While we are busy struggling to make our both ends meet, the concept of passive income allures almost everyone of us. Isn’t it enticing to imagine, that you are making lots of money with minimal work and even when you are sleeping. With right passive income sources, it’s possible!
But then questions arrive like if it’s possible then why not everyone is making money passively and what skills or mindset is required to develop steady passive income flow. You will get an insight of all these questions here.
In this article, you will explore the answers to these questions and I will also share with you some effective passive income sources that are getting appreciations across nations.
Passive Income Definition
It’s a method that generates income with little or part-time involvement and one can conveniently pursue this involvement alongside the main profession that he/she works for.
The most powerful advantage of this process is perhaps the biggest fear of it too and that is – NO LIMIT OF EARNING! One can earn huge income or it may not generate even a single penny. It greatly depends on the source that is picked and the kind of involvement one shows.
The MYTH of passive income
There’s no wonder that so many people are earning an insane amount of money passively. But the MYTH is that it requires no hard work! Earning huge amount of money will always ask for hard work and dedication.
There are numerous stories which says how someone started working on some passive income sources and how after a while, the person decided to quit the job and accepted the passive as the prime income sources!
These are inspiring for sure, but the transformation has not taken place overnight or without effort. It requires sincere involvement to generate lucrative cash flow from any sources.
Before I go on explaining some of the best passive income sources of our time, let’s have a look at some of the key features of it.
- The most attractive feature is that You Are Your Own Boss! No one is in charge of your work but you.
- There is no fixed hours to work on passive sources, one can utilize the free time for it.
- Working From Home is another big advantage that everyone craves for and it is available here.
- One can work on multiple sources of passive income simultaneously.
So, if you are planning to utilize your free time the best way while earning some money as well, the following passive income sources are certainly something you should look at.
Most Effective Passive Income Sources of Our Time
I have not followed any precise order while explaining the sources. My concern was to prepare a list of sources that are actually attainable by most of us. I personally work on few of these passive sources.
- Stock Market
We get to read a lot about how stock market investments have changed the lives of so many people. It’s absolutely true that thousands of people have made their fortune from here. One doesn’t need to put in physical effort, but yes, sound technical knowledge is very important to protect and earn money.
Requirements: Unlike other sources, you need a chunk of excess money to invest in the stock market. That’s not it, you must know where to invest, when to invest and most importantly, when to withdraw the invested money. One needs the technical and fundamental analysis skills to decide on this.
Caution: Picking up the right stocks isn’t an easy task. While the right type of investments may allow insane profit, wrong selection of stocks may wash away the entire investment.
With the advancement of internet service and connectivity, working opportunities have increased for sure! Global employment is possible with this facility. Freelancing is such an opportunity where one can offer specialized services anywhere in the world. It could be photography, data service, designing, accounting or anything else for that matter.
Requirements: One must have specialized skills in a particular work-field. Apart from that, the only requirement is a medium to connect with clients and transfer the work. Good communication skills may be of help.
Caution: One can hire freelancing assignments from both direct and virtual clients. In both instances, a written agreement is very important. One should also verify the payment terms and conditions.
If you are passionate about writing and got some skills too, blogging is perhaps one of the most lucrative passive income sources for you! Thousands of people are trying their luck in blogging and without any surprise, many of them are SUCCESSFUL! Blogging itself offers so many different avenues to make more money with decent efforts.
Requirements: It is best to have an own website for blogging rather than trying free platforms. Having specialized knowledge on a particular subject always helps to deliver impressive quality contents. Moreover, one should have knowledge about the different income avenues that blogging can generate.
Caution: Blogging demands serious efforts to generate income. One needs to spend time researching and preparing quality content and such investment of time and energy should be a regular process. Casual blogging often fails to generate income, sometimes, even after spending months and years, the income remains zero!
- Coaching classes
Offering specialized coaching classes at the free time is yet another attractive source of making huge money passively. If your classes contain true value for the students or professionals, you will soon develop a decent income source.
Requirements: Subject specific knowledge is important and you must have expertise on that subject to organize valuable classes. Whatever the subject is, one needs to be passionate to help people with knowledge.
Caution: Value for time and money is what people will look for from the classes. In this competitive market, if one fails to offer these two qualities, people will get distracted easily!
- You tube
If you want to showcase your talent to the world, YouTube is giving your platform to do that. And the best part is that there are income opportunities too if your work is appreciated by the mass people. There is no exaggeration to the fact that many have left their traditional job to invest more time here. The platform opens up so many other income opportunities for the sincere people.
Requirements: You need to create videos that offer some knowledge or entertainment. Of course you need to be consistent with creating and publishing videos on your channel. As long as it offers some value for time, it will be appreciated by others.
Caution: It takes solid efforts to shoot, edit and create good quality videos contents. Sometimes, you may need the help of others. On the other hand, YouTube has the complete control over the monetization of your channel. Failing to obey the guidelines may cause problems with the income.
Do you know how easy it is now to write and publish your own Ebook? There has always been great demand of knowledge and it will hopefully remain so. The only change is in the medium to grab the knowledge from. In this age of smartphones, laptops and tablets, the electronic form of books is vastly appreciated amongst all.
If you have special skills and knowledge about something and you want to share that with others, you can easily go for writing your own ebook. If the content of your book is worth the time and money, chances are you will generate decent passive income from the ebooks.
Requirement: Vast knowledge on a particular field (that you wish to write about) is the foremost important thing. Moreover, it requires a lot of patience and planning to complete writing a book successfully. In most cases, the right promotion of the book is also important.
Caution: One needs to consider the fact that even a good ebook may not generate income immediately after being published. However, it can be the other way around too!
- Financial investments
According to me, stock market investment is different in many ways than other long term investments. Unlike the first option, it may not require sound technical knowledge and most importantly, one needs to stay invested for a long term (more than 5 years).
There are Mutual Funds, Public Provident Fund, Govt. Bonds and many other schemes which can successfully generate passive income in the long run. But don’t make the money mistake of jumping into any of these randomly.
Requirements: It may not require technical analysis skills, but thorough analysis of your situation and demand is necessary to know before investing. Patience and Discipline are the two other pivotal requirements for this passive income source.
Caution: Investments are never risk-free. There are risks involved with such investments as well, but if one can show discipline and patience, it’s possible to generate lucrative passive income from these investments.
- Rent your properties
We often consider a big house and cars as luxury of life which is true to some extent. But most of us do not consider that these luxury properties can generate income for us as well!
Yes, giving your property on rent is one of the best passive income sources that you can ask for. It can be a lucrative source of steady and regular income.