Active Income Vs Passive Income

Active Income refers to income received from performing a service and includes wages, tips, salaries, commissions, and income from businesses in which there is material participation. An accountant ,Employee who work in any Company to get Monthly Salary ,

Passive Income is one of the most reliable income which come as recurring base, means that has to come regularly with little bit efforts, You can make your Passive income as per your desire and requirement we can say it is limitless.

How To Make Passive Income

There are four main ways to earn a passive income: investing money, investing time, renting things out, and getting paid to do activities you already do.

Invest Your Money

1. Develop Digital Platform : An option that requires little to no effort, a robo-advisor is a digital platform that provides algorithm-driven financial planning services by collecting information about clients’ financial situation and goals.Like Paytme , PhonePe, BHIP ,    G-Pay etc ,
2. Invest in dividend paying stocks : Dividend-paying stocks are a great way to build long-term wealth because you get paid a portion of the company’s earnings simply for owning the stock.
3. Buy a rental property:  Have some space you’re not using? Rent it out to a long-term tenant or capitalize on the growing demand for short-term lodging by listing it on an accomodation-sharing site.
4. Participate in crowdfunded real estate: Investing in real estate has a high financial barrier to entry. If you’re not quite there yet, consider a crowdfunded real estate venture that allows you to invest in a small percentage of real estate.
5. Invest in a Real Estate Investment Trust (REIT):REITs are companies that manage income-producing properties in a variety of sectors. They trade on major stock exchanges so anyone can invest in a portfolio of real estate assets.
6. Buy royalties :Music royalties come from a percentage of the money earned from the sale or use of a song. Even if you’re not a musician yourself, music royalties are often up for auction and will send a monthly check your way.
7. Invest in index funds: Index funds are similar to mutual funds, but instead of having a portfolio manager make selections it is up to an asset management company. This type of investment is a great option because it’s relatively hands-off and has a low turnover which means lower transaction costs.
8. Become a silent partner: The sole responsibility of a silent partner is to provide a business with capital. Silent partners are rarely involved in an operational capacity, making it a great form of passive income.
9. Invest in cryptocurrencies: Cryptocurrencies are buzzing with opportunity at the moment, and it is possible to earn a passive income simply by holding certain cryptocurrencies.
10. Start peer-to-peer lending: Get matched up with a borrower online to start peer-to-peer lending—a simple way to lend money to businesses and individuals. You can earn higher returns than similar transactions through traditional financial institutions.
11. Open a high-yield savings account: If you’re already putting money into a savings account on a consistent basis, consider opening a high-yield savings account. This special type of account offers a safe way to make a consistent income.