Ever dreamt of earning money while you sleep? Multiple streams of income supporting your lifestyle and goals, and how badly do you want to stop working from 9-5? We are sure everyone sleeps to that thought. How can you fulfil these goals? Passive income is the answer. It’s the money you earn with minimal effort, even when you’re not actively working. Passive income can pave the way for financial independence, reduce your stress, and enhance your overall quality of life. Diversifying income sources requires you to check out different passive income ideas in India. Want to know how to create passive income in India?
Let’s start.
Passive Income Meaning
Before jumping into the passive income ideas, let’s define passive income.
It’s money earned without active involvement – a steady income regularly received, irrespective of working actively.
Unlike active income, which demands time and effort, your 9-5 commitment, passive income flows without constant attention.
You set it up, and it keeps bringing in money without you actively working all the time.
It’s a way to earn regularly with less day-to-day effort.
Sounds crazy?
Haven’t heard your friend talking about writing some articles and getting paid for them on weekends?
That’s a passive income source, my friend.
However, it’s essential for you to understand that this all might sound easy, but, passive income doesn’t mean zero effort.
Initial work, investment, or regular maintenance is necessary for the setup and long-term sustainability.
It demands research, planning, and strategy for optimisation and growth.
It’s a long-term goal requiring patience, persistence, and discipline, but the eventual payoff is increased money, time, and freedom.
In simpler terms, it’s like planting a tree.
You put in effort to plant and water it initially, and as it grows, it starts providing fruits without you having to constantly tend to it.
This “money tree” can give you financial benefits and flexibility in the long run.
How to Create Passive Income in India?
Now, let’s explore some of the best passive income sources in India:
- eCommerce
Selling products/ services online through platforms like Amazon, Flipkart, or Shopify.
Imagine you design custom T-shirts and sell them in an online store. People buy your shirts, and the platform takes care of order processing, shipping, and customer service. You earn money passively with each sale.
- Blogging
Creating and publishing content on a website, making money through ads, sponsored posts, or subscriptions.
How does that sound?
This is the most common passive income source in India, especially among youngsters.
Let’s say you love cooking.
How can you monetise this hobby?
You can start a blog about healthy recipes. As your blog gains traffic, you monetise it by displaying ads or partnering with brands for sponsored posts.
The more visitors, the more passive income you generate.
Also Read: What is Blogging?
- Stock Market
How does this passive income source work?
You can invest in the Indian stock market through stocks, mutual funds, or ETFs at zero brokerage for regular passive income.
You can invest in shares of a company that pays regular dividends.
Now, as the company profits, it shares a portion with shareholders like you, providing you with ongoing passive income.
- YouTube
This is quite similar to a podcast. It involves creating a channel on a topic you enjoy and making money through ads, sponsorships, or memberships.
Let us say that you enjoy playing games.
You can create a YouTube channel sharing game reviews and tutorials. As your channel grows, you earn money from ads displayed on your videos.
- Online Courses
How can you earn from online courses?
This is one of the most adopted passive income sources in India.
It involves developing digital courses on platforms like Udemy or Skillshare and earning passive income from course sales.
Let us say that you are a skilled photographer or a subject matter expert/ professor.
If you’re skilled in photography, you create an online course teaching others how to take stunning photos or share knowledge about your subject.
People enrol and pay for the course, and you receive passive income as more students join.
- Podcasting
By distributing audio content online, you can earn passive income through ads and sponsorships.
Do you like sharing your knowledge with people? Are you afraid of facing the public?
You can host a podcast discussing the content of your choice. It could be crime stories, ways to invest in the stock market at zero brokerage, some grammar tips, etc.
Listeners enjoy your content, and businesses pay you to advertise their products during your episodes, providing you with passive income.
- Rental Property
How can you earn from this passive income source?
Renting out real estate through rent collection or appreciation.
Do you own some properties that no body stays in currently?
Why not use them to earn passive income in India?
Each month, you can earn some amount that shall be paid by people whom you allow to stay.
Additionally, if the property value increases over time, you benefit from appreciation.
These are diverse ways to earn money passively, allowing you to build wealth while potentially minimising active involvement.
However, it is important that before choosing one option among the passive income sources in India, you must do a thorough study of your knowledge, the field that interests you and, the amount and time you can invest initially and going forth.
Open an online demat account with Shoonya, a zero brokerage trading platform in India.
What Are the Benefits of Passive Income Sources
Passive Income sources are a way to take advantage of multiple things, such as:
- It can give you the freedom to do what you want without worrying too much about money.
- Passive income allows you to have more time for hobbies, friends, and family.
- Having different sources of income can provide a safety net in case one source isn’t doing well.
- You’re not tied to a fixed schedule, giving you flexibility in how you spend your time.
Things to Consider Before Choosing Passive Income Sources in India
Setting on the path to choose the best passive income source for yourself requires certain precautions:
a. Legitimacy: Ensure the method is legal and ethical.
b. Initial Effort: Some passive income sources require more effort at the beginning. Consider how much time and work you’re willing to put in upfront.
c. Risk Factor: Understand the risks involved. Not all passive income sources are risk-free.
d. Market Trends: Be aware of market trends and demands.
What works today might not work as well tomorrow.
e. Tax Implications: Understand the tax implications of your chosen passive income source to avoid surprises later.
Conclusion
Passive income is a dream for many people who want to earn money without working actively. It can provide financial freedom, more time, security, and flexibility. However, passive income is not easy to achieve. It requires initial effort, investment, research, planning, and strategy. Therefore, one should be careful and diligent before choosing a passive income source in India.