The simplest definition is: passive income is income that you generate without actively taking care of it. This means that you make money by doing nothing or very little to generate that income. Most of the time when a person wants to increase his income, he is offered to find a job or to work overtime. No question of that with passive income. Anyway, do you have the time and / or energy to do a job in addition to yours? I did it and I know that is not the right solution. I exchanged my time for money. It is not as interesting as making money by doing nothing or almost nothing! It takes a little time and investment.
Here are some ideas that I hope will inspire you. These passive income ideas will help you save money while you sleep.
Invest in crowdfunding
There is probably no safer investment than placing your money on a Livret A and touching the interest. Unfortunately, the interest rates are so low that it is only worth it for your precautionary savings. Touching 0.75% a year will not make you richer. Obviously at this rate there are risks.
What risks?
Risks of bankruptcy concerning the companies to which you lend your money. Most loans are covered by insurance but there is always a risk. To smooth this risk, you need to invest small amounts on several medias. If you have $1,000 to place, do not invest it all on a single company but rather $50 on 20 companies. So you do not risk losing everything on a single investment. Despite the risk of default, it is very likely that you will earn more than putting your money on a booklet. Even life insurance. I have a gross return of 9.53% currently thanks to crowd funding organizations. I lend essentially through the pretup platform. If you invest $200 in less than 3 months on one or more projects you will earn $15 and me too!
Try index funds
An index fund is a fund that replicates a stock market index, for example the CAC40. Passive fund management leads to lower fees than traditional funds. Trackers are called trackers in English. Warren Buffet said trackers were the best stock market for beginners. The CAC40 has gained more than 10% since January 1st! It’s a very simple investment. You have nothing to manage, buy, sell, choose your funds, or rebalance your portfolio. Everything is managed by the index fund.
With any broker, you are free to choose a fund that is based on any index. For example, there are index funds created for almost all market sectors – energy, precious metals, banks, emerging markets, and so on. All you have to do is decide which one you want to buy, then invest money and relax. Your stock portfolio will then be on autopilot.
Binck.fr is an online broker that will allow you to invest in a tracker. $0 account keeping, $0 custody fee. I recommend investing 5regularly in a tracker reflecting a fund such as the CAC40 or the S & P 500. For example, put $50 every month in the tracker lyxor cac40 and you will be long-term winner. To compare online brokers, use Online Broker Comparison software.
Invest in real estate
Real estate is an easy way to create wealth. Everything may seem difficult when you are not used to it but there is no magic. You have to train, read, listen and learn. Once you have bought one or more apartments or buildings, you repay the loans and collect the rents. This gives you an interesting passive income. You still need to manage your property.
If you want to be quiet, you can delegate management work to a real estate agency. Obviously, you will lose profitability. Or invest in real estate crowdfunding through Homunity . You have nothing to manage except to select your project and collect between 8 and 10% yield. In addition, it is practical for the small budgets, you can begin to invest in the real estate from $1,000.
Write a book and earn royalties
As for writing an ebook, a lot of work upstream is mandatory. But once the book is written and marketed, it becomes a totally passive source of income. If you manage to sell your book to a publisher, it will pay you a percentage on each sale and if the book sells well the pay could be substantial!
There are still many other passive income ideas to put in place. Before you become passive income, you will have to build these revenues with work upstream. Believe in yourself and try. Thousands of people have sources of passive income.
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