If you manage your money wisely, you can build an effective system for its reproduction. Such a system will work almost autonomously. You can go about your business, and money will work for you - every day, 24 a day.
Instructions
Step 1
A person who lives on interest on income from real estate, securities or other source is called a rentier. An annuity can be called a regular income, which is sufficient for a person's life. The recipient of the annuity can be an individual, not just an entrepreneur.
Step 2
There are several ways to get rent, they have significant differences, so you should take a responsible approach to their choice. The most famous of them is placing funds in a bank. Also, rental income can be obtained by purchasing securities. If you have a lot of free funds, you can invest in a business, become its co-owner. At the same time, money is not only saved, it is multiplied through investment.
Step 3
Another option is to buy real estate, both in our country and abroad. This is not only apartments or houses, but also the purchase of space in hotels, shopping malls. It is also worth considering such an option for purchasing commercial real estate, such as purchasing modules for individual storage.
Step 4
Please note that you do not have to waste your time to generate income. In addition, the income will increase over time, because you will be able to reinvest part of the funds earned.
Step 5
When it comes to rentiers, many imagine a European retiree who can afford to travel after retirement. But this is not entirely true, because you can become a rentier at a much younger age.
Step 6
It all starts small. First, examine your expenses. Not every person can accurately say about their items of expenditure and give exact numbers. Some costs may be better cut.
Step 7
If you're just thinking of investing, start with financial literacy. You should at least have an idea of where to invest money, and where - never to invest. This will allow you to protect yourself from the actions of scammers who, as a rule, find their victims among those who understand little about finance and investments.
Step 8
In any case, you should understand the basics. But it is better to entrust the preparation of a personal financial plan, the formation of an investment portfolio and its management to professionals.
Step 9
In terms of expenses, it is recommended that you keep a financial journal. By making records of expenses, you can analyze them at the end of the month. Do not take consumer loans without extreme need, it will only alienate you from creating capital.
Step 10
It is very good if you can keep 10 to 30% of your income. Later, you can invest this money in the business, create sources of passive income. Over time, your passive income will increase, you will be able to use different financial instruments.
Step 11
It is worth noting that you can start investing with insignificant amounts. The main thing is to manage money wisely and invest regularly, and not from time to time.
