passive incomes ideas

What is passive income ?

                    Passive income is income that requires little to no effort to earn and maintain. It is called progressive passive income when the earner expends little effort to grow the income. Examples of passive income include rental income and any business activities in which the earner does not materially participate.

There are different types of passive income 

              

1. Rental Income: This is the best form of passive income. It can be generated from property purchase. But problem is, property purchase requires high capital investment. Nevertheless, it’s still worth it. One can buy two types of property: residential Property and commercial Property. Depending on ones affordability, one can buy any size of property. By putting this property on rent, passive income can be earned each month. Read more about property investment for beginners. 
2. Dividend Income: Dividend income can be generated from stocks. Dividends are as good as rental income. For me, both are equally desirable. But identifying a good dividend stock is slightly tougher. The key control point is the price of purchase. Stocks must be bought at undervalued price levels. Read more about dividend income from stocks and mutual funds.
3. Interest Income: If one cannot think of anything, bank deposits can generate passive income instantly. Bank deposits can be bought from the comfort of home. This can be an excellent source of passive income. While buying FD, ask the bank to pay the interest monthly. Read more about how to value a fixed deposits.
4. Royalty Income: People write ebooks and publish it on Amazon. Earlier, writing and publishing a book used to be a big task. But in this internet age, online publishing has made it easy. If you have a concept on which you can write about 10,000 words, I strongly suggest you to put those words in form of an ebook. Upon sale of every ebook the writer gets paid the royalty. Please check my eBooks here.
5. Online Income: One straight way of online income generation is by building an “online real estate property”. This property can then earn ‘advertisement’ income (like rent). What is an online real estate property? Example: Website or a blog. I’m a blogger who earns online income.
6. Paid Subscription: Become an expert on a topic, and start a paid subscription service. People can subscribe for your services/advice by making payment. Example: Rakesh Jhunjhunwala is an expert of stock market. Suppose he starts a paid subscription service, wherein he will publish names of couple of stock each month for investing. What do you think, how many people will subscribe to this service? Tens and thousands if not less. Read more about how to do stocks analysis.