6,99 €
Mehr erfahren.
- Herausgeber: Youcanprint
- Kategorie: Ratgeber
- Sprache: Englisch
- Veröffentlichungsjahr: 2021
If you want to be a millionaire, then keep reading. If you've been struggling to amass wealth, then keep reading. Do you want to learn the secrets of becoming a millionaire? Do you feel stuck in a rut and ready to learn new habits? While we've all dreamt big such as driving big cars, and splashing money on luxuries we have always wanted, chances are you've considered this as a daydream despite moving on to purchase a scratch card every time you step out to buy milk. However, becoming a millionaire isn't difficult and unattainable as you may think. Many people prove every year that you don't need to be working in a bank or win a lottery to build up your wealth to seven figures. And for many rich-listeners, becoming a millionaire is more a matter of lifestyle and not having to be scared about your finances, than how much you have kept in the bank. To live like a millionaire, you don't need to have a million pounds saved in the bank. In fact, 99% of millionaires don't. To become a millionaire, you will, for sure, require to be on top of your finances and investments. Becoming a millionaire can mean all sorts of things, but in this book, we're typically mapping out a realistic path to growing your wealth past £1,000,000. This book quickly walks through the whole of your life, reviewing the steps you can take to become a millionaire. To go straight to the point, successful people have successful habits, and unsuccessful people do not. In this book, you will discover the million-dollar habits of men and women who started from rags to riches in one generation. You will discover how to think more effectively, make better decisions, and take more effective actions than other individuals. You will discover how to plan your financial life in such a way that you accomplish your financial goals quicker than you imagine. One of the most critical goals you must accomplish to become happy and successful is the development of your character. You want to become a great person in every area of your life. You want to become that person that others look up to and admire. In each case, the crucial factors in the accomplishment of each of these goals that we all share in the development of specific habits that result in what you want to accomplish. Remember, if you keep doing what you've always done, you will never break away from your job slavery. You will continue to live your life on autopilot. Millionaire habits teach you every strategy to develop millionaire habits for breaking free from your job and start earning today. Discover which habits you need to apply and how to get started? How will the success process change your entire life? Inside this book, you will learn: How to change your habits, and avoid procrastination? The millionaire strategies The secrets to success Discover your emotional why Now is the time to begin getting serious. Stop blaming others for your failure and take deliberate steps.
Das E-Book können Sie in Legimi-Apps oder einer beliebigen App lesen, die das folgende Format unterstützen:
Ähnliche
Financial Freedom for
Beginners
How To Become Financially
Independent and Retire Early
Nathan Bell
All rights to this book are reserved. No permission is given for any part of this book to be reproduced, transmitted in any form or means, electronic or mechanical, stored in a retrieval system, photocopied, recorded, scanned, or otherwise. Any of these actions requires the proper written permission of the publisher.
All Rights Reserved
Copyright ©
Nathan Bell
Disclaimer
All erudition contained in this book is given for informational and educational purposes only. The author is not in any way accountable for any results or outcomes that emanate from using this material. Constructive attempts have been made to provide information that is both accurate and effective, but the author is not bound for the accuracy or use/misuse of this information.
CHAPTER ONE
Introduction To Financial Freedom
Guy and Tom are two friends who work together in a similar capacity under the same company. They both are alike and different, alike in the sense that they share the same responsibilities and duties, but different in their reactions and willingness to perform these duties. Guy is always ready to perform them, even when unforeseen circumstances arise; he is simply always prepared. However, Tom is the direct opposite; he is in a constant state of panic and crisis based on the complaint that he does not have enough funds to support these situations.
The subject of concern is, what creates this significant difference between these colleagues?
What Is Financial Freedom?
It is important to a lot of people or a vast majority of people that they can satisfy their needs or desire at whatever time it arises.
However, many are not equipped with the mentality to actualise this desire; hence, the need for financial freedom.
The meaning of financial freedom is subjective to different people and the various situation they find themselves. For a teenager, financial freedom is independence from parents; it is them not having to depend on the income or allowances given by the parents. Therefore, teenagers might regard themselves financially free if they have their personal income which funds their lifestyle irrespective of the benefits provided by the parents. To a retiree, it is the freedom to have the desired lifestyle without the stress of bankruptcy because of the retirement plans or investments that have been set in place. To some people, it the ability to perform in a role they admire or remain self-employed without strain on their finances.
