Hey! Your bank is getting credited with the same amount every month and still are you not happy with it?
You will always be looking for more and more money to achieve freedom from your responsibilities. Finally, you will decide to take some action that will generate a passive income for you.
Well, in this article, we have listed down 10 passive income ideas. You can now achieve your dream with your 9-5 boring job.
What is Passive Income?
Passive income is the earnings from the work in which you do not have to involve more actively. You can do most of your upfront work with a little more effort to earn an extra income.
Generating passive income is the best idea to learn something new or increase your pocket weight. For example, if you have your own online course, then you need to only update it and money will flow automatically.
What is Active Income?
Active income is the income received from active participation in any service. For example, wages, salary, tips, and commissions are the kind of income you get when you provide some service. This income will be generated until you provide service.
Active Income vs. Passive Income
While active and passive both are the income generator process. Some work for both and some for only one. That depends on the person on what kind of income he/she prefers to have in life.
Do you still confused what to choose?
As we said before, to generate active income, we need to put more effort into work. If you are employed, then you can realize how much effort you are putting into a single company’s work. In case, you left that, then your income will stop with the additional feeling of regret.
But in the case of passive income, you don’t have to work actively and your money continues to flow upward. But if you stop working, then also it will generate some income. You might be hearing this phrase from your school time, i.e. “Something is better than nothing”.
Now you may have understood why passive income is more important than active income.
We’ve got you covered with the difference between Passive income and active income. Now, to generate passive income in your bank account, you need to follow the below ideas given.
10 Powerful Passive Income ideas in 2021
1. Write a blog
As we are running the blog for a passive income, we would also recommend you to start with the same. Blogging is the most popular stream of passive income in the world.
All you need is content here. And to research content, we already have a great search engine Google. You can say that it has a slight upfront work to grow your blog successfully online. But still, it is a great platform to fill your pocket with money once it gets successful.
You may have to work on the search engine ranking process as we call it SEO (Search Engine Optimization). You can earn unexpected income from blogging if you provide a piece of unique information. Many have generated their income by writing the blog for a particular niche.
2. Affiliate Marketing
Affiliate marketing is the process of reselling or promoting a company’s products which will make you earn a commission. it is one of the smart passive income.
Affiliate marketing is the one from which people are making lots of passive income. It is the best passive income opportunity to start if you have your website.
As I told in the previous point that creating a blog can increase your passive income, affiliates can add more to it.
You can find many big brands who offers affiliate program, which you can sell their popular products through your website or ad.
3. Sell Course online
During this lockdown, many have faced obstacles but views of online courses went on increasing. It is also the best passive income for many lecturers, as online courses took the pace since the lockdown.
Knowledge is everything all need now. There is always a massive demand for selling insider tips, tricks, and information. You can sell your course on any platform like on your own website or e-learning platforms like Coursera, Udemy, edX, etc.
Find which e-learning platform is best for you, and go for it. But before the learners pay for your course, you need to build your brand. So that, you can sell course for free first convince them with your course, then go for paid one. What you think?
YouTube videos are also the best passive income platform that’s just increasing day by day. It is also the most visited site in the world that comes after the famous OTT platform Netflix.
With over 2 billion monthly active users, you may find it difficult to grow as there will be competition. There are different YouTube statistics which you should know before starting your own YouTube channel. All you need to get views by following the trending topic.
5. Stock Investments
Well, Investment should not stop whether it is in stocks or any other platforms. If you look at the richest people’s career, all money they have generated by investing in shares. Of course, this would make us inspired.
Let’s talk about one of the World’s richest man Warren Buffet. He is the number one investor in the world. He invests in a company for which he doesn’t work. He reads the book, not a storybook, but a book that contains the annual report of the company.
We will recommend you to start investing in the company by researching its performance.
6. Invest in Property
I can only see real estate which never goes down in its price. So investing in the property can be the best platform to generate passive income.
You can make great income depending on where you will buy and when. Once you buy a property, you can decide whether to rent for a long time or sell it on higher rate.
However, you need an big investment for this, but in return it will bring an massive income for you.
7. Rent out car
If you have your own car, then don’t just own it, but rent out to any driver so that both of you can earn money. This will make you to invest first to purchase a car. Then you will get the rent monthly basis and can cover your daily expenses.
You can find different apps as well to search for the person who is looking car for rent. In India, for example we have OLX.
8. Mutual Funds
Mutual funds are the funds which is pooled by many investors and invest it in securities like bonds, stocks, and many other assets. It is also the best passive income to generate for a long term.
As it gets invested in different segments, the risk is very low. You can select your mutual funds based on your risk and timeframe. All depends on fund manager, as they will manage your portfolio.
9. Run a side business
You may know that many successful people started their own business to run their life. While starting your own business may face some difficulties as you will have to give your lots of time.
But we recommend you start your business with the partner. Choose the partner who has better knowledge of the business which you are doing. If there are two partners, then it will make it both easier to manage time.
10. Fixed Deposit
We have listed fixed deposits because it is also the best way to create passive income. But it has less income comparing to others on the list.
If you are planning for no risk and normal return, then fixed deposit is the best investment. All banks offers deposit, in which Fixed and recurring deposits are the best. But Fixed deposit offers higher interest rate than recurring deposit.
So, in this article, we’ve got you covered with the top passive income ideas. You can think about it and start doing it.
What do you think is the best passive income idea from this list? Let me know down below in the comment.