Passive income is the Saint-Graal of capitalism!
Every businessman must work toward creating multiple streams of passive income.
But what is passive income?
Simply said, it is income generated again and again without your continuous intervention for a work you have done once.
Riches have understood a long time ago that wealth and financial freedom is not in selling their work force one hour at a time. It is indeed found in passive income! Why? Because time is limited! And time is money!
Here is 5 true ways for you to start creating your own stream of passive income :
Passive income source #1 – Return on cash investments
Okay, this one is easy and everybody knows about it. Earn money and place it in an investment vehicle who in return is going to generate you interests. The initial money plus the interests will in turn generate bigger interests and so on and so on and so on. It is called compounded interest.
Most people understand very well that principle but don’t take full advantage of it. They save a little amount then spend it. Then they start saving again and spend it again. This is the wrong way to do things.
Do not underestimate the potential of compounded interest! Many poor people became very wealthy because they started saving very early in their life and they did it steadily.
Riches save between 10% to over 40% of their income every paycheck as early as they can in their life. Remember, time is money!
One day, your money will work and earn more than you!
Passive income source #2 Real estate investments
You shop for a great building that could generate you positive cashflow right away and that has been well maintained. You perform your enhanced due diligence and proceed to the purchase. It has been hard work and no one was paying you to do it. It’s been time-consuming but now it is yours.
If well-chosen, it will earn you money for a long time. First you’ll make money with the positive cashflow (rent income less charges equals your cashflow). Second, you’ll make money because the value of the building and the land should normally increase over the years. Third, you’ll make money by deducing some admissible fees on your taxes. Fourth, by refunding your mortgage you are creating equity in your building. Eventually when you’ll have enough equity, you’ll be able to borrow against it to buy another rental building.
Finding and purchasing the building is the hard work. After that you will have to maintain the building and do interviews to find renters but you could subcontracts it to a real estate manager.
So many people have made a fortune in real estate investments that it is often considered the safest and most profitable investment in the world. But real estate investment carry its own risks and they are not to be neglected. Before investing in real estate you have to be solid financially and to know what you’re doing.
But, when you do, it is a great wealth creator because people (renters) are paying your mortgage and creating equity for you.
Would you like to learn more from a master? Check Peter Harris’ website. He is the co-author of Commercial Real estate investing for Dummies.
Passive income source #3 Become a writer
You are an expert in… I’m sure like everyone else you have a talent. Mark Ostrofsky in his book “Get rich click” reported that a young adolescent was good at jumping. He wrote an ebook and course on how to improve your jumping skills and made over 7 millions out of it!
You know how to grow tomatoes better than others? You know how to repair a spa?
Find a problem that seems to be shared by many, search for solutions and write an ebook about it then sell it on Clickbank, find affiliates to sell it for you and make money forever.
You have created intellectual properties. It can generate you income forever because you earn the rights. These rights can be transmitted or sold.
You can make money while you sleep for a book you have created once!
Isn’t it amazing?
If your good at it, then write other books, create a blog, write posts for magazines or other ebooks. You don’t have to be Stephen King to make money! Find a niche, solve a problem, become THE expert!
You would like to learn how to write and publish your very own ebook in 7 days without any previous experience? Check Jim Edwards’ website! He’s a guru in his field. He’s been writing and selling ebooks since 1997 and sold millions of dollars worth of ebook!
Passive income source #4 Create other types of intellectual properties
Write song! You can sell them again and again.
Take photos and sell them! Yeah, it is easy now with internet. And there is a high demand with 20 millions bloggers and counting who are seeking for great pictures to put on their posts.
Make movie or videos and generate income with YouTube.
Become and inventor and register a patent.
You would like to learn how to make money and be profitable by taking and selling pictures? Yeah! Selling pictures! There are 20 millions of bloggers and counting actually active on the net. They need pictures for their websites. Check Raven Jackson’s website. She’s a succesful work at home mom who has established a profitable business in that field and she is sharing her know-how!
Passive income ideas #5 – Create and sell an App or another type of software
You got a great App idea? Create an app or hire programmers to create it for you then sell it again and again. Many people became rich by selling apps in recent years. Just remember Ifart! A stupid app making fart sounds… It became viral! I do not even want to know how much money they made with that app…
You understood the principle? Work once, own your work and generate income forever!
Done? Create something else that could be sold!
In need of ideas? Go to Yahoo Answers. People are asking questions about every subjects in the world. Find a popular topic and seek for the greatest solution. Write a book or create webinars and email courses about it, set up a website and sell your solution forever!
You want to design an app but you don’t know how anything about programming? You have to see the website of Quoc Bui! He is a self-made millionnaire in the app market and he’s now showing you how to do like him!
Mobile app opportunities… is just a beginning!