ALL ABOUT PASSIVE INCOME

What is Passive Income?

Passive income is

an income received on a regular

basis, with little effort required to

maintain it.

The American Internal Revenue

Service categorizes income into

three broad types,

active income, passive income,

and portfolio income.

How you can earn passive income?

Whenever someone needs

additional income, the

stereotypical suggestion offered

is to “get a part-time job.”

Here I will be discussing about various passive Income Ideas You can Start Today!

Who does not want to create a financially secure future for themselves today? I am sure all of you do. Prices of commodities are soaring up like never before. What used to be a fortune in the past is merely a handful of cash today and in the perhaps will not even be worth that much in the future.

Planning for the future requires you an income which is much more than the well to do kinds. What you need for this is passive income. More than just one source of passive income actually. It is the only sure route to unlimited success and financial gain in the competitive market of today.

Being financially free doesn't only mean getting a good job and then getting promoted up the order to earn you a better life. This is one way of making money true. However making money and being financially free are two completely different aspects. The above mentioned method might get you a lot of money but it will require you to work long hours which means you will not have the freedom. People who are rich might look free but the fact is that they are busier than the rest of us.

Being truly financially free refers to the act of having all the money in the world and yet no obligations to work. So you can evaluate that passive income is actually automatically generated income. The moment you build up a source of earning money automatically without putting any further effort into it you have discovered the a successful source of passive income.

You will be glad to know that today there are many ways of making passive income. The most popular options available today include online marketing, coin operated machines, royalties from books, automated offline business, network marketing, rental real estate and website hosting. There are many other simpler sources like blogging, social networking, etc., too. These however are not as rewarding as the former ones.

You start off with a small source of passive income and then keep

growing over time.

The system is simple since all these systems are automated they do not

require much time as such you can concentrate your time and mind on

generating newer ways of making money.

The moment you amass enough wealth to lead a luxurious life you can

consider yourself financially free. Once financially free you have both

the time and money to enjoy life to its fullest. Life is a different

experience all together from here on.

Here are a few tips to make some passive income:

Digital products are the best buy today. No initial investment required

and thousands of prospective buyers all around. You can go for writing

an eBook or designing e-courses or software’s which will keep

generating you money for a pretty long span of time.

Marketing is another way to make some passive income. If you even

want to avoid the trouble of designing and then selling your own digital

product you can actually go ahead and market someone else's product

and then sell it for a commission.

But what if you don’t know anything about online marketing and about

writing eBooks, e-courses and other e-products.

There is no need to worry on this…

Then also you can earn money online with a small efforts from your

home in your spare time. This will let you making money while you

sleep.

For that, you may need some passive income ideas – ways to make

money with little investment of time and effort on your part.

These days, working hard and retire with benefits simply does not work

anymore. Absent any form of financial planning and action to invest our

money, we may find retiring a huge challenge. Furthermore, Active

Income is not that secure anymore, with high mobility of workforce;

Companies can open and close at a whim, salary increases may not keep

pace with inflation and more. This is the reason we need to build our

Passive Income while we can and as early as possible to reap the benefits

later on.

Here are 10 ways in which you build your Passive Income, make

your choice. + Affiliate Program helping you earn anything between

1000$ to 5000$ Monthly.

1. Dividend Stocks

There are certain Stocks which pay Dividends consistently every year.

Dividends are basically payments made by Companies to the

shareholders to reward them for owning the shares. Such corporations

include software giant Microsoft, fast food chain McDonald's,

telecommunication company AT&T and pharmaceutical company

Pfizer.

Dividend Stock Investment Strategy is a viable, hassle free form of

Passive Income. These Companies can offer dividend yields of between

3-5% per year. These Dividend Stocks tend to be more stable businesses

such infrastructure and telecommunications; which are less prone to

market cycles.

Long term research has shown that Stock prices move in tandem with

inflation as the rise in prices of goods also get translated into increased

earnings for Companies. For most Companies with a fixed payout

policy, it also means increasing Dividends every year! Returns from

Dividend stocks can also be compounded by reinvesting the Dividends,

massively raising the Dividends.

2. Mutual Funds / Unit Trusts

Other than investing yourself, you can opt for professional managers to

manage your investments for you. By investing through Mutual Funds or

Unit Trusts, you can select certain sectors such as industry or

geographical locations to suit your investment portfolio.

Most employee investment schemes offer a wide variety of Mutual

Funds to choose from. One can also apply to invest in these funds either

through stock brokerages or bank relationship managers.

However, some Funds charge upfront 2%-5% upon investing and will

also charge an annual fee of 1%-2% and a performance fee. As such, you

should only consider investing in Mutual Funds if you are willing to stay

invested for at least 2-3 years.

3. Renting Stocks through Options

You can also rent stocks through options much like how you would rent

properties. The technical term for this is actually called Covered Calls. A

Call Option is a contract which give the buyer the right, but not the

obligation to buy a stock at a certain price (Strike Price) at any time

before the Option expires.

