How to create passive income - ideas and sources + 7 ways to passive income on the Internet

Hello dear readers of the Rich Pro financial magazine! This article will describe in detail about passive income: what is it, how to create it, is there passive income on the Internet and what sources of passive income exist.

After all, the topic of passive earnings (income) is very popular today. And this is not surprising. Long gone are the days when it was a shame, and sometimes punishable, to be interested in money and strive to improve the quality of one’s own life. On the contrary, at present there are many opportunities that allow you to increase your financial literacy and put this knowledge into practice.

In addition, ever-growing needs, the financial crisis and the lack of stability do not allow just brush aside thoughts of increasing one's own income.

But additional work requires time and physical costs, which have to be torn off from family, leisure and personal life. This is both difficult and offensive, and sometimes simply impossible. Therefore, it's time to talk about creating such an income that can be obtained without practically investing your time and energy in this process, that is, about passive income.

This article is an attempt to collect in one place everything that is known about this type of income, namely:

What is passive income and how does it differ from active;
What is wealth and can a poor person become rich;
Types and sources of passive income;
How to create and receive passive income via the Internet;

In general, we consider the main components of financial independence, which will help anyone on their way to material security.

Who is this article for?

Firstly, for those who are not interested in working for the state or another person all their lives, but want to realize their own ideas and make their dreams come true.
Secondly, for those who, although they are satisfied with their work and earnings, but understand that it is impossible to live in old age on a state pension, especially if the pension is considered as time for doing an old favorite thing, traveling and active life.
Thirdly, for those who are thinking about the future of their children and dreaming of a secure and interesting life for themselves and their family right now.

If one of these points meets your ideas about your life in the present and future, then this article is for you!

What is residual / passive income, how to create it, what sources of passive income can be found later in the article, which also gives ideas for passive income on the Internet and not only

1. What is passive (residual) income and why is it needed

So what is passive income?

Passiveless often residual, called income that does not require daily labor costs. Unlike active income, passive is created once and then only receive dividends.

Creating such a cash flow allows a person to manage their time at their own discretion, and not as required by the employer. Such income allows you to spend your energy on self-development, on doing things you love, on family and caring for children and their future. It sounds tempting, but very abstract.

However, for a more fundamental concept of active and passive Income, you need to appeal to those people who not only themselves have achieved the creation of highly profitable money sources, but are also ready to share their knowledge with those who are just starting to become interested in this fascinating topic.

There are few people who have not heard of Robert Kiyosaki and his books, the main of which, “Rich Dad, Poor Dad,” has become a desktop for many people who want to succeed in life in general and in financial activities in particular, but do not know where to start.

There is no doubt that the person who addressed the topic passive income and financial independence, simply must read all books by this author. They really help to look at the financial component of life in a different way, as wealthy people look at money.

After all wealth- This is not just a lot of money. This is the ability to use this money so that its amount is constantly growing.

2. Rich and poor - what's the difference?

Robert Kiyosaki defines a rich person as follows:

"The important thing is not how much money you earn, but how much money you have left, how they work for you and how many generations you can provide them with. "

You understand? You can have and earn a lot, but at the same time spend everything you earn, and even more on living, paying loans, maintaining houses, cars, entertainment and travel. And if the source of this high income runs out (everything happens in this life!), The poor person is on the verge of a financial abyss.

The same idea is supported by the successful American entrepreneur Dave Ramsey, who created his own consulting company from scratch and based on his experience wrote several very popular books on financial and business management:

"Wealth - This is not an accumulation of material values. This is the ability to spend less than you earn, the ability to save and invest. You won't get rich until you learn it. "

Thus, the main difference between the poor and rich man - this is different thinking, different attitude to yourself, to the money and wealth.

A rich man spends less than he earns. And he invests the remaining money, Firstly, in themselves, in the development of their own talents, increasing the level of knowledge in the area that is interesting to him and which makes a profit.

It was about the need to learn and develop that Zig Ziglar, the owner of Zig Ziglar Corporation, a major network marketer, lecturer, writer and developer of a series of business trainings in great demand all over the world spoke about:

"At rich people small televisions and large libraries, and the poor - small libraries and big TVs. "

Secondarily, a rich person invests money in a business that does not require his constant presence and control and yet makes a profit again. This allows you to free up valuable time for the implementation of other ideas, personal growth, family and, of course, relaxation.

It is possible that a skeptical reader will object that all of the above wealth and poverty not applicable to Russian reality, since all Western marketers and businessmen are guided by the readers of their country.

Many will consider the crisis that has broken out and the general instability of the Russian financial market to be another obstacle to the beginning of active activity.

These fears are quite understandable, but it is they that should do good service to their masters and make them look at this issue from a different perspective, namely: financial market and stability - the concepts are little compatible, the market has always been and will be dynamic. Financial crises also happen all the time, because the global financial system does not keep pace with political and market fluctuations.

The current financial crisis has swept all countries, not just Russia alone. And, paradoxically as it sounds, right now the time has come when you need to act: earn and invest earned into assets. These assets will gradually begin to generate income and become the foundation for a prosperous life in old age, and will provide an opportunity to help children at a time when it is time for them to go into adulthood.

