Surely a dream of many people is a way of life in which there is no need for work, but good profits continue to flow without much effort. Everyday life of work can be so exhausting that thoughts about life without work arise more often. It’s good that for such dreamers there is a great opportunity to translate their seemingly impossible dreams into reality: there is such an interesting profession as a rentier. These lucky people are not considered to be employees of any enterprise, but their bank account is regularly replenished with tidy amounts.
Let's go back a couple of hundred years ago
Who such a rentier has been known for a long time. This word was used to describe people who do not have a permanent job, but who nevertheless receive income from rent (payment for invested funds). The nature of these incomes was legal, but not labor. Their stability and size largely depended on how well the owner of the capital uses it.
The opinion of some economists was that the renter, who did not create the product, simply parasitized. Others spoke out in defense of this group, indicating its importance for the formation of the economy.
Who is a rentier today?
In the modern world, the definition of this word has remained virtually unchanged. The source of income of a rentier is rent, the results obtained at the disposal of capital.
What is a rentier, we figured out. Seem to be, is it an investor? In a way, this is true. Be able to invest in the forces of each person who invests his financial resources in order to make a profit. But, as a rule, investments do not represent the main source of income, often an additional one. In addition to investing, the owner of the capital is a businessman, private entrepreneur or wage worker.
At the same time, rental income is the only source of livelihood for a renter, that is, he manages to make money work for himself instead of working for money himself.
Such a person does not need work, he does not have a work book, but his level of security is more than sufficient. The investor can carry out capital transactions on his own or involve a manager.
Conclusion: all investors are investors, but not all investors are investors.
Source of income
Having understood what a rentier is, you can study the ways in which money is earned in this case. Thanks to the developing investment market, these people are able to receive rental income in the following ways:
- Leasing real estate for rent (house, land, apartment, warehouse).
- With the help of financial instruments (securities, mutual funds, options, futures, stock indices).
- By placing bank deposits.
- Getting revenue from copyright or royalties.
- As a profit from their own business.
The list goes on, because in addition to traditional labor sources, income can be obtained in various ways.
Factors Affecting Revenue
Like all other people, the life of a rentier can be overshadowed by unpleasant financial losses and lower incomes. The following circumstances may affect the level of his profit:
- Situations on the stock market.
- The situation in the real estate market.
- Profitability of the business chosen for investment.
- International relations and the situation in the country (from an economic point of view).
How to become a renter and get a stable income
Lifestyle rentier - this is the notorious "American dream."After all, the essence is the successful use of accumulated capital. Strain up, earn an impressive amount and provide your expenses with interest received. A dream, and more!
But what is a rentier really? This is a person who knows where, how much and when to invest. In addition, he has a decent amount of money, which he often earned. Capital accumulation, searches source of passive income, investing money in such a way that it is not lost, but works for the owner - all this requires extensive knowledge of the financial sector from the renter.
Of course, if the amount of capital is significant, it is not difficult to find a specialist to manage it. It can be people or even companies engaged in the placement of deposits on behalf of the owner.
However, with small amounts of capital or in its absence, you will have to do with what you have. An elementary way is the deduction of small amounts from wages (from 10% to 30%). Then they need to be invested: organize accounting for income and expenses and start investing. You can develop the skill of competent handling of money and achieve their multiplication even with very little money on hand. Today, there are investment options with a minimum deposit amount of 1000 rubles.
Many banks offer special programs that allow owners of impressive capital to receive interest on a monthly basis and live on them. These deposits differ from traditional deposits (with interest paid at the end of the period) at a reduced rate. The deposit must be impressive so that the amount received is sufficient to cover all the costs of the renter.
The Bank sets rather strict conditions for servicing such depositors (sanctions for early termination, inability to replenish or withdraw during the agreed period). In addition, there is always a risk of bankruptcy of an organization. Therefore, it cannot be said that the life of a rentier is simple and cloudless.
So, having received the concept of what a rentier is, you can compare your desires with opportunities and begin to act. After all, time here is one of the main factors. The sooner you start, the closer financial independence.
