Passive Income 7 best way to earn passive income

In our previous article ( FINANCIAL FREEDOM ) we have discussed 3 different types of income. In this article, we are going to talk about Passive income.

What is passive income

Passive income is earnings resulting from a source like rental property, limited partnership, business or other enterprises in which one should not actively participate, passive income is like planting seeds so your money will grow, even when you are sleeping. But passive income needs some work in the beginning and some maintenance along the way but if you chose that passive income sources which meet your personal preferences and skills then your work will be a game. 

Passive income differs from earned income and portfolio income, some analysts considered portfolio income as passive income, but we are going to cover portfolio in our next article.

Tax on passive income

There are different types of tax rates applicable for different types of income like earned income and portfolio income passive income also taxable but passive income tax rate is lower than other types of income.

So, why a passive income tax is lower than active income? Simply It doesn't matter how hard you are working how many hours you give for the job. What matter is the smart work tax department's policy also want to say that  :D

Some passive income idea


Let us talk about some profitable passive income sources

1. Start a blog: 

This is the most common and easy to start method for generating passive income. By blogging you can earn handsome amount of money, blogging will take a vast amount of work and time to succeed.

When you provide values to your readers it will drive traffic to your site then you can monetize your blog with  AdSense and affiliate links. You can start a blog in less than 5 minutes with Blogger or WordPress. If you have knowledge of codding Bingo! you have many advantages. 


2. Make YouTube video: 

Youtube is a great platform to make passive income, everyday people like you and me making money on youtube. You can make videos of anything you have knowledge on. Like every passive income source, it will take a lot of time to be successful.

3. Create a mobile app: 

If you have knowledge of coding and app development and have unique ideas for mobile apps. which make peoples lives better, then you have the chance to earn a great amount of money. If you don't have coding skill and have a great idea then you can hire an app developer to create your app.

4. Sell your photos: 

Yes, if you can take cool pictures then you can sell your pictures on Shutterstock, Adobe stock, Etsy or you can sell photos on your own website.

5.Dropshipping: 

Drop shipping has become a very popular platform to earn lots of money you only have to create an e-commerce site with the help of woocommerce or Shopify. You don't have to keep the products when you get orders you just have to order it from a manufacturer, then the manufacturer directly shipped the products to the customer.

6.Affiliate marketing: 

If you have a large fan following or a big userbase or website then you can promote affiliate link through your platforms if someone purchases a product or services by your link then you get paid by percentage of the product or services' price.

7. Write a book or e-book:

Writing a book is one of the most traditional way to generate passive income. If you're a great writer, you can write a book, find some publisher if the publisher publishes your book then you will gate royalty for every copy that's sold.

But nowadays people prefer e-books over a physical copy because it is cheaper and e-books are delivered instantly you just have to purchase, download through Amazone or esty and you can start reading within a minutes. And it also easier to write an e-book than a physical copy, you can publish your e-book by yourself with the help of kindle publishing or you can publish it on your own website. 

There are thousands of ways to generate the passive income you can rent your stuff, you can design digital products. We gonna discuss these ideas briefly in our future articles.


2 comments:

  1. Nice one sir, keep it up.

    You really helped me alot,to be financially free.

    ReplyDelete