The most profitable assets for binary options trading. Where to get assets? How to earn money? and Where to find business ideas? What assets to invest in

From the beginning of the development of capitalism as an economic system, it becomes possible and necessary to invest money. Moreover, not only large investors and businessmen should deal with investments, but absolutely every person who wants to call himself financially literate. But where can you invest money if there are not so many of them?

If you think that there are no such options, then you are mistaken, and the United States is a vivid example of the refutation of this judgment. The citizens of this country, regardless of the standard of living, wealth and wages, are mostly engaged in investment activities. They buy stocks, bonds, promissory notes ... however, where you can invest capital will be discussed further.

Asset Theory!

I spoke about this in previous articles and I will say it again: there should be two types of money in the life of every person - assets and liabilities. If you have capital that you hid for a rainy day, then you need to get rid of it, this is the essence of the capitalist system. As a rule, it is advisable to invest such money in assets. In fact, your capital will remain in the same amount, but it will begin to bring you profit. Moreover, this income will be passive, i.e. you don't have to put in any effort. Work where you used to work, while getting a good salary increase.

Where can you invest money to earn money?

1. The asset that most people create is bank deposits. You give a certain amount to the bank, for which you receive an annual interest. As a rule, the yield of this instrument is from 10 to 15% per year, which, in my opinion, is too low. And taking into account the fact that in the post-Soviet countries the inflation rate sometimes reaches all 50%, then such an asset is unprofitable, you need to look for other options. However, it's better to have money in a bank than in a toilet bowl or under a mattress.

2. A more profitable option is the shares of large companies. By investing in them, you will receive dividends, and if the contribution was large enough, then you will get the opportunity to manage the company's activities through the board of directors. Moreover, the shares are not subject to inflation, so you can not worry about your investments.
To buy this type of securities, you need to register on the website of a financial broker, fund your account and make a purchase. You can also use the Moscow Stock Exchange directly or find a shareholder-seller yourself via the Internet. You can also sell shares on the stock exchange.

3. Another option for investing in securities is bonds. In fact, these are the same bank deposits, only in growth you give money not to a bank, but to a large organization that issued bonds. At the same time, your income on them is much higher than on deposits in the most profitable bank. As a rule, you receive more than 25% per year on a bond. It is worth mentioning here that banks also invest money in these securities, insure themselves against inflation and earn the difference between the interest on the deposit and the interest on the bond.

4. For lovers of "investment extreme" investments in PAMM accounts and mutual funds are recommended. In this case, you give money neither to a bank nor to a large company, but to an investment firm or a private trader. Your capital goes to the financial exchange, where the manager, who knows how to predict the exchange rate or shares, is trying to increase it.
If he trades for profit, then part of this profit (50% or more) is received by you, and the rest goes as a reward to the investment company. Moreover, if a trader trades at a loss, then the money is not returned to you, you take all the risks. It often happens that the manager loses all the money, and you do not get a penny. The risks, of course, are high, but the profit can reach up to 100% of the invested funds per month.

5. How many times have you been asked for a loan? I think a lot, because people always need money. You can use this and give private loans at a certain percentage. At the same time, the borrower must draw up a receipt so that you have a document with which you can go to court and demand payment of the debt. It is better to give loans to reliable people who have a permanent job and a good income. In general, look at how banks work and do the same.

6. Investing in your own education is also an asset, because the knowledge gained will later bring you money. If you don’t know where to spend the accumulated funds, you can pay for a contract at a prestigious university or sign up for a series of trainings from a private person. In any case, this knowledge will definitely not be superfluous to you, and thanks to it you will earn even more money.

7. The most profitable investment option has been and remains your own business. If you feel entrepreneurial in yourself and think that you can become a successful entrepreneur, and besides, you have the start-up capital for the business, then what are you waiting for? Draw up a business plan immediately, take the money and start building a beautiful life, because there will be no other chance.

When Liabilities Become Assets!

There are people whose liabilities can become assets. The fact is that when you spend money on yourself and increase your standard of living, your motivation to work increases. You understand that you can earn even more, and strive to reach new heights. Of course, this attitude is not characteristic of everyone, some reach a certain level and stop there. And if you are one of those people who can simultaneously increase their needs, then believe me, you will reach great heights, and business is your destiny.

Where without diversification!

If you want to insure your investments, you can apply diversification. In this case, you will not buy one investment product, but several at once. For example, it can be shares of several companies, a couple of bonds, a bank account and a deposit in an investment company. In this case, if one of your assets "burns out", you will not be left without money and will be able to get out of a difficult situation thanks to other investments.

Scams, pyramids, divorces!

If you enter the phrase “Where you can invest money to earn big money” in a search engine, then in addition to the normal options described above, you will see a lot of pyramid sites or outright scams. The main sign of a scam is fabulous money with minimal investment and skills. If you find another such “mega-option”, you can safely close the page, because apart from the lost funds and time, nothing awaits you there.

Afterword…

Money must work, and that says it all. If you do not have a single asset, then you will not be able to call yourself a fully successful person. After all, assets are both a source of income, and a means of insurance in case of dismissal, and a good reserve that can be quickly cashed out. You now know where you can invest money, you just have to pull yourself together and start your path to success and financial independence.

Mutual investment fund: concept, 5 reasons to trust a mutual fund, 5 steps to acquiring a share and 3 types of expenses for depositors + TOP-10 best mutual funds of 2016! Pure investment is passive income!

• World Dividends in the second quarter of last year reached a record quarterly figure of $447.5 billion, up 5.4% over the previous period.
• Base Height dividend payers amounted to 7.2%, and this is the fastest growth since the end of 2015.

Hundreds of thousands of investors from all over the world, looking for a way to make money on stocks and securities, have bet on dividend stocks to provide themselves with cash and did not lose. After all, there is potential for future capital appreciation. After all, just last year such world-famous giant companies as , Apple, AT&T and General Electric paid a total of almost 45 billion US dollars. Therefore, anyone who has a certain amount of free money in his pocket and a desire to earn money on securities can profitably invest them, providing himself, if not a luxurious life now, then at least a well-fed and comfortable old age.

How to make money on stocks

Ultimately, any money that is invested in securities is designed to make a profit in two ways: earnings on exchange rate differences and on dividends. But these types of income include a lot of subtleties, which we will discuss below.

Stock trading on the stock exchange

As an example, you can take the shares of the famous giant Microsoft. Buying 1,000 shares in September 2012 for $29,760 (1,000 × $29.76), five years later, the investor gets the opportunity to sell these shares for $73,980 (1,000 × $73.98), while earning a net profit of 44 $220. An average of $8844 per year. The return on investment is obvious.

“Buy cheaper, sell more expensive” - this earning algorithm is equally applicable to stocks, as well as to any other securities, foreign currency, precious metals.

However, you can earn not only by increasing the cost, but also by reducing ( Short). In this case, the trader borrows shares from a broker, sells them at a high price, then buys shares, but at a lower price, and returns the difference.

But it must be said right away that only experienced and qualified specialists can make good money on Short-transactions. Therefore, for an ordinary investor who has just begun to be interested in how to make money on stocks and securities, it is better to make long-term investments (at least for a year) in the expectation of an increase in value.

How to make money on stocks during reporting periods

In the international economy, there is such a phenomenon as the publication of information on the financial activities of enterprises (in particular, this annual, quarterly and other reports). All listed companies are required to disclose financial statements publicly. This is done so that potential investors can equally evaluate the company.

• In order to find out when the report will be published and which company, you can use .

Quarterly reports become a valuable source of information for the investor. By the way, buying shares is not the only way to make money on them. Now we will show you an example of making money on stocks using where you need to indicate whether the price of the asset will rise or fall in the specified period.

Simple example: the report is scheduled to be released according to the calendar Alibaba. On the company page in Google Finance, we learned that the report is released before the start of trading. Soon the results appeared on the official website:

The numbers are impressive, and the report also said that this is the fastest growing year ever. Do you think stocks will rise or fall?

We thought the same and decided to open a deal on the growth of shares. As soon as trading on the exchange was opened, we chose the shares Alibaba:

The option period was indicated for an hour, that is, the transaction will close automatically at 17:30:

Since we predict growth, we also indicated the condition of the option UP:

If in an hour Alibaba shares will cost more than at the time of purchase, even by one pip, then we will receive a 75% profit, since the condition of the UP option will be fulfilled.

