The second part of the article lists all types of passive income “as is”, “without water”. But first, forgive me, dear reader, a little poetry, a little about my personal experience of creating sources of passive income. I can't resist, sorry, please...
I first learned about the idea of passive income many years ago from Robert Kiyosaki’s book “Rich Dad Poor Dad,” I was immediately hooked on the idea, and since then I’ve been investing my hard-earned money in a variety of sources of passive income.
And guess what? It turns out that many types of passive income aren't really that passive after all. And some of them once almost ruined me. For example, I lost more than a million rubles trading shares.
In the end, I came to the conclusion that Kiyosaki, yes, needs to be listened to, but from a critical angle, and real passive income doesn’t really exist.
Passive income is a utopia.
It's like a perpetual motion machine or the elixir of eternal life. Like Aladdin's lamp, Tablecloth Samobranka or Goldfish.
But I talked about this in detail in the article “Passive income is a carrot for stupid donkeys.”
In this article we will talk about all kinds of passive income options. Well, all income options that can be considered passive.
I tried to collect here everything, absolutely every passive income idea. If I missed something, please write in the comments.
Well. Let's start from the very beginning.
Main types of passive income
All sources of passive income can be divided into two main types:
- passive income on the Internet (online);
- passive income offline.
At the same time, sources of passive income online include almost all types of online businesses, as well as traffic arbitrage, e-books, online courses, investments in cryptocurrencies, etc.
And offline sources of passive income usually include all types of offline businesses that are established and do not require the constant presence and management of the owner. For example, restaurants, gas stations, etc.
Yes, passive income can be created without the Internet!
In the next section we will talk about where to invest money for passive income.
Where to invest money for passive income?
When many years ago I read Robert Kiyosaki’s book “Rich Dad Poor Dad,” the question immediately arose, where to invest money for passive income?
Or rather, “how to create passive income without investments,” because I didn’t have any money then. Just debts...
I’ll talk about “without investments” later, but now about how you can create passive income by investing not only your work, but also money.
Top 10 passive income ideas with investments
For your convenience, I have divided the methods of passive income into online, offline and combined.
Online passive income methods
- Electronic or audiobook.
- Online course.
- Writing and selling music.
- Sale of patents for inventions.
- Earning money from affiliate programs.
- Creation and sale of stock photos and pictures, videos and other graphic design elements.
- Creating your own mobile application.
- Write a useful program, create a plugin for WordPress, Joomla, etc. and selling them in other people's online stores.
- Multi-level marketing (you create your own network of MLM partners and then earn income without working).
- Create WordPress themes, Joomla and Drupal themes, HTML and PSD layouts and sell them on themeforest.com.
- Your own online store selling digital goods.
- A website that generates income through affiliate programs and advertising.
- Promoted YouTube channel.
- Promoted VK group (Facebook, Instagram, etc.).
- Telegram channel.
Offline passive income methods
- Purchase and rental of residential or commercial real estate. Rent out a room in your apartment or house.
- Your own business (if its automatic operation is established).
- Selling advertising on your car (yes, there are such services!).
- Create an online store of physical goods.
- Rent out your car.
- Purchase and installation of advertising boards.
Other Passive Income Options
In this category, I have listed sources of passive income that are difficult to classify as offline or online.
- Bank deposit.
- Issuing loans through P2P lending services.
- Purchase of bonds or preferred shares (with payment of dividends).
Passive income methods that are not passive income at all
Many authors in long lists of sources of passive income cite types of income that anyone in their common sense would not be able to call passive.
For example.
Simply purchasing shares, shares of a mutual investment fund (mutual investment fund) or cryptocurrencies, stock indices, etc. I don’t consider it passive income, because there you need to constantly monitor what is happening, and there is a high risk of losing money rather than making money.
Passive income is when you receive a stable amount of money every month, not when you buy stocks and pray for the market to go up.
Also, I did not separate vending machines into a separate category, since this is also just a business that requires constant monitoring and management and still brings in little money.
