Passive income is the income that we generate without working or working little. Generating it always doesn’t mean you don’t have to work for it. You have to work for it initially and it generates income for you in the long term.
Many people invest in the share market, metals, real estate, and do many other things to generate it.
What’s in it for me?
- Passive Income
- Importance of Passive Income
- 13 Passive Income ideas
- Passive Income for students.
- Passive Income for beginners.
- Benefits of Passive Income.
- Active Income vs Passive Income
It is the income that we generate without working or working little. Let me explain to you this, like, if you invested your money somewhere like stocks (share market)/ Mutual Funds, you get returns on your money without doing any physical work.
You just have to invest your preferred amount in the shares of companies you love or in any mutual fund. Your work is done here now your money will work for you. Generating it always doesn’t mean you don’t have to work for it. You have to work for it initially and it generates income for you afterward.
Importance of Passive Income
It is very important because it demands from you less and gives you more. Everybody has some needs and some desires. Every person has to pay bills and spend money on the requirements and after that, he fulfills his desires.
Sometimes people are not able to even fulfill their needs. There comes the benefit of passive income. It is like a second source of income and because now you have an income source you can spend more time on yourself and your family.
You can now fulfill all your and your family’s needs and desires. In addition to this, it also provides you the ability to work from anywhere so you can spend more time with your friends and family.
According to Robert T. Kiyosaki (author of the Rich Dad Poor Dad) – We go to school to learn to work hard for money. I write books and create products that teach people how to have money work hard for them.
Passive Income Ideas
There are many sources of this. Their number is this much that I will not able to list them all in front of you but I will surely list the best and most occupied sources of income. Click on them for detailed information.
- Dividend Stocks and Mutual Funds
- Savings account with high return
- Renting your property
- Real estate
- Selling e-books and books
- Sell online courses
- Selling stock photos
- Affiliate marketing
- Creating an app or website
- Writing a blog
- Peer to Peer lending
- Advertise on your car or Rent your car
And many more…
Now here I listed some of the ideas which will be useful for you. There are a lot more other ideas which you can explore and find helpful for you.
Passive income for students
Every student should try to make money by using ways of passive income. Because you are in that phase of life where you can take the risk. You have your whole life and we can say that this is the perfect time for you to explore.
The person who passed his intermediate recently and got admission in college has always a will to explore. You always try to find ways to generate income. If you get the idea of how money works in your initial age you have very little chance of failure in life.
Most people can pass their school exams their college exams but there are very few people who succeed in life. If you learn how to generate the income you will have to work less in life. But in initial years you have had to hustle hard.
For students in India, you have your parents who support you, pay your fees, carry your expenses, and provide you anything you required. But in foreign/western countries students (specifically of college), they carry their expenses themselves.
They also pay their fees and rent by working in a part-time job. This helps their parents, as well as they, start getting an idea of how to earn money.
They start respecting money and they also know the value of money which I think lack in students in India. They think that their parent will anyhow provide them money. So they spend so much money that is not required.
Passive income for beginners
For beginners, I can suggest you don’t directly go and start working (investing, making youtube video ). Firstly you should research enough so that you can know the subject thoroughly.
Research is a very essential part of anything you are going to implement so that you have enough knowledge before implementing anything. Once you know any field you can see both sides of a coin. You can think smartly and have fewer chances of having a loss.
Beginners have an opportunity to explore any fields they want. My opinion for you is to go for any source of passive income, you should not just try only one of the passive income field you should go for many.
As if you go for many then only you can be able to decide what works for you best. Like if you are making youtube videos this does not mean you can not invest your money in stocks or anywhere you should invest your money as well as make videos too.
For beginners, if you do not know the share market I can say to you that you should go for the mutual funds. And if you want to invest in the share market you should do some research first and one more thing starts working for your passive income sources.
Research can help you but you can only get to know things when you start doing it. So be a doer not only a thinker.
Passive income benefits
There are so many benefits of it which you can only get to know when you enter in any of the fields of generating passive income. But for you here I am going to list some of the major benefits of passive income :
- You will have time to spend with your family and your loved once and your friends as you are not going to take anyone’s order every time.
- If you talk about investing, you have your money at work, money is making money for you. You have to put fewer efforts in working hard so much and get some relaxed life and you will be less stressed as you have multiple sources of income.
- You can use your active income for expenses and needs while your passive income can be utilized for your desires like a trip or parties.
- Passive income also assures you to work from anywhere you want.
- You will get the freedom of time as you can do things you love and not only working for paying your bills off.
- Passive Income also make you financially stable and provides you growth. You will do the things you want to do and not only work so hard for anyone else.
Passive income vs active income
|Passive Income||Active Income|
|It is that income which we generate by working for ourselves.||Active income is that income in which we work for others (Companies / Government / any other person) who gave us money or we can say they pay us which we call payment.|
|It is generated without a job.||The income we generate by jobs is called active income. We receive when we work something for someone.|
|In Passive income you can also earn while you are not working or you are sleeping or doing any of the activities.||In active income you can only earn while you are working|
Once a great man said -“If you don’t find a way to make money while you sleep, you will work until you die.” That great man is Warren Buffett. Passive income is a step towards that.
Everybody should try to make different streams of income to enjoy life on the fullest. Most people are being trapped in the rat-race and if you want to relief from that rat-race this blog might have help for you.
I want to say that if you want a change in your life you have to just stop thinking and start doing. All the best !
I will say yes passive income is generated with cryptocurrency. Cryptocurrency is a digital currency that is mined by cryptocurrency miners. You can think of this like stocks, it is like investing. Cryptocurrency is not verified by the Indian government.
Many cryptocurrencies have different prices but the most famous one is Bitcoin. The value of bitcoin was approx Rs. 300 in the year 2015.
Now in 2020, the value of 1 bitcoin is approx 5 lakh Indian rupees. Some people think that bitcoin is a good investment and some people not. The choice is always yours.
Yes, passive income can make you rich. If you have enough knowledge and patience passive income can make you rich.
A person like Warren Buffett became rich by the knowledge of the share market. He decides when to buy and when to sell a stock is always a highly calculated risk.
So if you talk about youtube, a person who passionately and regularly makes videos have a high chance of generating income but if you only want to make money via youtube I can’t say what will happen. It takes time when people start to recognize you.
I want to say one thing to you in most of the cases everyone has to start from the beginning. You will not see the result in beginning but in a long time or after some time when you keep struggling you will see results.
Learner | Pursuing B.Tech | Computer Engineering
Teenager exploring life
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Have a good day!