For a conscious person it is important here make a decision and take the first step.

A large selection of books, training seminars and online courses, short videos on a topic of interest - all to help someone who decided to take a chance and try their hand at the difficult path to success and wealth.

And the continuation of this article is intended to enhance the reader’s knowledge in the field of creating passive income.

The most popular sources and types of passive income

3. Sources of passive income - 4 main types

Conditionally, you can select 4 types passive income that can bring a stable cash flow:

View number 1. Passive income from the ownership / sale of intellectual property

Already by name it becomes clear that this type of income is available:

firstly, for those who have a talent for writing literary, musical works, articlesdifferent trainings, benefits. This also includes acting, directing, performing and artistic talents that allow you to make a movie or play a role in it, write a picture, illustrate books, compose and perform a song. In this case, it is possible to obtain long-term sales income all copies of the created work.
secondly, for inventors. Craftsmen with golden hands who managed to create a product in demand can get patent for it and then sell the idea to whom she is interested.

Sources of passive income in this form are:

royalties for published books, songs, roles in films;
patents for inventions (technologies). (For example, a Tetra Pak patent for packaging juice or milk).

View number 2. Passive income from investment or financial investments

A similar type of income is obtained from monetary investments in financial instruments, eg, stocks, bonds, mutual investment funds, PAMM accounts, bank deposits and other investment programs.

Also, investments include the purchase of real estate and equipment for leasing and the acquisition of a ready-made business that does not require constant attention and management.

Sources of the passive in this form are:

bank deposit (deposit);
the property;
equipment for renting;
purchase of an existing business;
securities (stocks, bonds, etc.).

When trading in the financial market, pay particular attention to the reliability of the broker through whom you plan to trade on the exchange. One of the best is this brokerage company.

View number 3. Passive income from marketing activities

Under marketing activities is meant a system of human actions to market the idea, product, service, personal brand and the receipt of constant profit as a result of these actions.

The most common type of marketing activity for each individual has now become network marketing.

The creation of a commercial website or rental of your personal brand, i.e. the name, image, reputations. How to create your website for free, we wrote in our last article.

Sources of passive income:

Own web resource;
Companies using the reputation and brand of a third-party company;
Infobusiness;
etc.

View number 4. Passive (legal) income from the state

This type of income is rarely seen by people as income. Nevertheless, he has a right to exist.

Pensions, student scholarships, social benefits for children, including maternity capital, material assistance for paying utility bills, obtaining preferential housing, and even subsidies for starting your own business - all of this can be seen as legal income, that is, relying on a citizen of the Russian Federation in the event of the necessary conditions.

Sources of passive income in this case:

disability, age, military pension payments;
subsidies (compensation) from the state for the payment of communal services;
subsidies for the creation / development of a business;
payments from the state to mothers with certificates - "Maternity capital"
preferential housing for citizens.

4. How to create passive income - TOP 7 best ideas

Having considered the main types of obtaining passive income, an interested person can choose for himself the direction he likes and begin a detailed study of information on the topic. This condition - an in-depth study of all available information - is mandatory for everyone to immediately begin to create sources of inactive income.

Even if the esteemed reader has an economic education and is generally familiar with the topic under discussion, it should be noted that the economic and financial life in the country and in the world is constantly evolving, especially in investment and internet marketing, therefore, base your actions on knowledge even two- or three year old prescription is unacceptable.

Therefore, the next section of the article is intended to talk about the newest and most popular ideas for creating income, allowing you not to work on them constantly and still receive passive income (regular income).

Idea number 1. Creating your own website for making money on the Internet

Essential Skills - knowledge of the basic principles of marketing, confident computer skills, interest in the result and free time.

Of course, all these conditions mean that a person who has decided to create passive income in the future, in the present must make some effort and spend his free time.

For example, to create a profitable website that brings about $ 1,000 per month, you need to spend from 6 months before 2-3 years (every year the competition and the complexity of website promotion increases, so you have to spend more and more time and effort on creating passive income in this way)

What difficulties can be encountered along the way?

Perhaps the newcomer creating his first website will be convinced that his brainchild will begin to make a profit as soon as it appears on the Internet. This is not so: in itself, an interesting resource for network users will not bring financial profit to the owner.

And it’s important, having made this discovery, don't give up and continue to work regularly over increasing the site’s profitability.

How can the owner of an Internet resource (website, portal, etc.) earn?

Sell perpetual links;
Sell places for banner, contextual and teaser advertising, as well as place paid advertising articles on your site;
Participate in various affiliate programs, attracting referrals and getting paid for it.

More details about different types of advertising, selling links and affiliate programs will be discussed in the following sections of the article.

Undoubtedly, the creation of a full-fledged profitable website on the Internet requires the investment of their knowledge (and if they are insufficient, then raising their level) and their own time. There are two further options for the development of this direction:

Ready-made profitable website can be sold and receive a one-time income in excess of the monthly profit from the project in 20-25 times.
Continue to develop the site in order to increase profitability to the maximum limit. Each site has its own maximum, of course, and it depends both on the target orientation and on the efforts invested by the owner in its development.

