As Warren Buffet once said, “If you don’t make money while you are asleep, you have to earn till you die,” passive income has become necessary to survive the turbulent economic conditions today.
In a rapidly changing economic environment, the need for passive income ideas in India is increasing. The question here is, what is passive earning? Passive earning is the earning from the sources you are not actively involved in.
You can say that passive income is your secondary income. This income can come from your assets, financial investments, side hustles, businesses, etc. You don’t have to actively invest your time in earning money, as passive income involves generating money from existing assets or money itself.
According to CNBC, about 39% of worldwide income is earned by the top 1%. Moreover, 29% of their money comes from investments, which can be considered passive income.
However, the top 0.1% of income holders of the world are much more dependent on investments; they rely on them for a staggering 35 percent of their income.
Hence, passive income is money you can earn that does not demand much active work. You only need to give some additional effort to earn from sources of passive income.
A passive income guarantees greater financial freedom and liberates you from the 9–5 routine to offer other investing alternatives. Passive income can let you focus on meaningful financial goals, such as securing money for retirement, in addition to giving you back time.
Time is one of our most valuable resources. Time is a limited resource that cannot be earned, like money. Passive income allows you to spend your limited time doing things you choose rather than just finishing tasks to pay the bills. Having passive income ideas in India is hence very important to save time.
Your ability to follow your passions or participate in charitable activities that benefit society may be facilitated by passive income, which could lead to a better quality of life. As a result, you have the chance to develop relationships with others and your environment that are deeper and more meaningful.
The stability of passive income reduces the anxiety associated with being unable to pay bills. Financial support and long-term stability are provided by passive income, giving you the financial momentum you need to efficiently manage your personal finances, your time, and your assets.
A crucial component of financial freedom is passive income. You must be present and productive every day if you want to earn money from your job. It is constrained in various ways, including by the number of hours in the day, your health, your age, your employer’s policy regarding raises and promotions, and even how well you are perceived by your boss. There is a cap on how much you can make, even when you’re healthy and capable of working.
Additionally, if your health deteriorates, so does your ability to earn money. These restrictions do not apply to passive income. At any age and in any physical condition, you can make passive income. You become less dependent on your pay check and have more freedom to decide how you want to spend your time if you have a larger stream of passive income. It also helps in funding your financial goals.
There are many alternate sources of passive income in India. You can select one or more than one as per your choice and specifications. The passive income is generally based on the work-from-home concept. These are the source of extra income for you. So, select wisely. Given below some of the ways to generate passive income in India.
Rental income is one of the most conventional forms of alternative income. The investment in real estate property is very profitable. It can earn you both capital and revenue incomes. You can earn continuous passive income. Rents are stable and increase gradually with the market price rise.
This way, your rental property can help you generate passive income.
There are many good dividends-yielding stocks in the stock market, along with high-cap companies with good trading history. You can earn both dividends and capital appreciation. You can be a smart investor to earn regular income. Investment in the share market requires a good knowledge of working in the share market.
It also requires market information and decision-making power. However, you need to be careful while taking decisions related to the share market as they are subject to high risk. Nevertheless, investing in share marketing is one of the most beneficial passive income ideas in India.
Suggested Read: Top 15 Attractive Investment Options in India 2023
You can start blogging and content writing to earn passive income. It requires very little time and less effort. Many companies are providing freelance opportunities in content writing. If you love writing and have good language knowledge, you can earn good money.
You can also start writing your blogs. You can write about anything that you have knowledge and interest in. Blogging is, hence, one of the most interesting passive income ideas in India.
Social media is a great place to make some money. You can start video blogging and posting pictures on your handle. It is a good place to earn extra bucks. You can earn by advertising different products and engagements. Influencers are the new mode of advertising and product promotion. Thus, becoming a social media influencer is one of the most interesting and beneficial passive income ideas in India.
If you have a car that is not in much use. In many metro cities, you might be using public transport instead of using your own vehicle. That vehicle can give you some passive earnings by renting it out. Many websites provide you a platform to rent out your car. This gives to option of earning without any specific efforts. You don’t have to find any tenants for renting out. It is very prominent in big cities. Some sites also give you cover over the damage to your car due to renting.
REITs are real estate investment trusts. They deal in the renting of real estate properties. It is the best option if you don’t have enough money to invest directly in real estate. It gives you an option to invest your little savings into high-yielding REITs. Here you don’t personally own the property, but you get all the benefits of owning them. It works like shares, and you mean returns in terms of interest and capital appreciation. It is an upcoming option within passive income ideas in India.
If you have a good risk appetite, you can invest in small but rising businesses. You can be a kind of venture capitalist. This can give you a stay and good returns. You just have to go for good research before investing. After selecting the good option, your work is over. After that, your money will make more money. The only catch here is you are the owner of your share in the business. This comes with all the risks that a businessperson has. It is highly risky. This is one of the examples of passive income streams in India.
If you live in a city or place with high tourist visits every season, this is for you. You can turn the extra places in your house into homestays for the tourist. It is like giving on rent, but for a shorter period. You also don’t have to go away from home. This is the best way to earn small passive money. If you live in highly visited places, then you have a regular income. You can also choose who you want or do not want to rent.
With the investment in the fixed deposit, you can earn a good steady amount without any risk. This is a very easy way to have a steady passive income. You can also keep your money in saving accounts. Though it has a lower interest rate than fixed deposits, they’re more liquid.
You can also invest money in Mutual Funds or SIPs. This way, by investing, you can earn passive money.
