Wednesday, October 17, 2018

Passive Income: Every Aspiring Millionaire's Drea


Earning money without doing much work- it might sound too good to be true, but it’s
entirely possible. Passive income sources earn you money in the background, adding
to your bank account but with little or no extra hassle to you. This allows you to
continue generating money but frees up your time for other things. This could be
pursuing other opportunities and projects, or just giving you time to spend relaxing
or with the people that matter! The only issue with generating passive income is
that you generally need some money to start with, and so if you’ve already had
success in career or business, this is an excellent way to use some of that money
and turn it into a whole lot more. Here are some ideas for directions you could go
with this.

Property
Passive income means investing, which almost always comes with some risk. However,
when it comes to property, the risks are extremely low. As a general rule, property
accumulates in value each year, it’s always in high demand, and there are a
number of different ways you can make money from it. For those who want to be
more involved, building or renovating houses to sell for a profit can be extremely
lucrative. However, for those seeking passive income, renting is the way to go.
Companies like Prosper Group can help you to find the right property at the right
price making it easy, even if you don’t have experience in this area. From there,
you simply hire an estate agent to manage things for you. For a fee, they will source
tenants, do checks, chase rent and deal with all of the general runnings of things. So
each time the tenant pays their rent, after costs the rest goes right into your bank
account, and there’s been little to no effort needing to be put in by you. Even if you
don’t have the money to buy a house outright, you could take out a buy to let mortgage.
Over the years, the tenant’s rent will pay the mortgage, and at the end of it, you’ll
have a property that you can either sell or continue renting out for profit. If you’re
looking for low risk and good returns, bricks and mortar are a safe bet. With an
agency running things for you, it really is a great source of passive income.

Business
Business can be a fantastic way to earn passive income. If you’re experienced in
this area and know what it takes to set up a successful company, you could establish
a business and then hire people to run it for you. You could simply oversee things
from the top- there’s little to no work needing to be done by you, and you get to
reap the reward of profits. There is risk here since there’s no guarantee that your
business will work and succeed, however, if you’ve spent your life establishing
successful companies you put yourself in the very best position. Another way to
their venture in return for a cash injection. You can be as involved as you like, but
once the business starts to make money, you get a share of the profits landing
into your bank account.

Commodities
Commodities are an interesting way to generate money without too much work
being involved. While compared with the stock market, it's actually a much safer
option. The stock market can be incredibly unpredictable, meaning that investing
here can even be likened to gambling.  Commodities are something that anyone
from newbies to experienced investors can do well in, and they can include
everything from agricultural products to oil fuel, precious metals, even things
like grains. You invest in something with value, and then sell it at the right price -
taking advantage of fluctuations within the market. Just look at gold for example;
the price of this metal has almost doubled within ten years, meaning anyone
who invested a decade ago has now double their money. You don't even need to
invest in actual stock either (although you can, but will need to consider secure
storage to keep it). If you use a broker, everything is managed online making it
really easy.

Forex and Cryptocurrency
Another form of investing that might interest you, and is great for earning
passive income is currency. Take Forex for example, this is the foreign exchange
market where all the world's currencies trade. Again, taking advantage of
fluctuations in the market you can sell when you believe the price is right. In some
cases, it can be worth holding onto your currency for some time, allowing it to
increase in value. So no need to be logging on every day if you have a longer term
in currencies in the world, spurred on by the fact that those who got in there
early have already become millionaires. There is still money to be made at this
stage, however, with cryptocurrencies being particularly volatile there comes a
significant risk too.

High-Interest Savings Accounts
There are few places safer to put your money than in a bank account. And if you
have a generous sum in the bank in a high interest savings account then
you'll earn money just from it sitting there. Shop around, find a bank which
offers you the best rates. That way, you're not having to deal with any kind of
risk, you can sit back and let your earnings generate interest over the years.

Peer to Peer Lending
Peer to peer lending matches borrowers with savers, and if you're looking to
generate passive income over a longer period then this could be a good way to
go about it. The way the money gets distributed lowers your risk. Instead of your
investment being loaned to one person, it's split and partially loaned to many. That
way, if someone stops paying then you only lose a small amount rather than
everything.

Working hard and earning money generally go hand in hand. After all, nothing in
life is free.  However there are some ways around this, and with a small amount of
risk, you can turn a chunk of money into significantly more. This could fund your
retirement, allow you to retire early or free up your time to do other things aside
from work.

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