As you can see, reporting data can help you make money on stocks even for short investment periods.

Earnings on shares with dividends

Many investors who are looking for ways to make money in stocks are primarily considering the possibility of income in the form of dividends. They are paid in the form of cash by transfer to a brokerage account.

The very next day, the shares rose noticeably in price, as did our profit:

To fix the profit, we need to sell the shares back, that is, close the deal:

As a result, we have earned $125 on the exchange rate:

This is an example of a short-term trade that is possible due to leverage from a broker.

• By the way, here you can also receive dividend payments, which we talked about earlier.

Buying undervalued shares

The standard strategy for investing in the stock market is to look for companies that are already experiencing high growth rates and will show the same dynamics in the foreseeable future. For investors, this means a stable and sustainable increase in the price of shares, which leads to guaranteed accumulation of wealth.

But there is another approach -. Catching the moment of drawdown of undeservedly undervalued stocks or investing in one of the promising " gray horses”, an investor can catch the hype and recoup his investment many times over in the shortest possible time. In simple terms, trading undervalued stocks means more risk and a lot more money than regular trading.

Undervalued stocks are stocks that:

• The market value is lower than the liquidation value;
• The total capitalization is less than the book value of the company.

The strategy of making money on undervalued shares is simple - they are bought with the expectation that in the future the demand for shares will begin to grow and rise to an objective level. But even here there is a snag - finding undervalued stocks with real growth prospects is not so easy. This work is only possible for those who have succeeded in fundamental analysis, since technical analysis cannot help here in principle.

Most often, the assets of young and not yet very popular companies are underestimated. In this regard, start-ups are one of the most promising areas. However, the giants of the market are also subject to fluctuations. In this case, the task is to catch the moment of a large "ebb" of the price and buy shares at that moment.

• Famous investor Peter Lynch described his approach to finding and buying undervalued companies in the book. He described his personal experience of earning over 10,000% with companies such as funeral homes, garbage disposal companies, cleaning companies, etc.

Investment ideas and forecasts from analysts

Gathering data on which financial assets are best to invest in now ( currencies, raw materials, stocks, goods) you can rely not only on your own analysis, but also on the recommendations and proposals of large investment companies. They can offer both simple analysis and turnkey investment solutions.

Fundamental valuation of companies

It is impossible to determine how much you can earn on stocks without them. To predict the market value of a company and its assets, various financial indicators are taken into account, as well as the type of its production activity. The analysis is carried out both for a single company and for the entire industry as a whole, and the main task of a trader is to identify companies whose performance differs from the rest of the mass of competitors for the better.

As a simple example, we can consider the success of domestic oil companies in 2014. The obvious advantage here belongs to Bashneft. If all its competitors have either a very slight increase in revenue (~1–2%), or their decline, this company, on the contrary, demonstrates 10.8% growth.

Such excellent results could not but affect the quotes of Bashneft shares. Only the first half of the year was marked by an increase in shares by 20.23%. At the same time, the closest competitors showed growth of no more than 2.35%.

However, it must be remembered that only those companies that not only show excellent production results, but also hold good positions in their industry for a long time, are suitable for long-term investments.

Main indicators of fundamental analysis

To find out how much they earn on the shares of a particular company, you need to use the indicators:

• Company revenue;
• Net profit;
• Profitability.

In addition, for a qualitative fundamental analysis of shares, it is necessary to evaluate a number of coefficients. First of all it is:

• Financial stability of the company;
• Liquidity;
• Market and business activity.

It is also highly desirable to pay attention to the analytical indicator EBITDA- the total amount of profit without deducting the cost of depreciation, as well as the payment of all interest and taxes. Most analysts consider EBITDA to be one of the most important performance indicators of a company. However, this indicator also has its drawbacks. The main one is ignoring depreciation expenses. Many financiers believe that because of this, EBITDA does not reflect the full picture of the company's performance.

The best brokers for trading and investment

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Broker	Type	Min. deposit	Regulators	View
	Binary Options	$250	CROFR
	Stocks, investments, Forex, Crypto	$500	ASIC, FCA, CySEC
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In order to start earning on binary options, you need to decide on the choice of the asset for which the forecast will be made. However, many do not know which asset to start trading with and how to choose the most profitable and correct asset.

Financial instruments are primary or otherwise basic ( stock, bonds, raw materials, etc.) and secondary or derivatives (futures, options). In the first case, trading (with or without delivery) is carried out directly by the instrument, and in the second, by an obligation for future delivery (futures) or the ability to make a forecast for an increase or decrease (binary option).

What is an asset for binary options

The underlying assets of a binary option are those instruments, the value of which will be predicted. These can be various indices, securities, goods and others. If taken as a whole, then all of them can be divided into four large categories:

• securities ( shares of companies like Apple, Boeing, Microsoft);
• goods and raw materials ( gold, wheat, oil);
• currency pairs ( EUR/USD, USD/JPY, GBP/USD);
• various indexes ( S&P 500, Dow, MICEX, dollar index, etc.).

The concept of " the best, profitable and profitable The value of an asset is very subjective and depends on the trader, his knowledge, previous experience, the depth of market monitoring, and his temperament. To build a correct forecast and at the time of expiration to be profitable, not at a loss, you need to know well what factors influence the formation of the price of the selected instrument.

1. For currencies, these are, first of all, the statements and decisions of the leaders of the Central Bank, monetary policy, the economic state of the country, the geopolitical and geoclimatic situation.
2. Corporate stocks are affected by news related to the activities of the company: its purchase, sale, merger, demand for products, investments, general position in the industry, etc.
3. Exchange indices are formed on the basis of a group of several companies united on a certain basis (success, economic sector, industrial, IT, etc.).
4. The price of goods and raw materials is determined by their demand - demand, supply, productivity (for crops), explored deposits for raw materials, geopolitics.

How to choose a profitable asset for binary options

When you get to the trading platform, you see more than a hundred assets, including the most famous stocks, more than 25 currency pairs, a dozen indices and commodities. How to decide on an asset, with transactions? What to analyze with such diversity?

Push off from your inner self.

If you are closer and like it, or if you are interested in it, even if you don’t know anything about stocks, but you are pleased to think about it and just like it, then this is your most profitable asset at the moment!

Many, out of ignorance and simply confusion, begin to scatter deals, opening deals in a week with stocks, currencies, goods ... that is, in all markets at once - this is a big mistake.

Those who have websites are probably familiar with such a concept as SEO(website promotion), and there are many branches in this business, for example, in the SEO studio there is a person who advertises the site only on facebook and someone only classmates, that is, each of them promotes the site only in one social network, and not immediately in all. You also need to approach and in the analysis of the market. You need to choose only one market and work with it deeply and thoroughly.

For beginners, the easiest option would be commodity market assets − oil, gold, silver (you have to choose one of them). For each asset, there are clear data for analytics, analytical sites and forecasts that come out in the scheduled period, for example, for oil, you can easily follow important data in, where each event plays a big role for the market.

In general, oil is a fairly predictable asset, for which it is easy to collect a base for analytical material, for example, specialized sites with sources of information and news of this market.

If the underlying asset is promotion, then you need to analyze its schedule and get acquainted with reports, statistics and news on the company to which it belongs.

If options are chosen for currency pairs, then it is desirable to get acquainted with the fundamental and technical data on them. For the most common pairs, like or most information, but this does not mean that on USD/CHF harder to earn, it all depends on you - whether you like to look for something that few people can find.

Everyone decides for himself how to choose an asset, but there are a number of objective reasons with which tools it is undesirable to contact. Since we are talking about a forecast, if possible, you should not mess with the unpredictable, fewpredictable and highly volatile underlying assets, because even with high-quality analytical work, there is no certainty where exactly the price will be at the time of expiration - higher or lower.

Reliable binary options broker

Just like taking the brush of a famous artist, you cannot immediately start drawing well like him, and choosing a profitable asset of a successful trader, you will not necessarily succeed on it yourself. You need to find your own way by trial and error.