You can earn money by creating a mobile application of some use. The application creators have been earning good money these days. The mobile application gives you good passive income. There is an application for every work nowadays. The catch here is that you should know how to create the application and advertise it.
Ultimately, it becomes a passive income stream for you as it becomes more popular.
If you can design a course and sell it online, it will be the best idea for passive income. Nowadays, there are many platforms for creating online courses like Udemy, Coursera, EdX, etc.
You can create courses or video tutorials about any subject that you’re knowledgeable about. Once you have uploaded your course and it becomes popular, you can earn money whenever a user registers for it.
Most people associate YouTube with finding educational videos, enjoying music, and other such content. However, another group of people see YouTube as a significant source of income for their online business.
MrBeast was the highest-paid YouTuber in 2021, earning a record $54 million. It takes some time and effort to earn money on YouTube, but the results can be significant. You can easily generate interesting content for your subscribers and make money by monetizing your videos through sponsorships, advertising, endorsing products or services, etc.
Are you a good photographer? Are you able to capture the beautiful theory of nature? Or have you been evidence of a nature plan? If yes, is your answer, then why not show them to the world? Also, do you know such earning professionals earn more than lakhs in one photoshoot?
Many magazines, and image sites need high-quality and unique pictures which offer you a bunch in return. So, go with this as the best passive income source for you.
This category needs some investment, but when you are creative, then nothing to worry about at all! Also, if you can sell all your products online, then it’s the best advantage. There are hundreds of sites where you can start your sale.
Here list of some sites where you can sell your products and earn
If you are good at anything related to an academic subject or any technical subject or if you know to make someone understand, then online teaching is best. Choose the topic that you want to touch, record it, and make it downloadable for others. You can start with any platforms like YouTube, or teaching apps that will also help you.
One of the easiest and most useful passive income ideas in India is to become a Chegg expert. You can work as a subject expert at Chegg India. As an expert, it is your responsibility to respond to the inquiries made by students regarding a particular subject.
While working, you not only learn a lot about the field you want to pursue but also make a sizable income. You also get to decide your own working hours. It is hence one of the most risk-free passive income ideas in India.
There are many benefits of having extra income sources. With the consistently increasing inflation in the economy, it is very important to increase or diversify the sources of income. Following are the benefits of having multiple sources of income in India:
For earning passive income, you do not have to be present like in the case of active income. For earning active income like salary, you need to go to the office or be present during working hours. This is not required with your secondary source of income. The secondary source is the way to earn with lesser effort or time investment.
With now required any physical presence, you can earn at any time of day or night. This increases the quantity and quality of earnings. There is always a limit to the active earning sources. But, in the case of passive income sources, there are no such limits.
With the passive source of income, you always have more to spend in your hand. This increases you’re spending on the product to increase your standard of living. Improve lifestyle is directly related to better stress management, better mental health, and overall relaxed living. This is very important for any individual.
The passive source of income does not require any physical appearance or high effort. This gives you freedom of time. You can work whenever you want. And there should always be more than one source of income. This reduces your risk exposure.
The income from the alternative passive source is generally constant. You don’t have to work for this continuous flow of money. It is the more beneficial characteristic of passive income sources. The constant income is very beneficial. Hence you should invest in some of the passive income ideas mentioned above.
Like everything, the passive income also has its drawbacks. It is one of the growing ways to earn passive income. Passive income is the major alternative source of income for every earning or non-earning source. The following are some of the drawbacks of the sources of alternative income:
The risk associated with passive income is also higher. The majority of the alternative income sources are associated with high risk. Investment in shares, debentures, REITs, new business, etc. all have a high risk. So, almost all the sources require a high-risk appetite on the investor’s part. This reduces the use of passive income by low-income strata.
The passive source of income mostly requires the initial monetary investment. The majority of the sources like shares, fixed deposit, investment in the business, etc. requires the initial investment on your part. So, mainly you need money to make more money. So, you have to depend on the money to make more money.
The main drawback of the passive source of income is that they can’t be fully reliable. This is the reason they are called passive sources of income. There always require a main or active source of income. The active source is your main source of income. Here you put your time and efforts into earning money. This earned money can give you a passive source of income. This is because you cannot fully rely on passive sources for your everyday living expenses.
Almost all the alternate sources of income are highly affected by the market condition prevailing in the economy. They are more affected by uncontrollable external factors than the efforts you put in. This makes them volatile income alternatives. For example, you cannot control the price of shares in which you have invested your money. Or, you cannot force anybody to be your tenant. Thus, factors related to passive incomes are generally external and uncontrollable.
To sum up, we can say that, everyone requires alternative sources of income to have greater financial stability. These alternates are generally the passive income ideas in India. The selection of passive income sources depends on personal preference, availability, and benefits.
We have covered the most rewarding sources of passive income in this blog.
The best source of passive income in India is to become a subject expert on Chegg. You can provide solutions to queries posted by students based on the field you are knowledgeable in and earn a decent income. A subject matter expert can easily choose their working hours based on their preferences and help students worldwide.
Some interesting passive income ideas in India are investing in share markets, renting, affiliate marketing, blogging, etc. These passive income ideas are helpful as they allow financial freedom, save time and also provide more than one source of money.
The most profitable passive income is to rent out your properties. If you have a well-furnished apartment or house, you are no longer living in, you can turn it into a profitable passive income source. It would also help you generate a guaranteed source monthly and you can adjust the rent to your liking.
Some of the limitations worth noting while investing in any passive income source is that it might be risky, requires a good investment before making any profits, and is highly dependent on market conditions. Before going forward with any passive income source make sure you assess its pros and cons in great detail.
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