Lucrative additional income: Improving your cash register with passive income: These possibilities are there | message
Passive income as additional income
In general, if you want to earn money, you have to work and if you want to earn a lot of money, you have to work a lot. But that doesn’t always have to be the truth, because with a passive income you have the opportunity to earn an income far from the well-known basic principle of work efficiency. The passive income represents an income that improves your household budget without you having to actively work for it. This is possible through previous work or a concept in which, for example, investments work for you.
What is passive income?
The principle of passive income has been known for some time. Classic passive sources of income are, for example, interest, dividends or rents. In the course of advancing digitalization and globalization, the opportunities to generate passive income increased and the concept is becoming more and more popular. It is above all the digital nomads and other online entrepreneurs who generate part of their sales through passive income. We present three models with which you can also draw a passive income.
Invest in stocks or index funds
Among the passive income opportunities, purchasing dividend stocks is probably the most well-known. By buying individual stocks or ETFs, you receive an annual or quarterly dividend that averages around 3-6 percent. Since you acquire these securities once, you receive a continuous passive income from the time of purchase. So it is possible to earn money without any extra work. For those for whom this approach offers too little security, there is the option of investing in more widely diversified dividend ETFs instead of high-dividend stocks, for example, which reduces the risk of a total loss of the invested capital.
The acquisition of a property should be carefully considered and calculated in advance. But a real estate investment can also lead to a steady passive income if you rent out the condominium or the single-family house and thus receive a passive income from the rents paid. In this way you earn additional money without additional work and only have to fulfill your obligations as a landlord. However, these can be fulfilled on behalf of a property manager.
Making money through affiliate marketing is another way to generate passive income. Here, the income is gained through sites that work with affiliate programs and the marketing of products. So if you click on the corresponding links and then make a purchase on the website, the operator of the blog, the social media account or the YouTube channel receives a corresponding commission. First and foremost, this concept for a passive income is only interesting for people who also operate their own website, be it their own website or blog. And even then it can take some time before the additional income proves to be lucrative.
Finanzen.net editorial team
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