5 Ways Passive Income Can Help You Change Your Financial Future

The article was written by and originally published on Entrepreneur.

Take control of your finances and have the life you want to live.

“Don’t let making a living prevent you from making a life.” Said John Wooden. The guy lived for almost 100 years.

Does his statement seem relevant to your current lifestyle? Have you ever wanted to change or improve your financial dependency?

I’m not talking about getting a raise or finding a better-paying job. I am talking about taking control of your finances and living the life you want to live, rather than one that is dictated by someone else’s expectations.

People who don’t have or earn a lot of money may not be able to save for . How are they supposed to live when they can’t work anymore?

What if I told you that there was a way to make money without having to work for it? Would you be interested in learning more about how  can help you change your financial future? It’s true! Passive income is the most effective way of making money with less effort.

What is passive income, and why is it important?

Passive income is any money you make from an investment, property or business that can generate earnings without requiring additional effort on your part. Passive income is an investment that generates additional revenue without extra time or effort from you, which means it’s perfect for people with limited incomes or time to invest.

In simpler words, passive income is what you make when your money works for you. Passive income can come in the form of investing, royalties or even gambling. People looking to get ahead of inflation should consider passive income because it grows faster than regular income due to potential massive gains.

Passive income is necessary because it will help you build wealth and create financial security in the future. It’s always good to have an emergency fund, but with a passive source of cash flow, that emergency fund could be much larger and better equipped for unexpected expenses.

The first and most important thing to know about passive income is what it is not. It’s not something you can earn from a regular job. You have to put in the work up front to develop the systems so don’t expect to get rich quickly with this type of income.

5 ways passive income can help you change your financial future

Do you want to change your financial future? Do you want the freedom to work on what you love, rather than having to go into a job that pays well but leaves little time for anything else? If so, passive income could be the answer.

Let’s get to know exactly how it can help you for your finances in the future.

1. Freedom of time

Do you ever wish you could spend more time with your family without constantly thinking about meeting monthly financial deadlines? Do you wish you could take the time off from your regular job without worrying about eating up PTO hours or sick time? Time freedom is the biggest and most important benefit of passive income. Being able to generate income for your family while you’re sleeping, or spending time with your loved ones is life-changing.

Passive income provides stability and security for those who don’t want the worries associated with running their businesses or being self-employed while still allowing them freedom from the 9:00 am to 5:00 pm work day.

Passive income opens up opportunities for people who are employed in corporate America, and those who are operating their own companies to have the time available to invest in what they are passionate about, without the financial pressure they are used to. If you love working at your regular job, but it doesn’t provide the income you need, passive income could be the answer you’re looking for.

2. Less stress and fear of the future

It’s no surprise that money is a major source of stress for many people today. It appears that most individuals have some amount of worry about finances that can lead them down anxious paths, including depression. Money isn’t the most important thing in life, but it certainly makes things easier!

According to a Merrill Edge report, the majority of Americans (56%) would prefer to choose a partner who could provide them with financial stability rather than one who would give them a head over heels love. How sad is that? Imagine giving up on your dreams, or living through an unhappy relationship because you have to make sure the bills are paid.

Making enough money to live comfortably without having to worry can completely change your life and level of happiness. Would erasing the stress of where the bill money was going to come from change your life for the better? I know it did mine. Adding passive income that works for me made me feel like I could finally just enjoy the life going on around me.

After questioning more than 12,000 individuals who had previously applied for loans to eliminate their credit card debt, a survey conducted by Harvard concluded that people who had at least $500 cash on hand showed 15% higher life satisfaction than those who didn’t.

If we talk about well-being subjectively, on average, wealthier people are always happier and more contented with life.

Fear of the future limits our quality of life, making it difficult to enjoy today. A passive income can prevent this as you no longer have to worry about having enough money at month’s-end for your regular costs and bills. All these benefits make us feel better mentally, emotionally and physically.

3. Ability to live and work from anywhere

Many people like to have the freedom and independence that comes from passive income. You can live and travel wherever you want, without worrying about your job at any specific location.

For those who dream of traveling around the world but are unable to, due to their nine-to-five jobs or other obligations, this could be an incredible opportunity. This is a chance to live life on one’s own terms while still being able to take advantage of financial stability without sacrificing passion in any way.

Passive income allows us to take care of the cravings of our hearts by traveling to incredible places without worrying about our financial future.

4. New horizons for growth and stability

You know, when you’re able to make money just by doing something you love and not having a boss watching over your shoulder telling you what to do all day long, it is something heavenly. That increases your productivity and gives you ample time to divert your attention to more important things to help you grow more and make more.

When your income is automatically transferred to a savings account, you don’t need to worry about meeting expenses at month’s-end by exchanging direct time for money. This helps create fiscal clarity, which fuels our goal: future financial stability!

Instead of having to run off to your office every day and indulge in mentally exhausting work, you will be able to train yourself to focus on things that will make you grow and prosper over time.

5. Pursue what you love

We all have things that we’re passionate about doing in life. Unfortunately, the moment something comes up, our passion becomes a distant memory, and instead, it’s replaced with anxiety over bills or just getting by each day on what little money is left from last week’s paycheck.

Passive income frees you from debt so you can indulge your fantasies without worrying if next week is going to be any better than this one was.

Passive income allows you to go debt-free or at the very least financially independent from your job or partner. Passive income means giving yourself time for whatever makes you happiest: music, dance classes or culinary art (perhaps in Italy?), artistry of all kinds…whatever brings inner happiness without having anything holding back those desires anymore.

Conclusion

Passive income is the prospect that can help you significantly change your financial future. I have discussed why it’s important and how it can make your future financially secure and enjoyable. It may not be easy, but if you are willing to put in the work right now to build passive income streams, then there will be huge rewards waiting for you later in life.

How to Earn Passive Income with Foundation Capital

If you want to generate a sustainable passive income stream, Foundation Capital is one of the most reliable organizations to invest in.  Our process has been refined, perfected, and proven over the past 12 years of renting our clients’ assets to the construction industry.

For more detailed information on how to make a capital investment in construction with Foundation Capital, as well as the terms, conditions, and risks, refer to the following FAQs and guides:

(Support) What Is Foundation Capital and How We Invest?

(Support) Construction Investments Vs. Others

(Support) Foundation Capital FAQ Library

(Support) Schedule Your Free Consultation

(Social Media) Foundation Capital Facebook

(Social Media) Foundation Capital LinkedIn

(Social Media) Foundation Capital Twitter

There’s No Better Time to Start a Passive Income Business than Now

The article was written by Peter J. Burns III and originally published on Entrepreneur.

Similar to passive investment, which goes in and out of favor on Wall Street, embracing the passive income concept makes a lot of sense.

The concept of passive income has been around forever. Since passive income does not have to be actively managed, it is much more scalable. This affords entrepreneurs even more time to pursue both active and passive income opportunities.

I’ve started many of these businesses myself over the last decade, as well as helped others. With this experience in mind, I want to share important steps in preparing to participate in a passive income stream, and what to look out for ahead of time.

Grow your credit score

Foremost to building a passive income stream is having a good credit score. This opens many doors for extensive capital, which can be surprisingly cheap. Even if you have the funds sitting in liquid investments, borrowed capital is a better option. A good credit score allows you this capital, which is the lifeblood of any venture.