For a Covered Call, you basically sell a Call Option on a stock which

you already own. Used as an extension to the Dividend Investment

strategy, you will be able to receive Option premiums of 1-5% return per

month and collect Dividends at the same time. This strategy is best used

in periods of low volatility or when there is limited upside potential for

the Stock you are holding.

4. Real Estate

Investing in property can yield the highest payoff among all investments

due to leverage. One can purchase a property which is valued many

times the cash outlay required through bank loans.

When investing in Properties, the main considerations are rental yield,

location and occupancy rate of the building. Rental is a great form of

Passive Income which is generated while still holding the property and

profiting from further capital appreciation.

However, property investments are very illiquid and can be quite tough

to sell especially in an economic downturn. Leverage is also a double

edged sword, it could magnify profits, but it could also magnify losses.

5. Bonds/Fixed Income

Bonds provide a fixed return depending on the yield which you purchase

the bond at. Bonds are typically classified into government bonds and

corporate bonds. Government bonds such as T-Bills are supposed to be

high investment grade until recently with the Debt Ceiling fiasco and the

fact that the US budget deficit is at an all-time high poses risks for US

bonds.

Even Euro bonds suffer structural problems in the EU and huge debts of

some European countries. AAA Corporate bonds are currently more

favored as they are based on the strength of huge cash rich global

companies such as Microsoft and Exxon Mobil. However, studies have

shown that equities beat bond returns consistently in the long run. The

key problem with bonds is that the income is static; hence the name

fixed income, while stocks have the ability to appreciate during

economic growth.

6. Network Marketing / Multi-Level Marketing

Network Marketing / Multi-Level Marketing is a marketing structure

which sells products or services through individuals rather than through

traditional brick and mortar stores.

Renowned global brands include Amway and NuSkin. How it works is

that a dealer can choose to just sell the products or recruit and train new

sales people. They then get rewarded by the sales incentives provided

from their down line.

The right way to succeed in the Network Marketing business is to focus

on the benefits of the products and your service level to your customers

rather than the scheme itself. All too often, people just focus on the

scheme to simply recruit people and not sell the products. Through hard

work and the correct approach, you should be able to build a large

network of loyal customers and eventually recruit people into your sales

team. When you have built a substantial down line of successful network

marketers, you can sit back and enjoy the Passive Income.

New to marketing? Learn it easily at Leading Bringnex.com Digital

Marketing Blog.

7. Savings Plan

Savings Plan work by forcing you to save or contribute a fixed amount

on a monthly or yearly basis until maturity. The Savings Plan typically

earns interest at a rate which is marginally higher than bank savings rate

to entice investors.

They may also include an unguaranteed portion which depends on the

performance of the insurance company or overall market. On maturity,

the Plan starts returning money back to you, either in a lump sum or

periodically.

You should always take into account Time Value of Money when

determining returns to ensure that you are earning a decent rate of return.

8. Royalties/Intellectual Property

You can also make Passive Income by writing books, creating movies or

music. These are known as royalties or intellectual property. If you have

knowledge which is sought after, why not put it in a book and get it

published? After which, you will get paid with every book that is sold in

the bookstore for the rest of your life. If you have a passion for music,

why not write a song for record companies to use?

Famous individuals such as Robert Kiyosaki, Author of Rich Dad,

Poor Dad and Anthony Robbins created massive Passive Incomes by

writing many award winning books, sharing knowledge and making

money at the same time.

9. Blogs

Blogs are a collection of the author's life, hobbies or sharing of

knowledge. It can be in words or in video form YouTube. The idea is to

attract enough web traffic on the blog such that advertisers will be

willing to pay you money for promoting on your site.

The advertisers can range from syndicated advertising such as Goggle

Adsense and Chitika, to affiliate marketing such as Amazon or to

direct advertisers. Adsense operates on a Pay per click while affiliate

marketing normally requires the customer to have purchased a

product/service before you are entitled to commissions.

Blogs require a large number of readers to make a significant amount of

money, therefore Search Engine Optimization and constant promoting of

the site is crucial. Blogs also have to be regularly updated with exciting

content such that people will keep returning for more.

Learn how to start a blog and monetize it for passive income.

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10. Article Writing

Article writing is a newer form of Passive Income that is catching on.

Instead of having to build websites or blogs from scratch, you can post

directly to article sites like Infobarrel. These website have a revenue

sharing scheme for all income earned from the advertisements.

These websites also have large numbers of general traffic and so you do

not need to work on building traffic to your site. If your article is

relevant and helpful, it will get noticed very quickly and will generate a

lot of traffic. Once the article is posted, it will always be yours and will

create passive income for you as long as there are people reading it.

These articles can also work to link back to your website and direct

interested readers to your own blog/website.

Infobarrel currently has the highest revenue sharing proportion, 75-25

basis (you 75%, Infobarrel 25%) compared to many others which share

50-50 or less.

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