Idea number 2. Creation of a creative / intellectual product

As mentioned above, the product of intellectual labor is expressed in a variety of forms, namely: it can be a completely unique idea or information, a discovery in the field of science or technology, a new technology or invention, a computer program or a work of art, literature, cinema, music.

And all these smart and useful things in a market economy become a commoditythat you can profitably sell and make a one-time profit, or tool, which can be successfully promoted with the help of marketing technologies and turned into an intangible asset, that is, a creative product that can become a source of passive income.

In terms of our article, it is the 2 (second) option that is most interesting, that is making long-term profit from creating any kind of intellectual product.

Here you can analyze the result of one of the most widely read writers, for example, Dan Brown and his latest book "Inferno", released in nearly one and a half million copies, which brought the author $ 28 million. More recently, a film was made from the book, which, of course, will bring the author an additional considerable profit.

Undoubtedly, the reader can object - not everyone has bright writing and other artistic and inventive talents. Indisputable statement!

However active and creative a person can offer his other achievements to the world: someone can do wonderful sew, knit, embroider, weave, decorate and possesses ability to teach this for others - recording and selling videos with master classes will become a popular and profitable idea with the right promotion on the Internet.

Someone is well versed in computers and knows how to create Internet sites, writes computer games, owns Internet graphics and other tools - this is the same intellectual productin demand.

Similar skills and knowledge that can generate income, - a lot of. A person with such skills needs to be resolved and convert this natural talent into a business useful to society and profitable for himself.

Obtaining passive income (earnings) from the rental of your property (apartment, house, car, construction equipment, etc.)

Idea number 3. Leasing of own property: equipment, transport, real estate

In this case, property can be attributed to not only a house or apartment, as is usually customary to think, but in general any thing that costs more than the average monthly salary in the city or village where the reader lives.

Thus, profitable property includes:

car;
construction and repair equipment;
home and household appliances;
furniture;
expensive clothes;
Jewelry;
and so on.

In the case of owning an apartment in which no one lives, no one doubts: rent it out and get a monthly profit. But in almost every house there are other, less expensive things that also cost money, but are not used or are rarely used.

If you rely on the classification assets and liabilitiesgiven by Robert Kiyosaki, then any more or less valuable thing that does not bring monetary profit, automatically considered a liability. And from liabilities you need or get rid, or, which is more useful, turn them into assets.

Large companies are even based on this principle, which purchase expensive production equipment or construction equipment, and earn only by leasing these assets.

This type of income cannot be called completely passive. Because even in this case, some safety control actions Same apartments or cars, the necessary repair of equipment and clothing, the search for tenants and the creation of advertising.

In any case, these costs will be paid off by making a profit and the realization that the money spent once on the purchase of essentially unnecessary things will return a hundredfold.

Idea number 4. Receiving payments from the state in the form of passive income

This idea is most suitable for those readers who, for one reason or another, belong to the category of beneficiaries: seniors, disabled people, large families and familiescaught in a difficult life situation.

On the one hand, it would seem that there is nothing incomprehensible: you are eligible - get and use. That's just the majority of Russian citizens are new to the Civil Code of the Russian Federation, and they only know firsthand the work of social services.

And so many just don’t knowthat almost the entire population of the vast Motherland belongs to one degree or another to the privileged category of citizens and have the right to receive lump-sum or permanent compensation payments.

1. Social benefits for childbirth

Such payments, in addition to pensions and student scholarships, include the allowances due to the family at the birth of each child.

The size of state benefits is established annually and is constantly indexed. In addition, each administrative district (city, region) can establish its additional payments to families with one or more children.

Unfortunately, the small amount of child allowances often causes laughter or tears, but still it is better not to refuse this, albeit a small income. Moreover, at present, social services simplify the process of collecting documents for receiving these benefits.

2. State subsidy for the opening and development of private business

Another interesting type of state subsidization of citizens is the allocation of material assistance to a Russian citizen who decided to create his own enterprise.

Do not confuse this gratuitous state subsidy with a loan that the bank gives at interest, albeit minimal.

This type of legal income requires the applicant to be serious in choosing the type of activity for which he is going to apply for a subsidy, as well as for project and reporting documentation.

Because the help, although free of charge, but the structure that gave the entrepreneur money for business development, necessarily require a financial statement of funds spent. And if the report does not satisfy them, the law will have to be refunded.

Idea number 5. Financial investments (PAMM accounts, securities, mutual funds)

One of the most serious types of obtaining unearned (passive) income, because:

Firstly, requires obtaining and deepening special knowledge, patience, endurance and constant work on oneself;
Secondlyfinancial investments are impossible without some seed capital.

There are all kinds of financial investments, most of them are very profitable and at the same time risky.

So, in order, where to invest, so that they work and generate income:

1. Buying a property

If there is a sufficiently large amount of money you can invest in the purchase of real estate, residential or commercial, as well as land plots or equipment, which can then be rented out.

