TOP FIVE SOURCE OF PASSIVE INCOME

 

Generate passive income is most important in today’s life. If you want to build your wealth you must generate passive income. It is an enticing concept , making money while you sleep. Whether you are looking to pay off your debts , save money for vacation , save money for education ,or build long term financial freedom it is important to generate passive income.



If you are a beginner how do you get started ? In this blog I am discussing basics of passive income and explore some beginner friendly ideas to start your journey toward achieve your financial goals.

What is passive income ?

Before discussing ideas of passive income let’s understand the meaning of passive income.  Passive income is earned money with minimal effort once the initial setup is complete (like 9 to 5 job) , Passive income continue generate money without constant work.  

Now let’s explore some beginner friendly passive income ideas :

1.    Dividend paying stocks :  when it comes to build a source of passive income buying dividend paying stocks is one of the popular choice. If you are interested in stock market you can buy dividend paying stocks and you will get dividend typically on quarterly basis. By buying dividend paying stocks you can generate income without sell your investment. 

   When you own shares of a company you receive a portion of profit as   dividend. These payment generally made on quarterly or annual basis. Not all companies pay dividends  , You have to research for dividend paying companies and buy shares of such companies.(For example In Indian stock market Coal India  , ITC paying dividend) .

How to get started?

To buy shares you follow the following steps :

·        At first you must open a Demat account .

·        Before buy a stock , research about such companies with a history of paying dividends.

·        After research you can buy such stocks.

2.    Create an online course : Create online course and selling is also a good source of passive income. If you have specialized knowledge and skill you can create a course and sell it online . some platforms like udemy or teachable allow you to sell your course online  . You will get money when someone enrolls in your course.

How to get started ?

·        Identify a topic you are knowledgeable about.

·        Create a course

·        Promote your course and let the platform handle sales and distribution.

3.    Affiliate marketing :  Affiliate marketing is most popular to generate passive income. It’s involves promoting services , products and earning commission for every sale you have made through your referral link. You can add your affiliate link to your blog , you tube channel  , your social media profiles.

How to get started :

·        Join affiliate programme like Amazon associates , CJ affiliate etc.

·        Choose a product which you want to promote.

·        Share your affiliate link in your blog , you tube channel , social media platforms.

4.     Invest in CDs : Certificate of Deposit (CDs) offer guaranteed return with low risk. It provides high interest rather than traditional savings account.

How to get started :

·        Research banks that will offers competitive interest rates.

·        Open an account and deposit your savings.

·        Let your money grow over time without any risk.

5.    Sell digital products : If you are interested in design , writing or creating digital products , selling digital products is a great way to generate passive income . It may be e-books , printable planners , it can be sold repeatedly without any additional effort.

How to get started :

·        Choose a product which you have interested

·        Create your digital product

·        Sell it online platforms.

Key Takeaways : Earning passive income needs initial effort but the long term rewards can be worth it. Here are some following points which you must remember when you start your journey of passive income :

a)     Start Small :  You can start with minimum amount . You do not need a lot of money to start. Many of the ideas of passive income  as mentioned above can be started with minimal money.

b)    Diversify your streams :  You must diversify your source of passive income.

c)     Stay consistent with your work : To generate passive income you must consistent with your work because it’s take time to generate income . If you consistent with your work over time , you can see fruits of your efforts.

Conclusion : To achieve your financial goals or build  a strong financial future you must have passive income. You can generate passive income by follow the abovementioned ideas , but you must make consistency with your work .

By exploring the above ideas you can generate passive income and achieve your financial goals.

 

 

 

 

 

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