A good solution would be to try different markets, but not immediately, but one by one, and based on the results of such testing, select the best and most profitable asset or several of the most promising ones from them, and then, depending on the current situation, turn to one or the other.

• In itself, the question of whether to work with only one underlying asset or with several at once is rhetorical and the debate on this topic has not stopped until now.

What is your favorite asset?

Hello dear readers! With you again and today we will analyze the main topic for everyone who has firmly decided to break out of the trap of financial dependence on the employer and finally start creating their own small factory for the production of money. So, the topic of this article is passive income. By the way, if you are still puzzling over how to get an active income for a start, then I recommend reading the article:.
You've probably heard this Rothschild quote:

Who owns the information, owns the world!

With regard to our topic, it can be paraphrased:

Whoever owns the information on how to make passive income owns the money!

And here is a somewhat paradoxical situation. There is more than enough information about this on the net, but what quality is it?
I was surprised to find out for myself that the simplest passive income without investments is social benefits and, in particular, a pension. Imagine, we are puzzled here with you how to create a source of constant profit, but it turns out that everything is so easy - just getting old is enough! But this is not the only misconception that can form in the head of an unprepared reader.

Therefore, in my material, I will not only list the most common ways to generate income, but also give real numbers and facts about whether it is possible to earn money on them and how much. Along the way, you will have to expose a couple of myths about the most popular methods: you will find out why bank deposits and real estate not only do not earn, but also lose money. Surprised? Further it will be more interesting.

So, let's move on to the practical part of our opus. The first, most popular and simple passive income is opening a bank deposit.
There are more than 650 credit institutions operating in Russia, and almost all of them attract deposits from the population. In general, the range of deposits they have is approximately the same. You can open deposits in rubles, euros, dollars, pounds sterling, less often in Swiss francs and even yuan. There are deposits with the possibility of replenishment and with a monthly transfer of interest to a separate current account. That is, in principle, you can put money in the bank and live on interest, although I do not advise you to do this and I will explain why further.
The average rates of large banks are 7-8% per annum. Players with a lower rank have a slightly higher profitability - 9-10%. But the real rate always depends on the size of the deposit and the term. That is, the larger the amount and the longer the term, the higher the rate.
Profitability, frankly speaking, is modest. At least in my opinion. I think so: why give money to the bank at 8% per year, if you can learn how to work with binary options and reach a yield of 80-100% per month. In general terms, I described this way of earning in the article:. Here is an example of a successful transaction:

Benefits of a bank deposit!

Even a child can receive such passive income in Russia. Of course, a child will not be able to open a deposit personally, but the procedure itself is extremely simple and does not require any special knowledge, therefore deposits are suitable for everyone. This explains their popularity among the general population.
Nothing to do. You just come to the bank once, conclude an agreement, give the money to the cashier, and after a couple of years you take it back along with interest.
Reliability. Firstly, your passive income is guaranteed, and you will receive a strictly defined profit specified in the contract. Secondly, it is believed that it is almost impossible to lose money on a deposit, that is, the risks are very low. This is both true and somewhat misleading. Next, I will explain what problems the saver may face in the coming years.

How much can you earn?

The answer is not at all. Surprised? Yes, almost all the materials that analyze examples of passive income tell you how easy it is to receive an income of 100,000 rubles a year through bank deposits with 1,000,000 rubles. But this is a superficial view of the situation.
To understand why the deposit is not able to bring significant income, you need to understand a few terms:
Money. It is a measure of the value of goods and a means of payment.
The purchasing power of money is the amount of goods and services that you can buy with a given amount of money.
Inflation. This term refers to the general increase in the prices of goods and services.
Devaluation. This is the name of the depreciation of the currency, in our case, the ruble.
By themselves, money, that is, banknotes, is of no value to you and me. They matter only insofar as we can buy something with them. Right?
Now look. In 2015, according to Rosstat, the official inflation rate was 12.9%. Since those other storytellers work in Rosstat, we make an adjustment for reality and get the actual grassroots inflation at a minimum of 20-25%. At this rate, the purchasing power of your money is declining. That is, a year ago you could buy 100% of some goods and services for the amount you have, and today you can buy 20% less.

Mindfulness test: what is the average deposit rate? By the way, I mentioned it above. In the largest banks of the country, it is only 7-8% per annum. So, if you opened a deposit at the beginning of 2015 in the amount of 1,000,000 rubles, by the end of the year you would have been paid 1,080,000 rubles. And the purchasing power of money over the same period decreased only according to official data by 12.9%. Thus, the purchasing power of your million fell by 129,000 rubles, and the bank's interest amounted to only 80,000 rubles. Net loss - 49,000 rubles.
Yes, nominally the amount has increased by 80,000 rubles, but at the end of 2015 you can buy as many goods and services with this money as you would have bought at the beginning of the same year for 951,000 rubles. So what's the use of the fact that there are more banknotes (cut paper with watermarks) if you can buy less on them?
Of course, such calculations are somewhat arbitrary, but I do not strive for mathematical and economic accuracy. I just want to show you that if the annual deposit rate does not cover inflation, such a deposit does not bring real income at all. Moreover, you actually lose money. Plus, if you open a deposit immediately for five years and withdraw interest every month, the purchasing power of the initial amount will be significantly reduced, and the monthly passive income will turn from modest to miserable relative to real prices for goods.
Another problem is devaluation. Depreciation in our case of the ruble against the dual-currency basket, that is, against the US dollar and the euro. For the period 2014 - early 2015. The ruble depreciated against the dollar by about half. This means that if before with your million you could buy 100% imported goods, now their number has decreased by about 50% in just two years. And the deposit rate is still 8% per annum.
If the figures given by me seem implausible to someone, look at the dynamics of prices for imported electronics. For more than two years since 2014, everything has risen in price just about twice, and in some places even more.

Why and how to open deposits so as not to lose money?

Despite all of the above, deposits can still be used. Firstly, this instrument is suitable for temporary placement of free money. For example, you are saving money to start a business. If you save money under the pillow, they will depreciate faster than on a deposit, since the deposit rate at least partially compensates for inflation. Secondly, you need to have some money on hand in case of unexpected expenses. For example, they will offer you to buy a small stake in a new promising company, and all your money has already been invested in other assets. What to do? This is where your deposit comes in handy. In addition, foreign currency deposits, unlike ruble deposits, are still able to bring passive income.
And now practical advice on choosing the conditions for placing funds in a bank.

Tip number 1. Only systemically important banks. These are the largest credit institutions in the country. Their deposit rates are lower than those of small banks, but the Central Bank will definitely not take away their license. In addition, if such an institution begins to "fall", it will certainly be supported at the expense of some National Wealth Fund or other state moneybox. I will not disclose the specific names of banks - I am not engaged in advertising. But you yourself can see the ratings of credit organizations.

Tip number 2. Choice of deposit currency. The ruble is extremely unstable and will steadily roll down in the coming years. Like it or not, this is a fact. What is the conclusion? It is necessary to open a deposit in dollars or euros. Indeed, this sharply increases the profitability of the deposit in ruble terms, allows you to completely cover inflation and even get a small profit at the level of about 3-3.5% per annum.
But this is not ideal either. Why? There is a risk that the authorities will decide to forcibly convert all foreign currency deposits into ruble deposits at a fixed rate. You understand that this course will not be in your favor. There is only one way out - a multi-currency deposit. According to the terms of opening such a deposit, if you smell fried, you can convert the currency in one click directly in the Internet bank. Pay attention to the size of the conversion fee.

Tip number 3. Option of early closing of the deposit. All deposits are term deposits. The longer the term, the higher the yield. Therefore, it is much more profitable to open a deposit for 5 years than for 6 months. But there is also a downside here. If you urgently need money, if you withdraw early, all accrued interest will burn out. Therefore, you need to choose a deposit with preferential early closure. Some deposits provide for fixing income after a certain period. For example, once a year, the accumulated interest is fixed and if the deposit is closed ahead of schedule, they will not burn out.
Another reason why it is better to choose deposits with this option is the possibility of privatizing part of the funds. Something similar happened in 2013 in Cyprus. There, depositors were forcibly made shareholders of banks and seized from them 6.75% - 9.9% of the amount of deposits. So the Russian depositors of Laiki Bank lost about $10 billion. The possibility of applying such measures is already being discussed in Russia. So, if there is a risk of the collapse of the Russian banking system, you need to urgently withdraw money before you become a forced shareholder of a bankrupt bank. This is where the option of preferential early closing of the deposit comes in handy.