You should want to maximize leverage, too, never using your own capital when you can make a profit off of someone else’s debt capital. By leveraging debt capital with suitable terms and interest, you maximize your return on select investments while your capital remains intact.

Cultivate a network

It’s important to have intellectual resources around you. Picking the right passive income opportunity is not easy. If you have cultivated a network of entrepreneurs that you trust, you can discuss your options and get their intelligent feedback.

The bigger the network, the more valuable it is, so don’t be afraid to share your great ideas with those around you. You can even share your ideas with your broker, yet understand that they may be territorial and worried that you will divert capital away from them.

Find something proven, and be patient

Proven passive income streams are aplenty in e-commerce. There is no disputing the benefits, and efficiencies, of ordering online, especially with an increasingly remote workforce. This is one example, but the truth is that the Internet and its capacity for efficiency will spawn new passive income ideas for decades to come.

Before choosing an , do your homework and identify others who have been successful with that particular investment before you. Then, don’t expect to be immediately successful, just because they were. It may take a few months longer than you expected, to experience that same level of success. Impatient people rarely succeed as entrepreneurs, as they’re likely to bail out at the first roadblock. To succeed, you must sometimes put in meaningful work, and that often takes more time than you’d bargained for.

Be careful

Many people are selling passive income ideas, but with limited expertise behind them. These people are tantamount to used car salesmen. Do your due diligence to determine if experts are creating the engine behind the sales forces approaching you, and whether or not they will be accessible in some form or fashion as you pursue this new venture.

You should also attempt to identify whether or not the purveyor of a particular opportunity has deep pockets. If you burn through the initial capital and have nowhere else to turn to but a traditional bank, that will not be good. Banks have a limited understanding of passive income projects, so you are better off conferring with the purveyor beforehand to make sure that you’ll have access to reasonably priced capital in the unlikely event that you’ll need it.

How to Earn Passive Income with Foundation Capital

If you want to generate a sustainable passive income stream, Foundation Capital is one of the most reliable organizations to invest in.  Our process has been refined, perfected, and proven over the past 12 years of renting our clients’ assets to the construction industry.

For more detailed information on how to make a capital investment in construction with Foundation Capital, as well as the terms, conditions, and risks, refer to the following FAQs and guides:

(Support) What Is Foundation Capital and How We Invest?

(Support) Construction Investments Vs. Others

(Support) Foundation Capital FAQ Library

(Support) Schedule Your Free Consultation

(Social Media) Foundation Capital Facebook

(Social Media) Foundation Capital LinkedIn

(Social Media) Foundation Capital Twitter

How To Create 7 Streams of Income for Passive Wealth

The article was written by Samuel Leeds and was originally published on Entrepreneur.

You may have heard that millionaires often have seven streams of income. Here is how to secure yours!

If you have been consuming a lot of wealth content recently, you probably heard that many millionaires have seven income streams. Indeed, even the Bible says you should invest in seven different ventures. Having various income sources is very important, but that doesn’t mean that the advice out there about this subject is actually helpful.

Many people online tell you to start different businesses or side hustles all at once. As a highly successful property investor, I don’t recommend that approach. From my perspective, you are better off specializing and creating many complementary income streams related to your specialization. This allows you to carve out your niche, become known within it and avoid falling for shiny object syndrome, where you hop from opportunity to opportunity.

There is a way to create seven streams of income sustainably. In this article, I will give you a way to make those income streams in three simple, actionable steps. Whether they are suitable for you is for you to decide. I am not a financial adviser; that said, I am a multi-millionaire, and all this is based on my personal experience. Hopefully, you will find my experiences helpful, regardless of the path you choose for yourself.

1. Develop a business strategy to create an active income

You need a way to generate money to invest. As wages aren’t rising at the rate of , I suggest doing this through a business rather than a job. This should be an actual business, not a side hustle. You will get side hustle results if you have a side hustle mindset.

On the other hand, you don’t want to quit your job before you can afford to do so with the income generated by your business. So you will need to find something that you can scale but that, in the beginning, you can do in your spare time.

You also want to find something you can eventually own without needing to work in the business. This means that there must be a way for employees or contractors to take over the work you will initially be doing yourself. This will allow you to sell the business in the future or keep it as a source of  and move on to a new business.

An example of this type of business in the property industry would be deal sourcing. Deal sourcing is finding property deals and then selling the information to investors. You can charge a few thousand dollars per deal. Over time, you can hire staff to take over the day-to-day and turn it into a passive income source.

2. Develop an investment strategy to create passive income

The next thing you need to do is invest your money. You need to find assets to buy that pay you to hold them. This will become your source of passive income. This will need to be a reasonably conservative, time-tested investment that will protect your money long-term. This will be your primary investment strategy, so it isn’t something that you want to be changing every month.

Never buy luxuries with your active income; that is for essentials and investing. You can use the money from your passive income source to reinvest and buy luxuries. Eventually, you can live fully off your passive income and invest all your business profits into your investment strategy and back into your business. This will place you in an excellent position to diversify into five new income streams to make the seven.

An excellent example of a property investment strategy that can generate passive income would be buying large houses and renting them out by the room. You will need to put management in place, so you don’t need to deal with tenants yourself. Once you have several houses, you may also need to hire more managers to manage your leadership and ensure the entire operation is passive.

3. Diversify based on your niche

At this point, you only have two streams of income: business and investment. Now is the time to create five more. These should be based on your industry for the most part. Don’t try and go too far outside of your area of expertise. If you’re in the cryptocurrency niche, suddenly writing a cookbook probably isn’t the right move. You want to think about ways to expand within your niche.

Some examples of this might be: writing a book about what you do and how you do it, creating a course; starting a new business that complements your existing one; angel investing in startups within your space; or buying companies you can integrate into your existing structures. If you follow this formula, I believe you can and will succeed!

How to Earn Passive Income with Foundation Capital

If you want to generate a sustainable passive income stream, Foundation Capital is one of the most reliable organizations to invest in.  Our process has been refined, perfected, and proven over the past 12 years of renting our clients’ assets to the construction industry.

For more detailed information on how to make a capital investment in construction with Foundation Capital, as well as the terms, conditions, and risks, refer to the following FAQs and guides:

(Support) What Is Foundation Capital and How We Invest?

(Support) Construction Investments Vs. Others

(Support) Foundation Capital FAQ Library

(Support) Schedule Your Free Consultation

(Social Media) Foundation Capital Facebook

(Social Media) Foundation Capital LinkedIn

(Social Media) Foundation Capital Twitter

4 Passive Income Strategies to Free Your Mind and Time

How stressed out it is when we keep working to earn income or live paycheck to paycheck. After a lifetime of working hard, we deserve some time in our retirement “golden years” to relax, travel, or do nothing. It is not that difficult to have freedom and comfort in our retirement. The key is a passive stream of income which most of us can achieve as long as we develop a solid plan and the right investment strategies.

Prioritize “dividends payment” to reduce stress over the ups and downs of the stock market

It is obvious that investing in stocks with dividends is more beneficial to shareholders. Dividends are periodic payments made by companies to owners of their stock. They are means for a company to share some of its revenue with investors who own an equity interest in the company. Dividends are beneficial to many shareholders because they represent additional returns on investments. Investing into stock with dividends, investors can receive a regular income from their equity investment while holding the stock to profit further from appreciation in the share price.