However, financial freedom, in general, refers to a lifestyle void of the concern or domination of income. In clear terms, it refers to the ability or status of a person to provide or support a need in whatever circumstance. It is a position where you are settled financially; any unplanned or sudden expense will not cause a dent to your financial state. It refers to a state of being economically independent without having to depend on salaries from employment. It is also important to note that financial
freedom connotes a debt-free situation, that is; a person who wants to lay claim that he is financially free cannot claim that the money that funds his free state is from debt.
Financial freedom is not restricted to being able to only fund emergencies but also to find solace in the fact that your life after retirement has specific plans in place that would ensure financial stability and growth. It’s a lifestyle that is dominated by money and a constant worry to make these funds.
It also entails the ability to retire early or quit a job simply because you have lost interest in that particular field but do not have a specific task that you are registered to at that specific time. It is the ability to afford a desired lifestyle without stress about the next paycheck. Therefore, you are in control of your finance and lifestyle instead of your financial state dictating a particular lifestyle it believes you can afford without collapse. It is the ability to work for cooperation or company based on the fact that you enjoy whatever role you are given and not because it is crucial to your finance.
The Means to Attain Financial Freedom As stated in the above paragraphs, every individual seeks to attain financial independence and this state of finance has different meanings and interpretations to people. However, these people are expected to go through the same or similar steps to attaining financial freedom, hence, the reason for the subsequently discussed opinions;
Set Goals: This is an essential principle to financial independence; every idea and investment needs motivation.
Therefore, a set goal helps you to choose the right investment and employment options that would ensure you are moving towards a goal which leads to financial freedom. Also, these goals are advised to be in clear, specific and realistic forms because this would increase the possibility of achieving them. However, even after sustenance of a position where you no longer stress about money, has been reached, it is still important to live on or make a budget so that you do not overspend and return to your former stage. It is of primary importance to be purposeful about financial freedom.
Make a Budget: it is vital to make a set budget; this would help to regulate your spending and ensure that the right percentage is invested in meeting your set goals. A budget is used to document the progress of savings and investments.
This also helps to contain unplanned and unnecessary temptations to spend recklessly.
Pay Loans: if you desire to have a financially independent lifestyle, it is essential to pay up or clear all loans; student loans, house loans or car loans. If this is not done, it would only consume or eat up the profits/interests of your investment. It is crucial to set up all financial investments on a fresh slate, so your desire for independence is not undermined by debt and the interests that overwhelm it.
Register to an Automatic Savings Plan: There are various retirement savings plans made available for employees by their cooperation. For example; the 401(k)s made available for employees of private cooperation and Thrift Savings Plan available for federal government workers and members of the uniformed forces, gives individuals an option to have their savings automatically invested in a plan after their retirement. These plans contribute largely to financial freedom because of the matching contribution option that is contributed to your personal savings account and investment funds opportunities. Also, this particular option helps ensure that a specific percentage which has been registered by you is pulled from your salary and contributed to your investment before you start spending, and in some cases before tax deduction.
Examine Investment Options: This is the central way to ensure financial freedom as every investment accommodates interest and growth based on the percentage and time it was contributed. It also provides individuals to choose an
investment option that suits their situation as there is a variety of them. However, it is advisable to begin investing as soon as because its success and growth are based on the time contributed and time fixed and decided to be for withdrawal.
Therefore, it is essential to examine investment options or hire a financial advisor who could assist based on gathered knowledge to decide on an option for your situation. Growth can be supported with a weekly, monthly or yearly or any comfortably consistent plan that would not affect the individual’s lifestyle but improve and manage the growth of savings.
