A vast majority of us aspires to become Millionaire or Billionaire in our lifetime, or at least wishes to acquire a financial freedom and security from the current bottle neck economic situations. You are totally different and unique from rest of the others, that’s the reason why you have come up on this article. You love to dream big, make plans and takes 100% responsibility to implement that plans for achieving the goals (Free Tip: Dreams once planned turns to goal!)Robert T.
Kiyosaki is one of the most visionary authors in regards to Personal Finance, Passive Income and Business Investments. He is also a renowned Entrepreneur and a successful Investor. He, in one of his best seller Rich Dad Poor Dad quotes “The poor and middle class work for money while the rich have money work for them.”If you have not still read the book make sure to click Rich Dad Poor Dad.Do you work for making money, or do you work for gaining financial freedom? Well, most of us belongs to a mediocre social and family circumstances.
Our parents and society has wired our brains in the particular belief to get in a decent college, acquire a good job and then lastly settle well in life. What most of us misses here is that being employed for a 9 to 5 job will surely get your bills paid but it won’t do us any good in long run. Some of you, who have already started their career, might have now noticed that at the end of the each month you are left with a near zero bank balance. You would also have noticed the same with your parents ending up in retirement with not much left at their disposal.So what must you do to get out of this never ending rat race? The answer is quite simple. You must effectively generate other modes of passive income sources which are self-sustainable and impregnable. You must find your reliable passive income sources based on one’s passion and profession which will ease you during financial hiccups and make you feel relieved in your day to day life.
The real pursuit of life’s happiness lies in gaining financial freedom rather than in making money.If you don’t know what you must do to generate passive income sources don’t worry, read this article till the end and feel free to comment below all your queries or suggestion.So let’s begin with basics,What is an Income? Income is a monetary advantage gained by an individual or a business institution in exchange for the goods or services they provided or for the capital they invested. Income is generally used by the acquirer for funding the everyday expenses. Most of the income are subjected to taxation. (Income not subjected to taxation.)Income is generally classified into two categories:1.
Active Income2. Passive Income What is an Active Income? Active income is an income where you are paid for the work you do. This can include commissions, tips, salaries, wages or the monetary payment you earned from a business where you have an active participation. For example, Sam is professionally a doctor, he gets paid only if he actively provides his service to the patients i.e. treat and cure them from their conditions. The day he takes off from his jobs or goes out for a vacation with his family he doesn’t earns a single penny.
Thus, the income generated from one’s active involvement of physical or mental aspects includes in active income. Money one generates from completions of specified task/projects or by working in 9 to 5 jobs is an active income.What is Passive Income? The income generated from the sources which requires minimal or no efforts from the recipient is called passive income. It is also where you get paid over & over again for the work that you did only ‘once’.The decisive factor to note here is, passive income sources requires an considerable amount of upfront work or monetary investment and proper nurturing in the initial phases of its development. For example, James is a retiring federal employee, he invested his retirement funds in the stocks of XYZ Private Limited. This industry provides high quarterly dividend to all its investors. Thus, James for rest of his life gets paid in the form of dividend without any regular effort put into it.
The alternative example for passive income is ‘Royalty’. The amount paid by the publisher to the creator of art or copyright holder in the form of money for each of his work being sold is called royalty. J.K Rowling, the author of Harry Potter series, gets paid for her each book being sold worldwide for the rest of her life. The main difference between active and passive income lies in the financial freedom, passive income offers over active income. What is the importance of Passive Income?#1 Passive Income gives you the Freedom of Time: Time is the greatest wealth one can possess. Time is invaluable.
Our own existence is measured in terms of time. We grew up in time, lives in time and perishes in time. As for the saying goes “Time and Tide waits for none”, unless you are an aspiring scientist who dreams to devise a time machine. If you are then comment below, I wouldn’t want to lose such a golden opportunity to relive all my best moments in life. So time is utterly precious. In a life of 9 to 5 rat race, you won’t be getting much quality time to spend on your passion or with your family and friendly. But with multiple passive income sources you become financially free to do your will.
This can ease you at work, reduce stress and fright of future and can provide ample amount of time at your disposal.This is the power of passive income.#2 Passive Income provides stability and steady financial growth in life: We are living in ever changing world. Here the most uncertain are likely to happen.
With the rapid growth in technological field and tremendous transformation in world markets; loss of job, high inflation, huge market depression are quite unpredictable. Security in job and stability in life have become invaluable assets in current scenario.Just imagine for a while, every month some random stranger pays for all your bills, your child education and still leaves behind some credits into your bank balance with the payment you earned from the active income source. Whoa! Just imagining this sends a chill down my spine. This could be a crucial crunchy point in your life, won’t it be?Yes, this is what actually happens it everyone who adapts to the evolutionary way of earning passive income. Once financial independency and stability comes to play, then it’s just a matter of time for you to envision exponential growth in life. So, now if you are all geared up mentally to be millionaire or even a billionaire then here are the top 10 ways to generate passive income. 1.
Teaching an Online Course / Online Tutor :Did you ever wished to be a teacher? Do you love to share your knowledge on regards to any of the wildest topics with your colleagues or friends? If yes, then this is would be a great opportunity to generate passive income.There are many website online such as: udemy.com, teachable.com, skillfeed.com, skillshare.com where you can register yourself as a Teacher/Instructor upload in some quality content in which you feel like an expert. Even if you don’t have any expertise in video creation or building up audience, don’t panic. These site have free tutorials and content regarding these aspects.
