10 ideas to create Passive Income or alternative Source of Income – (Part 4/5)
POSTED BY ON November 13, 2014 COMMENTS (36)
In the last article of “Increasing income” series you read Anupam’s real life sharing about how he created his second income (we thank him for sharing his experience with our readers). Today let’s go a little deeper and learn ways by which YOU can also create passive income stream, which means ways of income where you do not work actively and still the income is generated.
We can see that a lot of you are interested in creating passive income but you don’t know from where to start, so after reading today’s article take at least one committed step to create second source of income in your life. After you complete reading today’ article, in comments section share at least one new idea for creating passive income.
We are a community of 50k+ people at jagoinvestor, if we all share one good idea for creating passive income, imagine what kind of passive income idea bank we will be able to create.
The rich get richer. Not only because they have surpluses with which to invest, but because of the overriding emotional release they experience from having wealth
– Stuart Wilde
I really want you to take a day off from your routine life and name the day as “PI day” of your life. On this day, you won’t touch upon any other area of your life,you will only think about creating passive income and nothing else. As next step create a special kind of account in your life called “P I income account”, in this account you will accumulate passive income, it should not come from real work or from active job. Passive income is the kind of income where either your money works for you or your people work for you.
10 ways to create passive income
(Do not discard ideas instead start thinking how the ideas can get into your life)
1. Rental Income from Real Estate
You can create rental income with the help of real estate. If you have more than two properties, the rent you get from one can help you to pay the EMI of other property you own. You can give your office space on rent or your second house on rent. You can also create either boys or girls hostel, if you have more than 1 flat on the same floor. Some even create small office units in one big commercial space and they give it on rent to people who do not have frequent visitors.
Make sure that you are selecting right people and legal aspect is taken care of. If someone (only if you are the owner) has good office space in Pune, we would like to touch base with you. (In 2015 we would like to establish jagoinvestor office in the city of Pune).
2. Buying Space for ATM Centre
This is one of the best ways to create passive income. Generally in a building, the space which is below the stairs gets sold at lower rate as compared to other offices and it is ideal place for ATM Centre. Banks can even pay upto 25k-50k per month to ATM centre owners in big cities, but again it depends on the location and the area where you own your space. There is a detailed discussion on this topic here
3. Buy extra Parking lots and renting it later
Parking is one of the biggest problem that everyone is facing today. One of our clients created passive income from the parking space that he owns in his building. Also I know someone who owns open plot next to a multiplex; he gave his space on rent to multiplex for parking purpose. This may not be possible for all but as I said do not discard ideas from your life.
4. Create Websites & Blogs
The machine age is over and we now leave and breathe inside information age, where no one cares where your office is or how many people staff you have, with the help of internet from a remote place you can create a lot of money. Creating a blog or a website is almost free (or I can say it is not very expensive) and is one of the best ways to create passive income.
You can do this as a part time activity and start creating second income in your life. This may be a slow process and it calls for good content for you to attract people to your blog or website. Jagoinvestor as a blog started very small and with the love and trust of our readers it has now created a special space in investor’s community.
5. Advertisement hoarding on your building and terrace
If your building is on main road with proper visibility you can put some banners or hoarding on the terrace of your building or even in garden or open space of your building. If you own terrace rights the money will come to you otherwise, it goes to society kitty as passive income. Some permission & authorization is required to take this step.
6. Interest income from your investments
This is one of the simplest ways to create passive income, which is in everyone’s reach. You can either create interest income through Bank Deposit products or by offering loans to people at attractive interest rate. For this your need cash on hand or pool of money from which you intend to create interest income.
7. Dividends from Stocks and Mutual Funds
You can either receive dividends through Stocks or from different mutual fund schemes. This income depends on the performance of stock and mutual fund which is linked with market conditions. There are many people, I know who create good dividend income from stocks and mutual funds.
8. Royalty Income
Your talent can help you to create passive. You can put something in a book on Amazon Kindle and it can be shared with the world, your book can help you get royalty income. Most people are disconnected with their true talent which is not good for creating second income. You really do not need a publisher you can either self-publish it or get in touch with websites who promote new writers.
We started with one book and now we have four books which are written for investors and advisors, our publisher has already assigned us two more writing assignments.
9. Referral business model
If you are into business you can create a strong referral business model by which your overall business strength increases. Here with the help of referral model not only does your business expands but you also get an opportunity to create passive income as an entrepreneur.
