yannickhountongbe

· 16 Nov 2021

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Everything you need to know about passive income

Whether you are an employee or an entrepreneur, you want to treat yourself to a gap year to please yourself. But without having a source of income that generates money every hour, your dream will never be a reality. Because you sell your time to earn a salary. And in order for your dream to truly become a reality, you need to install systems that will be able to generate passive income for you in the long term and in an efficient way.

• What is called passive income ?
Passive income is a salary or secondary income that you earn without being physically present in a workplace. It is also money that you can earn without sacrificing your time in return, as you have to do as an employee or as an entrepreneur. In other words, passive income is a gain that is in no way related to your productivity and physical presence.
For some, this way of making money necessarily leads to prosperity and financial freedom. But for others, passive income is, a scam to be wary of. Yet passive income is a reliable source of income to consider if you aspire to financial freedom, regardless of your status.

• Why you should opt for passive income ?
Passive income is a source of income that offers a large number of benefits for those who choose them.
- A salary supplement
For employees or employees, passive income is an important financial shelter. Indeed, these types of income allow them to round off their end of the month and live without financial stress. They are therefore no longer obliged to opt for credits to buy a car or to offer themselves a dream vacation.
- A way to sustain your business
If you are an entrepreneur, having passive income is a great alternative to keep your business in the market. Indeed, if your business already allows you to make money, having passive income allows you to think better about how to grow your business. Better, you can use your passive income to invest more in your business to get more growth.
- A tip to make your dreams come true
Passive income doesn't just make you live better. They also allow you to live your dreams, travel as you like, and live in luxury. Because, without working, you earn money every day.
Certainly, passive income offers all these benefits mentioned above, but behind this fashionable concept, there are some truths that you need to know before embarking on it.

• The 4 truths you need to know about passive income
Whether through your loved ones or on the internet, you had already learned a lot about passive income. But there are still 4 truths you need to know about these sources of income.
First, you should know that passive income is not chickens that fall roasted from the sky. Otherwise, it's a scam, because before you hope for income whether passive or not, you have to invest money, time, or both.
Second, you should also know that passive income is not reserved for a category of people. In other words, whether you are an employee or an entrepreneur, you can afford passive income.
Thirdly, to generate passive income, you have to work upstream for several months or even years to install your system that will allow you to earn money without working.
Finally, quarto, before you hope to make money, you need to invest time and money. Because to set up a system that will allow you to earn money in your absence, you need to take time to choose a source of income, invest and work to make it sustainable.

• Sustainability of your passive income: how to achieve it ?
One thing is to set up systems to generate passive income, but another is also to work to make them sustainable. And so that your passive sources of income continue to generate you money in your absence, you have the option to:
- Entrust management to a qualified person or
- Make your passive income generation system automatic.

• Some ideas for generating passive income
To generate passive income, you need ideas. And there is no shortage of ideas for earning passive income in the 21st century. So here are some.
- Dropshipping: the most popular way to earn passive income
Still called online or virtual commerce, dropshipping is one of the most effective ways to earn passive income over the long term. The principle of online commerce is very simple. Indeed, you will only have to create one or more online stores to sell products. The advantage of e-commerce is that you don't need to have products in stock. What is also interesting about dropshipping is that order management is done automatically. But for e-commerce to be your source of passive income, you need to choose paid tools for setting up your store. You also need to invest in advertising to give visibility to your online store.
- Create a blog to monetize traffic
The blog is also a way to earn passive income. But for your blog to make you money, you need to take time to make it visible and accessible. Because it is the traffic generated by your blog that will be converted to passive income. In addition, for your blog to be truly profitable in the long run, you need to choose a good niche and publish interesting unique content there. Once your blog is created, you can entrust its management to a professional in the field and go on vacation.
- Invest in rental real estate
The real estate sector is an area in which you can earn passive income without being physically present. Indeed, when you opt for an investment in rental real estate, you will surely earn passive income from the rental management of your assets. And for your passive income from rental real estate to be important, you must opt for new real estate. In France, for example, Pinel's law offers a lot of advantage to investors who have preferred to invest in new real estate. What you also need to take into account for your investment to go well is that you have to entrust the management to a credible real estate agent.
- Create mobile apps
The digital world is changing. And just like websites, several applications are created to make everyday life easier. So you can get started in this area to have passive sources of income by creating one or more mobile applications. However, before your investment earns you passive income, you need to think about creating a useful app in the long run. In addition, you need to turn to mobile app developers to have an app that is easy to use.
- Designing video games
The video game market is recording day by day, new games for entertainment. So it's a way to earn passive income if you're passionate about video games. But to make your investment profitable over a long period of time, you need to innovate and create timeless video games. Because, a video game that can't stand for a long time in the market will not bring you much as passive income.
- Affiliate
Still known as the AP system, affiliation is an effective way to earn passive income in the 21st century. The peculiarity of affiliation is that it does not ask you for a big investment. But it allows you to earn a lot of money without really working when you manage to install a high-performance system. The secret to winning by affiliating is patience. Indeed, you need to be patient, because it is a business that can sometimes take a little longer before taking.
- Buy shares in companies
In the financial market, there are still emerging companies that are looking for investors to grow. So you can invest in buying shares in one or more companies. This will allow you to receive dividends once or several times a year without having to work in these companies. However, before buying shares in a company, you need to take some time to check the status of the company. You can also take advice from a specialist or investment advisor so you don't throw your money out the window.
- Sell training and courses online
The internet is not just a means of communication. It is also a market where everything is sold and bought. So you can take advantage of the internet to sell training or courses. And to achieve this, all you have to do is make use of the powerful tools for the creation of training tutorials and courses. The most interesting thing about this business is that you can sell training to thousands of people over several years, even while sleeping.
- Sell photos
Courses and trainings aren't the only things you can sell online to earn passive income. You can also sell photos taken during your moments of distraction to digital companies. You can also sell them to royalty-free image banks and on websites that will take you a few percentages on your sales. The peculiarity of this source of passive income is that the same photo can be sold millions of times and you don't need to have a sophisticated camera to fill your portfolio. Your smartphone will be more than enough to make beautiful photos for sale on the internet.
- Rent your house or apartment when you are on vacation
- Renting your home to other holidaymakers while you are also on vacation elsewhere is an excellent source of passive income even if it is for a short time. Because, while you're away, your house or apartment is empty. So why not get some money out of it during this time of absence.
- Do audio storytelling to earn passive income
If you are an avid reading enthusiast, you can easily earn passive income while reading your favorite books and bestsellers. But how do you get there ? Indeed, instead of reading in silence, you will read your books aloud and intelligible voice and record yourself. Then, you will sell the audio versions of your favorite books already read online over several years and to thousands of people without being present on the internet.
- Turn your car into an advertising space
Renting your car as an advertising space is also a great way to earn passive income. To do this, all you have to do is offer your car to advertisers so that they can use it as an advertising space. So you become an ambassador for a brand wherever you go with your car and earn yourself money. The advantage of this way to earn passive income is that advertisers don't tax you where you need to go with your car. But the more you do errands with your car in different locations, the more you earn substantial passive income.
The trap to avoid to earn passive income
It's really interesting to make money without working. But you need to keep in mind that any passive income proposal that doesn't require you a financial investment and a sacrifice of your time is a scam. Because, you can't earn anything passively without any investment of time and money beforehand
To achieve financial freedom and live your dreams, you need to have one or more sources of passive income. But to have passive sources of income over the long term, you need to be creative and perseverant. You also need to invest your time and part of your savings to sustain your passive sources of income.

#thoughtprovoking