Key to Wealth - Passive Income

in #money7 years ago (edited)

Would you like to be wealthy? Own a lot of luxuries like fast cars, nice clothes, and a big house? Here's how:

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What is Passive Income?

Passive Income- The earning of money in ways of which the individual is not actively involved in.

Passive Income can include any number of things like ownership in a rental property to returns on investments. Each way of earning passive income has it's own advantages and disadvantages. For example a stock ownership in a company might grow over the next years faster than your savings account would accumulate interest. However investing in the stock market comes with risks. The commonly used phrase in investing is "With more risk comes more reward" or a variation of sorts.

What you put your money into and how much it could potentially payout are all factors in choosing which passive income to pursue. Leasing out a space for people to rent is a great way to earn passive income. You will get money coming in every moth without having to "Work" for it. Now if you were to increase your passive income to the point where it would cover all your expenses then you wouldn't have to work a day job anymore. This is the Key to Wealth. Earning enough passive income to where your day job's salary can be looked at as pure profit into your wallet.

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How do I get Passive Income?

Ways to earn passive income and how to scale.

Some ways to earn passive income are as follows:

  1. Real Estate Ownership
    Owning property can be the biggest for of receiving Passive Income and is ultimately want you want your passive income to scale too. Owning buildings and apartment complexes will always be generating income for you as more people look to rent spaces to start a business or to use for living areas. Property ownership is a great investment but one should research before doing so like always.

  2. Interest from Investments
    The investments you have in different accounts will accumulate interest for you and this interest is considered passive income. Say you lend a loan to a company and they pay you back in full plus interest, therefore giving you more money then you had in the start with the trade-off of time. Investing and time work hand-in-hand. The longer you invest and the more you invest, the greater the return will usually be (As long as your're investing in the right things).

  3. Develop an App
    Good at programming? Try making apps for smartphones and devices. Making a great app can be used to receive income over the course of its sale. Other options include buying a previously made app and then being able to receive the income that it's making. Be careful if you do this however because the app market fluctuates and new apps replace old ones everyday. So make sure you pick a good app to invest in.

  4. Rent out Unused Space
    If you have unused space in your home or a building you own, you can rent out the property or area to a business or someone to live there and pay rent. Monthly income is great and receiving someone's rent is a great way to pay off the initial investment and profit for as long as you own the property. (While other companies and investments have potential to fail, real estate's value tends to appreciated overtime)

  5. Blog!
    Blogging is considered passive income because you can always be receiving income for something that you wrote in the past. So if I write articles everyday, the money I receive say from Adsense can be accumulated overtime and in so I'm receiving income for something I did one time. Steemit, for example pays out every 7 days so those 6 days after I wrote a post are when I'm receiving income for doing work I did on the first day. (Kind of stretching the definition of the phrase but still a way to earn income)

What will Passive Income do for me?

Earning you money without having to work for it.

Passive Income is appealing because it earns you money without having ot do work for it. If it's so appealing then why doesn't everyone have some forms of passive income? Well most people do f, for example a savings account. Other people have more investments and passive income then others because people will budget their lives differently form one another. Some people put entertainment higher as a priority than future investing and they will see their results in the future when they still have nothing making them money passively.

They see investments as a waste of time and overlook them because they rather have spending money now then more money in the future. They can be skeptical to give their money away in hopes of receiving more later, or they might just have to many expenses to use their money for anything else.

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How should I manage my Passive Income?

Managing your passive income.

Many individuals will often times outsource their managing duties to professionals who then will take a percentage of their earnings. This means less money for you but the again you don't have to focus on the managing aspect of each investment or property you 're involved in. Upscale this would mean loads of income without even touching any of your investments or dealing with any property issues. Outsourcing your work to someone else and giving them a little bit of you're income is a great way to free up time for yourself in order to upscale your passive income even more.

Remember passive income won't get you rich quick. This is a strategy to make you wealthy overtime and to become financial free to the point where you don't have to work but you will be taking in income every month.

My Future Plan

Goals I have for myself.

As for my own life. I'm currently getting involved in investing into cryptocurrencies for my future income to grow and be receiving money daily though these cryptocurrencies. I then plan on accumulating enough savings from my day job as well as my investments now to purchase ownership in properties to earn passive income through leasing and allowing businesses to rent my owned space. From there i'ts all up scaling what I already have to acquire more and more means of passive income and then I will be financially free! (Easier said than done)

Thanks for reading this far if you have and an upvote would be appreciated for my work going into this post.

Comment your goals about earning passive income or ways you already earn it!

Until next post,

-Isaac

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I do love this post on passive income. I myself also have a plan that involves passive income. Cryptocurrency is the future.

I drive for uber but that is not nessesarily a passive income stream.
I also invest in crypto currency, right now Im accumulating for long term hold but i plan on beginning swing trading to make weekly income.

Im also looking into blogging, steemit is actually my first blogging site. If you know of some other blogging sites that pay well please let me know.