10 Passive Income Generating Opportunities- Best Investments You Must Make Part Of Your Multiple Streams.
Anyone that is financially stable controls a system that is automated in generating income.
The satisfaction is not in the size of the system you control but having a system that is running without you . You will get perfected in the process as you acquire new knowledge and skills that is required to sustain you as you advance and expand.
Are You Building A Pipeline Or Hauling A Bucket?
Robert Kiyosaki in his book title: Cashflow Quadrant shared an interesting story that explained why you need passive income other than being solely an active income earner.
Once upone a time there was two contractors Ed and Bill whom the village awarded contract to make water available to the community.
Ed went on fast, bought two galvanized steel buckets and started hauling water from the lake, he would always woke up earlier to make water available in the large concrete holding tanks. He could trek some distance to supply the village with water on daily basis. It was hard work but he was happy hence he was getting paid.
The second guy, Bill disappeared for a while, he did the opposite of Ed strategy.
Instead of buying buckets, Bill wrote a business plan created a company, got four investors put every structure in place and returned after six months with a construction crew.
Within a year Bills team built a large volume of stainless steel pipeline which connected the village to the lake.
Bill make a more purified water available for the village 24hrs a day, 7 days a week and at a 75% less, having advantage over Ed who works only on weekdays. The village went into excitement for the faucet connected to the pipeline.
Ed in attempt to compete added two more buckets making four, extended his shifts into weekends and continue in the hard job. he hired his two boys to work on the night shift for him, with hope to take over the hard job of hauling buckets. But eventually they all ran after graduation.
Ed encountered so many problems as an active income earner and lived the rest of his life in financial crisis.
Bill, discovered the neighbouring villages will likely need water so he went with his business plan and got their attention to supply his most purified, low cost, efficient water delivery system. he got all the villages networked with his pipeline water system selling for a penny per bucket. he earned huge passive income selling clean pipeline water to billions of people around the world daily, with all the money going into his bank account. He became rich through a system he took time to built over time.
What Are You Building? Passive Income Or Active Income?
• Active Income.
Any earning that is dependent on your active day to day commitment is active income. this means a self employed person is an active income earner, the person who must go to work before getting paid is an active income earner.
• Passive Income.
This is an income that is generated from a system that can thrive without your day to day participation.
Does this means you do nothing and get money flowing in as passive income? No!
You must build a system that you nurtured to generate passive income, and the time of building it requires some kind of patience, courage, discipline, dedication, determination etc.
An investor who pulled out money to invest in a project that is still at primary stage take guts and discipline to do that, else there will always be reasons to distract your decision for considering such an offer.
What about the person who defied all odds to stay with their dream of building a business in the face of difficulties knowing that the business will grow to make passive income?
There is always a sacrifice you must pay to set a system rolling.
Like the story of the two village contractors, Bill returned with a plan to build a pipeline that connected the river to the village, after spending six months to put his team together, it still took him another time before he finally got the system ready.
These are not common decisions that people who are committed to building passive income investments must follow to get their system in place. you must pay the price first.
So, if you are an active income earner you can equally build a business or make an investment that will grow to generate passive income for you.
Do You Have A Financial Plan?
The aim of every business person is to make income, and when the passive income from your business or investment is enough to pay your bills and still save, it means your investment is generating cashflow.
This is the peak of every business. remember what I said earlier, it is not the size that matters but having a system that is automated to pouring income into your bank account even when you sleep is what makes the difference.
Expansion comes in when you re-invest the income into thesame business or a different business to have multiple streams of passive income.
An average millionaire has about 7 streams of income.
Successful business people both young and old have atleast 7 streams of income.
I am building my own 7 streams of passive income too. I took my time to study the philosophy behind this and come to understanding that, it’s a way of creating backups.
Everyone needs a backup to survive in a slippery economy, you can always bounce to your backup in times of disruption.
Mention any successful business person you know, they have backups. Dangote has his backups in chains of businesses, and that is why he could shut down a branch of his factory due to external crisis but yet have his backups in other arms of his business running to produce income that cover for the short deficit of the other.
Richard Branson have his own spread into Airline service, diseal locomotives, rocket, books etc.