We can say that dividends are money in hand while the stocks rise and fall in the market when they can offer potential downside defense during market sell-offs. Besides, dividends provide investors with income to help meet immediate cash needs –  things that retirees might increasingly look to them for, especially in low-interest-rate environments. And companies that have consistently increased their dividends tend to be well-run businesses. Those companies may historically have weathered downturns but have more significant return potential over time.

Small step into real estate investment with REIT

Clearly, real estate has several opportunities and formats that may interest you when talking about the highest interest rate investment types. So far, investing in REIT has been the easiest way to start. With REIT, you don’t need to do any work other than research and follow the investment. The process is very similar to mutual funds: you buy shares, contribute money then gain monetary benefit in return.

REITs are also a low-cost investment because shares of most REITs trade for less than $100 each. That’s why your investment is spread out over a portfolio of real estate properties.

Moreover, REITs are required to return at least 90% of the income to investors as dividends. Besides, they are generally straightforward to get involved in, like mutual funds, making it a great passive income option for many investors.

A downside to this investment opportunity is that REITs will generate lower returns on average than other passive income real estate opportunities. However, if you do have enough savings to invest in different types of property investment but still do not want to miss out on earning opportunities with real estate, this may be a proper choice.

Keep at least a 100% safe investment in your portfolio by investing in Leasing and buying back company

Lease and buyback is an investment type that delivers what is known as ‘passive’ or ‘unearned’ income. The mechanism is quite simple: you own something (machinery, equipment, etc.), rent it to somebody else, sit back and receive cash payments into your bank account every month.

How can you do it? Which equipment/mechanism do you buy, and to whom do you rent it out? How can you follow the leasing process? Some companies manage the whole process for you. The companies will put the contracts in place to enable you to buy machinery and equipment as an asset. Then, they lease your equipment to those businesses managing the projects, earning you a monthly income.

And as the name suggests, at the end of five years (or longer), you can get your money back by selling the asset at the price you paid. By this premise, all you need to do is to send your money for investment, then wait to see the return at the end of the month, without any stress, or learn and trade to assure the interest.

Obviously, leasing and buyback will work best when it comes to industries with sustainable development. Also, the investment company must develop strict business relationships with the companies that lease the equipment, verifying their creditworthiness through a rigorous audit process.

Lease and buyback is a great way to invest without the stress.

Being the very first and unique company that applies the leasing and buyback model, Foundation Capital reaches all those requirements with guaranteed buy-back, highly qualified investment consultants, and credible strategic partnerships. Over the past 12 years, Foundation Capital has paid back the belief of tons of customers when assuring them at least 16% annual interest investment and a sustainable source of passive income with 100% capital preservation.

One of the greatest things is that foundation Capital’s capacity is no longer limited in the construction industry as it used to be. The company is on the way to completing the final steps to apply its model to other industries, such as medical equipment, medical machinery, and transportation machinery.

Start investing with Foundation Capital 

Secure your passive income with a diversified portfolio

There is one thing you need to bear in mind when it comes to long-term investing: You cannot, or rather should not, depend on one investment asset.

When diversifying your portfolio, you will incorporate a variety of different asset types into your portfolio. Diversification can help you to reduce your investment risk and also augments returns. When market events affect each asset differently, one asset’s performance can not affect other assets or your entire portfolio.

There are basically two ways to diversify your portfolio: across asset classes and within asset classes. You can apply both of them.

When you choose to diversify across asset classes, you spread your investments across multiple types of assets. For example, rather than investing in only stocks, you may also invest in bonds, real estate, and more. When you diversify within an asset class, you will spread your investments across many investments within a specific type of asset. For the exam, rather than buying stock in a single company, you will buy stock from various companies of many different sizes and sectors. This is always a risk-hedging strategy.

You may want to read more:

Tips to secure your passive income journey 

Keep yourself away from FOMO for a safe investment 

Financial habits to secure your future 

Create Financial Stability amid The Energy Crisis

There are always chances to grow during a tough time, as long as you can see and grab the opportunities – this is always true, even for investment. Instead of complaining about how rising gas and oil costs make you suffer, let’s figure out the key to get you out of this situation and head to life with financial stability.

Efforts to find more streams of income during the crisis

Tough time for everyone

According to the World Bank, The Ukraine war made inflation a global phenomenon – impacting 100% of advanced countries and 87% of emerging markets and developing economies. The energy price shock is the main factor driving inflation in many European countries to the highest levels in three to four decades. As in England, it is expected that inflation in October 2022 will reach 13%, while in the Eurozone, this figure has fluctuated around 10%.

Consequently, the cost of living has been dramatically increasing. The price of food, goods, energy, and fuel has been increasing the most due to customers’ high demand and supply chain problems. Households are scrambling to pay their bills for all kinds of goods. Food prices will soar by 22.9% this year, highlighted by a 40% rise in wheat prices.

This is when many people are in a hurry to find more ways, primarily by passive income on security investment with the hope of surviving the high inflation.

What is the way out?

Unfortunately, throughout this time, most investing schemes offer no sustainable returns. The ups and downs of stock markets come as a reminder that it pays to have a more diversified investment portfolio that is not too concentrated in stock because of the unsettling events of enterprises. Crypto activity determined as “high risk” or “illicit” has surged in Eastern Europe since the start of the war, according to blockchain analytics firm Chainalysis. Chainalysis reveals that 18.2% of all crypto transactions in Eastern Europe are associated with risky or illicit activity. Interaction with high-risk cryptocurrency exchanges, which often don’t require users to submit know-your-customer (KYC) information, accounts for a fraction of dangerous behavior in Eastern Europe. The yellow metal used to be a good choice until Gold prices dropped in 6 months and seem to have yet to reach its bottom. The uncertainties also happen to other assets when currency investment is unstable, and real estate investments are still unaffordable to many people.

So, what can we do now? As the media often says lately, the current situation often leads to the talk of moving money to safe investments, and this applies to even well-informed investors. Fortunately, of crises, longer-term investment opportunities will be born. During a year of the financial crisis, war, global recession, and trade imbalances, the safest investment is what the world needs the most: Investing in energy.

Besides a 50 percent increase between January 2020 and December 2021, the World Bank reports that the energy price index grew by 26.3% between January and April 2022. The substantial rises in the price of coal, oil, and natural gas are reflected in this spike. Russia is the primary resource to the whole of Europe when providing 40 percent of supplies to Europe before the war. That means the continent is rushing to find another supplier of fossil fuels to make up for that loss, which leads to the fact that There’s no stopping Europe’s gas bills.

At the end of August, future gas prices at the Title Transfer Facility (TTF), the continent’s leading trading hub, reached €321 per megawatt-hour, a stratospheric figure compared to the €27 set a year ago. “The next five to 10 winters will be difficult,” – Belgian Prime Minister Alexander De Croo has warned. It proved to be true when the country’s energy regulator Ofgem announced in September that the hike means the average household will pay €4,182 (£3,549) each year to heat and power their homes unless the government steps in. Those figures prove that investing in energy and equipment is one of the most potential choices.

