Passive income is not a popular word among poor but to become rich, it should become common word in our lives. because passive income means "Income generated by applying “negligible” effort", which means with daytime job, there should be own a business.
By hearing business word, you people think large amount of money required to start a business. So, we will drop from this business idea. This is the common decision we take in our lives and we will be in same status of life.
Business not required large amount of money but it requires lots of patience. Because passive business income drips only slowly. It is not like salary / bonus / sale of property income, dumped into your account as bulk amount. But when it comes to passive income, it will be in less at initial stages and your focus cannot be only on returns. Here the priority must be on “stability of income”.
Everyone has to start investing some part of their monthly earnings in diversified income generated / rupee appreciated properties. If we depend on our regular job income, we will live always in life with pain and fear. We should inculcate the habit of generation of passive income which is not required our presence to generate.
It is the passive income that makes a person “really rich”. Why I say really rich? Because to generate passive income, one need not work.
Yes, “no work income” is what gives the passive income an exponential growth capability. Rich people are made this way.
Everyone can generate passive income, but the ways of doing it can differ from person to person. My way of passive income generation may not suit you and vice versa.
So what is essential to become rich is to find your own comfortable way of passive income generation. How to find one? Think, think and think. Dive deeper into your mind, the answer is hidden there.
What is the quick tip? Passive income comes from buying particular types of asset. One’s knowledge of these assets can help in fast growth of passive income (from zero to billions). Deeper will be the knowledge faster will be the growth rate.
Start by asking this question to yourself, “what is the alternative to my salary income“? What happens if I loose my job? How to run the family? Money will come from where?
Here are the options generates your own passive income generation
Start your blog / website:
Share your skills / knowledge by set up your web-blog. Once your blog gains popularity, you can use services like Google Adsense or AdWords to earn a considerable amount of money by displaying corporate or business advertisements on your blogs. Additionally, you can also set subscription fees for the users who want premium access to your content.
There are a number of bloggers who are making tons of money enjoying their life on a beach or travelling by setting passive ways to make money on their blog.
You can start an e-commerce portal that bridges the gap between the local retailers and customers can be a handy way of earning a continuous stream of passive income.
Real estate investment:
Investing in the Real-estate market is another way of ensuring a continuous income stream on a part-time basis. You can either buy a rental property to ensure a monthly fixed amount or look for those perfect deals at the perfect time (when you purchase properties at a low price and then sell the same when the market hits a high.) In both the cases, you will be getting a decent amount of income on regular basis with minimal efforts.
Renting your own vacant property can also be a good way to earn some easy passive bucks. Some working professions even prefer moving in shared apartments and houses in order to save their hard earned money.
This is the best form of passive income. It can be generated from property purchase. But problem is, property purchase requires high capital investment. Nevertheless, it’s still worth it. One can buy two types of property: residential Property and commercial Property. Depending on ones affordability, one can buy any size of property. By putting this property on rent, passive income can be earned each month.
Youtube channel:
You can share your knowledge through Youtube by starting a Youtube channel. Dance moves, singing skills, stand-in comedy or detailed workout sessions? Showcase your talent to the world using YouTube videos from your own channel. YouTube is an immensely popular and exciting medium for earning a decent flow of passive income for yourself.
You will be paid higher as per the number of views, likes, subscriptions, and popularity that your channel will get across different user groups.
Online courses:
Since the introduction of the digital age, online learning platforms and resources have gained a lot of popularity. There are certain web portals that offer digital certifications and classes to students across the globe. If you have specialization in any academic, technical or non-technical subject then you can structure your own educational courses on these websites. You will be paid for every subscription or registration that a user makes for your course.
Selling stocked photos:
Are you someone who is amazing with a camera in his hands? If yes, then there is a good scope for earning a decent flow of money with your stock photos. There are several websites, who paid a good amount of money for your photographs but that need photography enthusiasts or experts who can deliver some really amazing and high-quality images from different niches.
Sell your ebooks:
Fond of writing? Great! This can be one big opportunity for you to earn. Convert your passion for writing into some easy money. You can fetch Rs.250-400 easily with short write-ups of 70-80 pages, but make sure you choose the trending titles and themes. To sell your ebooks, you can choose various platforms, Amazon and iBook are two of the best once.
Royalty income: People write ebooks and publish it on Amazon. Earlier, writing and publishing a book used to be a big task. But in this internet age, online publishing has made it easy. If you have a concept on which you can write about 10,000 words, I strongly suggest you to put those words in form of an ebook. Upon sale of every ebook the writer gets paid the royalty.
Mutual Funds:
Mutual funds are the best passive ways to make money in India. You do not need to spend much time, knowledge or even money to start investing in mutual funds. These funds are managed by professional fund managers and there are several low-risk investment schemes that offer high returns compared to the interest amount that banks pay for your deposits with them. Nevertheless, you will need to select the mutual fund smartly to reduce the risk of financial loses. Read Guide invest in Mutual Funds
Investment in Stocks:
If you are willing to invest some time, then investing directly in the stocks offers the highest returns and can easily be considered the best passive ways to make money with even limited investments. You can make money in stocks through capital appreciation and dividends. If you have a good working knowledge of stock market and shares, then it can ensure high returns for your basic investments, but such investments are always subjected to risks of market fluctuations.
Dividend income: Dividend income can be generated from stocks. Dividends are as good as rental income. For me, both are equally desirable. But identifying a good dividend stock is slightly tougher. The key control point is the price of purchase. Stocks must be bought at undervalued price levels.
Paid subscription: Become an expert on a stocks / any topic, and start a paid subscription service. People can subscribe for your services/advice by making payment.
Skilled Art can be Sold:
You might be a skilled designer, a graphics expert or someone who just picks up the paint-brush as a hobby. But what if those raw pieces of your art can ensure you a continuous flow of money. You can sell them through websites those will pay you a nice amount of money for sharing your artworks with them.
These websites use your artworks to create patterns for their branded t-shirts, mobile covers, posters, mugs etc. Whenever these products are sold, you will be given a fair share of commission from the product price.
Fixed deposits:
If one cannot think of anything, bank deposits can generate passive income instantly but at lower rate. Bank deposits can be bought from the comfort of home. This can be an excellent source of passive income. While buying FD, ask the bank to pay the interest monthly.
That is all of it, try to start generate passive income from today in slow and steady way by identifying quality assets / properties at right price with regular intervals of accumulation.
Final tip of the post: Always try to reduce debt (Be debt free), Concentrate on asset column (let them generate income)
Final tip of the post: Always try to reduce debt (Be debt free), Concentrate on asset column (let them generate income)
Hello, welcome to my blog, Smart Investor. I'm Satyanarayana, a banker & blogger, Investor from Visakha -patnam, India. You can read more about SML here.
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