All these big names are building one common thing, a system that is set rolling to generate passive for them.
What Are The Basis Of Chosing Your Own Passive Income Streams?
Consider the era we are in, you must understand how to chat the economic patterns, know which area to invest your time, resources and energy, and what you are building should create a system that can generate you passive income.
The Internet age has brought a revolution, creating more opportunities to those who have developed skills to adopt to the changes, while causing pains to many who are yet to realize this reality that the cheese has been moved.
What Are The Must To Have Passive Income?.
1• Invest In a Business
This means financing a business, there are some start ups business that call for investors, some of these businesses are already in operation but want to expand their services.
When such opportunity present itself, ask for the business plan, check the financial statement, you will know if the statement is showing positive indicators.
Many rich people who understands this part of building passive income got into many that really make them a good fortune in returns.
Also know that there is no guarantee for succeeding in financing a start up, the chances of surviving is dependent on the know-how of the team behind it, else its 50-50.
2• Build a Blog.
The greatest digital assets you should devote your time to build is a blog.
Your blog is your own internet where you publish articles about what you know, there are people out there who are searching for what you know.
The value on your blog can be monetize in different ways;
• You can sell courses about what you know using your blog.
• Create some space on your blog where companies can pay to put their adverts.
• Google pays you cool money when your blog meet the requirements.
These are all passive income avenues that you must not be there for things to work.
Linda Ikeji, Bella9ja must not be there for their blogs to earn them income, they have set a system rolling.
I have written a post earlier on the best blog niches to choose.
3• Write a Book.
Publishing a book is big business, and it means creating a lifetime passive income for yourself.
Your book must be what solve real problem to be able to get the attention of people who will order to read.
Remember what I said earlier? always think of how to leverage the internet to achieve a quick result with less cost.
Create an e-copy of your book and put online where people can download without reaching out to you. you will only know from the bank credit alert as people all around the world will be buy your book.
Books doesn’t expire, you can only improve the content by making available a 2nd, 3rd edition as the case may be.
Authors like Brian Tracy, Donald Trump, Robert Kiyosaki, Tony Robins etc has part of their passive income coming from selling their books.
4• Build an App.
If you are a developer or you have an organisation that has large database like school, Hospital etc consider developing an app. Like an e-book, you can build an app to help increase revenue and engagement with your existing business.
You can also develop an app to market directly to people on Google play App store.
The key is to identify a need, then build an app that fulfills that need.
You will make huge income from this source if your app is adopted by many users.
5• Build Rental Properties.
This is the most of all time passive income generating source.
Building rental properties in cities that accommodation is in high demand will give you a life time passive income.
You can expand by taking your income to re-invest until you have cashflow.
6• Build a Hotel.
Building a Hotel in an industrial rich city is a big business that you must plan to achieve.
The value for the property increases in relation to ages.
You don’t have to do any other thing to got your Hotel working.
7• Invest in Stocks.
Buying shares generates good passive income returns to you as far as the organisation remains in business.
Shares appreciate in value over time, even though market fluctuations may affects it growth rate but a thriving company shares gives passive income in dividends.
8• Register Your Car with Uber.
Registering a car with Uber or Taxify is big business.
You may start with a car but if you really want to do it big, you will create a savings account for it to save the income until you are able to re-invest to have more cars registered with Uber or Taxify.
9• Invest In Real Estate Investment Trusts- REITs
There are some organisation whose services is to use your money to develope properties in cities that has demand for it.
Investing with such organisations will increase your income without actively being involved in the day to day activities of running it.
10• Franchise Your Business.
If you have an existing product or service business that is highly demanding, you can franchise it by issuing out license to other people in different locations to produce under your label.
You discuss the terms and start making passive income.
Kentucky Fried Chicken used this kind of strategy to spread their business all around the world.
Building passive income is what everyone who truly want financial success should consider and work having it established.
You will not continue to work to old age, invest in business and not just passive income business but create multiple streams of income.
Hope you learnt something new, I will appreciate if you share with us, or if you know some good passive income opportunities i did not mention here, share it with us in the comment box.
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Best Wishes in your commitment to financial success.