Tip #4 Proof of source of income. In connection with the intensified fight against money laundering, banks will have the opportunity not to give depositors their money if they cannot explain the origin of the funds and prove documented that they have paid all due taxes on this amount. So, prepare documents in advance.

Method number 2. Apartments. Gold. Diamonds. How to create passive income on valuable property?

The next most popular passive income with investments after a bank deposit is real estate. But in fact, any property that tends to rise in price over time can act as an asset. This may include:
Antiques.
Art objects.
Precious metals and stones.
Collectibles from coins and stamps to vinyl records and comics.
Of course, in order to create a portfolio of antiques or paintings, you need to deeply understand this. Personally, I can not boast of such knowledge. But if there are connoisseurs or at least amateurs among my readers, then you can try. The main principle is simple: invest in something that, in your opinion, will rise in price in a few years. Moreover, the profitability can be simply fantastic. So, in 2014, a certain Darren Adams sold the first issue of Action Comics on eBay for $3.2 million. And, by the way, it originally cost 99 cents, however, it was already in 1938.
I will not stir up topics unfamiliar to me, so as not to mislead you, and I will tell you about those types of property suitable for building passive income, which I know firsthand.

How much can you earn in real estate?

If we talk about Russian real estate, then the answer is the same as with bank deposits - not at all. Extracting passive income in Russia from Moscow and St. Petersburg real estate made sense a few years ago. But now the situation is fundamentally different. In order not to be unfounded, I will explain in detail what real estate buyers and landlords usually earn on.

On housing transactions, you can receive residual income three times:
At the construction stage, an apartment costs 15-30% cheaper than by the time the house was put into operation. That is, for 1-2 years, while the construction is going on, you can increase your investments by a third without doing anything. The only catch is long-term construction. Therefore, you need to choose only objects of large developers and developers who have access to borrowed capital.
rental income. Actually, this is the rental of housing. Excluding expenses, the average annual return is approximately 4-6%. Note that this is even less than the interest rates on deposits.
Object appreciation. If in the case of deposits, inflation "ate" our money, then here it plays into our hands - real estate becomes more expensive along with all other goods by about 10-12% per year. But even in this case, not everything is so simple, as I will discuss later.

So how much can you earn? If you successfully buy an apartment in a house under construction at the stage of excavation, in 1.5-2 years you will receive an increase of 7-15% per annum. A little, but not bad. Further, every year the object, subject to the growth of the real estate market as a whole, will increase in value up to 12% per year. Passive income from renting out an apartment is about 5% per year. Thus, in 5 years, ideally, you can recapture an average of 70% of the money invested. That is, the total yield is obtained at the level of about 14% per annum.
This is barely enough to cover inflation. But in fact, you will not receive such income. Why?

There are several reasons:
New buildings no longer bring such high profitability for the period of building a house, and the risks of running into a long-term construction are constantly growing.
When renting out a home, there are a lot of side costs, including the costs of finding tenants, buying and periodically updating furniture, major and cosmetic repairs, taxes, and finally. Also, don't forget to account for periods of downtime when there is no tenant yet and utility bills keep dripping. As a result, the real rental yield barely reaches 3% per year.
Real estate markets around the world tend to so-called bubbles. While these same bubbles were forming, Moscow new buildings were steadily adding in price by 10-12% per year. But in 2015, the holiday ended - the balloon began to deflate, and at a rate of 14.5% per year in rubles and as much as 33.6% in dollars.

Thus, in 2015, the owners of Russian real estate received a negative return. Rental income is penny, and the assets themselves have fallen in price by a third in dollar terms. As you can see, real estate is even less profitable than opening a bank deposit.
Does all this mean that you can’t make money on real estate at all? Not really. You can create a good passive income business for housing in the EU, USA, Canada, as well as in popular resort regions.
In Europe, the average profit of a rentier is 3-5% per year from one object. The figures seem to be the same as in the case of Russian apartments, but in euros. This means that the profitability of European real estate will completely cover not only the official, but also the real ruble inflation and even bring quite a tangible income. In addition, investing in housing allows you to protect your investments from the consequences of the devaluation of the ruble.

How to make passive income in real estate correctly?

If you do decide to invest in a home someday, here are a few tips:
in the coming years, buy housing only abroad;

Why do I advise using gold as a source of passive income?

Gold does not have a fixed price or any fixed rate of return. Therefore, in some periods, one can observe a decline in prices for the yellow metal. However, if we take the long-term dynamics, then gold has been steadily growing in price since 1938, when its rate was sent to free float.
Now about the size of the yield. In the period from 04/01/2015 to 04/01/2016, that is, exactly in a year, gold at the rate of the Central Bank of the Russian Federation increased from 2,185 rubles to 2,691 rubles per 1 gram. The annual yield was 23%. As you can see, this figure completely covers the official inflation and gives a good profit. Of course, in dollars or euros, the numbers are not so impressive, but you can also get a decent passive income there.


If we consider the long-term perspective, then for 7 years from 04/01/2009 to 04/01/2016 a gram of gold at the rate of the same Central Bank of the Russian Federation has risen in price from 1,001 rubles to 2,691 rubles. The cumulative price increase for the entire period is 169%! Thus, the average annual passive income is 24%. And note that this is taking into account local declines in the gold rate.
In my opinion, this is one of the best tools for conservative investments. Buying gold, as well as opening a bank deposit, does not require special knowledge, moreover, these instruments are incomparable in terms of profitability, and the risks of investing in precious metal, it seems to me, are much lower than those of Russian bank deposits.
The only problem with gold is that it is desirable to invest in it for a long time. That is, they bought an ingot or coins and forgot them in a safe or a bank cell for 5-10 years. In fact, it is a strategic investment. If you want to establish passive income right now and monthly, then precious metals are not suitable for this. Then it's better to try binary options: . Moreover, this tool allows you to earn on gold, including only through short-term speculative transactions.
Either way, gold is definitely worth using to diversify your asset portfolio. This will significantly reduce the risks for assets with higher returns, but, accordingly, with increased risks.
Let's move on to the practical side of the question: how to get passive income with investments in gold? There are two options: buy coins or bars or open an unallocated metal account.
In the first case, directly upon the purchase of coins or ingots, the price will include VAT at a rate of 18%. That is, at first it can be considered a net loss. However, as I noted above, gold is suitable mainly for long-term investments. So, if we distribute these 18% over 10 years, we get 1.8% per year. With an average yield of 24% per annum, these are quite acceptable losses. Plus, when selling, if you follow all the rules, you will have to pay personal income tax - 13%. This is another 1.3% per year. Total total passive income after taxes when investing in gold for 10 years will be 209%. I think it's not bad even with an annual inflation of 13%, you end up with a 79% gain.
Now let's say a word about an impersonal metal account. You can open it in most banks. The account will take into account your gold in grams. In theory, you can pick it up in kind at any time or sell it to a bank and immediately get cash. True, in reality, banks are not very willing to issue gold to the client and often delay the execution of this legal requirement of the account holder. Again, the question arises of trust in the banking system in general and a particular credit institution in particular. By the way, the deposit insurance program does not cover CHI.
And one could say that buying gold in kind is definitely better. Agree, it's nice to hold your own gold bar in your hands. However, there are three "buts" at once. Firstly, when opening a CHI, you do not have to pay VAT. Secondly, you can open a fixed-term account, which involves the accrual of interest. That is, passive income will turn out to be a little more, although the interest rates on CHI are more than modest - an average of 1% per year. A trifle, but still nice. Thirdly, there is the issue of security. Bars or coins must be stored somewhere. You can rent a safe deposit box, but these are additional costs and a meeting with the bank again. So it remains to bury your treasure on some island.
By the way, strategic investments in gold also have an alternative - speculation on fluctuations in the precious metal's rates. This opportunity is provided by Forex brokers, but there is one catch: to trade gold, you need a fairly large capital, and errors in forecasting changes in quotes can lead to a drain on the deposit in a matter of minutes. Therefore, I would advise you to choose binary options. They also allow you to work with gold, but the size of the entry ticket and the risks are much lower there, although the potential passive income remains at the same level. You can find out what binary options are from this article:.