The question is, for individual investors, what energy-related assets have been the most suitable investment?  And if you are still confused, let’s take this new asset into your portfolio adjusting: Invest in gas/oil tank containers.

Why Gas/Oil tank containers?

The potential of Fuel storage investment itself

The storage containers market has the potential to grow itself as unreplaceable shipping devices. Shipping containers transport ninety percent of the world’s cargo. The number of containers keeps increasing. According to Statista, in 2021, the total throughput container was 849 million TEU (TEU stands for Twenty-foot Equivalent Unit, the length of a standard shipping container)

The global fuel storage containers market was valued at US$ 25 billion in 2021 and is expected to grow by 4% year on year to US$ 26.13 billion in 2022. During the projected period of 2022–2032, demand is anticipated to grow at a value CAGR of 4.5%, reaching US$ 40.57 billion. Overall, the market for gasoline storage containers will continue to grow, with a remarkable CAGR shown from 2015 to 2021.

Additionally, the market for fuel storage containers is anticipated to develop from 2022 to 2032 due to high product availability and customization in accordance with industrial and commercial requirements. With excellent potential and about a third of the market, North America will continue to lead during the projected period.

How LNG gas is transported.

The demand for energy transportation and reserve is getting higher

The impact of Covid 19 to shipping prices, together with the extremely high gas price, are additional factors to its expansion. National governments are racing to find alternative supplies now that Russia has cut off one-third of the continent’s gas supplies. This is the opportunity for others to become temporary energy suppliers for Europe. How much forward contracts in the wholesale markets for gas supply months or years ahead have started to rise is one of the most concerning developments in recent weeks. Oil and gas tank containers that can save costs (for instance, by storing more goods per slot and being adaptable for transportation) come in handy.

Besides, the demand to reserve more fossil fuels may be considered. Since we cannot know if the world may suffer from any other crisis, countries must search for backup solutions to avoid the run out of energy before having a reliable and sustainable supplier to the market. That means they may need more facilities, such as gas containers, to reserve fossil fuels in the worst cases. For example, the UK., which does not have extensive gas storage facilities like other European countries, have been filling them over the spring and summer for the winter. They are planning to reopen Rough, the UK’s largest storage facility mothballed in 2017, which will come too late for this year.

The rise has yet to reach its peak

It is predicted that the price of energy storage, under the impact of the gas price surge, is expected to keep increasing, especially when Europe is facing a deepening energy crisis as it prepares for a cold winter, leading gas prices to new record highs. The other supplies are running low, stoking fears.

Norway is currently pumping as much as it can, but its capacity is maxed out. New supplies, such as liquefied natural gas, must take time to come online because countries such as Germany first must build specialized terminals to receive the ships. The limited resources make millions of people live at insanely high prices, the most obscene being the going rate of natural gas.

Besides the effort to propose a cap to tackle extraordinarily high gas prices, The European Commission is at its best to find and transport more energy from new suppliers and store energy as much as its can.

Get passive income from energy in a unique, safe, and profitable investment model with Foundation Capital

The investing scheme is quite simple. First, purchase your tank container of choice, then you can rent it to storing or transporting companies that will pay you monthly for the rental.

Sound interesting, but here comes a big question: how can you manage to purchase and rent out those giant devices? Where can you find viable opportunities to purchase tank containers, and whom do you rend it to with high-rate interest?

The good news is that you do not need to worry about that since Foundation Capital is here to get you to take part in this incredibly lucrative opportunity. Since its inception in 2007, Foundation Capital has specialized in providing investors with access to the construction and energy sectors by purchasing and owning the equipment and technology required for megastructure development, healthcare, and energy.

The step to invest in Gas/oil container with Foundation Capital:

Step 1: You access the broad portfolio of oil and gas tank containers and decide on the one that suits your budget or investing plans. Our management support will help you to find the most suitable strategy for your investment goals and budget. You have the choice between a fixed 14% return or a floating rate return which historically has delivered higher income (with returns of up to 26% per annum)

Step 2: Foundation capital will help you to lease these tank containers to businesses whose operation depends on them. We will help to follow and manage the leasing process for you.

Step 3: All you need to do is sit back and wait for monthly income. We will keep you updated with all information from the leasing and support you with any concerns.

Step 4: You can recoup your investment by selling these assets for the original purchase price at the end of five-year contracts. We guarantee that your investment is effective, adaptable, and 100 percent secure.

Through that plan, Foundation Capital is confident to guarantee that the assets are secured and insured and that you are also guaranteed straightforward exit plans free of additional costs or ambiguous terms. Because of this, we have amassed clients’ trust worldwide for more than 14 years.

For additional information on how to make a capital investment in these oil and gas tank containers, please get in touch with us.

How to Start Investing with Foundation Capital

If you want to generate a sustainable passive income stream, Foundation Capital is one of the most reliable organizations to invest in.  Our process has been refined, perfected, and proven over the past 12 years of renting our clients’ assets to the construction industry.

For more detailed information on how to make a capital investment in construction with Foundation Capital, as well as the terms, conditions, and risks, refer to the following FAQs and guides:

(Support) What Is Foundation Capital and How We Invest?

(Support) Construction Investments Vs. Others

(Support) Foundation Capital FAQ Library

(Support) Schedule Your Free Consultation

(Social Media) Foundation Capital Facebook

(Social Media) Foundation Capital LinkedIn

(Social Media) Foundation Capital Twitter

The Difference Between Passive and Residual Income

The article was written by Meredith Dietz and was originally published on LifeHacker.

The thought of earning money without doing any active work sounds pretty nice. When people talk about “earning money while you sleep” (even though that’s a myth), they’re usually referring to passive or residual income. Although the two terms are often used interchangeably, there are some key differences between them. Here’s what to know about the differences between passive and residual income, and what they mean for you bringing in some extra cash.

What is passive income?

In theory, passive income is what it sounds like: Money you earn without performing the active labor of a typical day job. This income starts to flow after putting in a certain amount of time or money upfront, with minimal ongoing effort after your initial investment.

Examples of passive income include renting a spare room through a home-share app or selling clothes online. Then again, most things that are considered passive income (real estate, book royalties, online sales, etc) take a lot more work and consistent effort than financial gurus would have you believe.

What is residual income?

According to Investopedia, there are three main definitions of what residual income means in different contexts (personal finance, corporate finance, or equity valuation). In personal finance terms—our primary concern here—residual income is any leftover income someone has after they pay all of their debts and bills. If you are applying for a loan, your residual income is used to help figure out your creditworthiness as a borrower. It’s essentially another term for discretionary income.

This definition means that residual income is often passive; it does not mean that passive income is necessarily residual. In fact, residual money from your main source of income could be used to support a new passive income endeavor. Both passive and residual income are taxable, although not at the same rates as active income.

The bottom line

While both residual and passive income can boost your financial security, passive income is going to have a greater impact, as explained on Indeed.com. Think about it this way: Let’s say you pay all your bills and reduce your debt by $500 dollars one month, thus creating $500 in residual income. If you also rented out a vacation home that same month, you might have made over $1,000 in passive income—clearly a more significant gain. The caveat here, of course, is how you define “passive” when it comes to booking and maintaining that rental property.

Ultimately, when people are talking about extra cash flow with minimal effort, they’re referring to passive income over residual. You might need residual income to get your “side hustles” off the ground, and then that passive income can increase your total residual income—all the money remaining once your bills are paid.

