stay with me for more than 1 year. But now that I already have several types of main activities, why not slowly start acquiring assets with passive income. So I created a website several years ago, which now brings in more than 100,000 rubles. only on contextual advertising without my participation. And what’s more, I didn’t stop there and created several more sites that are now generating income.

What is good about passive income from websites?

The fact that they will read articles constantly and search for information constantly. Having written an interesting article once, it will bring you a lot of traffic from search engines and will bring you readers constantly. And that means income. Blog development is about creating interesting content (articles, for example) and attracting readers. When there are readers, you place contextual advertising and earn money from clicks on it. It's very profitable. Having boosted your blog a little, you will already be making a profit and with each increase in readers your profit will grow. And then you can do nothing and only publish articles occasionally, and the money will still trickle in and that’s a plus. Or you can assign an editor to work on your site or several, as we do.

If you are planning to develop this area, then read the section about. There you will find useful information, and if it is not enough, then ask questions and we will add more.

Investments in the purchase of information sites

If you do not want to create a source of passive income in the form of a website, as I described above, then you can buy websites with income. But to do this, you must at least understand the topic and go through the process of creating your own websites.

Affiliate programs as passive income

I already wrote an article about that. And this source of income can be made passive. If you do a good job in this direction and through your affiliate links many people are registered in those services or stores on whose affiliate program you earned money, then all further actions of these people will also be paid to you.

I still get money from many of the services I referred people to several years ago. This income is small, but roughly comparable to renting out an apartment in Omsk.

We hope that everyone who reads this article has already understood the importance of passive income and the main differences from active income. Now let's try to figure out together how to achieve this coveted financial independence.

1. Start with yourself and educate yourself. In order to make assets, capital, and business work productively, you first need to study the theoretical part. Start reading books by famous financial experts (e.g. Robert Kiyosaki, Bodo Schaeffer, Robert Allen, etc.). Thanks to this, you will better understand all the nuances and details of financial activities.
2. In your free time from your main job, start looking for a source of passive income. Maybe you will invent something new, patent your creation and receive monetary rewards for the rest of your life, or maybe you have another hidden talent that will help you achieve financial freedom. To make your work enjoyable, try to turn your hobby into a source of income. For example, an amateur photographer can sell his work on specialized platforms on the Internet, and a programmer will create an Internet application that will be downloaded by millions of people.
3. If you do find a way of passive income that suits you, don’t stop there. Try to develop and discover new methods of earning money. For example, having invested money profitably in the bank, you can also upload videos on YouTube, review your existing construction equipment and rent it out.

Why do the poor stay poor and the rich stay rich?

The subconscious of most people of our time contains information that in order to feed their family and provide for themselves, they need to learn some kind of profession, and then work all their lives in a factory, mine, office, etc. At the same time, take a full rest only once a year on vacation. That is why the average person in our country follows the plan.

At the same time, more successful and financially literate people have long realized that a decent income can be brought not by active, but by passive income. Naturally, they understand that in order to regularly receive money with a minimum of effort, they need to work actively for a certain time. This period may be several years, but such a person is aware that he is working to create passive income that will ensure a comfortable old age.

Poor people work only to satisfy their needs. At the same time, they don’t even think about creating some kind of capital that can bring in money. In the best case, a person gets another or additional job.

The difference between the poor and the rich is how they spend their free time. A wealthy person gets richer every minute due to passive income that profitable investments bring. Low-income people drink beer, watch TV and complain about life to the people around them.

One famous businessman and financial analyst said that a person's success is not measured by the size of his bank account, but by the amount of time he can be away from work. This is true. After all, you can deny yourself everything all your life, limit your desires and needs while collecting savings in a three-liter jar. But such a person can hardly be called happy, successful and enterprising.

How to gain financial freedom and independence

In order to live for your pleasure, you need to make money work for you. This is possible if you work hard for a while. During the active period, we do not encourage you to work 24 hours a day. It is enough in your free time to look for methods of alternative income, which in the future will bring passive income. The more such sources there are, the less work you will have to do.

It may be quite difficult at first, but remember that thousands of people like you do not live on starvation wages, subsisting on bread and water. They do not know the feeling of hunger and need. And all because they understood in time exactly how to make money.

Conclusion

Now you know everything about passive income! You may also find this article useful. Don’t be afraid to experiment, because everyone has one life. And it depends only on you and me how we will live it. It's never too late to start changing your life. This can be done by both a teenager and a pensioner. The main thing is to believe in yourself and not give up, and then you will definitely succeed!

The choice is yours! And I'm waiting for comments under the article.

In our society, there is an established rule that in order to obtain any income, you must work non-stop. In principle, it is true, since it is constantly confirmed in practice by many people who go to work and receive a salary. As soon as they stop fulfilling their obligations, such a person is fired, after which his income ceases.

