My friend work very hard and he keeps on finding ways to generate more income. He says he wants to become financial independence as early as possible. Many people today wants to become financial independent just like my friend. To help all these people I am herewith 10 passive income generation ideas.
As we all know there are two types of Income Active income and Passive income.
Active Income:-
Active income is income earned by doing job or service. In order to generate active income you need to work all the times. Your income remains active till you work actively, once you stop working your income will also stop. Active income is directly related to work. Example of active income is salary, wages, gratuity and pay-offs, etc. Active income is generated by doing hard work.
Passive Income:-
Passive income is income which does not require active involvement at all time. In order to generate passive income you need to work once. Passive income is income which will continue if you stop working. Example of passive income is commission, rental, dividend, royalty income etc.
If you want to earn more and work less than passive income is for you. Passive income is generated by doing smart work.
So in no particular order, here’s my list of 10 passive income generation ideas.
10 Passive Income Generation Ideas
By Profession:-
1 Insurance Agency: – Insurance agency is one of the finest passive income generation idea. Insurance agent get commission every time you pay premium of your policy. So insurance agent need to Sale policy once to get passive income for several years.
2 Network Marketing: – Network marketing is another form of passive income generation ideas. Network marketing requires time and efforts but once you build network under you passive income keeps on coming.
3 Photography: If you are good photographer you can sell your photos through photography clearinghouse or online websites and get paid whenever someone buy this images.
4 Blogging:- If you are knowledgeable and having good skill of writing and presenting stuff. Blogging is for you. You can create blog using simple tool wordpress & generate passive income by keeping advertisement on your blog. For more information refer to Google adsense program.
5 Developing Mobile application:- You can generate passive income by developing unique mobile application or game.
6 Writing E-Book:- Another way to generate passive income is by writing E-book and selling it online. For this idea to work you must be excellent in writing and presenting skills.
By Investment:-
7 Dividend Stock Market Investment:- Stock market investment is another form of passive income generation idea. From stock market investment you get dual advantage of capital appreciation and dividend income.
8 Real Estate Rental: – If you have a lot of extra money this idea is for you. Here you need to purchase number of prime property. Give this property on rent and enjoy the passive income.
9 Party hall/plot rental:- People need place to celebrate their birthday, weeding, anniversary etc. You can purchase or make party hall/plot and give it on rent to get passive income.
10 Owning small business: – Another very good way to generate passive income is by owing or developing small business. This small business could be small shop, restaurant, fast food center etc. For more information you can visit our post 40 small business ideas with low investment.
Do share your views about these 10 Passive Income Generation Ideas.