FINANCIAL FREEDOM AND PASSIVE INCOME
Our readers would have come across what is financial freedom, in which creating passive income is the best way to reach the desired freedom.
There are two types of income by which we lead our life. Passive and active income.
Active income is one which needs your active participation to create a current payment.
The active income is directly calculated for your time and skill, you lend for someone.
Passive income doesn’t require any active participation for any income to get back. It is an honor of payment for the work you done in past.
Passive income can be termed as Smart Work too.
SMART WORK VS HARD WORK:
· Smart work is the hardest of hard work.
· The hard work can pay you all of the sudden and its role ends up.
· The hardest of the hard work will not pay you while finishing your work.
· The hard work doesn’t require any recheck, updates, and learnings. Whereas, smart work require more learnings and daily updating yourself.
· Smart work is like sowing a seed, watering daily, and protect it. The real result will be seen after 10 or 20 years. But the result will stay for many decades
· In terms of hard work, you will be paid on the same day or duration. Your work will not pay you anywhere in the future.
In passive income, your money multiplies while you sleep, also when you even don’t think of it. To be financial freedom, you should have a minimum 1-2 passive income source. Active income can be a supportive source at the beginning of your career and it should be replaced 100% by passive income as years pass by.
PLATFORMS FOR PASSIVE INCOME:
There are many platforms to earn passively. It is not that you should start your life with passive.
If your ancestors have made a passive source, it is well and good. If not, try to work hard for active income and smart for passive income at the same time.
So, the following methods can create a passive income.
1. FRANCHISE BUSINESS:
Franchise business in other term is building your own brand. The brand can’t be built in a day. It has a lot of energy to share in over the beginning of the journey
Once you built the brand and customers peaks into your retail outlets. Many businessman approach you to have a franchise in your store.
So, the terms and conditions are simple. You will supply all the raw materials, making procedures, and employees.
In return, you charge them 4% as royalty income from their profit. Once again let me stress, the 4% income is from profit.
When you let many franchises, you earn more. The real fact behind this, you don’t want to work anymore, you will just manage.
Same your generations also do, but the income will be unstoppable. Example, KFC, Dominos, Bata, etc.
To start a business, you don’t need a huge investment. Your idea should be unique and try to attract investors. Learn more about how to start a business.
2. WRITE BOOKS AND E-BOOKS:
Writing a book is another way to get a royalty share of 4% on every sale.
Books are not easy ones to publish. It needs a lot of work and more creative knowledge. Your book should be unique in presentation.
The title should attract your niche potential customers. Your first book decides your customer pool. There are many people in the world who earn millions through royalty share.
Even some books are sold over 100 years. The author won’t exist now, but their generations are enjoying a huge royalty.
Nowadays, E-books became a passion for many beginners, and those E-books are sold through E-commerce platforms.
3. CREATING COURSE:
There is a current appreciation of people shifting from the library to online courses.
The market size of the online education market in India is to expected at INR 360 billion by 2024, with the CAGR of 43% from 2019-2024.
There are many market place to sell your courses or you can open your own website and attract your audience organically.
The online courses are a one-time investment and every time people download or purchase, you get your fuels to add on.
This is the best way to earn a passive income in recent times and the online courses market still keeps to continue all the time.
4. YOUTUBE AND BLOGGING:
In recent times, especially in the COVID lockdown, many people have shifted their focus to YouTube. With their skills and mobile as an investment, many people have started income.
There are few people who are currently paid more than their active income. Do you believe, they will continue for the job? No, isn’t.
The earnings are supported by ads supplied by Google AdSense, once you reach the minimum criteria.
Blogging has more advantages than YouTube in times of earnings by ads. Blogging has more work to bring traffic organically from search engines.
The big passive income source above all is investments. May it be stocks, mutual funds, etc.
In investment, you can literally see, your money keeps growing while you sleep.
In stocks, you yield dividend every year from a few companies as rental income.
You can transfer your equity holdings to your children or the next generation. They can enjoy the legacy of those companies.
The best advice from warren buffet is, “Gift your children or grandchildren by shares than a materialistic liability”
· Passive income is the best source for financial freedom.
· Financial freedom comes with security on income, time, and passive income.
· Here, you have come across 5 types of high-value passive income sources.
· You can choose your pathway depending on your skills and not on investment. To start a business trying to attract investors.
· Try to achieve minimum of 2 sources of passive income before you retire.
· If you haven’t created any passive income source, at least start investing which will grow your money while you sleep.