The caption obviously sounds incredible and it is almost every one’s desire to earn without having to give too much effort .
To earn some yourself you first need to know that it is done by passive income .
Wondering what it is?
Well, it can be defined as the income that requires minimal to zero effort to earn. It is a kind of “work smarter, not harder” situation.
It is different from active income where you give your 100% effort in order to earn the income.
Financially independent people suggest that passive income streams are the key to success.
But, you should take in note that all supposed passive income ideas are not passive at all.
Doing a second job for increasing your earning is not passive at all as you are already busy with you day to day activity and your principal job, doing a second job will only lead you to more work load and comparatively less income.
In order to make passive income, the first and for-most thing you need to do is invest an asset that in turn brings you passive income.
Lets jump to those ideas which can work for you –
- Get a high-interest savings account –
If you have a descent amount of saving in your account then do not let the money sit there decreasing its spending value rather open a high interest savings account and put your money there in to get a handsome amount of interest from there .
Even if you don’t have a lot, you would still be able to earn more than what your normal savings or checking account provides you.
You can also look into money-market accounts ,treasury bonds or certificate of deposit for low risk stable return investment.
Make sue that you understand the tax ramifications with the Internal Revenue Service before passive investing.
- Passive Real Estate Investing –
Many companies provide you the ability to invest in commercial and residential real estate projects without actively involving yourself. Its done by by your own real estate agent or other real estate professionals who picks up the properties for you.
Following this you will not have to do the hard work yourself but the companies will do it for you giving you exposure to real estate without needing you to be the landlord but always remember that there is always a give and take to using a third party i.e. the fees they will charge you.
- Invest in long term index funds-
An index fund is a mutual fund that owns a wide assortment asset. Some index funds are fairly focused and some are broad.
Either way, what it focuses on is they will lower the risk of diversifying the assets and lowering the cost by enacting asset ownership rules.
Over the long run,it has proven to be a very successful method of portfolio growth and if your’s is growning then you can skim some of the profits as passive income.
It is one of the best ways of long-term monetary growth and also a successful retirement planning. But if you want a short term passive income then this option would be of no help.
Well, these were some of the few ways by which you can earn passive income with minimal efforts but yes it always requires some efforts at the beginning to get things into place so that you can earn as much as possible from it.