By the way, an interesting fact: according to the Civil Code of the Russian Federation, all types of water bodies, swimming, flying and space equipment can be considered real estate, besides the ones already listed.

About the profit from the rental of housing and other free goods already described above, there is no need to repeat. And also on our website there is a separate article "Pros and Cons of Real Estate Investments", in which we described in detail all the advantages and disadvantages of this method of investing money.

I would like to focus the reader's attention on the following: when buying residential real estate or, for example, a car for personal use, investor acquires liability, which does not generate income, but rather requires additional costs.

2. Buying a business

Again, if you have a significant amount of money, a good investment will be to buy a ready-made business.

Perhaps it’s worth clarifying that when buying a business, it would be nice to have at least minimal knowledge about its conduct in order to be able to manage it or control the management process.

More details about buying your own business will be described below.

3. Investments in financial instruments

And finally, investments in securities, investment deposits, participation in investment projects, including in the Forex currency market - very popular, but also risky type of investment. It is for this type of investment that knowledge, caution and the ability to calculate risks are required.

A big plus for most beginning investors is the ability to invest small amounts (from 1000 rubles).

But it must be remembered that the level of income from such investments is directly proportional to the level of risks. That is, the higher the estimated income, the higher the risk of losing all the money invested.

It is here, on highly profitable investments, the ability to calculate the risks and abandon excess profits is required in order to save your money. It is also important to choose the right brokerage company through which you will carry out all operations in the financial markets. Many successful investors and traders work through this broker.

Idea number 6. Network marketing

The abundance of MLM companies - our reality. Sometimes it seems that only the lazy did not participate in network sales of different brands. And it’s quite acceptable to say that participation in the MLM structure is accessible to anyone with the talent to communicate with a wide variety of people, perseverance, activity and a fair amount of optimism.

An important point will be the enthusiasm for the product that offers the network structure, confidence in its quality and good knowledge of the range. In addition, joining the company does not require serious financial costs.

There are 2 prerequisites for success in network marketing:

When deciding to engage in this type of activity, it is important to choose the right company and not become a victim of the financial pyramid. Therefore, it is necessary to rely not only on the words of the inviting to the company, often almost a stranger, but also on the reviews of a wide range of users, analysis of the company's website and working conditions in it.
Starting work in the field of network marketing, it is important to set as its task not just trading activities, that is, distributing a company's product and earning on a difference in price, but building your own internal structure, quality training for beginners and developing your own marketing knowledge and skills. Such an approach to their activities will provide not only high profitability, but also the possibility of obtaining long-term passive income.

By the way, a serious network structure can be sold very profitably if participation in this MLM company ceases to be interesting or money is needed.

Idea number 7. Own business

If in the section on investments, the purchase of a ready-made business was considered, then now the reader is offered information on creating their own. About all types of business investment, the main nuances and features, read the article here.

Such a business can be organized with virtually no personal funds or with minimal investment, relying only on your knowledge, experience, business qualities.

If a person who wants to start a business does not have money at all or does not want to risk it, then the only way out is start an online business. Then, of course, the presence of the Internet is added to the above conditions.

Undoubtedly, Internet business can bring stable passive income. But there is no doubt that this type of business, like any other, requires theoretical preparation, namely a serious approach to choosing a field of activity, drawing up a business plan, calculating the necessary costs and payback periods of financial investments. And only after carrying out all the preparatory stages is it possible to make an informed decision on opening a case.

But that's not all: many serious businessmen say that the hardest thing to keep a business afloat in the first 2-3 years its existence. And this is much more complicated than managing a large, but already established business. Responsible attitude to the business, patience and hard work to help a novice businessman.

These lines are not intended to scare the reader, but only create the right attitude: after all, it is often the patient attitude to the laborious process of building your own profitable business, taking into account all the requirements of a dynamic market and constantly improving personal qualities that allows you to stretch the business to the level of functioning that will turn it into a source passive income.

The situation with the Internet business is a little simpler, if only because the risk of losing invested funds is small - there were practically none. But if the goal is still to obtain a high income, then it will also require spending time and energy on it.

So, how can you make money on the Internet:

Score. Sell goods via the Internet and profit from the difference between wholesale and retail.
Services. Any services that can be provided by both the businessman himself and the involved specialist.
Information business. A very popular type of Internet business. It is the creation of online training courses on any subject. Possessing any skill or knowledge, as well as the desire to bring this skill to the masses, you can create a profitable resource that allows you to get a high income.
Getting passive income on social networks and via mailing from your own online resource. The next chapter of the article will help broaden the reader’s knowledge about these methods of passive earnings.

Thus, a persistent reader understands that there are a great many types and methods of obtaining passive income.

Next step - choose the direction that most closely matches the mindset and character of each individual person, and begin the movement from small to large, carefully assessing your capabilities and gradually moving towards your goal: creating a stable passive income.

In continuation of the conversation about increasing income, I would like to consider in more detail some ways of passive earnings directly on the Internet.