10. Buy cars and give on rent to companies
Many BPO’s and companies hire vehicles on contract. Some people buy vehicles and they offer their vehicles to the company they work with. This helps them to create passive income out of it. Here you need to be careful about the terms and conditions and choosing right driver who will be handling your vehicle on daily basis.
Project called “Passive Income”
If you do not have passive income it means you have yet not created “passive income” as a project. In our book “11 principles to achieve financial freedom” you can learn more about creating passive income and how you can convert your dream of creating passive income into a project.
Just place your hand on your heart and ask yourself, “How many attempts in the past I made and I failed at creating passive income? (may be zero attempts). You are unable to create passive income because you are glued to the idea of only creating active income in your life. You haven’t failed much because you haven’t yet started fully playing for creating passive income.
Come on, make list of possibilities, make list of people who can help you, see what leverage you can get in creating passive income, see what best you can do with the resources you already have, what talents you have in you that can help you create passive income or take professional help, if required. In the last article of increasing income series we will have a strong completion and for what we invite you to share your key insights in the comments section.
This week action
Take a day off from your routine and name is as “PI day” (Passive income day)
Do some brainstorming and come up with ideas for creating passive or residual income. Do share one idea in comments section for creating passive income
Thanks a lot for sharing new ideas 🙂
Thanks for sharing these amazing new ideas. Your contribution matters and all this information is really helpful
Welcome
All of this is based on the idea that ‘more money is better’. This logic would be perfectly understandable if one was hungry / cold and more money could mean the difference between having two hot meals and three. But for the vast majoriy of middle class folks who have the education and income level to be able to read this post, is it really necessary to have an extra source of income? How about taking time off to *do nothing*? Yes, you read it correctly – do nothing. Just relax. If you have a sound financial plan and a monthly budget to live within your means, then just chill.a
You are right Anonymous . Its perfectly not for those who do not have any need for extra money. But I am not qualified to comment how many people out of 100 , dont require extra income 🙂 . Only if everyone here comments , can we know the answer.
Also I am not sure if vast majority of readers here dont have any requirement of extra income 🙂 ?
I completely agree with Manish, if you are not thinking about creating another source of income then this blog is NOT for you . Majority of people dont even think about creating another source of income because they live in a world which it is built. This is for people who wants to create their own world. Iam definitely one of them-because time and money freedom is something which you will get only when you consciously think about it. Crazy thing is-people dont even realize how much free time they have when they NEVER have to think about money. This can only be achieved by creating multiple sources of income.
One thing I started three years back that “LIC Agent” for my wife…..I helped her to capture and extend the market .
Great ! .. Its surely one of the ways to earn passive income !
transfer your excess money from savings a/c to fd a/c immediatly
Even though this is not a passive income idea , I can see what you mean . A lot of people are wasting their money which can be utilized to create some passive income to start with !
I used to refer students to a local computer institute where i myself learnt ms office.
they used to pay me 10% of the course fees paid by the student. i used to earn average between 1000 to 3000 monthly those days.
Yea Ajay
Referral is a great way to earn money at times. You just need to have access to a market and also contact with someone who is looking at that market ! ..
Good idea !
Lending money to others (for the sake of interest) is very dangerous. Chances of loosing money as well as peace of mind are too high!!!
yes, true. lend money carefully
If you are from design background including web, print, mobile the you can generate a reasonable income.
Yeah , creative people can always figure our new ways to create passive income
Few of these could be a good options –
Consultancy to smaller companies related to your domain.
Slightly customized idea of mixing 2 products for better returns – SIP-FD – Start a FD with getting the interest credited to your account on Monthly Basis. Later convert this interest credit amount to SIP in Equity.. Try this, soon you will realize that you will make a faster passive money and the beauty is capital is protected and new passive income source is created in a longer run.
Tech-Talks in Colleges & Schools on latest technologies related to your domain.. you can get some decent earnings per student from schools monthly basis.
Another angle of passive income generation is start a oldage home.
Thanks for participating and for sharing new ideas
1) I think if your well qualified in a subject, for example accounting, you can start teaching the Distance education students on weekends. It has worked for me.
2) If you are searching for a home/house and bought a flat/land then referring people to those contacts will also fetch income.
3) if you have a system and internet connection, then you can also think of booking flight tickets, train tickets, bus tickets or any service required by people from the web.
4) Having contacts of caterers, cleaning people, electricians, carpenters, plumbers also helps you to make a small income by referring to the needy people.
Some interesting ideas
Home tuitions for children can be tried.
SIP , mutual fund investment seems to be good
Best thing is to cut down unnecessary expenditure (use telephone wisely, use public vehicles for movement, use public libraries) and compulsory savings of 10% of active income in SIP, 10% in Govt. savings schemes.