How to Earn Passive Income with Foundation Capital

If you want to generate a sustainable passive income stream, Foundation Capital is one of the most reliable organizations to invest in.  Our process has been refined, perfected, and proven over the past 12 years of renting our clients’ assets to the construction industry.

For more detailed information on how to make a capital investment in construction with Foundation Capital, as well as the terms, conditions, and risks, refer to the following FAQs and guides:

(Support) What Is Foundation Capital and How We Invest?

(Support) Construction Investments Vs. Others

(Support) Foundation Capital FAQ Library

(Support) Schedule Your Free Consultation

(Social Media) Foundation Capital Facebook

(Social Media) Foundation Capital LinkedIn

(Social Media) Foundation Capital Twitter

3 most convenient side hustles for passive income streams in 2022

Looking for a way to get more money on the side without working endless hours? Let’s look at stories of pursuing side hustle for passive income in this article, then, you can find out the best things to make money and how to get started.

Trash picking services

It sounds crazy, but it is true. Meet Brian Winch, an American citizen who turned $200 into $650,000 a year, picking up other people’s trash in business parking lots. The great thing about this small business idea is that you do not have to quit your day job to get started.

His business started even before the internet when Brian was a young man searching for ways to earn more besides his official job. One day, inspiration hit as he recalled that his father used to moonlight cleaning up litter in a local shopping plaza. He had gone along with his father, walked around the property cleaning up litter before the stores opened the next day, and got paid for it.

His motivation kicked in, and he began to think about how he could successfully develop this side hustle idea. Brian started to contact property management companies and offered to clean their retail, office, and warehouse properties daily.

Brian could easily accomplish cleaning litter before and after my full-time job at the sporting goods store. As he began signing on more and more properties, he realized the potential of a viable business on his hands when this side hustle brought him more income than his full-time job. That was when he decided to quit his job and turn his side gig into a profitable full-time business.

Turn trash into cash is Brian’s side hustle for passive income

With the help of his brother and son, Brian has been successfully running his business since 1981 and now earns a full-time income of over six figures a year. Many people who work for his company earn up to $4,000 a month for part-time work! “Today, I manage an operation that bills out over $650,000 yearly in parking lot litter removal contracts. I also know entrepreneurs who are working part-time (following my Cleanlots system) and making an extra $20,000 -$50,000 a year, just by cleaning up litter.” – said Brian.

Listen to music for money

Do you know you can make money by listening to music and writing reviews about it? Among the many ways of earning money online, this may be among the most interesting ones, especially for music lovers.

Why do these music websites pay you? Because such websites pay users so that they can review the music of new and upcoming singers and songwriters. They need feedback from a wide range of people to help musical artists find the right direction they need for their works.

One of the easiest ways to get paid to listen to music is by downloading an app, creating your profile, or logging into a website that promotes artists and record labels. These services may perform market research by getting your opinion on a song. Or they may pay you to check out a new singer or band. After they approve your profile, you can start your work. There are two things you’re supposed to do: Listen to the songs and Review them. The more you listen, the more money you earn.

It is even easier when you don’t stress if you didn’t graduate from Julliard to review the music. These companies require zero knowledge of musical theory. All you need is an internet connection and a love of music. Some popular apps/webs for you to try our Slicethepie,  Current Rewards, or  HitPredictor

Besides the web and apps, you can also earn money by listening to music on survey sites like Nielsen and InboxDollars. With Nielsen, you have to down the app on your device and then allow it to track your online behaviors, including the websites you access and the kind of music you listen to. It will collect this data for market research purposes. After that, you may be asked to participate in a focus group where you can share your reviews. InboxDollars require less when you need to sign up for a free account and answer screening questions to find out the surveys you qualify for.

Buy and rent out dividend asset

While there are plenty of different side hustle ideas you can pursue, one of the fastest ways to make money is to rent out your stuff. Renting is not only a way to make some quick money but also a regular side hustle that turns your things into income-generating assets. Most of all, it can be a side hustle that does not take much of your time to maintain.

How much you earn will depend on the items you have. Of course, the most profitable item is probably real estate, then big items such as living space, storage spaces, traveling items, construction devices… However, what if you do not own anything with significant value, or you don’t have enough money to buy land and rent it out? Good news for you, there is a model that you do not need to own the whole items to rent and earn from it: the idea of renting out a piece of equipment/devices, then selling it for the company. This passive income type is also known as “Lease and buyback investment.”

The premise is simple: you invest in hard assets (such as machinery /technology/  devices/land). The investment company then leases your equipment to those businesses managing the projects using those items and earning you a monthly income. After a couple of years (or longer), you get your total investment back by selling the asset at the price you paid.

One trustable name for you to have your first step in dividend asset renting is Foundation Capital, which is the initiative in Construction equipment asset renting. All lease and buyback investments from this company deliver monthly income. You have the choice between a fixed 14% return or a floating rate return (which historically has given higher income). This has been, up to now, the unique model in Construction investment which help users gain a stream of passive income without paying a significant number at first.

The idea of dividend assets investment is applied to a few categories of products, but not all of them work. The most suitable type for dividend asset investment at the moment is likely construction devices/mechanisms due to 2 reasons: the smooth legal implementation and the raising of megastructure builds. Therefore, Foundation Capital commits to producing a sustainable source of passive income with 100% capital preservation for its investors. If you have not generated any new ideas for a side hustle or do not have enough time for a part-time job, earning monthly passive income this way is worth your consideration.

How to Start Investing with Foundation Capital

If you want to generate a sustainable passive income stream, Foundation Capital is one of the most reliable organizations to invest in.  Our process has been refined, perfected, and proven over the past 12 years of renting our clients’ assets to the construction industry.

For more detailed information on how to make a capital investment in construction with Foundation Capital, as well as the terms, conditions, and risks, refer to the following FAQs and guides:

(Support) What Is Foundation Capital and How We Invest?

(Support) Construction Investments Vs. Others

(Support) Foundation Capital FAQ Library

(Support) Schedule Your Free Consultation

(Social Media) Foundation Capital Facebook

(Social Media) Foundation Capital LinkedIn

(Social Media) Foundation Capital Twitter

Eliminate Global Inflation

With inflation rates rising and interest rates on the decline, regular income is decreasing in its actual worth. While there is nothing to do about inflation itself, investors can give earning potential a boost with inflation-busting passive income. Foundation Capital offers investment opportunities in the soaring medical, construction, and transportation industries that can help investors earn money with little maintenance, great security, and excellent returns.

Raging Inflation Leaves You With Less Spending Power

Inflation is making headlines around the world as it has risen from 6% to 9% in more than half of the economies. Rising prices in core areas of budgets and the consequent devaluation of the currency have left investors with a significant granted financial hit in the last two years.

Take Greece for example, inflation has risen to a record high of 12% nationwide and is expected to rise even higher in the upcoming months. Consequently, the income there is losing real-world purchasing power even as wages are reported to be rising at the fastest rate in years. As the Consumer Price Index continues to soar, if your regular income has not adequately increased, you are losing money.

For example, if you have €10,000 in your bank savings and inflation is at 12%, one year from now, your €10,000 will be worth €8,800 or less.

