The term “Passive income/stream” is used widely these days and it emerged in the early days of Covid-19. Before getting to the point of “why” we must have to know “what” is the passive investment? It basically means to increase your investment gradually, also known as the buy & hold strategy. Most people believe that if you want to be a successful entrepreneur then creating passive income streams is the way. The universal phrase that you might have heard a lot of times is “Don’t put your fruits in one basket,” you should also prefer making a portfolio with your investment rather than investing all your assets in one project as profits & losses greet us from time to time.
Passive investments are also considered as the earning recurring revenue from your products that you have created/manufactured/designed some time back and your customers are still interacting with it. Another form of Passive Investment is to act like a “sleeping partner” in a company with your investment; you just get the profit shares of yours and do not have to worry about how to make this company runs.
Why Choose Passive Investment way:
I would suggest everyone maximize their passive investments and minimize their daily hustle to make their work strategy work out. The answer to “why” is simply BESTS. It will let you know why you should choose passive income streams.
Better than Banks: what a normal person would do with the salary/business income? Right, deposit into the bank, but it should not go this way. I can understand you have a family to look after, you have to save something for an emergency, and you have fixed deposits for some reason. But, believe me, you could get more out of your savings just by investing them somewhere. Your money in banks would not grow with that speed as it will grow with investing and I can say that you would agree with me.
Earn More: you are doing a job or running your own business, either you are living hand to mouth or earning a handsome income. Earning more is not bad, but it motivates you. You can always earn more. What you have saved for rainy days, invest it, invest it now. If you are even getting pennies for them, your savings are still increasing.
Success: if you have passively invested in different projects that would be ultimately added to your portfolio. You will be known for them. If you have just 1 share in Coca-Cola, you are among the owners of Coca-Cola. This will motivate you; give you a sense of being a more diversified entrepreneur. If you have invested in different companies, you will also succeed as those companies will succeed.
Time: Time is money. If you are earning passively, you are a free soul. You can go wherever you want, you can do whatever you want, and you don’t have to worry about your financial inflows. It is happening automatically. Don’t get me wrong fella, but you can leave your job peacefully. You can spend more valuable time with your family. You can read more books, you can be more religious, and you can be an explorer. Most successful business owners prefer this, which is why they spend 6 months planning, analyzing, and optimizing their business/investments and the rest of the 6 months visiting different countries of the world, learning a lot of new things.
Safe: Some people are risk-aversive and do not like to try new things in person as well as in their professional life. They are afraid of taking the first step toward their success & freedom, as I was used to be. But believe me, you will love it. What I did, was just start with a little portion, $5 would be enough for the experiment. Invest it anywhere, then gradually increase and diversify. As you spend time to organize your business, just like that, spend time to organize your investments and analyze reports/ Outcomes regularly.
Ways of Passive Investment:
You can either join a forum where you find different ideas in which you can invest with active partners and earn your profit shares. PIEI.pk is one of them, where you can find different entrepreneurs with ideas where you can invest or you can give your own ideas to get them funded. Kick starter is another example where you can share your project idea.
Crypto Currency is in trend these days, I suggest you be careful when investing in cryptocurrencies/shares, as it is a very reactive market, and whether it be a boom or a dip, it happens so quickly. Keep these things in mind, and you can always invest. Small risks can be healthy and profitable. You can also invest in Real-estate, products, or raw materials.
If you are a freelancer (if not, be one today), you can create your own products, digital products to be precise. You can create E-books, blogs, designs, stories, and books (I know that sucks), these products will generate recurring revenue for a lifetime.
There are hundreds of other ways to invest passively. I will highly suggest you look at every aspect and explore the world of passive investments. Trying new things and ways to be more successful is the real sign of aliveness.
So far, this is it. Take care, and be safe.