What would you do if you got money into your account every month, no matter what you did or where you were? Real estate and the Internet are two of the things that offer opportunities to create a recurring income, but there are more. Follow here and you will be presented with a number of business opportunities as well as links to even more ideas.
In recent years, the concept of passive income has become more and more common when it comes to making money. What does it really mean to have a passive income and what can you do to get one? These are two of the questions we will answer in this article.
What is a passive income?
A passive income is just what it sounds like: an income that pops up into your account every month without having to do anything special. The income can come from a work you have done before, such as the development of a product, or as a return from a savings or ISK account.
An active income is the salary you receive based on how many hours you have worked.
A passive income, on the other hand, is the income that rolls in every month without you having to spend time and energy to get them. Therefore, passive recurring income is a dream for many. But it doesn’t have to stay in your imagination! Today it is quite possible to make the dream come true. Below, we will list five different ways you can go about creating an income that can become completely passive in the future.
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Here are five tips on passive recurring income.
Education, courses and e-books
One of the best ways to create a passive recurring income is to create a product that you can sell over and over again without having to spend additional time on it. For example, we find easiest in the entrepreneurial world, where it has been popular in recent years to create courses and online education. An online education is a good example of a product that generates a passive income. The training is only produced once and can then be sold over and over again through a website or with the help of other platforms and social media. With the right marketing channels, sales funnels and more, the chances of sales are maximized and you can make money on the product while working with others.
A similar product is, of course, a book that is written and that you receive royalty on. However, it can be difficult to achieve the sales quota required to get a full-time income, but it is definitely an option when it comes to creating a product that generates passive income. And who says you can’t produce several such products? E-books work well here where print costs and delivery costs disappear.
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Invest your capital
Another tip for creating a passive income is to invest capital. It is an alternative that requires a lot of time, patience and of course capital to generate some kind of income. By investing in funds or shares over the long term, you have the opportunity to build a so-called money machine. It is a concept that aims to invest money in stocks or funds where they grow and generate returns every year. By reinvesting the return, your money machine increases in size and the more capital you own, the higher the return. Finally, if you have made the right investments, you can have an annual return that corresponds to an entire annual income. This option requires that you have a disciplined savings and a long savings horizon.
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Invest in real estate
One of the absolute safest ways to generate a passive income, but which unfortunately requires more capital, is to invest in real estate. Properties are considered to be stable in their original value and in addition they can even increase steadily in value (depending on the development in the housing market).
By purchasing real estate and then renting out to tenants, you earn money each month. Make sure to set the rent high enough so that your amortization on the property is covered and you get more money over each month. Note, however, that during the first few years it may be good to put the remaining sum in a pot for maintenance. In any case, until you have a sufficient budget to cover any maintenance. If you can also repay the entire debt on the house, you have a substantial passive income after that!
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Rent a room
Another way is to rent out a vacant room. If you have one or two rooms that you do not use in your apartment or house, you can rent them out. It provides extra capital each month and if you are lucky your income may also cover your living expenses, which means you live for free. However, if you do not own your home, you should be careful to consider the terms and conditions that apply to the rental in the other.
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