How Inflation Reduces Your Spending Power

Capital Less Inflation
(decreasing your capital by 12%)
Your Net Spending Power
Year 1 € 10,000.00 -€ 1,200.00 € 8,800.00
Year 2 € 8,800.00 -€ 1,200.00 € 7,600.00

As a result, if inflation goes unchecked, your capital reserves will inevitably be depleted. There are levers you can pull, in terms of jobs or spending, in order to diminish the impact of inflation. Nevertheless, most of these require major changes and cutbacks that are risky or excessive. Yet, when you find a sustainable stream to generate passive income from your capital, the problem can be managed.

Rising inflation creates global financial pressure.

How Passive Income Can Solve The Inflation Problem

There is a reason why the concept of passive income has gained significant traction of late. As a low-effort solution to investing, it generates an effective stream of income with little or no maintenance. Thus, passive income can assist you in keeping inflation and its impacts at bay.

In particular, in order to preserve your capital and protect it from being lost to inflation, you can use it to produce passive income, thus protecting and maintaining your spending power. For example, if you invest your capital in an income-producing vehicle delivering over 12% then you protect your capital and make a profit, thus increasing your spending power.

Capital Less Inflation (decreasing your capital by 12%) Plus Rental Income (19%) Your Net Spending Power
Year 1 € 10,000.00 -€ 1,200.00 +€ 1,900.00 € 10,700.00
Year 2 € 8,800.00 -€ 1,200.00 +€ 1,900.00 € 11,400.00

Hence, income will not only provide you with liquidity for basic monthly essentials, such as food, energy, and fuel, it will also protect your capital and preserve it, and is therefore of the highest importance during this inflationary time. If you have passive income, your net spending power will be 50% higher than if you don’t.

How to Earn Passive Income with Foundation Capital

If you want to generate a sustainable passive income stream, industrial equipment for construction, transport and healthcare are the most reliable assets to invest in that deliver double-digit returns. Our process has been refined, perfected, and proven over the past 12 years of renting our clients’ assets to these industries.

For more detailed information on how to make a capital investment in construction with Foundation Capital, as well as the terms, conditions, and risks, refer to the following FAQs and guides:

(Support) What Is Foundation Capital and How We Invest?

(Support) Construction Investments Vs. Others

(Support) Foundation Capital FAQ Library

(Support) Schedule Your Free Consultation

(Social Media) Foundation Capital Facebook

(Social Media) Foundation Capital LinkedIn

(Social Media) Foundation Capital Twitter

How to Benefit from Passive Income

The article was originally published on Santander.

Aside from working, we have many other ways to earn money. Putting our savings to use, managing assets we own, or even using our talent and skills can all be good ways of making “passive” income.

Sara has loved history since she was little. She even chose to become a teacher. A few months ago, she decided that she would go on holiday every year to a different country to see first-hand where things she teaches about took place.

But when she began to draw up a budget and plan her first trip, she quickly realized that she would need more money than she had anticipated and began to think of ways she could supplement her wages as a teacher.

Having explored various options, the concept of passive income caught her attention. Though passive income isn’t something new, technological advancement has created numerous new ways for people to earn it.

What is passive income?

Passive income is money we can earn regularly without the same time or work commitment that earning active income (from a job) entails. Setting up a source of passive income does require some money and effort; but once it’s up and running, you’ll need to do little or nothing to keep it up.

Whatever our goal is, the benefits of earning passive income include making saving a more common practice, not depending on wages as our sole source of income, and buffering our finances from contingencies.

It helps our financial health. It is also something many people can earn in a number of ways.

The most common ways of earning passive income

Sara must look at a number of personal and professional factors to make the right choice that will help her achieve her financial goal: extra income for the trip she is planning.

Here are some things she could choose to do:

  • Rent out property. Renting out a home, office space, a storeroom or a garage space is a traditional way of earning passive income. For Sara, it is one of the most appealing options, as she could rent the empty room in her flat for as long as she needs to on collaborative economy websites and apps. She could also rent out her entire flat while travelling to earn even more money.
  • Investing in financial products. Investment (or mutual) funds are some of the most popular instruments people seek to get a return on their money. Sara thought it would be a good idea to seek expert advice in order to choose the best product for her profile and needs, based on how long she wants to hold the investment and the return she wants to get. She’s aIso keen to invest in sustainable funds that earn a return while supporting responsible projects that share her environmental and social values.
  • Creating digital content. Creating digital content has been gaining in popularity in recent years because of social networks and specialized websites that pay users for the content they post. Sara could create an online history course to sell on an e-learning platform, write and market an e-book, or share the photographs from her travels with an image bank that pays her each time they’re downloaded. Generally, this type of content requires more effort at the outset or in the creation stage.
  • Selling second-hand items. Selling used and unwanted things (like electronics, clothing and furniture) is becoming popular because it gives them a second life and helps reduce our consumption of resources at an attractive price. There are apps and websites where you can post items to sell for some extra money. If you have things to sell, this kind of passive income is easy, and getting started doesn’t involve a big commitment of time or money.
  • Monetizing talent. Just as you can earn income from creating content in the virtual world, the same goes for the real world. Artistic talent such as painting, sculpting or handicraft can earn you a nice stream of passive income. Whatever you create should be something you are passionate about. And it shouldn’t take you too long to bring to market.

Passive income mistakes

A lot of myths and misinformation about passive income could ruin your chances of achieving financial goals or even cause you to give up.

It’s a common misconception that results are immediate. You should set a reasonable, realistic time frame for earning income right from the start. Persistence is a key to success.

Another mistake is thinking that “passive” means not having to do anything at all. While this type of income does not require the same effort and commitment of a traditional job, it is very important — especially at the beginning — to do the legwork needed to make your project profitable.

Passive income does not mean easy money: writing an e-book, painting or recording a course calls for skills that not everyone has. The same goes for we investing in the financial products or buying a flat to rent out, which ccertainly require time and effort.

Do we need to declare passive income?

Most passive income qualifies as a business activity subject to taxation since it essentially comes from a service or the sale of virtual or physical goods in exchange for money. However, it may be tax-exempt or taxed based on how much you earn and how often under the laws of your country.

How to Earn Passive Income with Foundation Capital

If you want to generate a sustainable passive income stream, Foundation Capital is one of the most reliable organizations to invest in.  Our process has been refined, perfected, and proven over the past 12 years of renting our clients’ assets to the construction industry.

For more detailed information on how to make a capital investment in construction with Foundation Capital, as well as the terms, conditions, and risks, refer to the following FAQs and guides:

(Support) What Is Foundation Capital and How We Invest?

(Support) Construction Investments Vs. Others

(Support) Foundation Capital FAQ Library

(Support) Schedule Your Free Consultation

(Social Media) Foundation Capital Facebook

(Social Media) Foundation Capital LinkedIn

(Social Media) Foundation Capital Twitter

Increase Your Passive Income to Gain Financial Freedom

The article was written by Rajen Devadason and was originally published on New Straits Times.

There are times when the observant among us can tell, as a society, that we’re hurtling towards doom. When that occurs, what may we do to save our families? With very few exceptions, we go through life needing to work. There are two reasons for doing so:

1. Work gives our lives meaning, significance and purpose; and

2. Since it costs money to live on Earth, then to earn that money actively, we exchange some of our time and utilise our skills, talents, knowledge and strength to earn money by way of a salary or business profit.

