These days everything around us is getting expensive day by day. We have seen exponential growth in prices over the years, whether in education, automobiles, immovable property, or even simple household items. On the other hand, our salaries grow at a different pace than prices.
Hence, to lead a comfortable life nowadays, we all need multiple sources of income. Thanks to the Internet and technology, we can now earn extra income from the comfort of our homes without having to juggle between two jobs.
According to CNBC, about 39% of worldwide income earning by the top 1%. In addition, 29% of their money comes from investments that can be considered passive income. However, the top 0.1% of the world’s income holders rely heavily on investments; They depend on them for a staggering 35 percent of their income.
Why is an Alternative Source of income essential?
A passive income guarantees greater financial freedom and frees you from the 9-5 routine other investment options offer. Passive income can help you focus on meaningful financial goals, such as securing money for retirement and giving you time back.
It saves time
Time is one of our most valuable resources. Passive income allows you to spend a limited amount of time doing the things you choose rather than just completing tasks to pay the bills. So it is essential to have a passive income idea in India to save time.
It helps to pursue the passion.
Your ability to follow your passion or participate in charitable activities that benefit society can facilitate by passive income, which can lead to a better quality of life. As a result, you can develop relationships with others and your environment that are deeper and more meaningful.
Reduces financial stress
The stability of passive income reduces the anxiety associated with being unable to pay the bills. Financial support and long-term stability are provided by passive income, giving you the economic momentum you need to efficiently manage your finances, your time, and your assets.
Financial Freedom
An essential component of financial freedom is passive income. You must be present and productive every day to make money from your job. It is the constraint in some ways, including the number of hours a day, your employer’s policy regarding pay increases and promotions, and even how well your boss perceives you. There is a limit to how much you can earn even when you are healthy and able to work.
Also, if your health deteriorates, your earning ability also decreases. These restrictions do not apply to passive income. You can make passive income at any age and in any physical condition. You become less dependent on your paycheck and have more freedom to decide how to spend your time if you have a large stream of passive income. It also helps to finance your financial goals.
Also read: How To Make Money With 5 Lakh Rupees
11 Ways To Earn An Alternative Source of Income In India
Rental income
Real estate investing is one of the best-known ways to earn a passive income. You can buy and rent homes, offices, apartment buildings, and other real estate types with some investment. Then you can make monthly rental income and hire a property manager to manage day-to-day issues with tenants and collect any payments.
Having a rental property requires some work and financial investment at the start. Depending on how many properties you own, the types of tenants, and the rent amount, you can make a significant amount of money through rental properties.
There are a few financial risks to owning a property, such as being unable to find tenants or facing an increased mortgage. So, ensure that there is a market for your property before you invest.
Stock market investment
Along with high-cap companies with good trading history, there are many good dividend-paying stocks in the stock market. You can earn both dividends and capital appreciation. You can be an intelligent investor to earn regular income. If investing in the stock market, it is necessary to have a good knowledge of working in it.
It also requires market knowledge and decision-making power. However, it would help if you were careful while making decisions related to the stock market, as they are subject to high risk. Still, investing in share marketing is one of India’s most profitable passive income ideas.
Car rental
Suppose you have a car that is of little use. In many metro cities, you will use public transport instead of your vehicle. Many websites provide you with a platform to rent your car. It offers an option to earn without any special effort. You can find a tenant to rent.
It is very prominent in big cities. Some sites also cover you against damage to your car due to rental.
Invest in REITs
REITs are real estate investment trusts. They deal in the leasing of real estate properties. It is the best option if you need more money to invest directly in real estate. It allows you to support your small savings in high-yield REITs.
You do not personally own the property, but you will get all the benefits of owning them. t acts like a stock, and you mean interest and capital appreciation returns.
Invest in small business
If you have a risk appetite, you can invest in small but emerging businesses. You can be kind of a venture capitalist. It can give you a stay and good returns. It would be best if you did good research before investing. After choosing the best option, your job is over. After that, your money will earn more money.
The only catch here is that you own your share in the business. It comes with all the risks that a businessman bears. It is uncertain.
Also read: 51 Small-Scale Business Ideas
Opening homestay
If you live in a city with a high number of tourists every season, this is for you. You can convert different places in your home into homestays for tourists. It’s like renting, but for a shorter period. You don’t even need to go far from home. It is the best Alternative Source of income.
You have a regular income if you live in places with high traffic. You can also choose who you want or don’t want to hire.
Fixed Deposit and Savings Deposit
You can earn a decent steady amount without risk by investing in fixed deposits. It is an effortless way to get steady passive income. You can also keep your money in a savings account. Although it has a lower interest rate than fixed deposits, they are more liquid.
In this way, you can earn passive money by investing.
Also read: How to Start a Small Business
Become a POSP Insurance Agent
The point of a salesperson is an insurance agent. You can work with insurance companies to sell insurance policies to customers as per their needs. Although this requires initial active participation, you can also earn passive income when these customers renew their policies.
If you work hard initially and build a good customer base, you renew policies with minimal effort and earn a passive income. Your income is on a commission basis; therefore, the more policies you sell, the faster you can earn a higher income.
There are a few risks to becoming an insurance POSP. Anyone selling can become a POSP agent if they have a smartphone and a good internet connection. However, it is always good to read about the company you are joining and remember to read any contract before signing it.
Create a mobile application
Application creators are making good money these days. Mobile application gives you good passive income. Nowadays, there is an application for everything. The catch here is that you must know how the application is built and how it is advertised.
Also read: How to become an app developer
Become Freelancer
Freelancers are self-employed independent contractors who provide professional services to clients in various industries. Freelancing over the years has grown as a potential career option among Millennials in India. If you want to work independently, you can become a freelancer in the field of your choice.
Selling Digital Products
Digital products refer to types of downloadable or streamable media. Include plug-ins, PDFs, UX kits, printables, e-books, and audio or video courses. The ingredients of these products can vary greatly, from recipe collections to design templates and wireframes.
Once a product creates, you can generate a passive income by distributing and selling them through sites like Udemy, Skillshare, or Coursera.
To sell a product to others, you must do a little work in the beginning to create the effect. Digital products have a high-profit margin because you only need to build an asset once, but you can sell it online as often as you want.
Since there are so many products on the internet, you may have to create something unique or that addresses a specific market to make good money from it.
Also read: 41 Easy Ways to Make Money Online
Do Affiliate Marketing
Affiliate marketing is one way you can help brands look for ways to promote their products. You become an affiliate of a given brand or company, such as Amazon, and you promote your products to your followers or readers, including a link to the products on your site or social media account.
You can then earn a passive income from commissions for marketing your products online, giving you a slice of the profit from each sale. Thus, the more people buy these products using your specific link, the more money you get.
Also read: How to Start Affiliate Marketing Business With ‘ZERO’ Investment
Wrapping up
Many want to make more money in part-time jobs, freelance work, or other projects. However, for this, you need to make regular and active efforts. So, a better option would be to stop spending so much of your time and look at how to earn passive income.
If you are starting for passive income, remember a few things before investing and making money. With a passive income, you can make money without a lot of busy work, but you’re getting nothing for nothing.
It would be best if you still did the job or investment in advance, and it will generate income, dividends, interest, or appreciation in value, providing you with financial security over time. Most of your work and investment take initially.
You may still need extra labor, including keeping your product up to date, keeping your rental property well maintained, or checking your stocks and investments to maintain a passive income flow. While such income is taxed separately from active income (such as your salary), it will be subject to taxes.
