The spending and saving habits of every person keeps developing over time and it is because of this that these habits are very hard to change. Economists often use the phrase “propensity to consume” to describe this situation, which suggest that additional portion of a dollar earned that will be consumed by us.
For instance, if you earn 100 dollars, it is recommended that you spend 90% of your earnings, meaning you get to save $10 and use the remaining $90. However, this is never the case because our spending patterns are often controlled by the psyche and we may over spend at some point in time.
Because we can’t change our spending habits to fit the recommended figure, a little passive income can help us generate extra cash that will help us support our established spending habits without putting strain on regular income. The following is a complied list of top five ways on how to generate passive income.
1. Affiliate Marketing
Affiliate marketing simply means that you sign up with an entrepreneur or a company and sell their product or services. For example, if you have a tech website, you can become an affiliate of either anti-virus software company or web hosting company. This will enable you earn hundreds even thousands dollars every month depending on amount of website traffic you receive each month. To become a successful affiliate marketer it requires dedication and time to build traffic to your website, social media and email marketing.
2. Network Marketing
It is also called multilevel marketing and is one of the most popular forms of passive earning. Once you join the network marketing company you become part of their team. The aim is to become a leader of your area so that you can earn more money. The main disadvantage to this network is that if you join a team with poor leadership you will hate network marketing but with a good leader you could be earning more than $4000 every month. Make sure that you completely understand the fine print before signing up in any network.
Bonds, stocks and annuities are another great ways to earn extra cash. If you are not financially savvy, hire a financial adviser who will help you choose the right investment that suits you. If necessary take up finance classes to understand all about investments. Investment can be a long term passive income if it is well selected; therefore, do your homework carefully.
4. Flea Markets
Do you have stuff that you no longer use in your attic or basement? If you do, pack those things in a back of your car and head to the flea market. You can make a couple of hundred dollars from selling those stuffs depending on what you are selling.
You can earn royalties from writing songs, books or even developing products. For example, when song writers die their heirs have right to auction percentage of their songs during estate sale. You can bid on a song and if you are accepted, you will own a piece of it and receive a royalty pay check each month from the song.
Passive income is a good way to achieve road to financial freedom. You can secure a financial future for you and your family through this hassle free investment.
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