More financial freedom – how to generate passive income

Financial freedom | Photo: Peggy Anke, unsplasch.com, Unsplash License

The social contract is clear and unambiguous: society increasingly endows the individual with rights and duties from birth onward. One gets an education and the chance to prosperity. Income is the prerequisite for leisure time activities, because those who build up a regular income through their own work and who contribute their taxes to society, can enjoy the pleasures of society.

Work, leisure, sleep, this is roughly how the everyday life of the employable population is tacked on. But the digital age stands for differentiation. Much of what once seemed set in stone can be circumvented if approached properly.

The best ways to build passive income

Not everyone is comfortable with a regular work schedule, especially since it means that you have to submit to a clear hierarchy in a company, get along with colleagues you didn’t choose, and start small. The working day has a lot to do with the military, and the daily ringing of the alarm clock doesn’t suit everyone either.

By generating passive ownership, everyone has the chance to gain more and more independence. Ideally, passive income is so high that the need to sell one’s own labor is completely eliminated.

We present the three best ways to build passive income:

Acting on the stock exchange

After the boom in the 1990s, digitalization has brought the stock market a second mass influx. The reason for this is the falling inhibition thresholds, because today everyone can act comfortably from the smartphone on the bare floor. Traders decide for themselves whether to focus their strategy on recognizing trends or on value trading. Spotting trends is about spotting signs of a turnaround in the value of companies in order to buy stocks cheaply, which are all the more expensive to dump once they have peaked.

On the other hand, those who go by the value of companies and have studied their history can become rich by trusting their positive development. But no matter whether trend or value trading, a basic education for acting on the stock exchange is definitely part of it. The good news: high-quality trading coaching offers abound on the Internet.

Renting real estate

Not only companies can make money with real estate investment. The mechanisms of the industry also apply to private individuals. In general, real estate can generate passive income by subletting the property.

It is not necessary to buy a whole house for it. A few thousand euros is enough to buy a parking space or a garage in a busy location. If you manage to find landlords for these valuable objects almost consistently, you should have amortized the acquisition costs in the foreseeable future.

Profit sharing through affiliate marketing

You don’t have to start an online store or offer services on the Internet to make money. Sometimes a hobby that you practice passionately and with a certain skill is enough. The currency of the World Wide Web is reach, and the more daily visitors you have on your website, the more valuable it is. The same mechanism exists in social media. Here, the number of followers is crucial for the value of one’s appearance.

Who has now built up a certain number of daily visitors or followers, can enter into affiliate marketing. In exchange, he enters into a partnership with a company that is, for example, an online store. He advertises the company on his website with a banner or more or less subtly praises its products. The more visitors are directed to the affiliate through this anchor or even complete a purchase, the bigger the commissions are.