August 9, 2017
Money attracts money. This is the truth you need to know before you plunge into the world of startups. Money is the best success magnet and you need to keep earning to keep your business thriving. There are two types of income. Active income is what directly gets you your paychecks. Moreover, you can only work so much during the day and the extra hours to keep the cash flowing. This is when you turn to residual income. That’s when you get paid after your work is done.
Does residual income mean you don’t have to work?
The term residual income or passive income automatically brings forth the image of a beach holiday with piña coladas and white sand beaches. However, this is as far from truth as possible. If you are going to enjoy the perks of a passive income, you need to invest some solid work first.
Most people who enjoy vacations on their residual incomes are authors, patent owners, songwriters and similar creative folks who have fixed incomes from royalties. If you are a finance guy, no need to grimace. You just need to make the right investments in real estate or market shares so that they can keep you afloat during your vacation days or post-retirement.
Residual income essentially means working now so you don’t have to worry about money after 20 years or so. You don’t need to be involved in daily work and you definitely don’t need to think of new ideas to invest or earn money on a daily basis like you possibly do now.
Now that we have your interest piqued, let us tell you of the six easy ways to secure residual income:
1. Invest in real estate
This is the safest way to go about investment as long as residual income is concerned. The best place to start is office apartments and storage places that you can later rent out to other companies for a fortune. Once you have your property and you have found tenants, it’s all passive from down there.
All it takes to manage real estate is managing it and keeping it in good shape for your next tenants. If you plan on going for a long vacation later on, you can even hire a professional manager to manage your property for a meager 10 percent share of your monthly rent(s).
2. Get a blog
This is something your friends and family has possibly been telling you for months now. Nevertheless, we are here to give you the incentive you always needed. Blogs can make you money that will keep flowing even after you decide to retire from your business.
Most smart bloggers use Google AdSense that provides a steady stream of monthly revenue based on PPC advertising placed by Google on your site. Your blog will make about 24 times more than what your website makes right now. Best part is, you can buy an already running blog site, refurbish it and call it your own by adding bits and pieces of new content. And voila! You have a new blog site that makes 24 times what you bought it for.
3. Pay off your credit card(s)
Now this does not seem like an idea for extra income. However, when you check how much your active credit cards are costing you right now, you will understand what we are talking about.
According to financial experts and our research, reducing fixed high interest expenses is equivalent of creating a residual income. You can try transferring your current balances to a zero percent APR card. However, be very careful as most of them have a high transfer fee.
The best way to go about this is to apply for a debt consolidation loan that can pay off all your outstanding debts, credit card bills and offer you added cash for starting a new venture.
4. Real estate investment trusts
What if you want to invest in real estate, however, you don’t want to do all the running around? Well, there’s a way out for you as well. REITs are a great way to invest your money and get amazing returns. The real estate projects that are involved are fully managed by professionals.
REITs have higher dividends as compared to stocks and bank investments. On top of that, you can sit in that comfy chair, click on a few buttons and manage your investments. There is no real running around involved in buying and selling real estate.
5. Invest in a business silently
This simply means, find a promising business or a business idea and fund it. You can become a sort of angel-investor and reap the fruits later when the business starts booming.
This is one of the best ways of maximizing your returns. However, this is also very risky. You will give the management authority to the business owner and you will act as a silent business partner who partakes in the profits.
Checking angel investor principles and other lending options is a good idea if you want to start with silent business partnership.
6. Create a channel online
You can create your own YouTube channel to begin with and then you can migrate to your own website. You can talk about new investment options, multiple business ideas or simple tutorials about whatever you are passionate about. Creating a video is so easy, that teenagers are creating video tutorials about making moneymaking videos on YouTube.
Use free platforms and channels to gain viewers. Then go for PPC advertising. Good passive income ideas need brilliant marketing ideas and nothing more. This is how you can create plans that make money while you sleep.
These are the six easiest ways you can make money in a “passive” way even if you don’t have creativity like J.K.Rowling or the business genius of Warren Buffett.
Cindy Hawthorne is a renowned business advisor of debts counselling. She has her own debt consolidation loan ideas that work marvellously for modern startups to generate quick fixes for bad financial situations.