Before You even start thinking about passive income or alternative sources of income, just think about a few Questions, Why do you need passive income? What are your areas of interest? Why should you ask these questions because I have seen many people labeling themselves as an entrepreneur, they tend to start reading Entrepreneurial/Finance related books, and they come along with this term ‘Passive Income,’ and finding it Cool and trendy thing.
But, It’s not easy to make Passive Income, Sometimes you have to put the most of your Time, Money and efforts especially in the initial stages, But if you can answer the above questions and you are determined to make efforts, then it becomes easy at one time.
For those who don’t know What Passive Income is, I would like to throw a light to the meaning of Passive Income.
What is Passive Income?
Many of you must be familiar with these lines, RICH PEOPLE DON’T WORK FOR MONEY, BUT MONEY WORKS FOR THEM.” or “MONEY MAKES MORE MONEY.” So, In simple words, they are all talking about Passive Income only, which means, when people acquire some assets which in return generate money, and they re-invest in more assets and yield more money and so on.
“My rich dad taught me to focus on passive income and spend my time acquiring the assets that provide passive or long term residual income…passive income from capital gains, dividends, residual income from business, rental income from real estate, and royalties.”
— Robert T. Kiyosaki (Author of Rich Dad Poor Dad)
How Passive Income is different from Active Income?
Active Income is the money you get paid while working on a job/task. It means you have to participate in a task actively, for example, Manager of a company receives a salary for his services, Labour gets wages, Steward gets Tips, etc. If he is fired from the Company, or the company becomes insolvent, he would not get a salary. So, when someone’s financial dependence is on wages, salary, tips, commission, it constitutes a part of active Income only.
But Passive Income is required for long term financial security, like if you fell sick, buying luxuries, education, etc. Passive Income is different from active Income because, you don’t have to be active while earning it, for example, if you acquire securities like Mutual funds, Equities, Debentures you would get dividends, interest while doing nothing. So, your role gets limited in terms of participation.
List of 10 Best Passive Income Ideas in 2019
You can find a lot of ideas on the internet, but I have practically tried to explain the idea of selecting your source of Passive Income. Here I have the list of 10 Best Passive Income Ideas in 2019.
1) Invest in Share Market
Investing is Share Markets has become easy; you just need a Demat Account. I prefer Zerodha, as It is easy to operate and they charge negligible Commission. But selecting shares is a crucial task, as you may lose your money. So get proper knowledge from Google or Youtube Videos, I would recommend you to watch Pranjal Kamra’s Videos.
– Download Money Control App and try to build your Portfolio and add different Companies to it, and observe for a few days how Share Market Fluctuates.
– Then, Start to Invest in Known Companies, mostly in Banking Sector.
– Don’t be too much happy as you may gain too much at one point of time, and lose at another. 😛
2) Get into Franchise Business.
This one is the best way to earn Passive Income while sitting at home. All you need to be smart enough to invest in a project before others. Take First Mover’s Advantage as soon as possible, check out your City/ Locality what it lacks, try to think like an entrepreneur, How you can solve those problems. For example, your city may lack a fancy Pizza Restaurant or Waffle shop, etc. You can take the initiative and try to contact the companies already dealing it or selling Franchise.
You can also develop your system, can become a Franchisor, earning commissions/Royalty.
– Go to Franchise Bazaar and try to sort and search the franchises as per your interest and Investment.
3) Invest in Real Estate
Real estate Business is not a new concept, but it has made a lot of middle-class people into Millionaires, So you should think about it. Try to purchase Real Estate in the areas which have a definite scope in the near future. If you have a shortage of funds, try to buy it with someone in Partnership, You both will share profits. The only drawback in Real Estate is, it may grow at a very slow pace, but sometimes your money gets blocked. So, if you can’t put your money aside and can’t be patient, then this isn’t your option.
Real Estate Investment helps in generating Wealth Maximisation and not a regular flow of income.
4) Renting a Property.
If you have a property, try to let out. If It’s just a piece of land then try to construct some building as per area’s demand, for example, your land might become someone’s godown. Try to contact MNCs or Banks because they mostly pay well. One precaution, before signing an agreement, double check the clauses, It must be strict and try to take security cheques.
