The COVID-19 pandemic has brought a ‘new normal’ to the professional sphere, especially regarding the general public’s preferences for working and earning. According to a recent Pew Research Center Study, which surveyed 5,889 people, 61% of the respondents are working from the comfort of their homes, not because of any restrictions but because they want to.
So, if you are already at home, saving time commuting to and from work, why not use that time to generate extra income? This is where ways to earn passive income in India come in handy. Having a passive income allows one to appreciate one’s wealth without putting in a lot of time and effort. There are various ways in which people can earn passive income. However, one must be smart enough to identify the passive income ideas that require minimal investment or effort. So, let’s take a look at India's top 5 passive income ideas.
What is Passive Income?
Finding a decent job with a respectable stipend right after graduation can be a little troublesome in India. And thus, most individuals have to settle for either a high-demanding or long hours job or a relatively easier job profile with a low salary. However, one need not make a settlement between these two choices.
But what is Passive Income? Passive income is money generated smoothly without requiring an individual to do extreme work to keep producing extra money. For most people, it acts as a secondary income and helps improve their finances without requiring them to be actively involved in it. The sources for earning a passive income are becoming increasingly popular, not only in India but all around the globe. One must act on them to boost their finances while also sparing time for themselves to enjoy life.
The famous quote by globally-renowned investor Warren Buffet, “If you don’t make money while you are asleep, you have to work until you die”, sums up the significance of passive income in a line!
Passive income is the money that one can generate even while sleeping. What can be more fun than this? Passive income ideas are how one can make their money work for them instead of the other way around. All one needs to do is be proactive in identifying these ideas and acting on them in time.
I believe that earning a passive income has become as important as having a job or business in today's time. This is because it supplements your earnings and provides you with enough flexibility and freedom when it comes to using your finances.
Passive Income Ideas in India
There are several passive income sources in India. Interested in knowing them? Read on and find out the ways which are perfect for you to earn a passive income:
Investing in the stock market, mutual funds, cryptocurrencies, and ETFs is one of India's best passive income ideas when one chooses to do so with a long-term view. As an investor, one need not monitor their portfolio every day. Moreover, by investing in blue-chip stocks and funds, one can easily earn a passive income with the security of their capital. However, investing in these market-linked securities requires one to do a technical analysis of the financial instrument to identify the right investment opportunities and be aware of when one needs to exit from them. Interested in learning about technical analysis of the stock market? Check out our course on Technical Analysis.
Another way of earning a passive income is Affiliate Marketing. It is the performance-based method of earning a passive income which brings in cash each time one advertises a company’s products or services and drives a sale. People get paid each time they add to the company's customer base.
One of the best features of this way of earning a passive income is that it involves no risk factor as there is zero expense to joining this passive income business idea. And thus, one can begin earning money with affiliate marketing with zero investments. Nowadays, one can start doing affiliate marketing with the help of freely accessible social media platforms like Instagram, WhatsApp, Facebook, etc.
One of the best passive business ideas in India is blogging. Blogging refers to writing, creating videos, graphics, or any other form of media by oneself online. Blogging can be done from anywhere and at any time and does not require one to commit to dedicated hours. This way of earning a passive income often allows one to pursue their creative side while enhancing their earnings.
Did You Know?
The first blog in the world came out in 1983, even before the term ‘blog’ got coined in 1990!
Online Teaching Videos
Making digital tutorial videos can be a great source of earning passive income in today’s world. Everyone is shifting to online platforms, especially brushing up on their educational concepts. One can become a subject-matter expert, create quality content, and upload videos on the subject on popular video-sharing platforms like YouTube. One can also partner with various digital educational platforms and provide their course videos to earn a passive income regularly.
Passive income can also be generated by renting several items like vehicles, property, or other assets that are sitting unused in their house. It is a rational use of these items for which one has already incurred an expenditure. Renting out items can help one pay for their bills without making any effort, besides finding someone who wants to get the items on rent.
Why Is It Important to Have a Passive Income Source?
Besides helping one save time and effort, one can enjoy various other benefits by earning a passive income. Let’s read about them in detail below -
Boost Your Financial Stability - The RBI recently pumped up the expected inflation rate for 2022-2023 from 5.3% to 5.7%, indicating that commodity prices are expected to go up this fiscal year. Thus, to maintain one’s financial stability in these high price times, it is imperative for one to have a passive income source, even if they have a stable job.
Reduced Dependence on Job - People often continue their job, despite low work satisfaction or enjoyment because it gives them a steady flow of income. However, one can reduce this dependence on jobs for monetary reasons by adopting ways to earn a passive income.
More Financial Freedom - Passive income allows one to achieve more financial freedom and thus fulfil their desires which require financial backing, such as a weekend trip or an international vacation or purchase of the latest smartphone, etc.
Low Stress - At times, it can be stressful to manage finances and all financial obligations with just one source of income. Having a passive income source can reduce this burden and the involved stress.
Having a passive income source becomes mandatory as the inflation rate peaks. Passive income allows one to become financially stable, helps them remain independent, remove stress, and achieve their financial goals at an increased pace. One can choose any of India's above-mentioned passive income ideas according to their interest and passion and make a good amount of money from it. If you liked reading this piece, comment and share the article with others!