In contrast, passive income on the Internet, which so many people are looking for, works on a completely different principle. Money comes regardless of whether a person is busy with a project or not. In the minds of most people, such income will come even if you spend your time relaxing or walking.

We will tell you in this article how true such ideas are and whether passive income on the Internet actually exists.

Passive and active income

First, let's try to clearly define for ourselves what should be considered passive income. We can do this only by drawing a parallel with active work, about which we all know quite a lot. As already described above, in order to earn money “actively”, everyone has to work - make some effort. To receive such income you need to work constantly - otherwise it will stop.

Passive income (on the Internet and not only) is much more attractive than just work. It lies in the fact that money comes to you automatically, while you don’t need to work to get it. Accordingly, such work can replace the main one (the one at which you have to be constantly present), while you don’t need to do anything for this. Obviously, this arrangement is the most attractive for everyone.

Is there any way to make money online?

Okay, we've sorted it out. Now let’s try to find out if there is passive income on the Internet. Reviews on advertising sites that offer us to start receiving $5,000 a month indicate that finding passive income, and even online, is quite simple. This gives us some hope that we will be able to build our own mechanism for generating income without effort.

On the other hand, each of us has Internet at home. Therefore, we know how to access the VKontakte network, email, find and download this or that movie or series. Many of us even know how to play online with our friends - but we don’t know what to do to start getting money. This is a familiar situation, isn't it?

This includes the majority of those who are starting to look for ways to make passive money on the Internet. All of them do not know where to start and where to turn; They think that there is some kind of site, registration on which will open the way to carefree income. Unfortunately, this is just an advertising ploy and a myth. The Internet is very similar to real life - you can make money here, but mainly only after you work hard.

Where can I start working?

In order to better understand what they can pay for here, we will give examples of “places to earn money.” For example, these are freelance exchanges. If you know how to write articles, draw graphic files, create websites or write programs, you will always find a job on such services. The earning scheme will be very simple - take the task, complete it and receive the money.

Another place is advertising networks. Here you pay for clicks from your site. Again, the scheme of work is simple - add a site to the system, put an advertising code with ads on it, and everyone who clicks on the last one will bring you a pretty penny. But for the scheme to work, you must have a visited site. If it were that simple, this option would be as similar as possible to the passive income on the Internet described above.

Of course, there are many more ways to make money online besides those we described above. But the purpose of this article is not to list them, but to reveal what real passive income can be. To do this, let us explain what you can be paid for in principle.

What is required from a person?

So, in any job you must: create some kind of product with your labor or some kind of benefit. Or simply steal (swindle) money. The latter option is illegal, so if you do this, prepare to be held accountable. As for the first two, the option with difficulty is not a priori passive income - you will need to work. Even in the example with advertising on a website, in order to make money with such a website, you will need not only the Internet at home, but also the resource itself, which people will visit. To do this, you, again, must work hard to create it, fill it out, develop a design, promote the site in search engines and, above all, also take care that it stays in positions that ensure an influx of visitors. And it's not that simple.

Spheres without having to work

There is an alternative - you can earn money from dividends from investments. Everything is simple with this: you invest money and wait for it to come back to you. Depending on what kind of investment it is and where, your final income is determined.

This is a classic “passive” income, but it requires, if not your labor, then your funds. Of course, this option is not suitable for people looking for an opportunity to earn money without investments (and that is the majority).

Exposing the deceivers

However, when you go online, you may see advertisements that a new project for passive income on the Internet is being offered to your attention. All you have to do is create an account, log in to the system and start receiving funds without any effort.

There is another option. You are offered passive income on the Internet using programs that run on your computer - for using them, you receive some kind of passive income.

In this case, the latter is either scanty - such that you will spend more on the Internet and electricity than you will ultimately earn; or you will simply be offered to install malicious software that will infect your PC with viruses while you wait for income.

Perceptions and reality

Thus, as a result, I would like to say the following. Yes, there is passive income on the Internet, and it can be very significant. But first, in order to receive it, you need to work hard: create a certain product, for example, a website or program that will be successful, or invest funds that you had previously. By doing this, you take on a risk for which you receive compensation in the form of dividends.

It is better to reject all other proposals, such as making money on a program or another “new successful project,” for your own safety. Remember: there are plenty of scammers on the Internet!

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.

1. 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 specific 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.

1. 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 if 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.

1. 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.

1. 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 again and 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.

1. Buy high-yield 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.

1. 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.

1. 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 .

1. 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.

1. 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.

1. 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 profiting 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.

1. 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.

1. 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.

1. 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.

1. 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 such as 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.

1. 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.

1. 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.

1. 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