Passive Income - 4 Ways to Make Your Money Work For You
It is a dire financial environment for most: making less than you are worth and always having to struggle financially.
Many focus on how much money they are making actively.
However when watching the habits of the successful, you'll notice that their access to financial freedom has been in their passive income.
So what is passive income? It is money that is made without you working for it! The goal is to have enough passive income to live off of so you don't have to work unless you want to (imagine that!).
Passive income does not mean a retirement fund that you can maybe tap into 50 years from now that provides limited income.
If you are dedicated and make smart financial choices, you can have financial freedom before that with more security than a dwindling 401K.
So how can you create passive income? Here are four ideas: 1.
Invest, invest, invest.
The word is that the economy and stock market aren't necessarily dependable, however if you are educated in the 'timeless' investments or have a good brokerage manager you should be able to make at least 5% return annually regardless of the economic climate.
If you are REALLY good, you can make it 10%.
Set a goal and put a certain amount toward that 'savings' fund each month.
It may seem like a stretch but imagine if you are able to save a million dollars in your account.
Without ever touching that million dollars, with a 10% return, you can have $100,000 every year and never have to work again.
Most could live happily off half of that! 2.
If you have a business, provide timeless products in different price points that you can sell during any economical time.
This could be a book, an online training course or a CD.
This will provide additional passive income that can offset any economical downturns in the large run.
3.
Sell the products of OTHERS! There is a new trend in marketing that is fantastic and worth investigating.
It is called affiliate marketing.
You promote the products of others and make a commission off the sales- sometimes up to 50%! This can be easy money into your pocket that you can then use for point #1.
An important thing to note though: only promote the products you like, trust, and believe in.
If you promote low quality products that you don't use and for the sole purpose of making money, people won't trust YOU and it won't feel good.
4.
Real Estate.
Another industry that gets a bad rap, but if you can afford to purchase a place and rent it out for more than you pay in fixed mortgage payments, that is easy passive income.
Think vacation homes or a condo in a hot tourist city.
Now is the time to buy while the rates are low! In conclusion, if you are out to seek financial freedom, begin to shift your thinking to how you can make your money work for you, rather than you work for it.
Ultimately if you create multiple lines of passive income, your financial struggles will be a thing of the past.
Many focus on how much money they are making actively.
However when watching the habits of the successful, you'll notice that their access to financial freedom has been in their passive income.
So what is passive income? It is money that is made without you working for it! The goal is to have enough passive income to live off of so you don't have to work unless you want to (imagine that!).
Passive income does not mean a retirement fund that you can maybe tap into 50 years from now that provides limited income.
If you are dedicated and make smart financial choices, you can have financial freedom before that with more security than a dwindling 401K.
So how can you create passive income? Here are four ideas: 1.
Invest, invest, invest.
The word is that the economy and stock market aren't necessarily dependable, however if you are educated in the 'timeless' investments or have a good brokerage manager you should be able to make at least 5% return annually regardless of the economic climate.
If you are REALLY good, you can make it 10%.
Set a goal and put a certain amount toward that 'savings' fund each month.
It may seem like a stretch but imagine if you are able to save a million dollars in your account.
Without ever touching that million dollars, with a 10% return, you can have $100,000 every year and never have to work again.
Most could live happily off half of that! 2.
If you have a business, provide timeless products in different price points that you can sell during any economical time.
This could be a book, an online training course or a CD.
This will provide additional passive income that can offset any economical downturns in the large run.
3.
Sell the products of OTHERS! There is a new trend in marketing that is fantastic and worth investigating.
It is called affiliate marketing.
You promote the products of others and make a commission off the sales- sometimes up to 50%! This can be easy money into your pocket that you can then use for point #1.
An important thing to note though: only promote the products you like, trust, and believe in.
If you promote low quality products that you don't use and for the sole purpose of making money, people won't trust YOU and it won't feel good.
4.
Real Estate.
Another industry that gets a bad rap, but if you can afford to purchase a place and rent it out for more than you pay in fixed mortgage payments, that is easy passive income.
Think vacation homes or a condo in a hot tourist city.
Now is the time to buy while the rates are low! In conclusion, if you are out to seek financial freedom, begin to shift your thinking to how you can make your money work for you, rather than you work for it.
Ultimately if you create multiple lines of passive income, your financial struggles will be a thing of the past.