For most of our adult lives, we focus on the second reason — we work for money. Usually, the way to bypass that basic equation is to have someone else support us economically, which still boils down to another person working hard for money to provide for us.

More rarely, everyone in the current generation of a super-wealthy family can afford to relax and live off a massive nest egg accumulated by the family’s forebears.

And, yes, you guessed it: Those savvy ancestors did the hard and smart work required to earn oodles of cash, and were then wise enough to retain and multiply that pile of wealth.

Most of us, though, have to work both hard and smart for ourselves; ideally, harder and smarter than anyone else in our company, business or organisation. No one else can do that for us.

The happiest of us in this large subset of humanity that must work to live are those who are able to follow our bliss in the selection of our careers.

In so doing, we attain major success because we find meaning in our work and reinforce our personal sense of significance by detecting our purpose in life through service to others.

Pendulum Swing

As our years stretch into decades, we slow down physically and must accept ageing is an inevitability all of us who live long (and prosper?) face. Yet, we still want to live lives of meaning, significance and purpose. That is as it should be.

But ideally, as we age — while enjoying the fruits of our years of paid labour — we shouldn’t continue endlessly chasing the almighty US$ just to survive.

There needs to be a vital pendulum swing from the chronological side of our youth marked by working-for-our-money over time to the opposite end of grizzled maturity funded comfortably through having-our-money-work-for-us.

Not all of us sacrifice wisely and aggressively enough in our early and middle adult years to succeed financially later.

Here’s a sad, shocking truth: In almost every country on Earth, just between one and three per cent of each national population has exercised enough control to attain financial independence through self-discipline.

Most older people in most nations only succeed partially. They will therefore have to rely on their working children and, hopefully a high performing government, to pick up their retirement shortfalls through large geriatric budget allocations funded, respectively, by channelling resources from personal earnings and higher taxes.

This state of affairs is steadily exacerbated by the greying of society stemming from falling birth rates among the productive young, and lengthening lifespan amongst us all.

Channel your surpluses into investing in passive income is a great way to achieve financial freedom

What can we do?

What I’m describing is in all likelihood keeping competent finance ministers, chancellors of exchequers and numerate heads of state up at night. So, what are some solutions for our planet?

Here are five from me:

1. Elevating educational and managerial standards so aggregate productivity rises;

2. Eliminating corruption so sovereign wealth leakages are plugged;

3. Harnessing technology and artificial intelligence to expand the store of wealth available to the old;

4. Raising retirement ages intermittently across one generation to the next, so the average period that needs to be funded in bona fide retirement is moderated; and

5. Increasing the number of hours worked each week by those eager to work harder and smarter to generate surplus wealth for an uncertain future.

You can tell my cold-blooded analysis above will never win me fans (or votes) from a global populace that’s been conditioned to swallow that those in power should solve all their problems. It’s a good thing I’m no politician.

The best I can offer by way of a solution is at the granular level of the individual. In my opinion, what each of us needs to do is:

Increase our passive income to gain financial freedom.

Towards Financial Freedom

Those of you who head your household and make the primary planning and financial decisions for your precious family would be well-advised to accelerate the personal pendulum swing I mentioned earlier from working-for-our-money to having-our-money-work-for-us.

This speeding up of the process requires we do four different things:

1. Exercise delayed gratification;

2. Build up monthly cash flow surpluses;

3. Channel those surpluses into savings and investments; and

4. Diversify the passive income streams built up – over decades of resolute fiscal discipline — to include interest, dividends, distributions, and rent.

As a licensed financial planner who helps his clients do these things, it’s easy for me to outline the needed steps. Your job is tougher.

Will you really do the work, make the sacrifices, and learn the numerous lessons needed to complete your personal pendulum swing from work dependence to full-blown financial freedom?

How to Earn Passive Income with Foundation Capital

If you want to generate a sustainable passive income stream, Foundation Capital is one of the most reliable organizations to invest in.  Our process has been refined, perfected, and proven over the past 12 years of renting our clients’ assets to the construction industry.

For more detailed information on how to make a capital investment in construction with Foundation Capital, as well as the terms, conditions, and risks, refer to the following FAQs and guides:

(Support) What Is Foundation Capital and How We Invest?

(Support) Construction Investments Vs. Others

(Support) Foundation Capital FAQ Library

(Support) Schedule Your Free Consultation

(Social Media) Foundation Capital Facebook

(Social Media) Foundation Capital LinkedIn

(Social Media) Foundation Capital Twitter

Cash Flow: How To Make It Work For You

The article was written by Gil Mahesh and was originally published on DataDrivenInvestor.

Cash flow is the income and expenses associated with the activities of a person, family or enterprise. Generated from assets and liabilities. Determines financial well-being and is a key indicator of the success of economic activity.

In financial literacy, it is customary to first analyze all cash flows in order to find out what exactly leads to difficulties, poverty, or, on the contrary, wealth. Unfortunately, many have already stepped on a mine when they considered themselves stable in the world of money. Receiving large wages, they forgot about the structure of their income and one day they ran into trouble.

The most striking example that I often cite is the billionaire Telman Ismailov. With a rich source of profit in the form of a huge market, he overlaid himself with liabilities, spent money without regard to his financial situation, and when the only asset ceased to exist, he very quickly became bankrupt and mired in debt.

The Importance of Cash Flow

As a rule, an ordinary person has a simple structure of his wealth. There are wages and a lot of expenses. Pay for an apartment, loans, food, clothes, put aside for rest, repairs, and so on and so forth. That is, one asset covers all liabilities.

In the event of loss of work or performance, there is a real problem. Expenses have not gone away, but income is no more. The cash flow is disrupted and this leads to an increase in the debt burden with a simultaneous drop in living standards.

But the saddest thing is that the fear of losing this income forces you to stay in an unloved job and deprive yourself of the opportunity for self-development. As the saying goes, “money is earned in your spare time.” If you have nothing but hired labor, then this greatly increases the risks.

Types of cash flows

When there is not enough money, one idea comes to mind — to find a second job. This is the decision of most people, simply because they are not familiar with other options. As income increases, spending increases and the circle closes. A person is forced to work more and more, he does not have time for himself and his family, and the situation does not change dramatically.

It is possible to raise the standard of living and gradually reduce the amount of one’s own efforts only thanks to the competent construction of cash flow. To do this, you need to know all its types. A financially literate person has both.

Active cash flow

Active cash flow is the profit associated with the performance of activities, that is, with one’s own efforts. All the money that you receive for work in the truest sense of the word.

This includes hired labor. It doesn’t matter what profession and what salary, the only important thing is that a person receives money while working and stops receiving it as soon as he stops doing it. Dismissal means the cessation of active cash flow.

Passive cash flow

Passive cash flow is the profit received from investing activities. In other words, dividends. Own efforts are not required here and all income is completely autonomous. For example, a person owns shares of some companies and is paid a percentage of the profits of the enterprise. The more securities, the greater the dividend.

In this case, our goal is precisely the volume of assets, so investors do not look at the value of shares. If they have fallen in price a lot, then this is great news, it’s time to pick up a good source of income at a bargain price.

