Instead of discussing the difference between ACTIVE and PASSIVE income. Today, I would like to focus more on giving you ideas and sharing with you alternative sources where you can make money passively or semi-passively. I hope that this helps.
1. Rent
Rental Income is one of the best sources of passive income because money keeps coming in without doing anything. All you have to do is to collect the rent at the end of the month and you have money to spend. The downside of this is that in order to have rental income, you should have invested in a real property which will generate this rental income and as we know it has a high capital outlay. Another thing is when you get to have tenants from hell which will give you a hard time collecting rentals and not only that, they may even destroy your property.
Let me expand this a little more and give you some ideas on rental income.
a. Parking lots
b. Real Estate Investment like condominiums,apartments etc.
c. Taxi Business
d. Billboard Advertisements - Renting your space
2. Investment
Investment income is my choice of passive income. Why? Because even as you sleep, you make money. Because money is working hard for you. However to have sufficient investment income, you must also have a significant amount of money to invest which is the downside. That is why it is always an advice of financial gurus to young people to invest early on in their career so that by the time they decided to retire they can live on their investment income alone.
Here are some examples of investment instruments that you can choose from
a. Stocks
b. Bonds - Government or Corporate
c. Mutual Funds
d. VUL's - Variable Universal Life Invesment Funds
e. UITF's - Unit Investment Trust Funds
f. Long Term Bank Deposits a.k.a Time Deposits
g. Forex
3. Royalty
Royalty income comes from many sources. It can be from business that you were able to franchise, it can also be from a book that you have written or a music recording. It can also come from inventions, patents etc. The idea here is to be the first in the market.
Some sources of royalty income are
a. Be a Franchisor of a Business
b. Software Development
c. Write Books
d. Record a Music Album
e. Patent an Invention
As an additonal note, one of the fastest growing industry today in the INTERNET MARKETING BUSINESS and let me tell you, THERE IS MONEY IN THE INTERNET and it can also be a source of PASSIVE INCOME. You just have to know how to utilize it. If you want to know more about internet marketing you can visit my mentors site at www.jomarhilario.com and learn from the man himself.
I hope you got some ideas in this post. Till my next blog post.
No comments:
Post a Comment