All the successful investors suggest one thing in common i.e. having more than 3 sources of income. Having such extra sources apart from salary and profits from business help you in times of uncertainty such as the current covid-19 situations where millions of people have lost their jobs and businesses faced huge losses. So, here we will talk about various sources of passive income.
What is Passive Income?
Firstly, let’s talk about the concept of passive income. Passive income is an additional source of income. Such sources are generally side-hustles and use the innate talent of an individual. Such side-businesses are built around personal hobbies of an individual such as writing, painting, dancing, photography and videography. Generation of income from such sources is initially very difficult and requires a lot of passion and hard work. In the starting, the cash receipts from such adventures are often very low but in the long run they are seen to provide even better cash flows than the primary income. Apart from the extra income generation there are many other benefits such as freedom, flexibility and recurring income.
Top 8 Sources to Earn Passive Income
Blogging
This is one of the most popular sources of extra income and is often taken by the individuals who have an interest in creative writing. Here, you have the freedom for writing on any topic ranging from a blog on fitness to blog about music instruments. This requires a good knowledge about the topic you are writing on and a keen desire to share your knowledge with the world. Running advertising and engaging in affiliate marketing are great ways to generate income from your blogs. You can use sites such as Blogger and WordPress for writing blogs.
YouTube Channel
Generating income from creating and uploading videos on YouTube is one of the most popular ways to earn passive income. Here, you just need to create a YouTube channel and upload videos. Once your channel becomes popular you can start earning by applying for an advertising program offered by YouTube.
Consultancy Business
This source includes a large variety of professional services that you may provide to your clients. You can serve as an investment consultant, property consultant, tax consultant or business consultant. Here you require good knowledge and expertise in your area of expertise.
Freelancing
Freelancing is a highly preferred method for generating passive income. Here you just need to use your skills for completing a project assigned to you by your clients. This requires having a skill such as digital marketing, writing, web designing, income tax return filing, etc. Websites such as Fiverr, Upwork provides you a platform to start freelancing and earn a good passive income.
Affiliate Marketing
If you have searched about how to make money online you must have read about affiliate marketing. Here you need to recommend products to people and if they buy the product from the link shared by you, you will receive commission. Famous websites such as Amazon and Flipkart provide a facility for becoming an affiliate marketer.
Teaching Online Course
In this Covid19 struck environment, the demand for online tutoring has increased. Here, you need to have the knowledge about a subject matter or a skill and design an online course. Websites such as Udemy or Thinkific provide a facility for an online course.
Investment in Mutual Funds & Equity for Dividend
The simplest idea to generate passive income is through investment in mutual funds and equity. Such investments generate income in firm of dividends.
Insurance Agency
Another source of generating passive income is through working as a part-time insurance agent. Here you will have to sell insurance policies and you will be paid commission on the premium paid by the customer. You can sell various types of insurance such as medical insurance, life insurance, general insurance etc.