Getting passive income / earning on the Internet without investments with the withdrawal of money

5. Passive income on the Internet - 7 ways to get passive income online

Before you consider these 7 magic ways to make money on the Internet, you need to decide for yourself, more important: one-time easy money or stable financial flow, allowing you to develop your activities and increase its profitability?

If the first, then please, for example, on Twitter, where you can send hidden links in private messages and comments for a little money and earn a little by little.

But if the secondthen, taking popular wisdom as the basis “you can’t catch fish from a pond without difficulty”, please join the ranks of workaholics, at least until one or more of the selected methods brings tangible income. We have already written in more detail how to make money on the Internet without investments in our article.

Because, not having free money for investments, you need to invest personal time and effort, namely knowledge, skills.

Method 1. Sale of advertising on your own site

Returning to the topic of creating a commercial site, it is necessary to consider in detail directly the component that generates income, namely advertising on the Internet. In detail, with the types of online advertising on the Internet, the cost and so on we talked about in one of our issues.

What types of advertising can I place on my site and how can I make money?

contextual advertising

In the first place in popularity, contextual advertising is now located today, the placement of contextual advertising on its website is the easiest way to make a profit.

The main networks of contextual advertising are Yandex, Google and Rambler, and placing their ad units on your site, they share the profit with the site owner as soon as one of the visitors clicked on the ad unit and went to the advertiser's site.

As for the visitor, he is shown the ad unit that matches his previous search query or the subject of the site on which he has just been.

You can make money on the sale of contextual advertising even at the very beginning, when the site is not yet well advertised and there are few visitors.

Experts say that advertising on a site that has about 1000 visits per daymay bring about 3000 rubles of income per month.

Selling Links

Selling links means placing third-party links on your site: rental, eternal and contextual, when you click on which the transition to the site occurs.

Payment for link placement occurs dailyif the link is rental, once for the entire placement period, if the link is eternal or contextual, and does not depend on how many website visitors clicked on this link.

But when concluding a cooperation agreement with a link exchange (before starting earning from selling links), it will undoubtedly analyze site characteristics such as traffic, age, and other indicators.

Direct sale of banners

Another simple way to make money from advertising is to sell banners directly from the advertiser.

It is necessary to make sure that the site contains information on the availability of space for the banner indicating the conditions and cost of placement, and the advertiser who is suitable for the targeted orientation of the site can contact the site owner directly.

Summarizing the above, you can give the owner two important tips:

firstly, you need to learn to understand the intricacies of relations between advertisers, ad networks, link exchanges and, of course, expand your knowledge in the field of website SEO optimization.
secondly, creating a good resource, interesting, useful, competent, will quickly and easily find advertisers who want to advertise on your site and pay you money for it. No one needs bad sites!

Method 2. Earnings on affiliate programs

What is an affiliate program? This is a kind of cooperation between the seller of a product or service and a partner. It implies that a person who has registered on the site as a buyer can join an affiliate program and receive a personal referral link.

Then he distributes it in all available ways, which attracts potential customers to the seller’s website, for which he makes his profit.

Most often, multi-level affiliate programs are offered by investment companies and network marketing companies.

The more customers came to the company through a referral link, the higher the income of the program participant.

How to find referrals?

if the partner has his own website, then he can place a banner or article on it with a referral link inside;
a good way to attract referrals can be to create a group in one of the social networks and distribute the link among the members of this group;
if there is no site or group yet, or their resource has already been fully used, then you can buy an advertising space in search engines, ad networks or place an advertising article with a link to someone else’s resource suitable for this purpose; (How to make money on affiliate programs without a website, we already wrote in detail in our article about affiliate programs)
shoot an advertising video or find a suitable one on the network and post it on Youtube with a referral link, for example, in the video annotation.

In general, there are a lot of ways, and the income from participating in an affiliate program justifies the costs of finding potential customers.

It is important to remember that affiliate programs can attract customers to financial pyramids or other risky projects where an ignorant person can lose all your money.

Method 3. Investing

Investing on the Internet is the most high-risk and at the same time the most passive way to generate income on the Internet.

It is assumed that, having invested money in any of the investment instruments, a person can sit quietly waiting for profits.

But a beginner needs to be very careful, since the most profitable projects are at the same time the most risky, so the probability of losing all invested funds is very high.

This has already been mentioned above, but we want to draw attention to this again.

Before investing in investment projects, you need to thoroughly analyze everything possible risks and make an informed decision to participate in this project.

Main conditionto reduce the risk of losing their funds is the diversification of the investment portfolio. That is, the investor distributes all the funds in such a way that they use investment instruments of different profitability and risk level, located on different investment resources and working in different industries.

Usually, to provide moderate portfolio security of approximately 40% invest in low-risk, but at the same time low-yield instruments, such as bank deposits; 40% - in PAMM accounts and 20% - in HYIP projects.

Within each of the instruments, funds in the same ratio are distributed between different banks, investment sites and projects.

Such a distribution of investments within the portfolio allows you to secure it in case of subsidence of one of the areas.

