I am sure if you have hopped on to this article, you must be curious to know more.
1. What is passive income?
2. Why do you need to create a second source of income?
3. How to find a second source of income?
4. And last but not least – how do online platforms help to generate a second source of income?
Hello friends.. so here I am one among you, who used to hop on to many sites to know how to generate a passive income either online or offline, and trust me now I have found out there are many ways to create a passive income and how it secures our future. And the same I am sharing with you all answering all the above questions with many more interesting ideas for a safe and secured source of passive income.
Are you looking for a passive income and want to understand what is passive income?
The passive income is always different from the active income, providing you with more financial security and better financial planning. The better the financial plans, the brighter the future. And who doesn’t want stronger financial plans in this pandemic situation? But do you think only one main source of income is sufficient to secure our lives in any way? No, we need a good source of secondary income, which is an essential support system for a secure life. Then what are these secondary sources of income actually called? They have a passive income that can be earned even while you are sleeping.
There are many benefits to passive income, which I have tried to list below.
- increases trust in financial stability
- Great financial growth
- Secured future life
- Reducing stress and anxiety
Why do you need a passive income?
Even if we know the benefits, we fail to understand why we need a passive income. It is very important to understand why we need passive income even though we are already earning a good amount of salary. Pause for a second and think about how much money you can make with one job and a fixed salary at a particular fixed time.
Fixed income at a fixed time is never going to suffice for our increasing day-to-day commitments and, ultimately, it becomes difficult to have stronger financial plans. Financial planning and analysis are critical for everyone, especially if you are determined to secure your future. Have you ever wondered how people become millionaires? Because they have an idea of what their financial status looks like today and how they want it to be in the future. The financial plans include savings, debt management, taxes, insurance, investments, retirement plans, etc. Along with all the above, of course, they find opportunities for passive income. No person is secured by doing only 9 to 5 jobs. So it’s always a better idea to generate a passive income that keeps on recurring and you need not put as much effort as you are putting into earning your regular income. More recurring income with less effort and time investment allows you to save more. When you start accumulating more savings, you will naturally have stronger financial plans for your retirement, hence securing your future life for sure.
Ways to generate a passive income?
There are many ways to create your own second source of income, either online or offline. Offline is very simple, but it is not for everyone because it requires a financial investment.
Top 7 Offline passive income ideas
1.Investment in the real estate business:
The real estate business is one of the best passive income sources in India. It can be either residential or commercial. It is considered a wise decision if you are investing in commercial properties as it yields you recurring income in the form of rents. Real estate property prices are continuously increasing, hence it is difficult for people to invest in them. As a result, investing in commercial properties is the best way to generate passive income. Also, you can invest in old properties like apartments, independent houses, or even offices and you can refurbish them and sell them and get paid a much higher amount than you invested in them.
2. Peer to peer lending:
Peer-to-Peer lending, also known as P2P lending, is very similar to the traditional method of borrowing a loan from an individual without any intervention from any financial institutions. Many websites work as a platform for peer-to-peer lending, wherein you give a loan amount to your borrower at some interest rate fixed by the platform and it’s the responsibility of the P2P lending platform to deposit the EMI’s collected from the borrower to your account. Find a low-risk and high-interest paying borrower from the marketplace and start investing. Faircent is India’s first P2P lending platform with almost 2lakh lenders in the financial year 2021 and is licensed by the RBI.
3.Investing in share markets:
Investing in the share market involves a lot of research and analysis of how share values keep on changing. Basically, investors work with the secondary market once the shares are distributed. Many stockbrokers and brokerage firms can advise you on which shares to buy and which to sell. But before starting to invest in shares, one must have a trading account or DMAT account through which all your transactions take place.
4. Invest in dividend stocks:
If you are investing in dividend stocks, the company provides you with regular income, hence there is no risk of losing out on the invested money. It’s advantageous to invest in dividend stocks. While, if you are investing in shares, there are chances of gaining profit along with the risk of losing too, as the company where you are investing in shares, uses them for reinvestment for their growth. As a result, the share prices fluctuate.
