After reading some financial management books, someone may ask the following questions. How can a person buy a house for rent to earn passive income without enough down payment? How to ensure a person is able to earn passive income from stock market?
In fact, the opportunity to earn passive income is everywhere and needs to be identified. Once you have chosen the right investment, it will take some time to help you rich. The real rich are not getting rich overnight.
The following is an simple example that I hope will be instructive.
Many families have carpet floors. It takes about $500 to buy a brand new carpet washing machine. Actually, it can only be used 1 or 2 times a year. Therefore, lots of people do not think it is a good idea to have a machine home. The question is if you can invest in a carpet washing machine. If you buy one machine, you can not only use it, but also can rent it out. Through internet, you can inform so many people that you have a carpet machines for rent. It is convenient for others to rent a machine to clean their carpets at a low cost. At the same time, you are able to earn passive income.
Let's do a calculation. Assume a machine costs around $500. If your earns $25 for each rent, assume there are 5 people renting the machine every year. Then, you will have $25 X 5 =$125 income. The return of investment (ROI) is 125/500= 25% every year. You will not spend too much time on it. Therefore, the $125 is your passive income per year.
Is this an easy investment? In the future posts, I will find opportunities to share the knowledge to increase ROI. Even without the principal, you are still able to have passive income.
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