We hate to break it to you, but a single source of income in 2021 will not be enough to help you take that foreign vacation or buy that dream house you have been eyeing all this time.
And no, we don’t mean for you to give up on your dreams and aspirations.
* Drum roll* Passive income!
What are we talking about?
Simply put, passive income is a one-time investment that gives you regular returns without the need to monitor or adjust your holdings very often. You make money on money, quite literally- told you, it’s simple.
It acts as an additional source of income that enables you to be more economically viable and increases your risk-taking capacity.
With a steady stream of passive income, you can easily make upwards of 5K a month and expect a gradual increase in it. So that dream house or that vacation with your best friends is not that far-fetched after all.
How to get started?
Now that you know what we are talking about, let’s take a look at how you can build a stream of income for yourself. There are plenty of ways but what’s tricky is to find which one works best for you. Some options may require pre-requisite skills while others may require you to put in some time and regular effort. Read on to know about potential passive income streams for you.
With mutual funds, you can invest your money in a pool of companies that have an excellent reputation and pay regular dividends that can act as a passive income. You can invest in mutual funds using Freecharge to build a minimal risk and great returns portfolio. With as little as ₹100, you can start your journey of building a source of passive income through mutual funds. With time, the returns you garner can help you achieve your dreams and goals.
Build a Youtube Channel or Podcast
This is the easiest way to get started towards building a source of passive income but requires a constant strive. We suggest developing content around topics you are passionate about. This way not only is it going to take minimal effort but will also be something you enjoy doing whilst the possibility of it potentially monetising. Once your content is out on Youtube or any podcast hosting platform, after a certain amount of traffic, it will begin to develop as an alternate source of income for you that will continue to grow with each view.
Today, you can rent practically anything. From clothes to property- the options are limitless. If you have a property that you can rent out, the returns are going to be extremely lucrative and can significantly add to your disposable income and thus act as a constant source of passive income. If you can’t rent an entire property you can also rent out any spare room that you might have.
What if we tell you you can also save and make money even if you are staying on rent? In comes Subletting. Subletting essentially means you can rent out a part of the property you are renting to someone else.
If renting property is not an option, consider renting other assets and belongings. With portals like RentMyWardrobe, you can rent your clothing, bags, shoes and more to develop a stream of passive income.
Now that we have two seemingly simple ways of passive income generation, let’s delve into more skill-based ways to increase passive income.
For steady income and predictable returns, dividend-paying stocks can be a good option. Although they do not give returns similar to pure growth stocks, they do come with little risk, predictable returns and less uncertainty, unlike equity stocks. With the right investment, you can enjoy regular principle and compound returns on your investments. With dividend-paying stocks, you can also relish the benefits of price appreciation.
Have friends, family and colleagues you can lend money to we suggest you start doing it now. You can give out loans to peers at a predetermined rate and period and make significant money as interest on them. Make sure you have all paperwork in place to avoid disputes later. With P2P loans, you can give out as much money as you have to spare and generate regular income from it. You can also reinvest the interest money to make more money, making it a very lucrative method to increase your passive income.