Accommodate Bargains: In most cases, when individuals begin to make some percentage of wealth, they decide that there is no point behind negotiating goods they can afford at the stated price. However, this a financial sucking idea which prevents a lot of people from saving expenses if they had asked for or agreed to a bargain price. This is so because they find it an injury and their status and would not like to appear cheap. Therefore, it is important to negotiate since this could save them a considerable amount of money if they submit themselves to negotiate with these sellers. Although some people refuse to negotiate because they believe that, some businesses are not open to negotiation, this might be in fact true, but some small-scale businesses are available to negotiate the price of goods. Also, buying in bulk and
consistently from one seller attracts discounts and creates a more relaxed atmosphere to accommodate discounts.
Be informed: knowledge in financial freedom is power. To reach and sustain a stage of financial independence, it is essential to keep yourself updated about economic laws, rules and regulations as they apply to you. Ensure that you are updated on the changes and improvement in tax laws and the investment and interest options; this would help ensure that your investment is not at a loss, and you profit at full capacity based on whatever option you choose to be reasonable and valuable to your desires. Also, it is an essential defence to avoid people who would like to delude an investor from making crucial investment options or cheat you from making the necessary profit. However, to prevent this, it is advisable to employ the services of an advisor.
Do Not Spend More Than You Earn: This is of critical importance in every financial step or journey; it is also of vital importance to the course of financial freedom. Although the idea of financial freedom is to afford whatever lifestyle you desire without the fear of the impact it would make on your finance. It is also of notable importance to highlight
“live below your means.” An individual who is in a constant hurry to spend the funds or income that should be contributed to the savings of the financial freedom would find himself in a never-ending journey. This does not mean that you should cut down or limit your spending or cancel
spending at all, it merely projects the idea that an individual who is interested in financial freedom has to be able to distinguish between wants and needs. These needs have to be prioritised accordingly.
Hire a Financial Advisor: In the preceding conclusions, it has been suggested that a financial advisor is needed; before and after the attainment of financial freedom. In cases, once individuals see that they have amassed so much wealth, they either invest or spend it wrongly, hence, the need to employ the services of an advisor. A financial advisor would help manage the wealth or funds that have been accumulated. An advisor could also be of help in ensuring that you subscribe to the right investment option and funds to minimise risks.
Correspondingly, they help in determining a plan that would stabilise your freedom and also reasonable withdrawal plans for your situation.
Importance of Financial Freedom
It is the case that some people are not concerned about financial freedom, they are satisfied with the lifestyle of dependence on salaries and working for corporations because of their financial state, they are not concerned with the profits and interest from investing. However, apart from the benefits and advantages of financial independence, it also gives you the plan to schedule your day or time according to your desire. Your life is fixed with things that sincerely interest you. Therefore, you have the freedom of choice to select any of the following options; There is no compulsion to work with or for a company, a financially free person has enough funds to identify a hobby as a job daily even though it might not provide as much as an actual
job. The liberty to work based on the fact that you enjoy something rather than the necessity to fund your lifestyle.
It puts you in a relaxed and settled position or situation to do whatever you want. For instance, a financially free person who does not work for a company has the liberty and the funds to travel anywhere at any time without any impact on his status.
However, someone else would have to apply for a break at the cooperation to attend to this. You have the liberty to plan your schedule and work at any time you desire. Financial Freedom does not only include being able to support your desired lifestyle. It also entails being able to assist and fund those who need this help.
Conclusively, the difference between Tom and Guy is that Guy has been able to identify with financial freedom to satisfy his needs while Tom is yet to recognise the steps and importance of this ideology.
CHAPTER TWO
Money Mindset Secret
What conviction do you have about money? Is it a sparse idea or commodity that cannot be attained after so much effort? Or are you of the belief that money is plentiful and the reality of being wealthy is a fact that is possible? Well, the opinion that you have, or support is referred to as a money mindset. It is merely your way of thinking or view when it comes to issues about money, funds, wealth and finance. It is of crucial importance in locking into financial freedom. A lot of people are not aware that they have a role in deciding what manifests in their life based on their thoughts and opinion, your money mindset goes a long way in determining the position of wealth you find yourself. This particular factor can be traced back to the connection between the law of attraction and the law of manifestation. These laws are the primary tools that come to play in issues concerning your money mindset and reality. The law of manifestation states that you attract the reality that you desire for yourself. The events that manifest in your life are attracted to the opinions you embody concerning a particular subject matter. Therefore, if you think that there is a scarcity of wealth and it cannot be acquired no matter the amount of hard work and skilfulness put into it, you might find your finance stagnant and in a position of
destitute. It is essential to believe that money is obtainable for it to be the reality or manifestation in your life.
