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What is passive income and what are its types
In passive income, it's the assets that work - not the person. Accordingly, passive income is a regular flow of money that does not require daily labour. Thus, you can make a profit without constant effort and significant time investment. The most common examples of passive income include:
- deposits - bank deposits with interest accrued on the funds placed;
- dividends - payments to shareholders from the activities of companies;
- bonds - passive income on the stock market;
- pension funds - a long-term accumulation instrument;
- real estate - income from renting out apartments, houses, or commercial premises.
In addition to these options, there are other ways to invest time or money to generate future profits. You can create a unique product: a book, a training course, or an information guide. The types of passive income are so diverse that everyone can find the perfect option for themselves.
Main differences between active and passive income
The main difference between these types of earnings is the nature of the efforts that need to be made. One of them requires constant work, while the other requires significant activity only at the initial stage. Later, efforts are reduced to a minimum, and the income becomes stable.
The difference also lies in the format of investments: active ones require skills and time, while passive income is the profit that comes from the right initial investments.
Advantages of passive income
The efforts and funds invested in creating an additional source of finance will bring results if used correctly. All thanks to the numerous advantages and prospects offered by passive income. It's worth taking a deeper look at what passive income is and how to get it.
It means independence from circumstances and confidence in the availability of additional funds, even if you change your place of residence or profession. Its availability provides freedom of choice in the main activity, and also makes it possible to form a comfortable rhythm of life without the rigid framework of work according to a given schedule. Passive income is also important for achieving harmony between work, leisure and family time. Understanding how to create passive income can significantly improve the quality of life.
This financial instrument can be both the main and additional source of income. Its effectiveness depends on the format, characteristics, and the initial investment.
Where to invest money to receive passive income
There are many ways to generate passive income, but each of them requires a thorough analysis of the details and an assessment of your own prospects. If you are interested in passive income in Ukraine, one of the most powerful solutions is to open a deposit. To do this, you need to:
- Install the GlobusPlus mobile application.
- Complete a quick registration using the Diia service or by uploading your passport and RNOKPP.
- Go to the ‘Deposits’ section.
- Specify the desired amount and term of the deposit.
You can open a deposit with GlobusPlus in different currencies, which allows you to choose the best option to receive passive income. When deciding where to invest your money, you should consider three deposit options:
- In hryvnia. From UAH 1,000, with further replenishment within a month up to UAH 1 million. There are no restrictions on the maximum amount.
- In dollars. The minimum is USD 200, with no upper limit. Top-ups are available throughout the entire deposit period, but the total top-up amount must not exceed 200% of the initial deposit.
- In euros. The conditions are similar to the dollar deposit.
Payments on the deposit are made on a monthly basis. If the client does not request a termination, the prolongation takes place automatically on the expiry date. Each of these deposits can be a smart choice for those who are interested in making passive income. The safety of funds is ensured by the Deposit Guarantee Fund: during martial law and 90 days after its end, all funds are subject to full coverage (100%).
Risks of passive income
The only disadvantage of this way of earning money is that the amount of cash receipts may not meet expectations. Therefore, it is important to carefully analyse different passive income options to choose the best one. This is another argument in favour of making a deposit in the Globus Plus app: all conditions are as transparent as possible and payments will be made on a regular basis. A deposit calculator is available on the website, which makes it easy to calculate the expected profit in order to receive a stable income without risks.