7 Ways to Make Passive Incomeby Hardika Thakkar Manager
Earning passive income is a dream for most people. Is it for you? Who does not love the chance to be able to pursue their dreams, set up businesses, travel the world, indulge in hobbies, and live the life they want, with passive income streams in place to take care of the basics? Passive income means the income that is generated from any asset like property or any other investment/enterprise that you are not directly involved with. It is money that you do not have to work for.
Here are seven ways in which you can earn a passive income
- Investments in ELSS- You can consider deploying investments in tax saving mutual funds like ELSS. You can get the ELSS tax benefits of Rs. 1.5 lakh in deductions (under Section 80C) along with the opportunity to grow wealth for the future ELSS funds. These ELSS tax-saving funds majorly invest in equity and equity-linked instruments with three-year lock-in period. They invest across companies in varied sectors and based on multiple themes and market capitalization levels (small cap, mid cap, large cap, etc.). Early on in your working life, start investing through SIPs and scale them up with increases in your income. You can also take the risk of investing a lump sum amount when you receive a bonus, after taking proper guidance. If you play your cards right and stick to your investment over a sustained duration, then the returns can become a passive income stream for you in the future.
- Rental property investments- You can consider allocating a part of your investment portfolio towards rental properties. This will help you earn passive income in the future. The rule of this investment is buying an apartment, office space, independent home or other property in a developing area at a reasonable price which you can recover within a few years once the market settles and demand increases for rental housing in the locality.
- Renting out your own property- If you already have spare rooms at home, you can rent them out using a platform like Airbnb and others. This will help you if you frequently travel out of town and want to earn some additional income on the side.
- Stock investments- If you possess sufficient knowledge of the stock market and its workings, then you can consider this option. You can directly invest in shares/stocks of companies. You will get dividends or payments at intervals from these companies in many cases, once the shares appreciate in their values. There are no guarantees of returns and immense risks associated with your investment in this scenario. However, you can diversify your portfolio across sectors to lower risks. It could be a way to earn passive income over a longer duration.
- Selling products digitally- If you create your own PDF, plug-in, e-book, video/audio course, UX kit, templates, and any other digital asset, then you can market it to earn passive income gradually from the same.
- Affiliate Marketing- You can become an affiliate for a brand online and promote their products. The more followers and traffic you have on your site, the better your chances of building it up into a passive income stream in the future.
- Becoming a point of salesperson or insurance agent- These are people who collaborate with insurance companies for selling policies to customers based on their preferences. The initial stages will require involvement on your part, but you can also earn a passive income when customers keep renewing policies down the line.
Here are some ways in which you can earn a passive income in the future, helping you pursue other interests with aplomb.
Disclaimer: Mutual fund scheme investments are subject to market risks; thoroughly read all offer materials.
Created on Jun 10th 2023 12:42. Viewed 174 times.
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