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10 Passive Income Ideas & ways to make extra money

Money & Wealth

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April 14, 2015

10 Passive Income Ideas & ways to make extra money

Passive Income Ideas – Passive income means additional source of income received on regular basis, without any efforts or with little efforts. Today we see many young and dynamic people are interested in creating passive income but they don’t know where to start from. In this article I will be discussing about 10 passive income generation ideas. These ideas will defiantly help you to make extra money.

In this list, I have only included practical and proven ideas. I have tried many of these ideas and I was able to generate good amount of passive income from this ideas.

10 Passive Income Ideas

1 Create a Blog

One of the easiest ways to generate passive income is by creating blog in your area of interest. Make sure content published by you on the blog is original and useful to people. You should be regular in publishing article on this blog. Once you get good traffic on your blog, you can apply for advertising program like google adsense and generate good amount of income from advertising.

2 Real Estate Rent

Second idea of generating passive income is very easy. You can generate regular passive income from renting real estate property. If you have more than two properties, you can let out these properties and earn regular rental income. Make sure to complete all legal formalities like preparing rent agreement and police verification before giving property on rent.

3 Become Vendor of Flipkart or Snapdeal and sell your product online

Third idea of generating passive income is by becoming vendor of Flipkart or Snapdeal. These sites work on profit share or commission basis. If you want to expand your business online this is best way. In order to become vendor you need to register your business on portal.

4 Buy Car and Give it on Rent

Success of online car cab booking companies like OLA, UBER is known to everyone. In order to increase their reach they often hire car on rent. You can tie up with these companies and give your car on rent. This is very good idea for generation of passive income.

5 Advertisement Hording on Building or Apartment

If you are living in main road with proper visibility, you can place banner or hording on terrace and rent that place to advertisement agency. If you are holding right of terrace money will come to you else it will be income to apartment. You need to take appropriate permission before giving this place on rent.

6 Network Marketing

You can generate a good amount of passive income by using network marketing. Remember this idea will work only if you are very good at networking. Make sure you select good network marketing company.

7 Create Software App or Game

If you are expert in field of Information technology this idea is for you. You can create software for specific requirement and sell that software online. You can even create app or game for smart phone and earn good amount of money from advertisement and sale.

8 Start Small Part Time Business

You can convert your hobbies in to business. If you are good at photography you can become part-time photographer and generate good passive income. If you are good in teaching you can start your own tuition class.

9 Interest Income

This is very simple yet effective idea of generating passive income. Don’t keep any money ideal. Invest extra money in investment instrument like fixed deposit, PPF or Sukanya Samriddhi Scheme and build extra interest income.

10 Dividend Income

Dividend income is perhaps best passive income as per me. People like Rakesh Jhunjhunwala or Warran Buffet is generating huge income from dividend. If you have good knowledge about share market you can generate passive income of dividend from stock market.

Which Passive income idea is working for you? Do share in comment section.

Mudra Bank India for Small Medium Enterprise

Banking

Shitanshu Kapadia

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April 10, 2015

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Mudra Bank India for Small Medium Enterprise

Recently Prime Minister Narendra Modi has launched Mudra Bank. Mudra (Micro Units Development Refinance Agency) will act as refinance agency for small and medium enterprise. Main objective of Mudra Bank is to provide loan to small and medium enterprise. Mudra bank is launched under “Pradhan Mantri Jan Dhan Yojana”.

What is Mudra Bank?

Mudra Bank will provide finance up to 10 Lac for small enterprise. This bank will have big corpus of 20,000 crore. This bank will also finance micro finance institutes.

It is very good initiative and will serve following purpose –

Boosting confidence level of entrepreneur and encouraging them to expand their business operation.
Employment generation due to business expansion.
More and more People will be inspired to become entrepreneur.
Entrepreneurs will not be exploited by small money-lender.
Mudra bank will boost economy and will assist poor to work their way out for poverty.

Responsibility of Mudra Bank

Laying down policy and guidelines for financing micro, small and medium enterprise
Registration & Regulation of MFI
Accreditation/rating of MFI units
Providing fair chance to small and medium business for growth
To bring down cost of finance for small businesses
To lay responsible finance practice to ensure proper client protection and method of recovery
Forming Credit Guarantee scheme for providing guarantees to the loans which are being extended to micro enterprises
Provide fair chance to SC/ST and backward class people

Product Offering by MUDRA Bank

Main product of MUDRA will be refinance for lending to micro businesses/units. This refinance will be done in three stages based on growth and funding needs.

SISHU – Providing Loan up to 50,000 Rs/-

KISHOR – Providing Loan from 50,000 Rs/- to 5 Lakh

TARUN – Providing Loan from 5 Lakh to 10 Lakh

Following Businesses/Enterprise will be covered for this product offerings.

Small Business Proprietorship/Partnership, Small Manufacturing units, Shop Keepers, Fruit/Vegetable seller, Hair Cutting Saloon, Beauty parlor, Transporter, food services, hawkers, repair ship, machine shop, food processor, professional and service provider.

This lending scheme is further divided based on business types and will be named as –

Micro Credit Scheme (MCS)
Refinance Scheme for Regional Rural Banks (RRBs)
Mahila Uddyami Scheme
Business Loan for Traders and Shopkeepers
Missing Middle Credit Scheme
Equipment Finance for Micro Units
MUDRA Card
Portfolio Credit Guarantee

As per me establishment of MUDRA bank is welcome step. Mudra will give multifold benefits to us. It will not only help aspiring entrepreneur, it will also boost economy with overall business growth.

