Passive income needs everyone?. Why not. I also want passive income for my daily life. Are you think about how to create a passive income. You are exactly landing on the correct page. Today I am going to show you how to create passive income sources to increase your wealth. Before going forward you need to know some important information.
1.What is Active Income
Two types of incomes play a major role in everyone’s life. To lead your life into hard work or smart work. Active income describes everything. Ok, don’t worry I will tell you everything. If you have a job you can get an income when you do. In other words, the active income comes when you work otherwise nothing.
This income comes without work/small work. I think you got confused. Let’s talk in detail.
If you give your house for rent. You can take money without work. It simply calls as passive income. Not only that everything like that. Which gives money without your hard work.
Do you have a small house or room with no use?. Why you don’t think to turn into a passive income way. Just nothing turn into a gym, shop, anything. You can get a passive income without hard work.
3.Create a Wealth Before to Buy
What’s this mean?.
Just nothing man I am talking about only passive.
Probably everyone has an active income but how much peoples have a passive income. That’s why try to create a passive income. A car needs everyone. But who wants to turn that into a passive. Create a wealth first before to buy anything?. I think everyone blames me what he says?. Rich persons always create passive sources instead of luxuries/necessaries. Mr warren buffet says don’t buy what you don’t need. Because you will sell it for your needs.
“Money does not make money but it creates money”. This my principle. The whole article runs based on this principle. Generally have two needs in everyone’s life. One necessary and another one adjustment my life also. The first one you can’t stop. But the second one you can wait for a better chance.
I Want to buy a bike from so many years. But I always try to turn into passive income. Through the stock market everything I gain a passive. The bike only for adjustment not compulsory to me. There have two chances to buy a bike from my passive. One from dividends/bonus stocks. Another one by selling the shares which I bought before. No loss in this procedure. May be chances to increases my income. But if I bought a bike after one/two years the price decreases due to the old one. Incase necessary nobody stops me to purchase a bike.
5.Why it’s Important
It is always important. You want to become a rich person. First thing, you need to create a passive income instead of an active income. Think first, how much money do you invest from your active income. 10%,20%,50% or nill. Have very fewer chances to invest. Because of nothing else after drawing your salary. Still, so many peoples face these problmes. They cant generate any wealth or additional income. So Create a passive income based on your position. Your salary runs your house and passive creates wealth for you. You won’t need to take a loan/borrow from others for any purpose. Mind it one thing, your passive must have a regenerate nature.
6.Sources for Passive Income
I think from the overall overview you understand the passive income important. But one question rotates on your mind. Which are the best source for passive?. From my knowledge, I have some best ways. Let’s talk
a)Stock Market/Mutual Funds
The stock market is the best platform for passive income from my experience. Generally, it has two types one short term and the long term. In the short term, you can proceed with day trading, futures, options, forex trading etc. The risk is also very high. Another one longterm which is secure and the best way for passive income. Mr warren buffet also follows this procedure.
Proceed long term investment if your new one to the stock market. Choose good stocks by asking stock experts. Still have plenty of websites, books and youtube channels. Get information through this every day by spending some time. Not interested in the stock market. Are you feeling this method not workout?. By spending time everyday go with mutual funds. These companies also do the same without our personal involvement. Remember, choose good mutual funds for better wealth.
b)Gold/Real estate/Fixed Deposits
Especially you must follow the world. what’s going around the world. Nothing but observe world news. These 3 sources fluctuate due to world news. Invest in gold or real estate through the stock market/ another way. Must have definite knowledge about gold and real estate. Otherwise, go to a fixed deposits insecure way. Your passive income influences due to changes in interest rates. Everything influences one another.
You went supermarket to purchase breakfast items. The prices increased than compare with the past. When you ask a question about this to the seller. Says the wheat, rice production decreases in another country. Or the tax rate increases. Or imports stopped etc. In this way, everything influences one another. One country incident, decision impacts in your passive income from above a&b. Before invest in anywhere try to gain some knowledge related to it.
7.Always do Smartwork
Don’t be afraid. When you have passive income like smart work. Hard work like your 9-5 job other words active income. Smart work like your passive to create better wealth. Always try to create a passive from your young age. Are you cross this age try to from just now. The business also a passive income. I am talking about big buildings, furniture,computers etc. By appointing a person or family member you can start a small business. Without leaving your main job you can manage everything. In case your business grows well you have a chance to quit your job. To become be your own boss. This article only for the importance of passive income. In my next post, I will write about passive income ideas.
Close the Topic
This article’s main overview “money does not make money but it creates money”. From my experience, every person must follow 3 principles. Earning, money value and investing. Suppose you don’t know money value. What’s the use if you have money. One day you may become zero. Money value learns how to earns money and invest.
Did I miss anything?.
Now I’d like to hear from you.
But I have a question for you.
Which strategy from today’s post are you going to try first?.
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