Speculative cash flow

Imagine you bought a computer on Avito and then resold it for 20% more. You have such a talent. This is what will be considered speculative cash flow. In Soviet times, this was prohibited, however, as was the passive DP. You could only work for money, everything else was limited by law.

Many people naively believe that speculation is easy money. Bought for a dollar, sold for two. But in fact, this is the most dangerous and unpredictable cash flow. You can easily burn out, lose everything and be left with nothing. Neither in the stock market nor in other places, I do not recommend this option.

Many of my clients open accounts, buy stocks, expect a small uptick, and sell on the profits. But after a few transactions, luck turns away, prices go the other way, and leverage very quickly makes a bankrupt out of a speculator. In general, this method should be used carefully and only in relation to goods that, if not sold, will be useful to oneself.

A friend of mine buys socks on aliexpress, and then sells them among friends. He charges a little, but always has a stable income, because it is more convenient and profitable for friends to buy from him. The product is necessary and if anything, you can wear it yourself.

Negative cash flow

There should be multiple sources of income. If the salary is good, then it is quite reasonable to start buying assets for passive income. When there are at least 5–6 of them and each of them is able to cover living expenses, we can talk about achieving financial independence.

It is better to have 10 assets that bring in $5000 a month than one that brings $1000ff. This is an absolutely logical conclusion, but in reality, few people think about it. I regularly meet people who speak negatively about investments. This, they say, is for fools who do not know how to work.

How to Earn Passive Income with Foundation Capital

If you want to generate a sustainable passive income stream, Foundation Capital is one of the most reliable organizations to invest in.  Our process has been refined, perfected, and proven over the past 12 years of renting our clients’ assets to the construction industry.

For more detailed information on how to make a capital investment in construction with Foundation Capital, as well as the terms, conditions, and risks, refer to the following FAQs and guides:

(Support) What Is Foundation Capital and How We Invest?

(Support) Construction Investments Vs. Others

(Support) Foundation Capital FAQ Library

(Support) Schedule Your Free Consultation

(Social Media) Foundation Capital Facebook

(Social Media) Foundation Capital LinkedIn

(Social Media) Foundation Capital Twitter

Looking for a Safe Investment? Try Your Best to Avoid FOMO

Beginners in investment tend to make decisions that are linked to the psychological concept of FOMO, or fear of missing out. Instead of focusing on their goals, investors pay heed to the market noises that may cause lots of damage to their investment and even mental health. If you have just stepped into the market, try your best to stay away from FOMO and start investigating more sustainable investments.

FOMO – the enemy of sustainable investment

Fear of missing out is the feeling of apprehension that one is either not in the know or missing out on information, events, experiences, or life decisions that could make one’s life better. When it comes to investments, FOMO can strike when there is a big rally or investment trend that the news or traders are talking about. Generally, it means that a trader is feeling anxiety because others are making money on an investment’s price movement, and they’re not. But the desire to be part of the bandwagon and make money off the trading strategy others are profiting from could create a retail investor or an institutional trader to enter a position before properly analyzing it to determine if it is a good investment.

The question here is despite the risk of buying high and selling low, many people joined these rallies anyway. Why? The psychology of FOMO is linked to complicated reactions of our brains that we cannot easily understand. However, they all form some typical actions and thoughts that we can realize in all traders. First, watching others make a lot of money on a particular stock or token having a massive rally may make you feel obligated to join in and get in on the gains, even if the logical part of your brain is telling you that the highest rate of interest has already been passed.

Additionally, knowing that acquaintances have already had a financial breakthrough with a particular investment can give you an unfounded sense of confidence about your investment choice, which could result in you ignoring advice from investment experts or research analysts you often take. Something deep down in your mind says that you are more likely to lose money trading than you are to profit. However, when thousands of traders talk about how they benefited from one coin/stock, the feeling of losing or being a fool for not catching the opportunities still encourages you to go ahead. It generates emotional responses; things like fear and impatience win out over discipline.

The sad consequences of FOMO

People always act out of FOMO with the wish of changes in their financial situations or early retirement. However, FOMO often brings more risks than rewards.

The common investment mandate is to buy low and sell high. But FOMO in trading often works contrary to that as it encourages investors to buy when stocks are already high. Remember that just because stocks are performing well does not mean that they will continue to do so in the near future. In fact, many investors lose money by investing in price movements or market trends right before they’ve run their course. That’s why trading does not often result in a positive return on investment when spurred by feelings of FOMO.

FOMO investment decisions often happen on meme stocks or cryptocurrencies.

Moreover, the hidden risk of FOMO is higher than just a regular investment decision. FOMO-related decisions often happen on highly hyped investments like meme stocks or cryptocurrencies. They are potentially inflated like bank savings and leave you without a dime. The volatility of meme stocks and cryptocurrencies and the speed at which their prices change make them even riskier than traditional investments. You could be distracted for less than 30 minutes and come back to see that your portfolio has cratered, or you could have a meeting at work while it goes down 40%.

Another trend of FOMO investment is buying a stock with an extremely low price, hoping it will reach its peak, and so do your life. Trends like this often happen when a high and popular stock drastically drops its price for some sudden event. People tend to spend their money on these stocks with the expectation that they will be back to the top. However, not every project has the power to return to its victory. The case of Luna, which was once considered a sustainable coin, is an example. When Luna was at its bottom, thousands of discussions, memes, and news covering its future recovery were spreading over the internet and creating a massive FOMO. Even homemakers would like to invest in it. However, it broke investors’ dreams into pieces as it kept dropping and showed no sign of recovery. Despite its hidden absurdity, it is evident that FOMO is still successfully persuading investors to destroy their investment efforts.

Start safe investment, and stop FOMO! 

There are a bunch of reasons why people tend to follow FOMO: they may feel unsatisfied with their current lives, they are too dependent on social media, or they have not gained enough investment knowledge. Nevertheless, the most popular reasons mainly relate to the wish to handle their financial problems. It is evident that FOMO primarily works for people interested in short-term rewards. However, even such low expectation is not always possible to achieve. Therefore, the need to resist the temptation of FOMO should be a priority in investing. The most sustainable way to do so is earning yourselves a passive income that comes with security and peace of mind. For instance, passive income from a secure investment may be the best medicine for your FOMO addiction.

Passive income is also a good choice for people who have experienced the bitterness that FOMO brings up. Ultimately, you may not be able to build a time machine to take you back in time to purchase the stock that got away or that property that would’ve made you millions. But you can take steps in the present to “recover” and reach your long-term goals safely and sustainably.

Let’s take a closer look at some of the most sustainable investment choices. They may not all be appropriate for you today, but over time, the best investments for your needs can change, and you may feel grateful when having spent time digging into them.

How to Earn Passive Income with Foundation Capital

If you want to generate a sustainable passive income stream, Foundation Capital is one of the most reliable organizations to invest in.  Our process has been refined, perfected, and proven over the past 12 years of renting our clients’ assets to the construction industry.

For more detailed information on how to make a capital investment in construction with Foundation Capital, as well as the terms, conditions, and risks, refer to the following FAQs and guides:

(Support) What Is Foundation Capital and How We Invest?

(Support) Construction Investments Vs. Others

(Support) Foundation Capital FAQ Library

(Support) Schedule Your Free Consultation

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