Passive income
Have you ever thought. I do nothing. relax. chill. enjoy the whole day without having to work for money. exchange time for money. But still a earn good steady income. well, this my friend is passive income.
How can a steady stream of passive income be achieved. It is definitely achievable. In the initial years of your career, you save and invest. These savings then start earning you an income. As your net investment portfolio grows. so does your passive income. till there comes a time when the passive income becomes more than your active income. this process normally takes time. about 20-25 years. so, when you start saving early at the beginning at age of 25. then by 45-50 your passive income will outgrow your active income.
What are the sources of passive income. sharing details below.
v Rental income from property you let out
v Dividend income from your equity investments
v Bank account interest from your savings account, Fixed Deposits, CDs. etc
v Interest earned from debt investments like Corporate Bonds, Govt. Bonds, treasury bills, etc.
v Dividend income from REITs and INViTs investments. These bodies are required to give out 90% of their income as dividends. So, their dividend payouts are high.
v Affiliate Marketing, Building a website, blog, or online platform and monetizing it through affiliate marketing can generate passive income.
v AIFs. Alternate investment fund investments. like peer-to-peer lending. trade receivables. etc. can generate passive income.
So, work hard on generating a passive income.