If you are a salaried employee looking to supplement your income without trading more of your time for money, passive income could be the answer you have been searching for.
Unlike active income earned through your employment, passive income flows in even when you are not actively working, giving you the freedom to pursue your passions and enjoy life to the fullest. Here are 10 possible passive income options you could consider to earn returns from
Equity investments:
Consider investing in stocks or exchange-traded funds (ETFs) that distribute regular dividends to shareholders. By owning dividend-paying assets, you can enjoy a steady stream of income without having to sell your investments.
Rental Properties:
Investing in rental properties can be a lucrative way to generate passive income. With proper management, rental properties can provide a reliable source of passive income and potentially appreciate over time.
Peer-to-Peer Lending:
Peer-to-peer, or P2P, lending is a contemporary financial trend that democratizes the loan process by using technology. P2P records returns upto 13% on your investments.
P2P lending is a system that allows people to lend and borrow money directly to one another without the involvement of traditional financial institutions like banks. Online platforms that link prospective borrowers and interested investors make this possible. P2P lending allows you to earn passive income while helping others access the financing they need.
High-Yield Savings Accounts:
Opening a high-yield savings account or certificate of deposit (CD) with a competitive interest rate can be another solution. While the returns may not be as high as other investments, these accounts offer a safe and reliable way to earn passive income on your savings.
Affiliate Marketing:
Companies often promote their products or services through affiliate marketing. An individual can therefore earn passive income by sharing affiliate links on their blog or social media platforms and receiving a commission for each sale or referral generated.
Social Media Marketing:
Social media content has become a standard for many online content creators looking for an alternate revenue stream. We are all part of the social media revolution.
To capitalize on this potential, many content makers have turned their focus to social media platforms such as YouTube, Facebook, and Instagram. As a social media influencer, if you’ve amassed a sizable subscriber following, you may begin taking brand promotion requests and charging a fee for them.
Mutal Funds:
Mutual funds are professionally managed investment vehicles that combine assets from various investors and invest in a diverse range of stocks, bonds, and other securities. Mutual funds pool funds from multiple investors to diversify investments across stocks, bonds, and securities, managed by professionals. Systematic Investment Plans (SIPs) allow investors to regularly invest set amounts, typically monthly or quarterly.
Real Estate Investment Trusts:
REITs are financial entities that invest in income-producing real estate assets such as commercial buildings, shopping malls, hotels, and apartment complexes. They let investors participate in the real estate market without owning or managing physical properties.
Investors can instead purchase REIT units or shares, which represent ownership in a portfolio of real estate assets. Dividends are paid to investors from the income earned by these properties, such as rent or lease earnings.
Content Creation:
In the digital era, virtually all aspects of life, including education, are accessible online. Crafting and offering online courses enable you to impart your expertise and establish a scalable passive income stream. Online courses boast broad accessibility, potentially yielding a steady revenue flow. While obstacles may arise, the scalability of online courses renders them an enticing choice for those aiming to monetize their knowledge and abilities in a sustainable, enduring manner.
Fixed Deposits:
Fixed deposits offer a passive income option by depositing a lump sum with a bank or financial institution for a predetermined period at a fixed interest rate. Interest accrues regularly, providing a steady income stream without active management. Fixed deposits are low-risk investments, ideal for individuals seeking stable returns over time.