Training course “Passive Income Incubator”: review and my opinion
This is another example of not entirely passive income. Sergey Briz's training course is devoted to how to create passive income on dividend stocks in the USA and Europe.
If you do not have several million dollars, but have, for example, several thousand rubles, and you want to create a decent passive income, then this course will definitely not help you.
US and European companies pay very small dividends. The maximum, at best, is 6% per annum. It's like a deposit in a bank. Only income is not guaranteed. Look at the profitability of the best American companies for 2022, according to BCS:
To create an income that you can live on, you will need to invest a decent amount of capital in buying shares and pray to God that the shares you buy do not fall in price and the companies do not go bankrupt.
Buying stocks is almost like playing roulette.
Trading on the stock market, as well as the Passive Income Incubator course itself, is not about passive income!
Rent a room/apartment
By far the easiest way to make money without doing a lot of work is to rent out your property. You will receive a decent amount of money every month, and once the mortgage is over, that money will go towards a 100% increase in income. Heck, you can even do it through Airbnb, which is even more lucrative.
Passive income without investments - is it possible?
Passive income without investments - this request is typed in Yandex 1000 times a month. This means that about 1,000 people a month on the Russian-language Internet are interested in whether it is possible to create passive income without investment.
Marvelous!
For me, this request is tantamount to the request “a highly paid job where you don’t have to do anything.” There is no job where you don’t have to do anything and you get paid for it, and a lot more. Or does it happen?
It is impossible to create Passive income without investments!
This is like any other income, to get it, you will have to either work or invest your personal money (or investors’ money).
Free cheese only comes in a mousetrap.
In any case, you invest either your labor to create passive income from scratch, or both hours of work and money.
Although…
If you find an investor, but don’t invest a penny of your money, work hard and manage to create passive income, then, in principle, we can say that you have created passive income without investments...
In this case, here is a list of sources of income that can be considered passive and without investments.
Options for passive income that can be created without investment
I will assume that when we say “passive income without investments,” we mean that you do not invest money, but only your labor. Only through hard work and long hours of work can you create passive income from scratch.
Top 10 passive income ideas without investment
Here are sources of passive income that can be created without initial investment:
- Book (regular, electronic or audio).
- Online course (to create you need a PC, webcam, video editor, good lighting).
- A website that generates income through affiliate programs and advertising.
- Promoted YouTube channel.
- Promoted VK group (Facebook, Instagram, etc.).
- Telegram channel.
- Invent something and patent it.
- Writing and selling music.
- Creation and sale of stock photos and pictures, videos and other graphic design elements.
- Creating your own mobile application.
- Write a useful program, create a plugin for WordPress, Joomla, etc. and selling them in other people's online stores.
- Multi-level marketing (you create your own network of MLM partners and then earn income without working).
- Create WordPress themes, Joomla and Drupal themes, HTML and PSD layouts and sell them on themeforest.com.
Remember, for any of these channels to start generating significant income for you, you will have to work hard!
Live on interest from your deposit
What if you put your money in a bank and live off the interest? The bank card balance drops 200 rubles per month, which means there is an amount at which payments become quite noticeable. Don’t rush to get your calculator, we’ve already calculated everything. The average deposit rate, after all the increases in the key rate of the Central Bank of the Russian Federation, is now about 5% per annum. We do some simple calculations, and here it is:
To receive about 50,000 rubles a month, you need to keep a little less than 13 million rubles on your bank deposit in 2022. Frankly speaking, having such an amount and at the same time living on 50,000 is something from the realm of downshifting .
But the worst thing about this option is inflation . The profitability of a bank deposit will simply not allow you to overtake it. And what from the outside looks like “I don’t touch my savings, I live on interest” due to the gradual depreciation of money will actually turn out to be the usual “I’m eating through my savings.” But how to save and spend is a topic for some other text, so we will continue to look for other options. But they exist. For example:
Passive income in Russia and the USA
In principle, there is no difference in the types of passive income in Russia and the USA. Russian copywriters who know English and write articles about passive income copy all these methods from American sites.
