A Passive Income is a key of achieving financial independence. The Famous Investor guru Warren Buffet always says “If you don’t find a way to make money while you sleep, you will work until you die”. The crux of above saying is you must generate a passive income, else you will never achieve financial independence.
Let’s try to understand this with an example. When you think about your work life it’s finite. You will stop working someday, if not now, may be sometime in the future. Even superstar Amitabh Bachchan is well aware of that. With an eye on the future, he has started making more and more money. He is continuously engaged in the work to earn active income although his age is 74. So, what is the solution? One solution is to continue work like Amitabh Bachchan. The second solution is to, generate a passive income like Rakesh Jhunjhunwala. Rakesh Jhunjhunwala earns around 100 Cr dividend every year as a passive income. The passive income of Rakesh Jhunjhunwala is enough to take care of his requirement.
So, if you are ready to receive income for the rest of your life, even while you eat, sleep, drink or travel the world here are best passive income ideas.
What is Passive Income?
Passive Income is income where you get paid again and again for work that you have done once. It is an income received on regular basis with very little or no efforts. Another name of passive income is residual income. Passive income is not permanent in nature. Some forms of passive income last for few years and others last for generations. There are many ways to generate a passive income, However, I am going to share only a few out of them.
20 Best Passive Income Ideas and Opportunities
Passive Income ideas are broadly divided in two parts. Passive income ideas that require investment of money and passive income ideas that require only time.
Passive Income Ideas requiring Investment of Money
- Peer 2 Peer Lending – First passive income idea is peer 2 peer lending. You can lend your extra money to someone else and enjoy the interest income. There are multiple P2P lending portals available online for this. This idea requires a lot of investment.
- Dividend Income – The second passive income idea is dividend Income. In this idea, you need to invest your money in the stock market. You need to select a high dividend paying fundamentally strong stock for investment.
- Rental Income from property – If you have a lot of money you can purchase a property and give it on rent. It will generate regular rental income for you.
- Buy and Rent out Expensive Equipment – The next idea is to buy and rent out expensive equipment. The equipment could be construction equipment, costly camera or anything else.
- Create a Business System with Franchise Concept – You can even generate passive income by creating a business system with franchise concept. One such example is MacDonald.
- Invest in the business as a silent partner – If you don’t have time but if you have enough money for investment, you can invest in the business and earn income as a silent partner.
- Buy car and Give it on Rent – One of the best ideas for passive income generation is buying a car and giving it on the rent. You can give it on rent to private companies or to car renting companies.
- Advertisement Hording on Building – The next idea is give space on rent on building. In this case, you need to contact companies looking for advertisement space in your city.
- Interest Income – You can give money as a loan to your friend and relative and generate extra interest income from that.
- Become a Vendor online and Sell your Products – You can become a vendor online and sell your products on a site like Flipkart, ebay etc.
Passive Income Ideas requiring Time
- Network Marketing – The first passive income idea that requires time is Network Marketing. You can join Amway or other multilevel marketing business and generate a lot of money over the period.
- Create a Blog – The next passive income generation idea is to create a blog and sell a space for the advertisement. It is a very good way to generate continuous income. You can earn $1000 to $5000 per month from a blog.
- Sell E-book Online – If you are good at writing you can make your own e-book on several topics and start selling it online.
- Start Video Channel – Youtube Video channel is another passive income generation idea. In this idea, you need to make and upload unique videos on youtube. You will be paid advertisement share on these videos. People are earning $1000 to $10000 by making video channel.
- Create an App or Game – If you have a skill you can create an app or game and sell it online for generation of income. There are many people who are earning regularly by selling app and game.
- Insurance Agent – If you are good at sells you can become Insurance Agent. You need to sell Insurance and you will be paid commission based on your sell.
- Affiliate Marketing – Affiliate marketing is next passive income generation idea. In this idea, you need to recommend a product to others. If someone buys a product via you, you will be paid a commission.
- Sell Photographs online – If you are good at photo shooting you can sell photos online and generate very good income. There are many companies looking for unique photos for advertisement.
- Make your song or music – The next passive income generation idea is making your own music or song and selling it online. You can generate regular income from this type of work
- Online Course or Tutorial – If you are expert in some field you can make online course or tutorial and sell it online for generation of passive income.
Over to you –
All passive income ideas mentioned above are best from the lot. However, it will take a substantial amount of time and money at the initial stage.
You need to pick passive income Idea, make a plan and dedicate yourself till you become financially free.