Therefore, the concept of money mindset refers to your belief and opinion about the circulation and existence of money or wealth in the world and your community. However, your money mindset is not shaped by the salary or allowances that you receive, and it is formed based on opinions that you have read, seen and experienced over the years. Sometimes, you unknowingly develop a money mindset without knowledge that it exists. Money mindset is an essential determining factor in attaining the status of financial freedom, your chosen position or mindset also determines your stand or orientation in issues concerning finance and economic changes; it reflects in your discussion and attitude towards others when a question about money is brought up. However, two underlying mindsets control the wealth or finance of every individual, and they are the abundance mindset and the scarcity mindset.
The abundance mindset refers to a state of belief or understanding that wealth and money can be acquired; that is, attaining money is a reasonable and possible idea that is not as distant or as far-fetched as many people believe. The abundance mindset puts people who identify with it in an available position to identify with financial freedom; the laws of attraction and manifestation are at an advantage in their lifestyle and finance.
The people with the scarcity mindset, on the other hand, believe
strictly in the thought that money is sparse, and attainment of money or wealth depends on a vigorous search which you cannot ascertain that money would be acquired after such search. In most cases, they find themselves working hard and with an urge or the constant need to acquire wealth but making little or less money compared to those with the abundance mindset. It is important to note that a particular mindset is not dependant on the money you currently have but on a series of event and the conclusion you have unconsciously or unconsciously drawn; this is the reason for the possibility that some millionaires or head of offices are encompassed with the scarcity mindset. It could be as a result of various events, and it affects their investments negatively because of the fear it instils about risks. However, this does not mean that once an individual has identified with a particular mindset, he would solely depend on it for life. The remedies are some of the issues discussed in this chapter.
The important question at this point is how your money mindset is chosen or decided? The mindset you seem to identify or select is as a result of various factors. An individual might want to identify with either the abundance or scarcity mindset as a result of some situations or ideas highlighted in the combination of your personal choices, sometimes your unconscious thoughts or feelings made this choice a long time ago before you become aware of the existence of a money mindset. It is sometimes
caused by the financial circumstances or situation an individual grew up with, a person whose parents or family were in constant disarray because of limited funds or unstable finance would probably identify with the scarcity mindset, to such person, attaining funds will always be a struggle rather than a pleasurable act.
Also, the economic or the financial state of the general public during an individual’s growth is a factor in determining one’s mindset. For instance, if Tom’s community or country was in recession during his formation years, he believes and absorbs the ideology that there is little or not enough money to benefit the entire population. The money mindset is majorly determined during the childhood or growing stage because most opinions and ideologies are formed during these years.
The Effects of Your Mindset on Money Sometimes people find themselves in favourable situations where money is always available to support every need and desire that arises. However, most people do not belong to this particular category. Whether an individual acknowledges it or not, the amount or percentage of money that you make or that you have in your account is as a result of the mindset you have subscribed. Therefore, it is essential to understand the importance and the effect of the money mindset so that it could be changed if it is identified as the factor of detriment on your road to financial freedom, and if this is not the case, it is essential to continue the abundance money mindset to attain and sustain a financially free state.
What are the effects of money mindset on your current financial state?
It helps nurture financial freedom: a good (abundance) money mindset helps to attain the position of economic freedom and independence. Beyond achieving financial freedom is sustaining it and growing in a financially free state. This mindset helps to ensure that there is a manifestation of wealth and growth in your reality rather than the scarcity mindset, which would limit the wealth and funds received.
It limits financial growth: the scarcity mindset is a massive barrier for growth. A person with a scarcity
mindset does not necessarily have to be without funds, he could be wealthy to some extent, but he does not have any desire or curiosity to become aware of what exists beyond his current financial state. Therefore, a scarcity mindset could make individual comfortable in a position where he should ordinarily want to change or move beyond, as change is expected to be the only constant procedure in every individual.