Investment Tools - 8 Popular Investment Methods

Obtaining passive income from investing in financial instruments

So, consider the most popular investment tools:

1. Bank deposit

Bank deposit - has been and remains one of the simplest, most understandable, albeit low-income types of cash investments. And given the level of inflation in Russia, which the interest rate does not cover at all, a bank deposit is more likely not an investment, but a simple way to save money.

Nevertheless, a bank deposit is necessary when it comes to creating an investment portfolio. Because the money deposited in the bank is a kind of financial pillow in case of a monetary loss, it can be obtained quite easily, and their safety is guaranteed by state deposit insurance.

2. Mutual Funds

Mutual Funds (Mutual Investment Funds) are currently practically not used by advanced investors as a profitable tool because of their low profitability and high risks.

3. PAMM accounts

PAMM-accounts is a very popular investment tool at the moment, allowing you to increase the amount of your contribution to 2-3 times, and lose it completely.

The essence of a PAMM account is as follows: investors who are familiar with the principles of trading in the Forex currency market do not want to trade themselves because of high risks, but create an account and attract a successful trader to manage it.

The manager’s task is to conduct trading on Forex using the funds invested in the PAMM account. In case of successful bidding, part of the profit is usually 20-30% go to the trader as a reward, the rest of the profit is distributed proportionally between investors.

Why are PAMM accounts interesting for investors?

Firstly, accounts with low entry thresholds starting at $ 10 are available. Even if the trader merges the account, the loss of $ 10 is not so significant as to affect the overall return on the investment portfolio.
Secondly, there is always the possibility of choosing a trader trading moderately or very calmly, without high risks. Usually, the brokerage platform gives weekly reports on the most successful PAMM accounts of the past week, provides a rating of traders indicating all the data that allows us to analyze the tactics and frequency of trading of each individual manager.
Thirdly, the procedure for entering a PAMM account is very simple even for a novice investor, money is entered and withdrawn quickly enough, within 1-2 days from the moment of application submission.

The main disadvantage of investing in PAMM accounts one can still call quite high risks and a real opportunity to lose all the money invested in the account. Therefore, once again I want to remind you that investment and greed are things are incompatible, and that in the first place, again, there remains the need to expand our knowledge in the field of trade in the foreign exchange market. To do this, we recommend reading our article on indicators and Forex trading strategies for beginners.

4. HYIP projects

HYIP-projects are highly profitable investment programs that are commonly called financial pyramids.

Most often, programs are disguised as long-term and reliable projects, but a thoughtful investor understands that high returns (20-30% per month, and even above) can be ensured only by joining new customers in HYIP.

And therefore, such projects do not last very long, on average 3-6 months, then they stop paying profit and disappear completely.

Can I invest my money in such projects? Can. But very carefully. Mandatory in-depth analysis of the project, a small amount of contribution, regular withdrawal of profits and constant monitoring of the project itself will allow not only to earn, but also, possibly, not to lose money.

To pluses it includes convenient functions of depositing and withdrawing money and a low threshold of entry, from $ 10 or even lower, and also, as a rule, the site’s interface that is very accessible for beginners.

Minus one and huge - a very high risk of losing all the money invested. Therefore, advice to beginners: to be very careful, not to dream of a quick profit and to study the theoretical part.

5. Venture investments

Venture capital investments - investing in young financial projects (Startups) and receiving a percentage of these investments. We recommend reading the article - “Startup - what is it”, where all the nuances and recommendations for investing in this type of tool are indicated.

As a rule, a successful financial project, as it develops, brings more and more income, and therefore the profitability of deposits also increases.

What is the difficulty?

There are a lot of startups and it’s necessary to choose the one that will develop, which means paying money at least for some time. Experienced investors are never limited to one project (remember about diversification) and then redistribute purchased shares in startups depending on whether their prices increase or decrease.
in order to make a profit in this type of investment, it is necessary to constantly monitor projects, since exchanges do not provide managers, as in PAMM accounts. You have to do everything yourself.

6. Currency, precious metals

Buying currency and precious metals, such as gold or platinum. A common way to invest money, although it can not be called very profitable. For example, the price of gold has long been falling, so we are not even talking about the safety of savings.

A more profitable investment for Russians could be buying a currency, dollar or euro. There is no need to rely on high profitability here either, because exchange rates are constantly changing in one direction or the other.

For example, a recent increase in oil prices has contributed to the strengthening of the ruble and, accordingly, the depreciation of the dollar. (What will happen to the ruble and the dollar in the near future we already wrote in our analytical article).

And if you engage in constant monitoring of the exchange rate and purchase and sale, then these actions will no longer be an investment, but will turn into trading.

7. Securities: stocks, bonds, futures

It is characterized by low profitability and high risks. Of the most accessible types of investments for beginners, beginners are advised to invest in Eurobonds - this will help protect rubles from depreciation. There is no need to talk about high incomes.

8. Investing in web projects (sites, etc.)

Site investment - This is the purchase of a ready-made profitable site. The site itself in this case is an investment tool, site visitors bring profit.

Profit comes from advertising, participating in affiliate programs, mailing lists and selling links.

Buying a good, profitable site - the business is not simple and quite expensive, return on investment may take from six months to a year. But if this happened, and the new owner is ready to make at least minimal effort for administration and new labor investments, then the profit from the site will grow for several years.

