(1) what passive (residual) income is, (2) what are the best passive income sources to use in 2018, (3) the reason why the rich get richer and the poor get poorer, and, (4) how to quit the rat race using the ideas shared here.
Take advantage of the 7 best passive (residual) income opportunities presented to you in 2018 and start enjoying your financial freedom at last!
If you are interested in the “make money” topic, then it is likely that you are familiar with the concept of “passive income”.
The dream of many people is to not to work, and still make money.
If you are one of those people, then this article is for you!
Today people create this type of income and, for what it’s worth, the easiest way to build it is on the Internet.
All the methods described below to be considered as kind of a review. Which one to choose for building your financial freedom is totally up to you.
If we look at the average 30-40 year old person, we will see that he spends more than he makes and has a lot of debt.
And all this is because he doesn’t focus on building assets that would help solve his financial problems.
Financial slavery in the 21st century flourishes, despite the fact that physical slavery has long sunk into oblivion.
The famous American magnate, John Rockefeller, couldn’t have said it better:
“He who works all day, has no time to make money.”
Indeed it is so.
Theferore, it is important to understand that our main asset is time, and rich people are good at using it.
The ordinary day of an ordinary person follows the same routine: leaving to work in the morning and after work stop by the local bar, get home, watch TV.
At the same time, the progress of such a person in the long term is minimal, especially if we take into account the fact that the majority of population don’t like their work and their income doesn’t grow from year to year.
(I personally worked at an office in my early 20s and I hated it!)
The rich differ from the poor in what they do in their spare time.
The proper use of time is the key to achieving wealth and building passive income as one of the tools of financial freedom.
After all, in order to createresidual income, you need to work very hard (yet smart). Most often for a few months or even years.
But once you have stable (positive) cash flow, you can quit your job and become a wealthy person.
According to the famous businessman, investor and financial literacy specialist Robert Kiyosaki:
Wealth isn’t determined by the size of one’s bank account, but by TIME, during which a person can not work, and still maintain his comfortable standard of living.
In order to understand how you can turn your time into a source of permanent passive income, escape the “rat race” and gain financial freedom, I highly recommend that you play the world’s famous financial board game called “Cashflow”.
There are different options for creating passive income, and let’s now consider the most popular ideas of how you can ensure a regular flow of money, without having to work for it all the time.
Passive Income Idea #1:
Building your own profitable website
Creating passive income on the Internet is becoming very popular today.
If you are familiar with the principles of marketing and you are good at computer, then you can create such income even from scratch, having only proper guidance, a great desire to learn new and a certain amount of free time.
Usually, to start regularly earning on your site from $1000 a month, you’ll need from 6 months to 2 years of regular work on your project for several hours a day.
For example, my friend’s income from his second website was like this:
For some reason, some people think that it is very easy to make money online and that they can quit their jobs right after they create a website without any work on their part.
Well, let me tell you that it is a great misconception.
Especially in the beginning, you will have to work very hard on your website and the most difficult part here is to not to break down or burnout, but keep moving forward to achieve a regular passive income of at least $100-200 a month.
After that you will just need to keep developing your website for it to become a real money-making machine for you.
Once you built and developed your website, you have the following options:
you can either keep it as a profitable website bring in residual income, OR
you can sell your website if you don’t want to work on it anymore.
(I keep learning a lot from my friend Garen, the owner of https://sellwebsite.co – so go ahead and check his site out if that option interests you).
If you decide to sell your website as a ready-made business, then you can sell it for amount 20-24x the amount of its monthly passive income.
For example, if you website is making a stable $100/month, then you can sell it for $2,000-3,000.
This way, you can create profitable sites for sale and build your own business on it.
It’s like animal husbandry.
You raise a cow which will eventually give you milk that you can sell regularly and make a profit. And if you need a large sum of money immediately, you can sell the cow itself.
If you fall into the category of socially unprotected citizens (a disabled person, a large family, a senior etc), then you can can apply for income or benefits from a government program (which will be a form of passive income).
To do this, you need to carefully study the social programs that are offered at your place of residence.
Investments in various financial instruments are also a rather popular way of obtaining passive income.
Although they have their advantages, they are not without drawbacks. For example, in a bank, income will be minimal and barely save your money from inflation.
In terms of mutual funds and stocks, in most cases your income will be unstable (excluding bonds), and will not exactly have a passive character.
When it comes to investing, the tricky part is making a good portfolio that does bring you passive income. And in order to create a portfolio, you have to learn how to make it best.
You will seriously have to gain proper knowledge if you want to become a successful investor.
At point in time in life, I still don’t invest but I read a lot of books on investments and all the financial matters to be truly successful in this sphere.
One of my #1 book recommendations, especially for young adults, is Ramit Sethi’s IWT book (see Amazon reviews here). When you invest in certain financial instruments, you can get a speculative profit, but losses are also possible.
MLM – multi-level marketing or online/internet marketing- involves a promotion of the products and services, from the producer to the consumer through the web of independent distributors.
These days people don’t have a very good opinion about MLM, which is understandable given a whole bunch of scams that are out there.
Full disclaimer: personally, I am NOT a fan of MLMs at all.
Generally speaking, network marketing is one of the most affordable ways to create passive income by investing your time, since in most network companies you do not need more than $100 to start.
If you have the talent to find a common language with different people, you are friendly and full of energy, then you can try yourself in this industry and in a few months your passive income can be compared with the average salary of a provincial city.
A parable of pipeline illustrates very well the way one can build passive income through network marketing.
This story is about two friends, Pablo and Bruno, and how they acted upon to create their living and achieve financial freedom.
A parable that shows hard work vs. smart work.
Check out the 10-minute animated story of their adventures below:
The most important thing is to not fall prey to financial pyramid schemes that are disguised as network marketing companies!
An excellent way to create a passive income is to organize your own entrepreneurial project.
If you don’t have sufficient funds to open your business offline or simply don’t want to risk a lot of money, the best way to start generating residual income for you is to do business on the Internet.
Yes, today thousands and thousands of people earn lots of money on the Internet.
Now you know the definition and examples of passive income, and what you can do to quit your job, gain financial freedom and be able to travel the world.
Here are my financial freedom tips.
Tip 1: Find the time to create assets
Remember the story of the pipeline? Don’t just think about getting your salary for the work that you’ve done, think regularly about how you can repeatedly get paid for the work that you’ve done once – and replicate your efforts!
After all, you do not want to be among the people who live on one beggarly pension.
Or are you?
Tip 2: Strive to have multiple sources of passive income
If you can create multiple passive income streams, then your financial independence will be under reliable protection. What I am trying to say is that if you lose one source of income, the other will always help you out.
The main purpose of this blog is to share my personal experience and make it VERY easy for you to understand how online business works and how you can make money online using ETHICAL methods.
Visit my profile page by clicking here.