Going forward we need to see that how effectively MUDRA concept is jellying up and helping entrepreneurs.

Source of Information:- Preess Release Finance Ministry

Rakesh Juhunjhunwala Advice for Stock Market Investments

Stock Market

Shitanshu Kapadia

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April 7, 2015

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Rakesh Juhunjhunwala Advice for Stock Market Investments

Rakesh Jhunjhunwala is recognized as stock guru and warren buffet of Indian stock market. Rakesh Jhunjhunwala is true wealth creator. He generated wealth of 6000 Crore from small capital of 5000 Rs/-.Rakesh Jhunjhunwala is down to earth person. He is always ready to help investor by giving them valuable advice.

I am herewith valuable advice given by Rakesh Jhunjhunwala to stock market Investors. It is actually extract of chat done by Rakesh Jhunjhunwala with Kalpraj Dharmashi of ValueQuest.

Also Read – 5 Secretes that make Rakesh Jhunjhunwala Successful Investor

Rakesh Jhunjhunwala Advice for Stock Market Investments

Invest in stock like gold or real estate

First advice given by Rakesh Jhunjhunwala is to invest in stock market like gold or real estate. When we invest in gold or in real estate, we never think about return as we know that it will defiantly give good return in days to come. We quietly sit on this investments, but when it comes to stock market investment we react in different manner.

We challenge our own investment decision. Although we have taken informed decision to buy fundamentally strong stock, we start checking performance of stock from date of purchase. Downward movement of this stock make us anxious. We start thinking that whether we have done mistake in selecting this stock.

Rakesh Jhunjhunwala advice that invest in stock if you are absolutely convinced about it. Once you invest in stock don’t get prejudice with temporary events. Stay with stock for long-term. Long term investment always pays.

It reminds me very good saying about valuable and physical assets

-Uber, the world’s largest taxi company owns no vehicles.

-Facebook the world’s most popular media creates no content.

-Alibaba, the most valuable retailer has no inventory.

-Airbnb the world’s largest accommodation provider owns no real estate.

-Whatsapp with 3 Billion messages a day does not own servers.

Disruptive, innovative and collaborative consumption is shifting the lines of the economy. Create valuable assets and not always physical assets.

Don’t Expect Unrealistic return from stock market

Second advice given by him is don’t expect unrealistic return from stock market. He shared one incident that once upon a time one pretty girl ask him about good stock and price target. Rakesh Jhunjhunwala gave detail about stock. Next question asked by girl was how much return is expected out of it. Rakesh Jhunjhunwala said that it will double in next three years (26% CAGR). Girl was not happy with 26% return.

Rakesh Jhunjhunwala explained that we should set realistic target while purchasing stock. If in other assets class returns go up to 10% in equity it can go up to 18-20%. He further explained that if he is able to make 18% return on portfolio, he feel like king and if he makes 24% return, he feel like emperor.

Trader and Investor are different

Rakesh Jhunjhunwala said that trading and investing are totally different. You should not mix both of this. Remember trader always look for short-term return and buy stock with short-term prospective. Trader often look for quick fire gains.

Investor always look for long-term and buy stock accordingly. As per Rakesh Jhunjnunwala you should wear cap of Investor while buying stocks.

Financial Lessons from Mahavir Hanuman

Personal Finance

Shitanshu Kapadia

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April 4, 2015

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Today is Hanuman Jyanati. Hanuman Jyanati is auspicious festival of Hindus. Hanuman Jyanati is celebrated in honor of great god Hanumanji. Hanumanji was true devotee of lord Ram. Hanumanji is conferred with multiple names like Ram bhakt, Pawan Putra, Maruti, Anjani Putra etc. Hanumanji Possess multiple qualities that can boost our financial life. Let’s try to look at how quality of Hanumanji can be practically applied to flourish our financial life.

Also Read – Leadership Lessons from Lord Ram and Krishna

Financial Lessons from Hanumanji

Knowledge

Distinguished quality of Hanumanji is the vast amount of knowledge, that’s why he was known as “Gyan Gun Sagar”. Knowledge is very important when it comes to financial life and investing. If you don’t have knowledge about financial product you may end up investing in wrong product.

Lesson learned here from hanumanji here is one should constantly upgrade their knowledge in every field of life.

Planning

Hanumanji is extremely good at planning and execution. He made plan for extremely difficult job to find Sita Mata, not only that he could able to escape from Ravan’s Lanka without any difficulty. Likewise when it comes to financial life it is necessary to do proper financial planning. When you have a strategy and a financial plan, it’s easier to make financial decisions and stay on track to meet your goals.

Without financial planning you may end up in difficult situation.

Learn to Handle Difficult Situation

Hanumanji is tough task taker. Another difficult task taken by Hanumanji was to bring Sanjivani Booti for Lakshman. He was able to complete this task well in time. Lesson learned here is one should be prepared for any situation in life. Important message here is one should make Emergency Fund, which can be used in difficult situations.

Intelligence

Hanumanji is known for their Intelligence. Intelligently he could able to accomplish many task given by Lord Ram. Lesson learned here is if you want to excel in financial life you need to take every decision of financial life with Intelligence. Remember wise decision always pays.

Being in Limits

Hanumanji always stayed in his limit, He always followed instructions given by Lord Ram and never crossed the boundary. Likewise one should always remain in his/her limits, when it comes for making expense. Crossing the expense limit means inviting enemy like debt, bankruptcy etc.

I hope above lessons taught by hanumanji will help you in managing your financial life in better manner.

Do share if you like given thought of wisdom.

Dedicated to all Hanuman Bhakt.