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Highlights
Passive income is an income other than the regular income source which needs little or no continuous effort
Passive income provides a sense of additional psychological and financial security to an individual
Different types of passive income include rental properties, self-charged interest, etc
Who doesn’t want to have a steady source of passive income, especially in today’s inflation-hit times. Not only does it help to generate that extra cash, but it also provides a sense of additional psychological and financial security to an individual. Think about the importance of passive income in case one suddenly gets unemployed or plans to take a break from routine office life.
So, passive income is an income other than the regular income source which needs little or no continuous effort. Notably, one requires minimal labour to earn and maintain passive income.
Different types of passive income include rental properties, self-charged interest, and businesses in which the person receiving income does not actively participate. However, it is not that easy to generate passive income as it requires deliberate planning.
On this note, let’s look at the five ways which can help generate passive income:
Share market investing
Investing in the share market is one of the most popular ways of earning passive income. Stocks can help you with steady dividends without you needing to do anything out of the ordinary. However, you must conduct detailed research while selecting dividend-paying shares. Those who are not comfortable investing in the stock market on their own can also focus on exchange traded funds (ETFs).
Blogging
If you are inclined towards writing, blogging can be an option for you. It can help you generate passive income at minimum costs. You just need a basic working system and a decent internet connection for blogging. You can either begin blogging yourself or do freelance work for others. Blogs make money through advertisements, which pop up at the bottom of posts, and also through affiliate sales.
Heard about licensing?
Licensing can also be a good way to make money with your innovative ideas. Licensing is about renting your ideas to a company which can produce and market them. Basically, licensing is for people with creative skills. These are the ones who are too lazy to execute their ideas on the ground.
Running a YouTube channel
In the present age, YouTube has emerged as a major source of income for its users. There are examples of YouTube creators earning millions of dollars from billions of subscriber views. A YouTube channel could be one’s path to passive income If they have the creative skills to produce eye-catching videos.
Monetising commercial property
Commercial property also generates a decent income. There is no such obligation in case of commercial property, unlike residential property, where you have to bear maintenance and other costs for tenants.