5. Make your vehicle work for you.
There are many ride-hailing service companies in India where you can rent your vehicle to create your own passive income. Also, you can use your car for share riding which is also a profitable passive income. Your parking area can also work for you to generate passive income in the form of rent. And still, there are many more methods by which you can use any vehicle to create a passive income.
6. Open a high interest-paying savings account
Opening a savings account with the highest interest is also a way to generate a recurring income passively. Currently, some banks offer the highest interest rates, ranging from 4% pa to 6% pa. According to IndusInd Bank, they pay a 4% interest rate on savings accounts with a daily balance of up to 10L, a 5% interest rate on savings accounts with a daily balance of 10L to 1cr, and a 6% interest rate on savings accounts with a daily balance of more than 1cr.
7. Investment in bonds and mutual funds:
Nowadays, many people invest in mutual funds. What are mutual funds? Mutual funds are nothing but money pooled by many investors, which are managed by professional fund managers. This money is in turn invested in bonds by fund managers. Hence, mutual funds are just a bunch of bonds. But a bond investment is like purchasing individual bonds.
Top 6 On-line passive income ideas
1. Affiliate Marketing:
Become an affiliate marketer to generate an easy second source of income. Affiliate marketing is a type of advertising in which a company pays a third party to advertise their product and generate sales for them. One of the easiest ways to become an affiliate marketer is to get associated with Amazon.com. Wisely select the products you want to start your affiliate income with, and start publishing them on your online platform or your social media platforms. It is not enough to simply publish them; you must also work to get them in front of your target customers. As a result, you begin to earn money.
2. Sell an Online Course:
Start publishing your online courses. Online courses are in huge demand, especially in this pandemic situation, and, of course, they will remain in demand in the future. You can get associated with udemy.com and start running your course. Record the course videos one time and earn them many times. Also, you can become a tutor on many recognized online platforms such as vedantu.com, byjus.com, and many similar platforms to start making money in your free time. As there are many online courses already running, your course design has to be unique to stand out from all the others and get recognition.
3. Open a youtube channel:
YouTube channels are very popular, and they provide a platform for you to showcase and sell all of your talents. You can give courses through a youtube channel, you can share your travel experiences, you can add on the cooking recipes and what not? It is the most common source of a second income. How we can make money through the youtube channel? Might be many people who question. Here is a brief answer for it. Youtube channel pays on different aspects of the channel like the number of subscribers, no of viewers, and main contributors are ads. The youtube company pays Rs. 200/- to Rs. 300/- for 1000 views and as the views and subscribers increase many people who want to advertise their product, start publishing their ads on your channel, hence paying you for the same. It may be payable according to engagement or clicks.
4. Sell an e-book online:
Selling an e-book is the best source of second income in India as well as other countries. Write a book and publish it on an online platform. This saves you a big amount of money, as you need not print hundreds of copies, thereby, requiring only a one-time investment of your time and energy. But generating you a great source of income.
5. Sell your graphic designs:
Your graphic designs can be your best source of a second income. Many online applications are free to do your graphic designs. And many platforms provide you a chance to sell your designs. The basic skills required for graphic designs are creativity and innovation, photo editing skills, accuracy, and attention to detail. Different types of graphic designs are branding and visual identity, advertising and marketing designs, product designs, digital design, packaging, etc.
6. Start Blogging:
Blogging is a good source of second income if you have good writing skills. The topics may vary according to your interest, but it generates a good recurring income. Like the youtube channel, your blogs can be a platform for many advertisers to advertise their products through Google Adsense on your blogs, if you have a large number of followers and pay you for the same. Write once and earn many times. There are still different ways to monetize your blogs, like through affiliate marketing, selling your own products, selling your advertising space, or directly advertising their products, donations, etc.