What is residual income formula or what is residual passive income this question arises in some people’s mind, let me explain here residual income or passive income in simple words is an income that comes without our active involvement directly at this current moment.
The passive income we got to come from our previous creation or our invested money. There is a ton of method to generate passive income, and these methods help you in a big way to be financially free or to boost your income to enjoy the luxury or create wealth.Why this is so important everybody wants to generate passive income because it is a passive income that brings free time and happiness in your life. It could be in the form of a foreign visit, luxury homes, luxury cars, shopping or anything that you want.
Passive income entices people because its hard to earn money for the majority of people they trade time and invest their whole day, night, weeks, months and year just to earn money, their all-time pass to earn a single penny, and luxury and enjoy a dream for them.
Now you want to know how can we create the smart passive income streams for us like a rich, here in this article we discussed a few ideas here in detail, you can read the complete article, I always try to explain the things in simple words so that everybody can understand easily, I have noticed some people explain the things in difficult language that hard to understand the things.
You can choose the best that suits your current situation and economic condition some want money and some want your effort to create the best for you.
You Can Try Index Fund
It offers you a way to invest directly in an index fund, it’s a combination of top companies in your country and you don,t need to be expert to invest in an index fund. I am not saying that you should invest your whole money index. You can decide 30% or 50% of your money in this segment.
I know index funds want upfront money to invest that could be an annoying thing for some people, but you can’t make an excuse because its easy and you can start investing as low as 100 bucks every month from your earning.
Index fund not risky if you invest in the long term that investment gives you a consistent return on your invested money. The research shows that it’s giving you a 15-20% yearly return and managed by top professionals.
When a company doesn’t perform well the expert expels that and includes a well balanced into the pool. This is the beauty of this index. And the charges are very nominal that’s why this is very popular among investors without doing the maths or extra market knowledge.
To multiply your income start early that would be wise decision even Warren buffet suggests investing in an index fund in the long run. And he says that no need of the brain to invest in index fund just be consistent with your investment.
A cash flowing rental property is a fantastic way to bring a monthly income. I know it requires upfront money to earn cash every month. The internet has made it very lucrative to invest the brokers and realty companies come out with very lucrative offers with mortgage options you don’t need to pay fully in advance there is installment option.
And to make fully automatic you can outsource the running of the properties to a management company, still, you will earn a handsome amount of money on your investment.
The most amazing thing owning a property you tenant paying off your EMI every month for you and you will increase the value of the property also. And if you have extra cash then you can buy more properties to skyrocket your income.
Start a Blog
To start a blog I trendy thing in 2020 and it’s one of the best methods to generate passive income. The blog has the power to create a tremendous amount of money. But before to start let me clear this thing, a blog requires a specialized skill set and an immense amount of effort. It’s a smart thing earning through this method. It does not require a heavy amount of money you can just as low as $100 and good to go.
To succeed in the blogging you have to understand and acquire the knowledge of search engine optimization and the ability to write engaging content. You can start your blog on a topic you like the most just write your thought into words and video formats and put in your blog. After gaining some popularity it becomes your automatic thing.
It can generate multiple streams of income the live blog, you can sell ad spaces, earn through AdSense, and many more streams.
Are you an expert in a field that is enough to generate passive smart income from that. Creating an online course is a smart way of generating residual income. It takes a significant amount of effort on the front end, but once you design your course in video format, it can take a few weeks or one month to set up the whole process. The online course is billion dollars that are a huge potential.
Now every university going online not only that universities taking place, but they are also setting up themselves as everything online. If you have over a subject or skills, then the sky is limit. I have seen many people becoming a millionaire through this process.
Reaching to people could be different through a webinar, video format, audio, and ebooks, but the most effective method is video format. One time creation and reap the fruit years to come.
Affiliate marketing is likely one of the new and most exciting ways of earning or passive income. The need to be a good marketer to earn through affiliate marketing. To succeed in affiliate you should have a large following base that trusts you and follow you. What is affiliate marketing could be a question of someone you will get a log of content on the web about this. It’s a great way to earn through other person’s products or services.
There is a different method to earn a passive income through this method it could be paid ads if you want the quick result but, no matter how you promote through an email campaign, social media or through your blog, landing page, but in the paid ad also you have to learn the skill, your investing money on paid ads still you learn the game how to promote effectively bring you good result.
It’s a scalable business model when you know the things how they work then you can scale a campaign easily. I like the business model most you can make a ton of money, once set up a campaign or website it can be automated.
The world is going to visual content that is the video is in demand and the Youtube channel is the fanciest thing in today’s world, you can share your views, thoughts, and opinion through Youtube channel.
And you can start literally with zero money, you would require to invest your effort to make video content nothing else, after getting some popularity you earn money through display ads, through sponsorship and affiliate.
Youtube has given people a big platform to earn a handsome passive income, people living a good lifestyle, more and more people becoming wealthy, it freeing you, and offers you the lifestyle you deserve and dream of.
Are you a programmer or can solve the mass problem with your software, then this would be a great income stream for. Not necessarily you should have a piece of programming knowledge, you just an idea to excel. You could manage a software company and hire engineers to work for you.
The effort is one time to generate a software that gives you dividends for years to come, some software is subscription-based, which create huge wealth to you.
The software industry growing every year rapidly because everything going online. There are unlimited untapped possibilities that need to be tap. It is the highest paying industry in the world. Everything driven by technology, every little thing that connected to your life needs a scope to advancement.
The Final Thought
Now you know all the passive income streams ideas that can make a positive impact in your life. Some ideas need money upfront to execute, but every person should create multiple passive income streams to enjoy life. Opportunities are for everyone but it is your gut what you pick out of these.
Today I have realized that everyone could be financially free but it requires effort and requisite mapping to make it in reality. We have numerous examples that have achieved success from scratch. Proper planning and consistency and trust in your dream and trust in your ability required.
These effort and planning make your life more stable and wealthy you. You can enjoy the same life rich people live.