This type of investment in passive income requires the investor to have at least minimal knowledge about how to promote sites.

Method 4. Passive income in social networks

This method of income is closely related to the sale of advertising and participation in affiliate programs, only the action is now transferred to the most popular social networks in RuNet VK, Classmates, Facebook and Twitter.

The only question is: How to get more participants in social networks? After all, the profitability of this type of earnings directly depends on the number of participants. For example, in one of our articles “Earnings in social networks”, we talked about how to win subscribers in VK, Instagram, Odnoklassniki, as well as how you can earn in social networks on groups, likes, etc.

The answer to the question lies on the surface: advertising. It can be bought and placed on the pages of a social network, in groups with similar topics.

Another option may be a direct agreement with the administrators of similar groups on the exchange of the audience and the mutual placement of advertising. This will certainly help attract a large number of visitors to your group and, accordingly, increase profits.

Method 5. Passive income on YouTube

Almost all of the above applies to the description of income on the Youtube channel. How to make money on YouTube we wrote in one of our previous issues.

Addition: It is possible to post thematic videos and receive money for watching them. Moreover, the channel will not find fault with the video quality.

You can shoot video on a regular smartphone, with the help of applications, apply sound and put it online. The main thing is that the content of your video is interesting to a large number of viewers.

Advertising and referral links are welcome and bring additional income.

Passive earnings from online business

Method 6. Creating an online business

Creating an online business - minimum cash costs and the ability to do everything via the Internet:

create a store and sell goods without leaving your home;
sell a service in any area of life or information that a large number of network visitors need.

Undoubtedly, investments of knowledge and time will be required, but active steps to create such a business and its promotion will bring good results.

1. Creating an online store

You can create an online store selling any goods for which there is a demand: from food and clothing to building materials and equipment.

A task: choose for yourself the trading direction in which you understand, create a trading website, fill it with an offer and find buyers. Speaking is simple, making it harder.

It is necessary to spend time on advertising in order to attract customers, and to find inexpensive goods that can be purchased through the Internet at wholesale prices.

Profit is obtained from the difference between the purchase and sale price.

2. The provision of services

The provision of various services: legal, economic, cosmetic (cleaning, repairing machines, computers, household appliances and so on). Ideally, if the site owner himself has the necessary skill. Then there is no need to involve a specialist in the business and pay him a salary.

If the webmaster does not have such skills, it is necessary to find either a separate professional who agrees to work for you, or conclude an agreement with a profile agency that you will look for clients for them and get profit for it.

3. Information business

Possessing any useful information or skill, as well as the ability to convey this knowledge to the audience in an accessible form, the owner of the information site can record a series of training videos and sell them to everyone.

The business is currently very popular, finding those who want to buy an online course is becoming less and less, but with the right approach to finding customers, it is possible to get a fairly high income.

Method 7. Distribution of information

For Internet businessmen who have created a good information site and managed to attract a large number of visitors, another way to earn money is available - mailing.

The regular customer who is interested in the content of the site will want to keep abreast of news and updates occurring on the favorite site. And at this moment he uses the subscription to the newsletter, that is, voluntarily indicates his email address, to which new information will be sent via postal services, as well as advertising, referral links andother interesting information with the help of which the site owner can earn good money.

That's all about the ways to make money. The rest is up to the reader. Of course, one article is not so capable increase knowledge in the field of passive earnings, but it is designed to give an impetus to move towards higher incomes and achieve financial independence.

Recommendations and advice on how to achieve financial independence (literacy)

6. How to gain financial freedom - 5 proven tips

Financial freedom - this combination of words in different people causes a mixed reaction. At some with these words, eyes light up and heart beats more often, while others - an attack of irritability begins.

Who is right? The one who believes in achieving freedom, and even financial, or those who absolutely do not believe that it is possible to become materially independent of work and the employer?

To some extent, both of them are right.

At the beginning of the article, it was already mentioned the difference in thinking between rich and poor people, now is the time to continue this topic and supplement with tips and tricksto find a middle ground between romantic enthusiasm and absolute denial regarding the term "financial freedom".

These tips are based on a thorough analysis of all available literature about the lives of rich and successful people of our time, because who else to learn from is how to achieve financial success, but not from those who have come this way and are ready to share their experience.

So, tips for gaining financial independence (freedom):

Tip 1. Set goals and achieve them.

Set a goal to become rich and move in this direction! There will be no success where there is no goal. It’s not a goal to make money just so that you are. Read more in the article “How to become rich and successful”

goal - this particular desire, and the more clearly a person presents the desired result, the sooner he will achieve it.

Live by the principle: no matter where you are, important where you are going!

A clearly set goal means that from now on you build your life, relying only on your plans, that in your life there is no more room for whining, complaints, searching for the guilty person.

Now it depends only on you how soon you will achieve professionalism in such areas of life as interpersonal relations, finance, marketing.

Dream, visualize, and positive changes will not take long.

Tip 2. Invest in yourself and in your knowledge.

