How to make a passive income?
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- Hoa Dang Ngoc PMP®1316579717
It's seem that we are going to far on passive income. As Hien Duy define earlier about passive income that in the "regular basis without continuing effort. It can start out as hard work and then end up requiring absolutely no work at all"
@ Pascal it's seem you are going to far from this :). Your idea is very nice but seem unreality, things not that easy as your stated before.
I saw on your profile, you might working in insurance company, I think join an Insurance company now and working hard to building team that bring back you commission that one type of passive income generator.-
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Hi Pascal:
Passive income is an income received on a regular basis, with little effort required to maintain it.The American Internal Revenue Service categorizes income into three broad types, active (earned) income, passive income, and portfolio income. It defines passive income as income from "trade or business activities in which you do not materially participate. Other financial and government institutions also recognize it as an income obtained as a result of capital growth or in relation to negative gearing. Passive income is usually taxable.
Some examples of passive income are:
Earnings from a business that does not require direct involvement from the owner or merchant;
Rent from property;
Royalties from publishing a book or from licensing a patent or other form of intellectual property, such as computer software product;
Earnings from internet advertisements on websites;
Pensions.Dividend and interest income from owning securities, such as stocks and bonds, is usually referred to as portfolio income, which may or may not be considered a form of passive income. In the United States, portfolio income is considered a different type of income than passive income;
The IRS has a specific definition of passive income that excludes some of the incomes listed above. Royalties, for example, are, according to the Service guide, generally non-passive in nature. Additionally, interest, dividends, annuities, and gains from stocks and bonds, lottery winnings, salaries, wages, commissions, retirement income, guaranteed payments for services are considered by the IRS to be non-passive (According to WikiPedia)
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Let's be clear about passive income as any one define it and "Rich Dad, Poor Dad" spirit sees it.
THERE ARE NO PASSIVE INCOME NOT WORKING. Except perhaps, when you are retired and the government gives you an income for life. Or someone winning at Casino so much that he can put it into many banks worldwide and get an income from interest.The "Passive Income" you think of is, as per #2 book after "Rich Dad..." is becoming an Investor, a I.
Moving out of E=employee, S=Self employed (1-person CEO, Chief Everything Officer like a doctor or a lawyer) or B=Business owner to I=Investor is every one's dream. This is a not a Status, being an I necessitates skills and work. The same applies to all other ESB status, you need a set of skills and if you are excellent, your work is less.
If you invest in Bershire Hathaway share managed by famous and successful 'I' Mr Warren Buffett,
you, as a E, S or B would enjoy a passive income of 21.1% growth of the share since 1965 Mr Buffett started being in charge.
He is Billionaire and enjoys a 21.1% income per share growth, but you are passive, he is not.
He is the Investor so he has developed the skills of looking for capital, financial, marketing, risk and human analysis, he works every day to invest the right amount, at the right price to the right company.The good thing about being an excellent "I" (which WB is the best to date) is that once you have the skills you don't "sweat too much" a few phone calls, a quick financial analysis, you transfer 100Mn$ to the company you buy, then you get back every year your 20Mn$+, provided you made the right choice. Multiply by 170Bn under management...
Just to recap on your views, who is an Investor, Employee,
I= Property owner, invest in stock/bonds
B= Establish/ Build a business with a team
S= Economist, scientist publish or patent... sorry still have to publish more news, book. Harry Potter 1, 2 , 3 , 4, 5...
E= MLM Herbalife/Sophie=sales manager paid on commission only (Herbalife stops business in VN or government don’t renew license, bye bye income...), Smart working, good performance at work, be a good manager then stop working (impossible, your boss will higher the target or promote you, then “same player play again”)-
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I also do like Robert Kyosaki......Rich/Poor Dad is very practical mindset in USA and might be applied to other countries.....but again to put these mindsets to real world is another story.........I saw lots of people these days want to get rich quick and that's good as you must have the gut to start things and keep on the clear goals for yourself.....there are many ways, many oppotunities around us....just look around, but am saying that why 10 people, or 100 people seeing the same old way of making money, and only few suceed.....that's the real story........many factors involved there...and luck can be a big part I do personally believe..................so good luck for any future entrepreneur.........
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PUT YOUR MONEY IN THE BANK IS NOT SAFE IF YOU DONT CHECK 3 THINGS:
1- DEPOSIT GUARANTEE: what is the guarantee by law for you deposit if the bank goes bankrupt. In the USA maximum is 100,000$ per account by government. In other words, If you have 130,000$ in a bank in USA and the bank goes bankrupt you get back only 100,000$ as maximum limit guarantee. Check what it is for Vietnam.
2- GET INTEREST HIGHER THAN INFLATION: the inerest should be higher than inflation because if you put 100$ in the bank in 2011, your puchasing power is you can buy a swiss swatch. You get 5% interest, you get 105$ in 2012. But inflation is 15%, means the 100$ Swatch now costs 115$ in 2012. If you get your 105$ back, you can not buy a Swatch any more, you lost 10$ purchasing power.
3- LIQUIDITY CHECK: If your deposit is in a country like Vietnam who is known for having USD shortage deficit. You need to make sure that the bank you deposit it can give back to you this money in Vietnam or transfer out of Vietnam if you need cash in Japan, without restriction or delay!Not checking the above makes you think you have an income when you have a potential or actual loss.
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You means impression income? If yes, answer these questions, you will find how
What can you do?
What is your PASSIVE INCOME DEFINITION?
Does INCOME just mean money?
How much INCOME suitable with you RITENOW?
.....
THE SIMPLE ANSWER IS: IF YOU CAN DO GOOD PERFORMANCE, YOU WILL EARN GOOD INCOME!-
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OH, This definition is really new with me.
Thanks Hien Duy for your explanation
:) I know a company named Herbalife, their employees have their own level. Low levels recieve income from customers, high levels recieve income from their low levels (KINH DOANH THEO MẠNG). This is an example of passive income. Isn't it?-
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