Method number 3. Creating an intellectual product!

Alas, it is almost impossible to create a residual income without at least a minimum investment. Actually, there is only one way: to create something of value. The choice seems to be limited, but in fact it is extremely wide. You can make money from writing, inventions, photography, blogging. Especially successful developers of mobile applications earn good money these days.
Of course, there is no single recipe for monetization for all of these undertakings, but in many cases you can find at least an approximate strategy for creating and promoting a product in demand. The web is literally teeming with advice on how to earn passive income online by blogging or building a data site, or how to make a fortune as an iOS app developer. I confess that I am far from a specialist in these matters, and the format of the material does not allow us to consider in detail all the many quite sensible recommendations for creative people who want to create a source of passive income.
Here I will give a few examples of how real people, like you and me, create billions of dollars of capital from scratch and how much they manage to earn:
YouTube blog author Felix Kjellberg's videos are regularly watched by 40 million subscribers. The channel has an annual revenue of $12 million.
Ethan Nicholas, a developer from North Carolina, USA, earned $ 800,000 on a simple iShoot game.
Canadian Danielle Fong has come up with a new way of accumulating and storing energy received from wind turbines and solar panels. Over $30 million has already been invested in her startup by Peter Thiel and Bill Gates.
German photographer Andreas Gursky managed to earn $ 4.3 million from the sale of one of his photographs. Of course, his income is not limited to this.
The fortune of one of the most successful artists of our time, Damien Hirst, is about $1 billion.
Probably, the well-known writer JK Rowling earned $ 1.5 billion on her wizard Harry. This is the total income from the sale of all copies of the book series and the adaptation of bestsellers.
Unfortunately, such methods of passive income do not imply any guarantees of commercial success. So doing photography, painting or writing makes sense mainly for the soul, and turning the results of creativity into millions and even billions of dollars is mostly a matter of chance.
As for the practical side of the issue, do not forget about such trifles as copyright registration. In particular, to obtain a patent for an invention or utility model, you need to apply to the Federal Institute of Industrial Property. And if you've written a book and want to be on the safe side before offering it to publishers, print it dated and mail it to yourself.

Method number 4. How to become Warren Buffett: passive income on securities!

Where can I get money to start my own business? This is the problem faced by 95% of new entrepreneurs! In the article, we have revealed the most relevant ways of obtaining start-up capital for an entrepreneur. We also recommend that you carefully study the results of our experiment in exchange earnings:

Warren Buffett is the most successful investor in the world. The fortune of this Oracle from Omaha in 2008 was $ 68 billion. Only a genius can repeat such a success, but history knows thousands of other examples when multi-million dollar fortunes were created on securities. Can you use this method? To answer this question, let's first get a general idea of ​​the main types of securities.
Stock. Companies use this type of securities to attract investment capital. In this case, each shareholder becomes, in fact, a co-owner of the enterprise, although the share of the majority of shareholders, of course, is negligible. Stocks generate income in two ways. First, there are dividends. At the end of each reporting period (usually a year), the company sums up its financial performance and makes a decision on the distribution of profits. The latter goes to shareholders in accordance with the size of their package.
Secondly, you can receive passive income from the rise in the price of shares for the period that has passed from the moment the securities were bought to the moment they were sold. Of course, there is a risk here, and a rather high one, that stock quotes will fall, that is, instead of profit, you will receive losses.
Shares are of two types: ordinary and preferred. The former give votes at the shareholders' meeting, the latter provide their owners with a higher income, since they involve the payment of either a fixed amount or a strictly defined percentage of the profit.
Bonds. These securities are debt obligations. In fact, the issuer (the person issuing securities) borrows money from you for a certain period, after which he undertakes to buy back his bonds from you, usually with a certain fixed income. Bonds can also be perpetual and with periodic coupon (income) payments during the entire period of the debt obligation.
The advantage of this type of securities is that you are guaranteed to receive a certain yield. The risk is limited only by the solvency of the issuer. That is, if the state or the company does not decide to declare itself bankrupt, the money paid will definitely return to you, and at the same time the income established by the issuer. It should be noted that the yield of bonds depends on the degree of risk, but usually it is small.
Now let's discuss derivatives - derivative financial instruments. These are securities for securities or for goods. Unclear? Now let's look at everything in more detail, and you will understand.
Futures. These are contracts for the purchase or sale of certain assets. They indicate the quantity of goods, currency, shares or bonds, delivery time and price. Upon the due date of the contract, either the actual delivery of the asset or cash settlements are carried out. That is, you do not have to pick up the goods themselves, you can receive monetary compensation.
The essence of operations with futures is to buy a contract with a lower strike price, and sell it when the market price of the underlying asset, and with it the contract itself, rises significantly. For example, you bought a futures contract for Brent oil with an exercise price of $28 per barrel, and a couple of months later it rose to $35. We sell the contract, fix the profit. By the way, oil futures are one of the most popular instruments for investors.
The advantage of futures is that the value of the contracts is much lower than the value of the underlying assets. This allows you to get by with a smaller amount of initial investment and get more passive income than, say, from direct capital investment in shares. Meanwhile, losses in the event of a change in prices for the underlying asset not in your favor will be higher.
CFD. This is another contract, but this time not for the supply of the underlying asset, but for changing its price. One side is betting on an increase in quotes, the other - on a decrease. Upon the expiry date of the contract, one party pays to the other the difference between the current value of the underlying asset and its price at the time of the conclusion of the contract.
For example, when concluding a CFD, the value of the underlying asset (shares, commodities, bonds, etc.) was $100. You have placed a raise bet. Now, if the value of the underlying asset is $110 by the time the contract expires, the other party will have to pay you $10.
The list of existing securities, of course, is much wider, but I have listed the most popular types of assets, and this is quite enough for everyone who is interested in how to receive passive income from investments in securities.

How much will you earn on securities?

Let's start with bonds. Profitability, frankly speaking, is modest. For example, Gazprom's medium-term ruble bonds currently in circulation have an annual yield of only 7.55%. For some bonds of VTB 24 with a face value of 1000 rubles, the income is 9% per annum with payments 4 times a year. A little better, but the problem is the same as with bank deposits - your passive income will not even cover inflation.
Now for the shares. For example, I will take one of the most profitable stocks in the world at the moment - Apple securities. The cost of one share of the company in April 2016 reached $108. Dividends for 2015 were 47 cents per share. You understand, not much, at least if you do not have several million dollars to invest.
In fact, dividends are not large. The main profit comes from the growth of quotations.

So, 6 years ago, that is, at the beginning of 2010, the cost of an "apple" share was only about $28. Thus, during this period, the company's shareholders received a passive income of 285%, not counting dividends. The average annual yield was over 47%. Not weak, right?!
But I emphasize again, Apple stock is one of the best examples on the market. Unfortunately, the majority of corporate securities cannot boast of such indicators. In addition, there is always a high risk of a significant drop in quotes, and it is far from always possible to predict it accurately enough.
Profitability on futures and CFDs depends directly on you and your skills in predicting changes in underlying asset prices. So it's pointless to give specific numbers here. I can only say that successful derivatives traders earn very, very impressive capital.

How to buy stocks and bonds?

Some securities can be bought directly from the issuer. In other cases, you will have to turn to the services of professional market participants - brokers.
All companies set their minimum initial investment. Most brokers won't lift a finger if you show up with less than $50,000, but you can find companies with entry fees as low as $200. True, with such a modest amount you can’t really clear up, and you can’t count on big profits from a long-term investment of a couple of hundred dollars in securities.
Although you can start with this, but I would recommend doing binary options with a small capital. This tool allows you to work with both stocks and bonds, but investments are required many times less than if you bought securities, and the yield is many times higher. In order not to be unfounded, I publish on my transactions.
When choosing a broker, it is very important to check its reliability, the quality of technical support, and most importantly, to inquire about the amount of commissions for transactions, deposits and withdrawals.

Just the truth: can you make money on securities?

