Passive Income

How to Retire Early by Building a Passive Income

»Posted by on Dec 6, 2017 in Passive Income | 0 comments

Passive or residual income is revenue you earn from an activity even if the job is done or if you are not actively involve after. When you develop streams of residual income, it will significantly reduce the number of hours you’re going to work per week. However, not all passive income business can be trusted like Vasayo compensation plan.  

Generating income will surely involve a lot of planning in the beginning; you will then become free after a while then enjoy your retirement. You can start by investing in stock market, invest in real estate and sell information.  

Passive Income 

Step 1: Create a Plan  

When you want to make a good passive income stream, plan at first. Reflect on what you’re good at. If you are good at investing, or talented in writing, or any skills or knowledge that people are willing to pay for, then combine them to make money.  

Then, set up your financial goal. Determine the level of income you want to enjoy in the future. Think about the expenses and the kind of lifestyle you want. You can make all this happen by making a commitment. You can build a reliable stream of income but it will require you a lot of commitment and discipline.  

Step 2: Invest Your Money 

You can do some investing by purchasing the dividend stocks. These are the shares you own on your company. Once you get the dividends, cash them out or reinvest them. You will then have a lot more shares and more dividends.  

You can also participate in a peer to peer lending where lend money for those who are not qualified to apply for a traditional loan. It includes the Lending Club or the Prosper Club. You can also purchase fixed income securities or invest in annuity. You can do some of these to make your money grow while you do other job that can also generate income for you.  

Step 3: Sell Information 

Like what I mentioned, you can make money from doing your skills, like eBook writing. You can write an e-book on variety of platforms. Do a research on what kind of books are in demand on online stores. Look for reviews and for gaps in the market.  

If you are a photographer, you can sell stock images. You can make money from digital photos and sell them on websites. The websites will charge the customers when they use the images. At a start, you can make 15% of the sale then it will increase over time.  

Step 4: Invest in Real Estate 

You can purchase shares in a real estate investment trust. It is a company that operates commercial real estate and it will allow you to earn a share of the income. You can also become a landlord yourself and rent the properties you purchased. Manage the properties and hire some property manager to manage it. You can also hire some contractors to repair the place.  

You can also lend money to investors who want to purchase rental properties. You can earn as much as 15% interest in these loans.  

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