They even have a test trail feedback team working for content quality betterment. With each content you can add a price tag which should be reasonable to you and to the student who wants to purchase it. You can even promote your content via promotional offer provided by them. Then let the time play its chance; you would, in a short span notice the increasing demand for you content, assuming it is worth learning.What makes Online tutoring a better option than Traditional teaching?Traditional classroom education follows a syllabus of a particular foundation/government/board. They have well specified syllabus with necessary subjects included in it.
But what if student wants something which is out of the syllabus or what if he needs to enhance his talents? For instance, Leo is an engineering student who love wildlife photography, his traditional college education system doesn’t provides any medium through which he can grow his talent to a professional level. So there he need a tutor who can provide him the knowledge at reasonable price, that’s where he depends on online tutoring sites.From a teacher’s perspective, in traditional classroom teaching they can have a maximum reach of 100-200 students at a time whereas in online tutoring course they can reach up to millions of people all around the globe. It is estimated that teachable.
com has more than 7 million active students participating in their various course. This increases the teacher’s networking with people and that he can earn greater opportunities in life.I would strongly recommend that one must only choose a subject of his/her passion and expertise rather than choosing the one with more demand. For example, if you are an electrical engineer and your field of expertise is power electronics then you must choose it even though there is a higher demand for a course in web development in the market. The other important point one must remember will creating online course to take an evergreen topic.Click the link for How to Create Course on udemy.com?2.
Create YouTube Videos:A whole lot of crazy things are going among the teenagers and youths on becoming a YouTuber. YouTube has become a trend setter and it is actually a new way to generate a passive income. As per YouTube analytics, about 400 hours of videos are uploaded to YouTube every single minute.(Source)But as Herbert Spencer’s phrase goes “Only the Fittest Survive”, so has with YouTube only the best and quality video contents get viewed and paid the most.
Rest of them stands in a never ending queue to be lost in nowhere.How Do YouTubers get paid?All of us love watching videos on YouTube. Many of us have come across skippable ads in the beginning of the video or banner ads on the right side of video or flash card ads in the middle of the video. A large portion of us like those products, as they are well predicted from our previous searches histories, we click them & sometime buys those products. These ads are shown by Google AdSense program when the publisher signs up with them. Each time an ad is clicked or viewed completely YouTube gets paid. A proportion of what YouTube gets, is paid to the creator of video on whose content the ad was clicked on.YouTubers also get paid when some sponsored products are advertised with the content of their video.
This stacks up to the major percentage of what YouTubers earn. Some content creators use patreons as a source of passive income. Patreons are actually a small sum of money which the viewers donate to the favourite creators for supporting and encouraging them to keep creating such contents.Click the link if you don’t know How to create YouTube Channel?3. Sell an eBook, Physical book or audio-book:There were times in past when the publisher decides what the audience must read & what not. Sometimes these created a huge loss of opportunities for the writers who go on from ringing doorbell to doorbell to get their first book published. Some of these best manuscripts are left behind, in the dusky attics of unknown history.The finest example is of Dr.
Seuss, author of more than 60 children’s book which includes Green Eggs and Ham, his bestseller and The Cat in the Hat. During publishing of his first book And to Think That I Saw It on Mulberry Street he suffered an immense rejections from publishing houses, unimaginably 27 times. Later on by his sheer luck of running into an old friend who worked for a publishing house got his first book to be published.Then, the times were different. But with unpredictable intervention of digital media to the publishing sector around 1970, publishing a book in the form of eBooks was as simple as uploading a file over to internet with a single click of mouse.
(Source) The superiority of e-publishing over tradition publishing is due to three main reasons:a) Lower prices of book, as there is no wastage of ink or pages.b) Worldwide market and specified targeting of audiences with ads.c) Easier portability and accessibility on wide range of electronic medias.
Some of the best know online eBook publishers are Apple iBooks, Amazon Kindle, CreateSpace, Blurb, Kobo and Lulu. People who are already engaged in online tutoring, Blogging and as YouTubers has easier market to target these eBook amongst the students or fan followings. These online publishers also provide the authors with video, webinars, eBook guidance in regarding book cover setup, best title selection and marketing analysis with advertising. If the audience like the concept then your book will be hit in no time.Once your book has gained some recognition and fame then you will be approached by publishers to get your eBook to be sold as physical book.
Some prefer creating an audio-book which is also great alternative as audience can listen to the creation in your voice and emotions.How do authors earn Royalty?Publishing houses (including e-publishers) publishes the book and brings it to the audience in a readable format. The audiences who wants to read the book, buy it from the publishers. For each book sold author gets a percentage in the form of Royalty from the publisher. Thus, once the author has done with an upfront work of composing his creation, he can earn a lifetime passive income effortlessly.Some of well know self-publishing authors with their eBooks: Locked In by Kerry Wilkinson, Trylle Trilogy by Amanda Hocking, Candles on the Sand by Katie Stephens etc. Some author who gained world-wide recognition from their books: The Adventure of Sherlock Holmes by Arthur Canon Doyle, The Lion The Witch and the Wardrobe by C.S Lewis, The Time Machine by H.G Wells, To Kill a Mockingbird by Harper Lee.Click the link for How to publish an eBook on Amazon?