It determines your approach to money-related issues: A determinant in the way you talk, spend, live, and opinions you give in every situation about finance or any other subject matter is based on your mindset. As stated earlier, a person with a scarcity mindset would identify no reason or importance in making more funds or profit.
However, an abundantly conscious person tends to identify the most valuable positions and ideas in a room so that he could invest and promote such a financial situation.
It affects your business dealings: take, for instance, a situation where you would like to meet an investor to invest in your business or cooperation but your scarcity mindset that does not have total confidence in the idea that you are presenting. Most individuals find confidence attractive, and no one would like to invest funds in a business that the CEO feels has an indifferent feeling concerning. Therefore, it is not enough to stand between
the scarcity and abundance mindset, to be financially free; an individual must choose abundance and be most confident in his choice.
A scarcity mindset might be interfering with your goals and limiting your potential. Due to your constant fear of loss or “not having enough”, many profitable business deals are not considered because an individual with a scarcity mindset is never ready to take risks. They are unaware of the fact that every investment growth or profit is made based on the ability to take chances on reasonable or potential business deals.
An abundance mindset gives you an edge: it allows you to see and identify opportunities in situations or cases where others believe there is only limited profit. It gives you foresight because of the belief that benefit would be made in whatever situation or account that you invest.
Therefore, you are more open compared to others with the scarcity mindset when it comes to investing in new ideas or businesses.
Your money mindset determines a lot of factors in your life; it determines your association, the places and events you attend, your response to issues and every other aspect of life
Steps to Attaining the Abundance Mindset.
You do not have to live in a loss for the rest of your life if you have been a victim of the scarcity mindset for some time. A scarcity mindset can be clarified when your lifestyle and expenses are based on your paycheck and amount of salary or income you get. With such a mindset, you might never have the ability or fierceness to participate in whatever interests because of the fear that you do not or will never have enough.
However, the abundance mindset is filled with various advantageous options and opportunities, and it considers every profit or advantage that could be acquired from investment deals which have been ignored or avoided by individuals with a scarcity mindset. A person with an abundance mindset would never consider the possibility that a business or investment might not be successful at its start-up stage; they are optimists when it comes to issues, ideas and thoughts that concern money.
There are some necessary steps to shift from the position of scarcity to abundance to ensure financial freedom; identify your current mindset: to grow or move on from a particular mindset, it is important to own up to and acknowledge one’s current stage of belief to proceed further. You have to be self-aware and conscious of this change or development, to ensure that you are mindful of the shift from scarcity to abundance.
Research: If you are reading this, you have taken the first and most important step in shifting to the abundance
mindset. It is essential to identify what kind of mindset you identify with by reading books and carrying out research on different money mindsets.
Focus on benefits not losses: although most mindsets are formed during childhood or the teenage years, in some cases, it is formed during adulthood when you have a job.
It is even possible that you grew with an abundance mindset, but due to some losses during your adult stage, there was a loss that sabotaged your entire belief of abundance. How then do you move forth from this? To grow beyond the scarcity mindset, it is of importance to identify the factor that established it in the first instance and move beyond this affair or circumstance. Therefore, it is important to focus on the profits that can be made when the loss has been forgone. Let go of every mistake that has been made in your finances to establish to release negativity and harbour positive energy.
Budget: in every stage and decision towards attaining financial freedom, it is crucial to identify a direction or budget for the money made. A budget is a laid-out plan of funds that is spent on every aspect of an individual’s life.
How then does a budget contribute to the abundance mindset? It is essential to understand that saving or working for money without a significant plan can be aggravating when you believe you do not have any use for the wealth garnered. A budget is like a motivator that
would give you a definite reason to identify with abundance. From the standpoint of a marketer, if he does not have a particular task or purpose of attaining money, he would feel indifferent about his financial situation, which resembles the scarcity mindset.
Associate yourself with people of a similar mindset: in most cases, individual energy or esteem is drawn from those he surrounds or associates himself with; it is essential to associate yourself with people that identify with the abundance mindset to be of abundance. For development in every stage of life or a particular aspect, it is vital to consort people who have gotten this position right, to learn the appropriate procedures; fraternise with the right kind of people. In this case, it entails associating with other people who can be pinpointed to have the abundance mindset or similar values that you would like to assimilate.
