Tuesday, August 16, 2011

Two of the Best Ways to Make $600 in Passive Income Per Month

Here is a game plan to invest $5,000 that will give you at least 10% return on your money in a matter of weeks. My goal with this article is to show you how you can make a passive income of $500 (or more) in one month or less. Here we go, let's do this!

Passive income idea 1 Take $2,500 and buy two websites (that are already making money) from FLIPPA.

Most of the websites listed for sale can be sorted by earnings and price. Look for a websites that are making $150 or more per month OR that have a high amount of traffic coming in. If the website has a high amount of traffic, but no ads, you can place ads on your site for free or sell affiliate products. This should definitely give your earnings a boost.

But, trust me....if a site is listed for $2,000 or more it is going to have some decent traffic. Join some forums and further promote the site and it's products. Use some SEO strategies and bring even more visitors to the site. You should be able to make at least one affiliate sale in addition to the $300 you are already making. Let's say (conservatively speaking you sell one affiliate product at $90 and receive $60 commission. Your total income from this strategy is $360. You will be more than halfway there.

Note I just looked at Flippa's listings and they have one site listed for $1125 that is making $950 per month!!

Passive income idea 2 Take $2000 and buy a stock option credit spread with one month left to expiration

Buying a stock option spread greatly reduces the amount of money you need to invest when compared to buying that same stock straight out. (I used option spread trading to turn $239 into $1350 in six months so it works, trust me).

Use some technical analysis (fundamental analysis is not a big deal here, because this is a short term income strategy) to figure out if the stock is in an uptrend, flat, or in a downtrend. I will give you a hint...look for trend lines.

Once you determine the direction of a particular stock, do a Bull credit spread (if stock is going up) or a bear credit spread (if stock is going down) on that stock. The beauty about credit spreads is that you get your money upfront and all you have to do is wait for the stock options to expire worthless. If you time this right you should be able to set up a position that would give you about a 30% return with relatively low risk. Your 30% target return with this strategy would be $600.

Combine both passive income strategies and you have just added (at least) $960 in passive income to your life. Ok, I guess i told a bit of a lie...it's not 10% like we initially planned. It's more like a disappointing 20% ha ha.

Thursday, August 11, 2011

MT760 Explained - MT760 at a Glance

There are so many different procedures in the world of finance and investing that it can be hard to keep track of all the different ones used. For many, having an MT760 explained to them is important since this type of procedure can have many consequences, sometimes positive and sometimes very negative. If you're trying to learn more about an MT760 or are somehow involved in one, there are a few basic things to understand. Once that you have a solid grasp on these principles you'll be able to get a good comprehension of just what this procedure is and how it is used in finance.

Basically, an MT760 is a type of bank guarantee that serves not only as a letter of credit, but also puts a hold on any funds that are associated with the operation. It functions very similarly to other types of guarantees but carries with it a far greater risk to the issuer while greatly reducing the risks experienced by the recipient. The MT760 is an interbank communication that you'll never actually see as far as getting a document or report on, but is still a major influence on your overall financial transactions if you are involved in one.

When an MT760 occurs, the bank will place a hold on the funds of the client and allow the person who the MT760 was issued for to use them at their discretion. The original client can't use the funds, but the person who received the hold will be able to utilize them. Obviously this creates a high level of risk for those who issue this type of guarantee and it has indeed been used by more than one unsavory investor to scam others. Because of this, it's vital that you ensure this is the right call to make before you proceed with it.

Many people opt for a letter of credit instead of the MT760 since the latter is not negotiable after it has been issued. If various conditions arise that affect the funds or the use of them, there's really nothing that can be done to change the MT760. It is certainly one type of financial procedure that you may never have any interaction with, but if you do then you owe it to yourself to fully understand the basics behind it and how it will impact both parties that are involved with it. There may be better options, or this could be the best choice for your situation.

Thursday, August 4, 2011

Are Movie Investments Recession Proof?

During recessions, people still want to invest, and they start looking for businesses and investments that can still be profitable when people have less money to spend. And many people have heard how during the Great Depression of the 1930's that movies were very profitable. It is actually true, and there are reasons for it which will be explained in this article.

When the economy is in a slump, people want to escape their worries, and a movie is an affordable way to do just that. During all of the recessions in the past 50 years, the movie industry has done well. Going to a movie is the most affordable out of home entertainment option. It is easy to prove this by comparing the cost of a movie to attending a sports event or a concert. During the Great Depression, 25% of American families had no income and unemployment for factory workers was at 40%. Despite this, movie box office receipts soared. Some people would see a movie rather than eat. They did this because they were desperate to escape their problems, even if it was temporary.

The profits for a movie can be huge. These days some blockbusters pull in hundreds of millions of dollars. But they are not the whole story. There are many low budget movies, quietly making excellent returns, despite costing only a few hundred thousand to make, and staring unknown actors. The new movie technologies allow filmmakers to make high quality movies for under one hundred thousand dollars. They look good technically, and if they have a good story, they have a chance to make millions of dollars.

And these days distribution is easier, as there is no need to rely on theatres, with repeat TV broadcasts and online downloads available. This is an important consideration during a recession, as a finished movie no longer needs a huge additional budget for advertising and promotion. For consumers with limited budgets, they can download a movie for a low fee, which can be enjoyed by a whole group, making watching a movie a very low cost form of entertainment indeed.

There are people who invest in movies regularly, and they are fully aware of how movies perform well during recessions. These people are inclined to want to keep the fact that movies are recession proof unknown to the general public so that they have the most opportunities to invest in movies themselves.