I can help you with the agreement and Contract part 😉
5) Renting an Asset
Try to rent an asset like Generator for buildings, Tractors/Combiners/Thrashers to landlords/ farmers, etc.; This can be an excellent Passive Income idea if you’re smart enough to execute it.
There are many websites where you can rent your assets, like Cameras, lens, drones, etc. Google them.
6) Writing an e-Book
In 2019, if you still think getting your book published is a difficult task, then you’re wrong, my dear friend because today is the generation of e-Books. All you need to do is publish your books on Amazon. Note, your e-Book must be informative. For that, I suggest you write about 10k-12k words. It must have something which can be sold. You would get royalty for each book sold. I have seen many influencers selling their e-Books on their website also. If you get viral enough, you can later contact publishers for Paper Back also.
Try to make your Book’s Title as attractive as it can then chances become high. Though, The content has to be robust, no doubts about that.
7) Writing a Blog
You got writing skills, No? Opss, Don’t worry, Nobody got it by birth, just practice and practice. Blogging can become an excellent Passive Income Idea; you can sell ad spaces, start affiliate marketing, etc. All you need to write something informative like I have tried to cover most in this Blog Post. All you need a Domain, like this www.finolive.com, you can register at GoDaddy or BigRock, etc. After that, you need a hosting, where you can host your website, like Hostgator, Bluehost, etc. Just write on your niche after some Keywords research. And apply some SEO tips. Boom. You get started.
I can help you set up a Blog on WordPress or Blogger.
Learn How I saved Rs. 18,000 on HDFC Regalia Credit Card.
8) Rent a Cab
In the age of Internet and smartphone, booking a cab is as easy sending ‘Hi!’, just a few clicks away, say it Uber or Ola or Zoom Car. But have you ever realized, they don’t own the cars, they are just intermediates. So, God bless to these startups, you get an opportunity, Just hire a driver and put your car on work, fetch cash out of it, everything is transparent, you don’t need to worried about the leakages. Contact Ola or Uber for this. There’s another option available; You can rent it to Self Drive Companies like Zoom Car or Voler or Drivzy. You’ll get paid without even worry of Drivers.
9) Interest Income
I know it sounds simple, But you know many of Indians still avoid depositing their cash in banks. You can get Interest from Savings A/c Deposit, Fixed Deposit A/c or Recurring Deposit A/c. It also helps our economy to multiply many times since your money comes into circulation. So try to avoid letting your money sit at home. You know, in Developed countries like the US has most of their money in banks only, you would get a paper pin to a vegetable just by swiping your card. But in India Scenario is different, Merchants refuse to accept cards, to save GST & Income Tax or they’re not so tech savvy.
Try to deposit your money in Tax Saving Fixed Deposit A/c. It yields around 7-8% p.a. Interest plus you would get 80C deduction benefits up to Rs. 1,50,000, but has a lock-in period for 5 years. (Note- Interest will be still taxable)
10) Start Selling Products online.
If you have anything to offer, just start selling on your e-Commerce website, or you can start selling on Instagram. If you already have an established business and want to expand, then try to become a seller with Amazon or Flipkart, they charge some commissions. But now your reach will be in the whole world and not at your locality or city. So, you can imagine the amount of money you can earn. I know it sounds simple, but it is challenging to execute. But I can help you with setting up an e-Commerce website.
What Should be Your Source of Passive Income?
“Passive Income is more about Passion rather than just being about money and just for that (money) you’re already working your ass off in a 9-5 job, “
– Harshit Manocha
I can discuss many Passive Income Ideas, but the most important thing before you even start thinking about passive income is to know your areas of interest because one can fetch most of the results from his area of interest only. So, if you can shortlist your areas of interest, it would be easy to cash out the most returns. For example, one may be good with Sports; he can invest his money relating to that only, like in Dream 11 or Shares of Sports oriented companies, etc. One may be good with food, he can think of opening a franchise relating to the Food Industry, etc.