Reaffirm yourself: it is essential to have motivations or goals that would affirm the advantages and needfulness of the abundance mindset.
Take note of your finances: it is important to have a ritual of examining the income and spending of your account, this would assist in sustaining your financial mindset; every individual grows based on the fact that whatever they have invested in has made some percentage of income.
Avoid complaining: most individuals find themselves complaining about the circulation of money; this only contributes and hardens the scarcity mindset. Therefore, you have to avoid all negative positions and thoughts to ensure that there is no contributing factor to a scarcity mindset. As this is mindfully done, it establishes growth for an abundance mindset. Create a ritual to show gratitude to yourself, appreciate whatever stage of growth you have been able to attain.
To achieve financial freedom, it essential that this necessary change or step is carried out as it determines the profit and investment choices that an individual would be able to make.
Disregard the opinion that some people are born with the abundance mindset; hence, their success and growth in finance; take note that your thoughts and ideas about money are something you can manage. You should be in charge of your money mindset rather than taking the principal role in your lifestyle.
CHAPTER THREE
Passive Income
Every individual has that one friend who is not interested in going through the stress of taking a job that would require a strict work ethic; you might not even have a friend as you are that person to someone else. Every person reaches that stage in life where no ideas or job are of possible interest to them, the only task they seem to enjoy or consider enjoyable are those that require little or no effort from them. In the technological era that the world has evolved into, most people are interested in the strenuous jobs that require total dedication and adherence to schedules or rules that do not fit their desires.
What is Passive Income?
Passive income refers to the money or salary gotten from a task or “job” you are not actively involved. Unlike any other job or income gotten, the passive income does not require a significant level of effort to attain or sustain the situation. As far as there is a passive income, there would surely be an active income, which differentiates these categories of income. The active income involves and requests active use of time and effort to generate income while the former does not. However, there is an advanced level of passive income which is referred to as the progressive income; it relates to income sustained by enforcing little or minimal effort into performing required tasks. Then, what advantage is gotten from passive income? The most obvious advantage and benefit of passive income is the fact that it exerts little or no energy from its participants; you are getting paid for doing activities and tasks that do not require your physical participation. However, some passive income tasks might be a bit demanding at its initial stage, but it becomes easy after. The basic principle of this idea is to earn while you do nothing. An example of this is rental property income. The second benefit is the tax option available under this decision; some taxing institutions distinguish between the different types of income and tax them appropriately, not generally.
In this objective, there are three main categories of income as recognised by the Internal Revenue Service (IRS), they are
passive income, active income and portfolio income. According to the IRS, the passive income is gotten from three categories, which are trade, rental and passive activities which you do not significantly participate. The primary streams to generate passive income are through investment, real estate, trading, and blogging. Individuals who subscribe to this are usually huge supporters on self-employment rather than formal jobs. The subject of self-employment is the significant connection it has to financial freedom.
How Can Passive Income Be Generated?
If you have suddenly quit your job or you’ve been fired and plan to depend on your savings, it is only a matter of time before this savings finish. Even if you do not belong to any of these categories, but you desire to earn more than your salary, a passive income is an important aspect to be considered. You do not have to be necessarily jobless to make money passively; it could be regarded as a side hustle to enhance your financial status when added to your basic pay. The following are some of the ways passive income can be generated;
Although people project the passive income as profit acquired
“while you sleep”, this is a false representation of the entire idea of passive income. This particular community or set of people fail to identify or present the main constitute of passive marketing which involves the fact that you must have put in a specific percentage of work at the initial stage of the project.
Either time or money has been greatly invested to finally put you in the position where you can earn “while you sleep.” This mentality misleads people into delving into passive income without any necessary training or investment in their knowledge of the subject matter. Therefore, a lot of work has to be generated into the start-up to ensure a properly managed income.