First of all, you need to invest in yourself! To read, study, communicate with those people who have achieved success, take care of themselves in the physical and spiritual planes, and, of course, believe in themselves and their strengths - this is what is inherent in all successful and wealthy people, which means that such an attitude towards oneself will help you on ways to financial independence.

Modern life allows you to get information about everything in the world without leaving your home - the Internet solves all problems in this regard. Watch the video, listen to audio books by famous authors such as Robert Kiyosaki, Robin Sharma, Gene Ron, Vladimir Dovgan, Napoleon Hill and other.

And do not refer to your age: the main thing is to get new knowledge and skills and be able to put them into practice.

Tip 3. Control your income and expenses

Put your financial affairs in order. This means that you need to know the exact monthly amount. of income and expenses and plan your spending strictly in accordance with financial capabilities.

Creating passive income is most often impossible without an active, special at first. No matter how much they say about creating a business without financial investments, some kind of cash costs are still necessary.

At a minimum, you must pay for the Internet and other necessary services and things to ensure the existence and operation of the business in order to create at least one source of passive income.

therefore necessarily you need to increase your income, look for possible ways to earn extra money, at least until the level of passive income does not exceed the level of wages.

The second part of this advice will be to write a personal financial plan. If funds allow, it is best to hire a financial adviser for this.

It will not only help to analyze the financial situation, but also to draw up a clear planning of expenses, which will lead to getting rid of debts, loans, mobilizes funds and identifies resources for creating a financial pillow and investments.

We also recommend reading the article - “How to save and save money”

Tip 4. Start investing (create assets)

Step by step, gradually, expand your investment portfolio, try yourself in creating new sources of passive income (you have already seen that there are a lot of them!) And be patient.

You should not focus all your attention on creating only one source of passive income.

The ideal option would be to create a financial package that, even in conditions of strong market fluctuations and a powerful crisis, will allow keep your income level high.

In such correctly structured portfolios, the loss of one source of income has virtually no effect on the state of total return.

Tip 5. Live here and now.

Creating the basis for a comfortable life in the future, do not forget that life is here and now, and this life should be fun.

No need to rush to the other extreme:be patient, do not rush to get a lot at once.

It is the observance of the rule of the golden mean that will help us live in accordance with our incomes today, while setting promising goals for future financial well-being.

7. Answers to frequently asked questions (FAQ)

In conclusion, I would like to answer 2 the question most often asked by people taking the first steps towards passive income.

Of course, beginners have a lot of questions, and the abundance of literature that helps one so much confuses others: after all, it may take weeks and months to re-read all the recommended books, and I want to get the answers now.

But all these questions are so important and capacious that the answer to each of them will result in a separate full-fledged article. Therefore, it was decided to highlight 2 most importantrelevant to the topic of this discussion.

Question number 1. What is the difference between active and passive income from each other?

The article has already mentioned the difference between passive and active income - initially this is a difference in the name itself: active income requires active action, passive - no.

Active actions - This is a daily work in accordance with the chosen profession, or specialty, on those conditions and for the wages established by the employer.

The main advantages of active income can be called its frequency and the possibility of planning. In addition, in the event of a job loss, it is quite possible to have an interview in a short time and get another job and get paid again.

The main minus is that the size of the remuneration is determined by the employer, and the receipt of money stops exactly at the moment when the employee loses his seat or for some reason cannot cope with the duties assigned to him.

Passive income - This is a profit for the work performed once. But such a simple at first glance definition is complicated by the following addition: as mentioned above, passive income at first impossible without active.

That is, to create a source of passive income, it is necessary to spend strength, knowledge and time, sometimes quite a long time, and in addition, it is necessary to invest money earned as a result of wage labor.

In other words, without active income there is no passive income. Therefore, all experts in achieving financial independence advise the first time to work tirelessly, in order to then receive a stable and high passive income and already manage their time and income in the way they want.

Question number 2. Is it realistic to receive passive income or earnings on the Internet without investing from zero?

Summarizing the above in this article, The answer will be brief: no.

It is impossible to create a source of stable income on the Internet without investing anything at all. Another thing is that investments can be different: you can invest, you can invest your own time, you can investand above all in self-education.

And you can invest everything together and get the result three times faster and more significant than if you try to invest your resources in parts.

Moreover, as the attentive and thinking reader has already understood, creating completely passive income is also impossible. In one way or another, some effort is constantly required to generate income.

Yes, business management can be shifted to a specialist, your responsibilities can be distributed among employees, but still at least once a week is required exercise control and income analysisotherwise, without supervision it will very quickly come to naught.

8. Conclusion + video on the topic

We hope that we have compiled an exhaustive picture of all possible types of passive income and aroused the desire to try ourselves in this very difficult, but such an exciting business - creating passive income and achieving financial independence.

Learn, try and believe in yourself - the result will definitely be! Good luck!

In conclusion of the topic, we suggest watching a video - “How to create passive income + ideas, options, sources”:

Dear readers of the Rich Pro website, if you have any comments on the topic of publication or would like to share your experience in creating passive income, leave them in the comments below.