For a private investor, the easiest way to invest in securities is to buy and forget for a few years while the income accumulates. This is a strategic investment. The problem is that for a long-term investment in science, you need to look for a "safe haven", and now there is no such place anywhere in the world. So, in the early days of 2016, we could observe the largest collapse of the Dow Jones index since the Great Depression. And, by the way, this index takes into account the stock prices of the 30 largest US companies, such as Coca-Cola, Boeing, General Electric, Intel Corp., Nike, etc. So investors received multibillion-dollar losses as a gift for the New Year.
One might, of course, think that the range of securities is not limited to American companies. But the situation is no better in other countries. In particular, on the same days when the Dow Jones suddenly fell ill, its Chinese friend, the Shanghai Composite index, collapsed even more.
So, there are virtually no “safe havens” for capital in the stock market today. True, you can try to define money in the shares of companies of the "new economy". These include payment systems, search engines, social networks, software developers, device manufacturers.
If you absolutely do not understand anything in all this and are not too eager to constantly follow economic and political news, it is easier to transfer money to trust management. Brokers and management companies offer different investment strategies, diversify the package and adjust it depending on the market situation. Of course, you will have to pay a commission for all this happiness, but it is easier than delving into all the wilds of the strategic analysis of the stock market yourself.

Mutual investment funds.

This is an alternative to direct trust management of your money in a personal account. This is about collective investment. The fund sells its shares, due to which the total investment capital is formed. This money is invested in assets: stocks, bonds, real estate, etc. The natural goal of the fund is to extract as much profit as possible from these investments. Income is divided between shareholders in accordance with the number of shares.
The main advantage of mutual funds is the ability to invest in expensive assets with a small amount. For example, you have 30,000 rubles. With this money you can buy only 4 shares of Apple. It seems to be good, but the risks are extremely high - remember, we talked about diversification. You can go the other way: buy 3 shares worth 10,000 rubles each, choosing a mutual fund with a strategy of investing in companies of the "new economy". There will be our beloved Apple, and Facebook, and Microsoft, and much more. Of course, the presence of less profitable securities in the portfolio will reduce the overall profit. But, at the same time, the risks will also be reduced, and many times over, and we must always strive for a reasonable balance of risks and profitability.

Method: 5. Passive income from your own business!

I think it makes no sense to talk about how much a successful entrepreneur can earn, given that the brightest examples are on everyone's lips: Jobs, Gates, Branson, or personally my idol Elon Musk. The only question is how to turn a business from an active income, when you disappear into the office day and night or ride around cities and towns, visiting representative offices of your company, into a passive income business.
In general, there is no big science here. First, you need to clearly articulate the mission, core values ​​and strategy of the company. Secondly, it is necessary to adopt a process approach to the internal organization of the enterprise. That is, all the work of the company should be divided into separate simple processes and written in the form of job descriptions for each employee. Such a system involves the creation of control points, the verification of which is sufficient to track the activities of the company and its results. In this way, you will get the opportunity to manage the company with minimal time costs. She will work like clockwork. All you have to do is correct course.
When the company is already built and brought to cruising speed, there is no need to manage it yourself. You can hire a CEO (Chief Executive Officer) and dump the burden of leadership on him.
Of course, such methods of passive income involve one pressing problem - the question of finding initial capital is acute. I wrote my thoughts on this topic in this article:

How to create a business empire through franchising?

Imagine you have created a company. Successful. Effective. profitable. But want more. To give up the dream of putting the business in passive mode, and at the same time from your dolce vita to profit from a stand-alone company? Roll up your sleeves again and take on the development of the enterprise, expanding its presence in other regions? To do this, you will have to disappear on business trips for months, build up administrative resources, and, by the way, costs will grow along with it. In addition, there will be a problem of attracting money to expand the business. You can use my modest recommendations:. However, for the full-scale development of the company, it is unlikely that it will be possible to do without borrowed funds.
This path has a much more profitable and simple alternative - franchising. Its essence lies in the fact that you sell your finished business model along with the right to use all technologies, brand, documentation templates to other entrepreneurs. They, in turn, open representative offices of your company in the regions at their own expense.
This solves three problems at once. Firstly, franchise buyers invest in the expansion of the company. Secondly, they also ensure the management of enterprise divisions, without the need for strict centralization and constant control from the center. Thirdly, unlike hired managers, the franchisee treats a division of the company as if it were their own business. He is personally interested in achieving maximum efficiency and profitability of the enterprise. As a result, there is no need to inflate the management staff to control the work of regional divisions and puzzle over the methods of stimulating managers.
What do you get? First, the franchise buyer pays a lump-sum fee right away. Secondly, you will receive royalties from the profits of all affiliates - this will be your passive income. The parent company requires precise step-by-step instructions for opening a company, technology for creating a product and sales, a marketing strategy, in a word, everything that you had to do in the process of creating your enterprise anyway. Additionally, you only need to organize a small department that will promote the franchise, interact with potential buyers, as well as advise them and help them solve problems.
How to create a passive income business through franchising is pretty clear. The question remains - how much will you earn. It is hardly possible to estimate the potential profitability of the network. It all depends on the quality of the business model and development strategy. But as a sample, I will list several well-known brands, the development of which is carried out precisely according to this technology: KFC, Subway, Traveler's, 2GIS, Yves Rocher, Well, Expedition, Sbarro.
Now a more specific example in numbers. The lump-sum fee for purchasing a Subway franchise is 600,000 rubles. Monthly payment in favor of the franchisor (royalty) - 8% of revenue plus 1.5% of turnover as an advertising fee. The turnover of one point varies between 5-9.5 million rubles, and the total in the network in Russia is 673. Thus, the total income from the entire network is more than 390 million rubles, excluding advertising fees.

mlm. Can you create passive income with network marketing?

About 20% of American millionaires made their fortune in network marketing. Here is the answer to the question about the possibility of making money on MLM. I think that today it has become even easier to use this model of building a business than 10-15 years ago. This is due to the relative simplicity and availability of tools that allow you to quickly develop a network of partners via the Internet.
Network marketing, in fact, is one of the options for a business development strategy. The same franchise, only simpler and much more affordable for partners. This option is suitable for products whose sale does not require a retail outlet or office.
Yes, for many, such examples of passive income cause some irony. But this is due rather to the somewhat intrusive and even sometimes clumsy nature of the work of distributors. In fact, the model is quite working. You get a product without significant investments, which you can trade without organizing a point of sale, recruiting and other difficulties. You just make each of your regular customers a partner, he continues to buy products himself and sell them to his friends, and you get income for this without the slightest gesture.
MLM has enough advantages:
Minimum initial investment. In most cases, you can get by with $200-300. That is, your risks are limited only to this amount.
No paperwork, and, therefore, no need to spend money on the services of a lawyer, accountant, etc.
No need to master the intricacies of the art of personnel management. In fact, you have a lot of people from whose purchases and sales you receive income. At the same time, they all act independently without additional motivation, as is the case with a franchise.
No hassle with the tax service, numerous inspections of regulatory authorities, economic disputes with contractors, etc.
It is possible to create a branched multi-level structure literally in 2-4 years, and then, at least for several years, it will bring impressive passive income without much effort.
Of course, a lot depends on the choice of brand. For example, I see no reason to join such painfully familiar structures as Avon, Amway or Herbalife. I think it's better to bet on a brand promoted abroad, but new to the Russian market. So you will be more likely to create a large pyramid of partners.

Method number 6. Don't know how to create your own business? Earn on someone else's!

We have considered almost all examples of passive income that I wanted to analyze in this material. The last thing left is investing in someone else's business. It would probably be more correct to call this investment in venture, that is, high-risk enterprises, since we have already touched on investing in shares and bonds of developed stable companies above.
The point here is to find a promising startup, help it with money in exchange for shares and either regularly receive some share of the company's profits, or wait until its securities grow many times in price and sell them. There are many examples of successful capital investment in venture capital companies. Of course, the most famous are large investors. For example, Jim Goetz turned $60 million into $3 billion by investing in WatsApp. Douglas Lyon made a fortune of $ 2.2 billion on Google, YouTube, WatsApp. Approximately the same earned Peter Thiel on PayPal and Facebook.
All these respected people, as you understand, “graze” in Silicon Valley, where you go with your $ 1000, they will kick you out like a beggar. However, this does not mean that you cannot, having a small amount, join the ranks of venture investors.