Passive income entails contribution, without this, where is profit gotten? To ensure that you would consistently enjoy a healthy
profit from financial income. It is important to note that that you would have to invest something in the idea that would generate this income. It could be time or money, depending on the business you decide to invest. Take, for instance, investment in dividend stocks; investment in dividend stocks exists in companies that pay a particular percentage of their profit to their shareholders or investors. To qualify for an idea like this, you must have invested a large amount of money in becoming a shareholder in that company. Also, an investment in real estate would require a substantial investment in funds and time in finding a property that would produce a large percentage of income. Therefore, profit is gotten from the rental of these properties.
Therefore, to generate a particular percentage of income through passive income, it is essential to understand that no money is earned fully. Although this might some seem to be the case since you have that friend that does nothing but looks to make a lot, you have to understand that some principles and effort has been laid down at a point in his passive income career for him to identify with this position.
Steps to Attaining Passive Income Due to the discussion in previous pages, you have become familiar with some of the importance and measures to attaining a stable passive income. However, it is necessary to state these steps in clear and precise terms to ensure that every participant establishes a well-thought passive income that would provide him consistent profit in the long-term. It is possible to invest into passive income at a loss after the investment of time and money, to avoid this, it is vital to highlight and define the reasonable steps to be taken by anyone interested in passive income as an actual job or a side job.
It is essential to have an idea: it is not strange to you at this point to learn that passive income provides you with a lot of options. However, it is crucial to research every opportunity and select the most suitable one. Interest is an essential factor in passive income; since you are expected to invest your time and money. If interest is absent at this point, you might become tired or weary while your profit takes time to grow. Therefore, in choosing your idea, you have to consider several factors that apply to your particular situation and the money you have in hand. If you have a significant capital to invest, real estate or dividend stock investment is a desirable option for you. Although you may not get the profit and interest at the exact time of contribution, the profit you
would make after you have given the investment time to grow is incomparable to that contribution. Some of the ideas that can be considered by any participant are; o Selling information: the technological stage that the world has reached has made the sale of products that contain specific information possible. Most people have become curios, highly to learn things; hence, the massive production in the information provided products, for example, e-books and audiobooks. Once the set-up process or effort to write a book has been covered, it is left to the participants to earn money while products are sold. However, to gain from this, you have to ensure that your products are not mediocre as there is a lot of competition in this aspect.
o Rental: although this idea might seem traditional to some people, real estate investment and ownership of property is an excellent way to make passive income. It does not exert as much effort as the above idea, but it requires understanding in the process and technique of real estate to avoid the loss of capital that has been invested. An individual who is familiar with the components and requirements of passive income through real estate investment can establish this idea as a reasonable and actionable source of income after retirement. According to John Graves who is an Accredited Investment Fiduciary, there are three requirements that must be
satisfied to ensure the stability of passive income; you must be able to determine the profit you expect from the contribution made to the investment, you must have an idea of the total cost of the property and the expense required and also the financial risks that accompany owning the property as this factors would prepare you for every situation.
o Affiliate marketing: this might not produce as much profit as the already stated ideas, but it is a way of earning without inputting so much effort. What is affiliate marketing? It is a marketing technique whereby bloggers or marketers promote the products of a third party by posting the links to such products. How does this technique make money for you? If an affiliate link is posted on your site and a consumer clicks on the link, at this moment, purchasing products from the third party, you are entitled to a commission from the third party.
The percentage gotten solely depends on the number of products that are purchased. However, success in passive income through affiliate marketing might take some effort because you would need to develop an audience for your site and create a stable percentage with consistent and reasonable content.
o Lending: Peer-to-peer lending involves lending money to people through a registered third party. The profit made
from this idea is on the interest paid by the party that has been lent money.
o Dividend stocks, High-interest savings account, Rent out an extra room or car, Display Ads
Create a goal board: this is more of personal use to you than the business. It is not going to be easy to participate in passive income. However, it is essential to note the idea where you would like to invest, the profit rates of that idea, the percentage of contribution you would like to make and the profit expected at the time of return. It is essential to set these goals as it helps to motivate you during the time of discouragement; hence, it is most important to set your goals on paper. Studies have shown that goals written out by individuals become more actionable and reasonable to them than the ones that exist in their minds. Therefore, write out your goals and expound as much as you can on paper as this would assist in your investment.