If there is a difference, it is in just a few ways. For example, in Russia it is impossible to purchase or rent an ATM.
One thing is for sure: in Russia people earn on average tens of times less from their blogs, websites, YouTube channels, books, and online courses than US bloggers.
Therefore, if you are fluent in English, then consider creating passive income in English. But keep in mind that in the USA there is usually more competition than in Russia, especially in the most lucrative niches.
Where to buy a website with passive income
Of course, when you start to be interested in the topic of passive income, an idea comes to mind: why create it, you can buy passive income. You can buy a ready-made business or a website that generates income. Yes, you can! I've been through it all.
I'll tell you about the sites.
Before you buy a site with passive income, I want to warn you once again that free cheese only comes in a mousetrap.
If you yourself have not yet created and promoted websites, if you do not understand this, then it is better for you not to buy a website with income. Why? Because no one will sell a good website with constantly growing traffic and income.
Usually they sell sites with which the owner has failed, he does not believe in success and he himself does not want to do it anymore. 99% of websites for sale have hidden defects and problems that no one will directly tell you about.
In addition, keep in mind that if all the site traffic comes from Yandex and Google search, then Yandex and Google often change algorithms, and after the next algorithm change you may completely lose all traffic and income. Also, the site may be under a Yandex or Google filter, and no matter what you do, traffic from search engines will not increase, but will fall.
If you still want to buy a site, then you can buy a site with passive income here:
- Telderi,
- Flippa.
Telderi website is the largest in Russia and, it seems to me, the most convenient. On this site you can buy not only a ready-made website with income, but also a group on VK, a channel on Telegram, Instagram, and YouTube with subscribers. You can also buy the Yandex Zen channel there.
Flippa site is one of the largest sites for selling income-generating sites on the English-speaking Internet. But it is for those who know English.
Again.
I really don’t advise you to buy a website with income if you don’t understand this. As a last resort, contact me, and for a small fee I will help you assess all your risks when purchasing a site.
Become an influencer
Of course, there is some luck involved, but if you can somehow manage to put out some original and funny content on social media relatively frequently, the money and sponsorship deals will come sooner or later. All you really need to do is stay true to your content concept and be patient.
The best books about passive income
There are quite a few decent books in Russian about passive income. Here is my personal selection of books that will be of interest to anyone interested in this topic.
First of all, I definitely recommend reading Robert Kiyosaki and Timothy Ferris. These books, in my opinion, are the best there is about passive income. But be careful! After reading these books, you will most likely quit your job and dedicate your life to building passive income.
- Robert Kiyosaki "Rich Dad Poor Dad"
- Timothy Ferris “How to work 4 hours a week and not be stuck in the office from bell to bell, live anywhere and get rich.”
- Robert Allen "Multiple Streams of Income."
- Anthony Robbins “Money. Master of the game."
- Robert Hagstrom “Warren Buffett. How to turn 5 dollars into 50 billion. The strategy and tactics of a great investor.”
- Maxim Spiridonov “Billion Dollar Startup”.
Common mistakes of novice investors
for beginners to know about the mistakes that are made most often.
- Using borrowed funds as start-up capital. The prohibition on such actions is due to the risk that the investor takes when investing in assets and securities. If failure occurs, the losses will be great, accompanied by the need to pay off debts.
- You can't invest everything. First you need to calculate how much money is needed for insurance in case of failure. For investments, funds are used, the loss of which will not lead to starvation and deprivation.
- It is imperative to study the area in which the money will be invested, at least to a minimum extent. Investments require literacy and a thoughtful approach.
- Hasty actions and fuss lead to mistakes. Assets and shares must be bought and sold at precisely defined times. To gain experience, it is recommended to seek the services of consultants and trustees. This will reduce your income a little, but will give you an idea of the right strategy.
- Don't count on excess profits. Investing money in projects that are guaranteed to bring in 500 percent or more monthly is a mistake. This will lead to losses. In the world of investments, no one can give firm guarantees of a stable income. Sky-high interest rates are also not feasible. You need to be in reality.