How to become a venture investor?

Take on the role of a business angel. In my opinion, for a non-professional investor with little capital, it is better to choose other ways of passive income, since this option is the least profitable and at the same time extremely risky. The bottom line is that you find start-up entrepreneurs among your friends or just online and provide them with funding. The chances of success are extremely small, unless you yourself are an experienced businessman and are not ready to take part in the project.
crowdfunding platforms. Angellist and StartTrack and other platforms allow you to invest a relatively small amount in several startups at once, and transactions are carried out through a special online service. An additional advantage lies in the possibility, when choosing projects, to focus on the decisions of other investors, including professional ones.
syndicated deals. These are joint operations of groups of investors that exist on the same crowdfunding platforms or with investment funds. This approach allows you to invest together with professional players and get access to better and more promising projects. The disadvantage of syndicates is the fees for related services.
Venture funds. If you do not already have, say, $1 million, then this option will not suit you. But we are working for the future, right? So this is worth considering as well. It is good because you do not need to understand existing projects and personally choose startups - professionals do everything for you. You are only required to transfer money to the management of the fund for 5-7 years.
Considering venture investments as passive income, keep in mind that in order to ensure an acceptable level of risk, you need to distribute capital among at least 10 projects. At the same time, it is necessary to select only high-quality startups. To do this, follow venture project competitions, as well as read articles in the media with selections of promising companies.

Passive income. How it works?

Each of us has an elementary set of resources: time, physical strength, the ability to perform simple tasks. Many also boast a good education, work experience in any field and just a smart head, which in itself is not as common as we would like. So the difference between a dollar millionaire and an ordinary hard worker who lives paycheck to paycheck is how they manage these resources.
An employee, of which the vast majority, in fact, makes a direct exchange of his time for money. At the same time, the cost of each hour or day directly depends on the value of his skills, knowledge, experience, and productivity. And this is called active income. Rich people, in turn, directly or indirectly invest their available resources in the creation of assets - values ​​that can generate income without further investment of the resources of their owner. Therefore, passive income is also called residual from the Latin word residuus - remaining, preserved. The work has already ended, and the profit is saved for an unlimited time.

Why does this method of extracting financial benefits bring many times more money than ordinary wage labor? It's simple: you can create a package of assets, the total value of which for the market will be hundreds of times higher than the value of your personal time with all the skills and knowledge combined.

3 types of sources of residual income!

What can act as assets? I have already given specific options for passive income above, and now I will try to explain the essence. So I would divide all assets into three categories:
The first type is things that rise in price on their own. That is, receiving passive income or another currency is earnings on the difference between the price you paid when acquiring property and its value, say, in a year or simply by the time you decide to sell this property. For example, you bought shares for $15 apiece, and after 5 years they are already worth all $115. The cumulative return is 766%. This is a brilliant result, I tell you.
In the second group, I would include property that can be sold an unlimited number of times. An example is a patent for an invention. You can sell the right to use your invention to multiple companies during the lifetime of the patent. At the same time, you worked only once - when you created your invention. And it can bring a stable passive income for decades.
The third category is assets that themselves create new value, and you receive income from its implementation. Any company can serve as an example. Once you have created a successful business, you can retire, but the activity of the enterprise itself will not stop. It will continue to produce goods or provide services, to profit from their sale, and some of it will safely settle in your fattening pockets.
I want to note that this is not a free retelling of some scientific classification, but my own view on the types of passive income. And I am telling you all this so that you understand the general principles of asset formation and can find and choose for yourself the most convenient and interesting methods for creating sources of residual income, not limited only to my or someone else's advice. In the end, you need to do what you get real pleasure from, otherwise you will not be able to achieve truly grandiose success.

What's stopping you from creating passive income?

I'm sorry, but now I'm going to be smart. Or rather, demonstrate their modest knowledge of economic theory.
In the interpretation of the Austrian economic school, capital is defined as resources that we do not consume right now, but use them in order to get a higher level of consumption later, in the future. And profit, in turn, is a payment for the risk of losing these very resources, as well as for the fact that you have to be patient a little and postpone the moment of consumption until later.
Actually, in these definitions there are four main problems that prevent the creation of residual income.
Problem number 1. We resolutely do not want to endure and postpone the sweet moment of consumption for the future. We want to eat, drink, use everything right now. Life, in fact, constantly offers you a choice: crack one dubious-looking caramel this very minute or wait a week and get a whole box of delicious chocolates. And what do you usually choose? There will be no hints here - answer yourself, only honestly.
Problem number 2. Bad time management. Instead of smartly scheduling and investing part of the time in our assets, that is, future consumption, we either give this time to the uncle for whom we work overtime and on weekends for a “thank you”, and often without any thanks, or we bring precious hours and days as a sacrifice to the gods Divan and TV. There is only one way to overcome this problem - timing. I must say, time management is a whole science, although it is easy to understand it. I advise you to read books on this subject by a recognized guru in this field, Brian Tracy.
Problem number 3. Bad financial management. Remember Matroskin's phrase: “In order to sell something unnecessary, you must first buy something unnecessary. And we don't have any money!" Here is the third problem of creating residual income. This requires at least a small capital, but where to get it? I have already outlined some of my thoughts on this topic in the article. In general, you need to learn how to plan your budget and save. Just make it a rule to set aside, say, 10% of all your income every month, and whatever happens, stick to this principle.

This rule is directly related to the third problem of residual income, that is, risks, and is expressed in just one word - diversification. The essence of this approach is to distribute your capital into several assets with different levels of risk. For example, you can build a portfolio of stocks, bonds, and precious metals.
Why is this needed? This is how we minimize risk. For example, if you invest all your money in the shares of a promising young company, then the probability of losing all capital is extremely high if the enterprise does not live up to expectations. And you can do otherwise. Part of the money is in high-risk securities. Another part is in gold. The risks here are much lower and in the long term, the yellow metal shows a stable and very decent growth. And, finally, define another part of the money in bonds, which have a small but fixed value.
Having such a portfolio, on the one hand, you provide yourself with the opportunity to receive a high and stable passive income from shares. On the other hand, you protect yourself from a total loss of capital with bonds and gold. Thirdly, at least part of the invested funds will certainly bring some profitability, which will compensate for potential losses from the loss or fall in the price of other assets.

What passive income options do I choose?

You can learn about my entrepreneurial history in this little autobiography: . In short, I have already built my business, and it is he who serves me as the main source of passive income. But, since it is useless for a real entrepreneur to stagnate, I, firstly, planned the expansion of my company, and secondly, I mastered a new way to increase my capital - trading on the binary options exchange.
This option is not entirely suitable for obtaining passive income itself, since it involves the trader's personal participation in each transaction. However, I will still say a word about it, because, in my opinion, binary options have several advantages at once over each of the above methods of earning:
Low entry ticket price. In contrast to the minimum required costs to create your own business or a diversified portfolio of stocks and bonds, $300-500 is enough to get started with binary options. Of course, to ensure good returns and minimize risks, it is better to allocate a slightly larger amount.
High profitability, many times higher than inflation. Profit from speculation with binary options can reach and even exceed 100% per month of the initial capital. None of the above methods bring such income.
Everyone can master the work with binary options and reach a consistently high profit in 1-2 months.
However, I must immediately upset the lovers of freebies - it is not here. It will not be possible to do without preliminary study and rather painstaking work at the very beginning. You can learn more about how to start from this article:. But then you can make several profitable trades a day quite easily, spending a total of no more than an hour on it. Here is one example of my transactions:

I hope my recommendations on creating passive income will help you figure out how to grow your personal financial empire and avoid common mistakes. I wish you good luck and all the best.
Sincerely, .

Index funds allow you to receive income from investments in the stock market absolutely passively. For example, if you invest in a fund based on the S&P 500 index, your funds will be invested in the general market, and you will not have to think about how to manage your money and whether to sell or buy shares of certain companies. All these moments will be managed by the fund, which forms its investment portfolio depending on the state of a particular index.