Thanks for sharing
Everyone always think about this and one or other reason stop them for going ahead. Here’s my take on this. Don’t stop thinking about this even if you are not able to go ahead with this because of any reason. The more you think about this, the more closer you get to your goal. You know what you are good at and what are the best possible options around you. Whatever you do, make sure that it does not require much of your time since it should not impact your primary job. Cheers ! Vishal
Thanks for sharing your view
Here are my two cents!!
1. If one is living in a city or nearby a city which attracts lot of tourists, investing time learning about the history of that place will be one time investment, and then one can offer his/her service as a tour guide. It’s also a nice idea if one owns a car and can give the service of tour guide plus travel for a small family on weekends. There might be many local or outside tourists who may be in need of this service. Online advertising, paper advertising can help build this side business. – Of course you should also be able to enjoy going out to the places, meeting new people and learning new information about people, place and have fun doing all this.
2. To be a Personal Fitness or Yoga Trainer. Thus you remain healthy and can also help others achieve their fitness goals! – A very rewarding side career where you work as per your convenient time and flexible after hours or on weekend.
3. In early morning, many people go to Garden for walk or exercise. If someone in the family can make healthy and nutritious snacks/ Ayurvedic Juices and sell it near the Garden for one or two hour in the morning – it can be a good income. Of course, one should enjoy this as a hobby and not feel ashamed of standing outside at the Garden. It also brings awareness of Ayurveda and it’s benefits among new generation.
4. If someone is interested in Currency Trading, investing time in learning Forex Trading (again very risky in terms of finance and emotional management), and be a good trader. Later on, say after 5-10 years it can be a very good alternative source of income, plus one can also teach this to other after receiving a good amount of experience. To learn it from the basics visit http://www.babypips.com/school it has nice lesson divided in school format starting from the kindergarten to graduation.
5. If someone is good at Cricket or any other sport, can think of becoming sport coach for small kids, during weekend or vacation time this can be a good source of income.
Hope this helps! I literally let the wild horses of my imagination run in all direction…lol!
Oh and Thanks Nandish – Manish, you guys rock! As per my reading program in wealth club – I have finished Go Giver, Sell more, and now reading amazing and long time awaited book – Think and Grow Rich! Thanks for everything JagoInvestor!
Bharat Jhala
Awesome Bharat. Thanks for sharing your ideas with the community. Your love and encouragement means a lot to me.
I had written one article in the marathi news paper. It was written just in time by me, but the response I got was tremendous. And also I got Rs. 750 for that article, I haven’t gone to their office. They themselves sned it to me directly. Article was a relality based, not much of writting grammer, but I found my way for PI. I can continue writing and sending them to news papers, it will definatly generate some income. (Already working on it).
thanks for sharing your ideas and views
3. If you are good in playing chess, teaching chess for kids can also be a passive income option. I see people are more interested in enrolling kids for chess classes.
thanks for sharing
Hi Muthu, Can you please let me know the ways how to teach kids for chess, i mean if you want to enroll yourself or how to market yourself in order to find the interested kids. Thanks!
Apologies for the late reply, Yuvraj. To train kids (in a professional manner) you have to be a certified chess instructor. There is an academy where you have to register yourself and complete their certification requirements. Once you are certified, you can train kids by advertising.
Otherwise, if you are planning to teach your kids in your locality, you can advertise and say that you will instruct them to learn the basics of chess game.
All the best
Muthu
1. For home-makers, who has ample time and patience, starting a daycare or crush for kids is a good way for passive income.
2. If for anyone, driving is a passion (and you don’t think ‘driving’ is really a driver’s job), we can opt to be available to drive someone else’s car during our free time. Just a wild idea. May be it works for some.
Thanks for sharing that Muthu ! ..
1) Paying Guest – if you have a spare room in your home, you can easily rent it out to students or executives and add in home cooked meals or laundry service to increase your revenue. Especially lucrative in bigger cities or university towns.
2) Vacation Rentals – get together with a few friends (if you cannot afford it alone), buy a large apartment / villa in a hill station and start leasing it out for vacations, back-packers, foreign tourists etc on the internet. Again you can increase the revenue by keeping a housekeeper who can do laundry and cook meals for the guests.
3) If your spouse has time / inclination, a parcel service of simple home cooked meals could be very desirable for students / bachelors / single executives. If you could read up and offer specialized menus (for example low calorie, high fiber, low GI meals etc.) then you can command significant premium.
Thanks for sharing new ideas. Your contribution matters
nandish