How to get passive income
Published 06/03/2022 | Last updated on June 08, 2022
Before starting, it is crucial to understand what passive income is. Passive income is income that is generated automatically without any additional investment of time or money.
Once you have set them in motion, they continue to provide you with money without having to dedicate more resources. So, you earn income while doing other things, whether work, travel, or even sleep.
Types of income
Knowing the three types of income that exist will allow you to appreciate the advantages of passive income.
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Time-based income
This is where you exchange your time for money. Most people have jobs of this type, where they pay you a salary of X amount per month. The problem is that this dramatically reduces your ability to generate income, as you are limited by the available time.
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Income by the result
This does not depend directly on time spent but, on the results achieved. Many commercial or self-employment jobs are like this: if you have a shoe store, you will earn more money according to the number of shoes you sell, regardless of the time it takes you to do it.
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Passive income
They may depend on results, but they don't require you to spend more time and effort on them to keep making money. They do it on autopilot.
Within passive income, there are two types. Some are unattainable for most mortals, and others you can get with some effort:
In the first option, money generates income for you. Think of interest from a bank account or dividends from stocks. The problem? You need good start-up capital for the income to be significant.
The latter doesn't depend on the money you have. They are the ones you get after creating a product or service that lasts over time and becomes an automatic source of income.
An excellent example of the latter would be writing a book: once published, you don't have to do anything but wait for people to buy it.
Nowadays, with the increasing use of the Internet, there are many ways to get passive income. Unlike a few years ago, you can achieve passive income with almost no investment or computer knowledge.
As you will see below, there are so many ways to monetize that with a computer and an Internet connection, it is possible to create multiple sources of passive income anytime, anywhere. You don't need anything else.
Passive income is your best option if you want to earn extra monthly money, get an automatic salary that allows you to quit your job, or want to secure a good retirement.
How to generate passive income?
Passive income is economic income that does not require much time to achieve. That is to say; a job is not passive income since you must go to a company several hours a week to earn money; however, renting a house is.
To have healthy personal finances, it is advisable to have more than one type of income so that when one is missing, another can supply your needs.
If you want a passive income, we share some ideas for you to start doing it.
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Purchase of real estate: if you have enough money to buy a property, you can lease it and receive a monthly payment for the use of it.
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Investments: you can also have investments in collective portfolios, stocks, CDTs, among others, to receive profits, depending on the investment profile. Learn more about this by clicking here.
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Franchises: franchises are business models that have already proven their success and that you can buy under the same operating system.
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Blogs: if you constantly write in a blog and make it successful, you will be able to have commercial allies that will help you to make your page profitable.
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Internet sales: there are several websites such as Amazon or Mercadolibre where you can sell various things and where they take care of all the logistics of the sale such as payment and shipping of the product.
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YouTube Channel: if you are good at making videos, you can upload them to YouTube and become an ally of this page. When you have enough followers, you will be able to receive earnings for each visit to your videos.
The benefits of passive income
Okay, so what's so great about passive income - why is it so coveted, and what are the reasons why it appeals so much to bloggers? Well, for three straightforward reasons:
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You earn more by working less: no one wants to work 40 hours a week all their lives. If there is a way to make the same amount working half as much, that will be the one we want. And that's what passive income is all about: generating income even if you're sitting on the couch at home watching TV.
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Opportunity to create your lifestyle: whether you are an employee or a freelancer, if you offer services, you will be "tied" to schedules, deadlines, and clients. With passive income, if you have created it correctly, you can choose how to live, where to live, and what to do with your life. You are not tied to anything or anyone.
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Freedom: beyond creating your lifestyle, passive income gives you the freedom of not having to answer anyone but your clients.
All three benefits are closely related to living "untethered" and living the life you want. That's all there is to it. While you won't be able to sit back and watch your bank account grow, you will be able to gain a freedom that no salaried employee can ever have.
At El Paisa Multiservices we want to help you with your finances in Hartford, CT. You can contact us if you have questions about our services.
By Ingenuity & Solutions