You can also choose a fund that works with any index. There are funds involved in various business sectors - energy, precious metals, banking, emerging markets and others. You only need to decide for yourself that you want to do it, then invest and relax. From now on, your stock portfolio will run on autopilot.

1. Make videos for YouTube

This area is developing very quickly. You can make videos of absolutely any category - music, educational, comedy, movie reviews - anything ... and then put it on YouTube. You can then connect Google AdSense to these videos and they will show automatic ads. When viewers click on this ad, you will earn money from Google AdSense.

Your main task is to create decent videos, promote them on social networks and maintain enough of them to earn income from a few clips. Shooting and editing a video is not so easy, but after that you will receive a source of completely passive income that can last for a very long time.

Not sure if you can do it on YouTube? Michelle Phan has combined her love for makeup and art with making videos, has amassed over 8 million followers, and now has her own $800 million company.

1. Try affiliate marketing and start selling

This is a passive income technique more suitable for owners of blogs and active Internet sites. You can start promoting any products on your site and receive a fixed fee or a percentage of sales.

Making money this way is not as difficult as you might think, because many companies are interested in selling their products in as many places as possible.

You can find partnership offers either by contacting manufacturers directly or on specialized sites. It is best if the advertised product or service is of interest to you or corresponds to the theme of the site.

1. Make your photos profitable on the web

Do you love taking pictures? If so, you might be able to turn it into a source of passive income. Photobanks, such as and, can provide you with a platform for selling pictures. You will receive a percentage or a flat rate for each photo sold to a website client.

In this case, each photo represents a separate source of income that can work again and again. All you have to do is create a portfolio, upload it to one or more platforms, and that's where your action will end. All technical issues of photo sales are handled through the web platform.

1. Buy high yield stocks

By creating a portfolio of high yield stocks, you will receive a source of regular passive income with an annual interest rate that is much higher than the interest of bank deposits.

Do not forget that high-yielding stocks are still stocks, so there is always the possibility of capital revaluation. In this case, you will receive profit from two sources - from dividends and return on invested capital. To purchase such shares and fill out the relevant forms, you will need to create a brokerage account.

1. Write an eBook

Of course, this can be quite a laborious process, but when you write a book and place it on marketplaces, it can provide you with income for years. You can sell the book on your own site or enter into a partnership agreement with other sites that are relevant to the subject of the book.

1. Write a real book and get royalties

As with writing an e-book, this is where you have to work hard first. But when the work is finished and the book goes on sale, it will become a completely passive source of income.

This is especially true if you manage to sell the book to a publisher who will pay you royalties on sales. For each copy sold, you will receive a percentage, and if the book is popular, these percentages can result in substantial amounts. In addition, these payments can last for years.

Mike Piper of ObviousInvestor.com recently did this. He wrote the book Investment in Plain Language, which was only sold on Amazon. The first book became so profitable that he created an entire series. These books are in total.

1. Get cashback from credit card transactions

Many credit cards provide cashback ranging from 1% to 5% of the purchase amount. You still go shopping and spend money, right?

Such bonuses allow you to provide yourself with a kind of passive “income” (in the form of reduced spending) from actions that you still perform.

1. Sell ​​your own products online

In this area, the possibilities are endless: you can sell almost any product or service. It can be something you created and made by yourself, or it can be a digital product (software, DVDs or instructional videos)

For trading, you can use a specialized resource, if suddenly you do not have your own website or blog. In addition, you can enter into a partnership agreement by offering goods to sites of relevant subjects or using platforms like (American marketplace for the sale of digital information products - ed.).

You can learn how to sell goods on the Internet and earn quite a lot from it. It may not be completely passive income, but it is certainly more passive than a regular job that you have to go to every morning.

1. Invest in real estate

This method falls rather into the category of semi-passive income, since investing in real estate implies at least a small level of activity. However, if you have a property that you are already renting out, the only thing left to do is to maintain its condition.

In addition, there are professional property managers who can manage your property for a fee of approximately 10% of the rent. Such professional managers help to make the process of profiting from such investments more passive, but they will take away part of it.

Another way to invest in real estate is to pay off a loan. If you take out a loan to buy a property that you will rent out, your tenants will pay off this debt a little each month. When the full amount is paid, your profits will increase dramatically, and your relatively small investment will turn into a full-fledged exit program from your main job.

1. Buy a blog

Thousands of blogs are created every year, and many of them are abandoned after a while. If you can acquire a blog with enough visitors - and therefore enough cash flow - it can be a great source of passive income.

Most blogs use Google AdSense, which pays once a month for ads placed on the site. You can also enter into partnership agreements to provide additional income. Both of these streams of profit will be yours if you own a blog.

From a financial standpoint, blogs typically sell for 24 times the monthly income the blog can generate. That is, if a site can earn $250 a month, most likely you can buy it for $3,000. This means that by investing $3,000, you can receive $1,500 annually.

You may be able to buy the site for less money if the owner really wants to get rid of this asset. Some sites host "eternal" materials that will not lose their relevance and will generate income years after publication.

Bonus Tip: If you buy such a site and then fill it with fresh content, you will be able to increase your monthly income, and you will be able to sell the site again after some time for a significantly higher price than you gave away when you bought it.

Finally, instead of buying a blog, you can create your own. This is also a good way to earn money.

1. Create a selling website

If there is a product that you know a lot about, you can start selling it on the profile site. The methodology is the same as when selling a product of your own manufacture, except that you do not have to deal with the production itself.

After a while, you may find that you can add similar products. If this happens, the site will begin to generate significant profits.

If you can find a way to deliver goods directly from the manufacturer to the customer, you won't even have to get your hands dirty. It may not be 100% passive income, but it is very close to it.

1. Invest in Real Estate Investment Trusts (REITs)

Let's say you decide to invest in real estate, but don't want to pay attention and time to it at all. Investment trusts can help you with this. They are something like a fund that owns various real estate projects. The funds are managed by professionals, so you don't have to interfere with them at all.

One of the main advantages of investing in REIT trusts is that they usually bring higher dividends than stocks, bonds and bank deposits. You can also sell your interest in the trust at any time, making such assets more liquid than owning real estate on your own.

1. Become a passive business partner

Do you know a successful company that needs capital to expand its business? If so, you can become something of a short-term angel and provide that capital. But instead of giving credit to the owner of the company, ask for a share of the shares. In this case, the owner of the company will manage the work of the company, while you will be a passive partner, also taking part in the business.

Every small business needs a referral source to support sales. Make a list of entrepreneurs whose services you use regularly and whom you can recommend for cooperation. Contact them and find out if they have a payment system for referrals.

You can add accountants, landscapers, electricians, plumbers, carpet cleaners, whoever you know to the list. Be prepared to recommend these people to your friends, family, and colleagues. You can earn commission on every referral just by talking to people.

Do not underestimate referral programs in the professional field. If the company you work for has bonuses for recommending new employees or new clients, take advantage of it. This is very easy money.

1. Rent out unused accommodations on Airbnb

The concept appeared only a few years ago, but very quickly spread around the world. Airbnb allows people to travel the world and pay far less than regular hotels. As an Airbnb member, you can use your home to host guests and earn extra money through rent alone.

The amount of income will depend on the size and condition of your home and its location. Naturally, if your house is located in an expensive city or near a popular resort, the income will be much higher. This is a way to make money from free spaces in your home that would be empty anyway.

1. Write an application

Apps can be an incredibly lucrative source of income. Think about how many people have smartphones today. Yes, almost everything! People are downloading apps like crazy – and for good reason.

Apps make people's lives easier. Whether it helps you post beautiful pictures or keeps track of tasks, there is always an app that is useful to someone.

You may ask: if there are so many applications, why should you try to create another one. Isn't there too much competition? All this is true, but fresh creative ideas can win. If you can come up with something unique, you can capitalize on it.

Don't know how to program? No problem, you can learn. There are a lot of different courses on the Internet, including free ones. Alternatively, you can hire a developer to create an application based on your idea.

The end result is an application that will potentially generate relatively passive income.

1. Create online courses

Every person is an expert in something. Why not create an online course about your hobby?

There are several ways to create and deliver your own online courses. One of the easiest ways is to use sites like