Passive income is a type of earning that does not imply daily work. Some of the most known ways can be renting real estate, purchasing shares, etc. This type of earnings is a direct way to achieve financial independence, meaning you won’t need to waste your precious time in an attempt to earn your money. The money will be earned independently, while you will enjoy investing your time in other activities. And of course, there is the other kind of income which is, hence, active. Active and passive income – what is the difference?
Modern lifestyle has accustomed us to an active income. Such earnings include the salary that a person receives on a regular basis, performing his duties at work. It doesn’t have to be official. It can be a part-time job or freelance. Simple equation – I did the job and got paid. If a person leaves his duties or resigns, receiving payment for work is suspended.
Active earnings always require the investment of your own strength – both physical and moral. This means that if for some reason you stop doing your job or refuse it, this will be the end of the receipt of payment. Passive income implies the flow of funds without the need to make constant efforts. In other words, you can do nothing, but you will still receive money.
The secret lies in the fact that passive (non-linear) income comes from the assets that you possess.
They have the ability to generate cash flow, making you richer every day. Liabilities are what make you spend money. This can include rented housing, subscription to TV channels, car maintenance, a mobile phone that requires constant replenishment of the balance, and much more. Liabilities make you poorer every day, increasing your expenses. If you have some kind of asset – a bank deposit with a certain amount, real estate, shares with regular growth, high dividends, or other instruments, you can always count on them to bring you profit. At the same time, you do not have to make efforts to increase your capital. This is the most important advantage of the “passive”.
Another plus of passive earnings is that you don’t work, but other people do it for you. As an example, you can give an investment in someone’s business. If you make a profit, you are receiving it not at the expense of your labour, but thanks to the work of business owners and other people.
The following are the main ideas for creating passive earnings. After reviewing them, you can choose the method that suits you the most.
Rating of the top ways to make a profit on autopilot include:
1 – Sale of online courses
If you have knowledge in a certain field, you can create your own course and sell your professionalism and experience in a beautiful package.
2 – Profitable sites
Every year, many resources, blogs, and programs are created, many of which are abandoned. By buying a blog with a good audience activity, you have every chance to make money on this business.
3 – Maintaining a YouTube channel
By regularly shooting and uploading small videos to YouTube, you can monetize within a few months. They can be educational, entertaining, technological, and other genres. So how is money made on a video? Before the start of the video and during its viewing, an advertisement will be played to the audience. And you will receive a reward thanks to this. It is important not to forget to enable AdSense monetization or connect to the media network.
4 – Blogging on Instagram
Advertising will allow you to earn good money on the social network Instagram due to the presence of subscribers. By increasing your activity, you will attract advertisers yourself. They can also be found through special exchanges. As an influencer, you could also promote services and sites. You should also keep in mind that your channel should be 18+ if you will be promoting services such as PayPal casino or alcohol beverages.
5 – Online store
If you have a product and know the ways of sale, then you can safely put it up. Modern services offer to automate the process of delivery, accounting, storage, payment acceptance, creation of discounts and various promotions, marketing strategy, and much more.
6 – Sale of photos on photo stocks
Are you interested in photography even maybe just as a hobby? Then you have the opportunity to sell your creativity through specialised resources. This could be through Shutterstock or iStockphoto. As a result, you will receive income from each photo sale.
7 – Deposits
Deposits are the least risky investment instrument. However, the yield of the deposit is minimal (6-8%). The rate depends on the term and amount of the deposit, as well as the conditions offered by the bank. An increased rate (up to 8.8%) is offered for investment deposits, but the deposit amount for such a product must be relatively high.
8 – Cryptocurrency
The purchase of cryptocurrencies with a bet on a long investment horizon is one of the easiest and most uncomplicated ways to generate passive income.
Trading, or put simply, is playing on the difference in exchange rates. Traders are engaged in selling or trading. By this definition, they characterise various transactions, the conclusion of which can take from a few minutes to weeks. They are distinguished from holders by the fact that traders tend to find benefits in small market movements.
9 – Investments in various projects (ICO). The main problem with this method is that it is often possible to encounter unverified scam projects that will definitely disappear in the near future, having deceived your expectations. As a result, such an investment can be very risky.
10 – Trading on stock and currency exchanges using robot advisors
Over time, automated trading on the market is gaining more and more popularity. Entrusting all their funds to robots, traders make huge profits without making much effort. Artificial intelligence does not make mistakes because of emotions or excitement. Robo-advisor is a special mathematical program. The decision regarding the fate of a certain transaction is made by this program.
