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passive income
source: freepik

Passive Income Ideas Help You Make Money

Are you set for life? Do you already have a passive income or plan to finance your retirement? The days of state pensions are long gone. How would you pay “life” if you quit your job tomorrow? How long can you go? And what would you do with that free time?

For most of us, it’s a ‘work till we fall’ world. Finding some gold during our golden years is up to us, but how much should we retire without worrying? Not so long ago, the magic number was a million dollars. Achieving millionaire status by 40 was once considered a ‘fit for life’ situation for most people. These days, that number is close to $5 million.

Saving money is not the answer

Let’s do math. A 20-year-old child would need to save $2,000 a month over the next 40 years to reach $1 million. A 60-year-old child with a million can live a modest but comfortable life for about 20 years without worrying about money. Looks good, but let’s be realistic. How many people can afford to save that kind of money? Do you really want to save by the time you turn 60 to retire? It means denying something today, so you can have something tomorrow. There must be another way. Actually there is.

passive income in life

Can you buy for $1000 a week? It’s not much depending on where you live, but if you want to skip yachts and helicopters, a monthly living allowance might be a more realistic option to finance your retirement. It’s a expired goal for many business managers, and those who have it refer to it as passive income. But what is passive income?

Simply put, passive income is when you make money doing nothing. There are several ways to achieve passive income. For example, a small shop owner who works from morning to evening may call himself a master, but his earnings are based on hours worked. Obviously not passive income. However, if that store owner opens two more locations and hires a manager to run it, passive income is generated.

Each store earns a profit. Owners can keep 35% for themselves at each store and pay the remaining 65% to each manager. The owner no longer has to work, but still gets a monthly income. This is an example of passive income.

How to move to a passive income life

The first step is to broaden your knowledge. Almost all successful entrepreneurs spend a lot of time reading and learning. Think of an industry or field that you are personally interested in. How can you use your skills and experience with opportunities to generate lasting income? Can you expand your knowledge further?

Anyone moving into the entrepreneurial realm should anticipate three to five years of late nights and busy weekends to expect great returns on their investments. Patience is key.

take the assets

Let’s see how well you know yourself. Write down your most valuable skills and experiences on paper and put your personal interests on the floor. Include anything you can do well or naturally.

Now get another sheet and write your business idea. Include the weird and funny now. Add 10 ideas to your list every day for a month. Find the funniest and most complex ideas at the end of the month. What remains is the gateway to passive income.

Tip: Don’t overlook or ignore ideas that require a large initial investment. Imagine a garden covered with garbage and weeds. You will need money to buy tools, seeds and plants, but you can get rid of the mess right away. Do everything you can first and expect money later. If you have a good idea, investors will find you.

Start your list this weekend. This list will raise a lot of questions. Most of the answers are around the corner, but start moving forward and you’ll find them when you need them.

Alternatives

Some entrepreneurs do not have the work or life experience that can transform them into entrepreneurs. Others don’t want to work day and night just to get started. For such people, another option is to start trading on the foreign exchange market (forex).

As with any business, you need to spend some time researching. It also requires startup capital. Forex investment deposits can start from as little as $1. Compare this to the startup cost of a high-end business. You can learn and practice online as much as you want, and a salary of less than a week can give you a good start. The learning curve is also much faster. You don’t have to wait 5 years to start seeing returns on your trades.

Top trading tips

Take a look at these 20% strategies and see if there’s anything worth trying out.

  1. Set an ideal goal for each month.
  2. 20% deposit of monthly target
  3. Calculate 20% of your deposit to make your daily trading budget
  4. Divide your budget into 5 equal deals
  5. Make a profit with 20% of your investment on every trade and avoid losses

To demonstrate these 5 points:

  1. I want $2500 per month in online trading
  2. Deposit $500 (20% of target)
  3. Your daily budget is $100 (20% of your deposit)
  4. I set up 5 orders for $20 each.
  5. Each order is closed when the P&L reaches $4 (20% of the order).

The goal is to increase your daily budget by 20% before the end of the day. For each success, that revenue is added to your total balance. Take 20% of your slightly higher account balance the next day and invest with a slightly higher daily budget. The balance rises with each successful trading day.

Trying to hear $20 a day is a little low, but you might be surprised to find that the 20% increase in cumulative effect (aka compound effect) gives you $656 in earnings per day in just 3 months. A 20% increase in 6 months turns your $500 investment into $559,677, which will double in two weeks. Alternatively, consider stopping increasing your trading budget after 36 days of maintaining your target earnings of $2500 per day on average.

Because it sounds so fantastic. The math is right and true, but it is unlikely that you will increase your budget by 20% every day. It sometimes happens that you lose your entire budget during one day, so reduce your budget the next day and slow the compounding effect. Also, since you lose all your trades every day, it is unlikely that your trading account will expire after 3 months. Set your personal goals between the two extremes when you think realistically.

Now all you have to do is take the first step. Your talent as a trader will grow over time, and you can set new goals as you progress, but remember that there is always a risk of loss. So, do not increase your daily budget prematurely. Trading is not a passive income, but traders from home can spend as much time “working” as they want.