What if you could earn money without having to do anything? You divide your time freely, have hardly any professional obligations and the euros bubble up by themselves. For many people, this is the absolute dream. A passive income brings you closer to this dream.
Do you have a regular job with fixed weekly hours? Then you have an active income, because you are actively doing something to earn your Time and labor. A passive income works differently. You create a one-time basis for a source of income that, in the best case, never dries up. Passive income is a self-runner, so to speak.
With passive income, you make your works, inventions or assets work for you. In many cases it is available, but it is not enough for living alone. Most of the time it is a Additional incomethat gives you a more comfortable life. Passive income contributes to financial freedom, because it protects you from total loss as a second pillar in case of job loss.
A passive income often helps to increase or maintain the standard of living. Many people would not be able to afford an expensive hobby or annual vacation without this additional income. For this reason alone, it is worth considering passive income.
A passive income brings enormous advantages. However, this dream cannot always be realized. It is important to have a long-lasting and almost unrivaled idea that can be easily duplicated and sold often. Ideally, everything runs automatically. This is how book authors, for example, earn passive income. They once write the book and are still cashing in years later.
In general, passive income usually requires a lot of preliminary work. The author from the previous example has invested a lot of time and effort in writing the book. He also generates passive income only if the book is really successful is. If it's a flop, then all the effort was for nothing. For other passive income, you need money or assets that are not available to everyone.
The basis for a passive income is always a service provided by you. In this case, passive income does not differ from active income. You provide something of yourself, but do not perform any current activity. If you are smart, you invest the money from the active income at least partially so that it works for you and increases.
The following options are suitable for generating:
Shareholders and those who invest their money in securities have passive income - provided that prices rise and the Values remain stable. Shares and equity funds always carry the risk of falling in value. Interest income on savings accounts is also such income.
Cryptocurrency is an online currency for digital assets. It is possible to trade and invest in cryptocurrencies. However, it is the same as with stocks. For high returns, you take a correspondingly large risk, as the currencies are subject to price fluctuations.
A classic example of passive income is rental income. You make your apartment, a storage room or a garden available and receive a certain amount every month in return. In some cases it is even worthwhile to buy extra real estate to rent out. The monthly rental income ideally exceeds the installments for the loan, so that an attractive income remains from the beginning.
In addition, e-bikes, motorcycles, cars and other vehicles can be rented. This also applies to party supplies and sports equipment, such as surfboards, ski equipment and much more. Larger machines and tools are also sought-after rental items. Sometimes the specific acquisition is also worthwhile here, for example the purchase of a bouncy castle.
Generating passive income is much easier today than it used to be, thanks to the Internet. One of the ingenious inventions of the modern age is digital printing technology, which makes it possible to produce books quickly and easily, even in very small print runs. The book does not go to press until it is ordered. Neither the author nor the publisher have to make advance payments and finance a print run of several thousand copies on the off chance. This reduces the entrepreneurial risk.
In addition, it is possible to publish e-books. Guidebooks on a wide range of topics are in particularly high demand. Online courses can also be put online as videos. Here, too, sales generate themselves after the one-off production of the footage. Streaming self-created music works in a similar way.
Various platforms offer you the opportunity to design motifs and make them freely available. The customer orders mugs, T-shirts and other textiles and has them printed individually. If he chooses your motif, then you get a commission. This is one of the easiest ways to generate passive income, although it is mostly just a side income.
As the operator of your own website, blog or YouTube channel, you can place advertising in the form of a link for third-party providers. If your users click on the link or place an order, you get a commission. This works quite well with Amazon, for example.
Are you good at programming? Then develop an app or a program, make it available to others and earn a passive income.
The boundaries between passive and active income are often blurred. In general, passive income almost always requires a certain amount of advance work, which is associated with more or less effort. There are people who again and again go into advance performance and work in the actual sense regulated, in order to profit then at least for a time from this work. Influencers are among them. They run a blog or YouTube channel that they regularly fill with new content.
Never embark on an adventure without proper financial security. The biggest risk is relying on passive income and quitting your old job. Trends are often short-term and pass quickly. If you generate attractive revenue with a brilliant idea, you can quickly lose your revenue stream.
If you want to build up a passive income, think of it as a sideline for now. Let it run parallel to your regular job for a while and quit your job only when you can safely live on the passive income. Reduce the hours you work before quitting your old job altogether.
Never underestimate the upfront investment. Either you need startup capital or you need to invest a lot of time and effort up front. Only use the start-up capital if it is available anyway. Never take out a loan to generate passive income. Real estate covered by a mortgage is an exception.
Not every passive income is suitable for everyone. Consider which opportunities are open to you personally and can actually be implemented by you. You need to know how much time and money you can invest in the preliminary work and what risk you accept.
All sources of income for which you invest money are risky. Especially investments that are subject to price fluctuations carry a high risk, but also the chance to earn a lot. The easiest way to earn your Money with the rental of already existing goods.
How much groundwork can you do and what are your goals? Are you planning just a little extra income or do you want to make a living with it?
Consider what resources and skills are available to you and what passive income is suitable for you. What do you have, what can you do, what do you want?
How do you get your passive income? How do you offer your ideas for sale and how do you settle the accounts? Choose a suitable platform.
The most successful people who have passive income without lifting a finger are the heirs of copyrights. If an artist or writer dies, the copyright continues to exist for 70 years after his or her death. Copyright passes to the heirs. So Astrid Lindgren's children have a good laugh.
Large revenues from licenses are generated by those who create cult figures that adorn numerous products. These include, for example, Thomas Goletz's Diddl mouse. Another example is the author Janosch, whose characters adorn children's tableware, clothing and much more. Many reality stars also sell profitably as brands.
What do you learn from these success stories? A high passive income is a real stroke of luck, similar to winning the lottery. Very few people are granted such a career. If you have a celebrity status from the start, it is easy to earn passive income. Earn money.
For passive income with no upfront financial investment, it's important that you deliver a unique performance and positively stand out from the crowd. You need to have a brilliant idea and know how to best market it. Your passive income probably won't make you a millionaire. However, the chances for an attractive additional income are good.
