07 April 2017

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How to Create Active Passive Income Streams

passive-income-streams, active-income, passive-income-in-india
"Good management is better than good income." Portuguese Proverb

This article explains the methods of generating multiple streams of income through identifying right opportunities around you. It explains both active and passive type of income generation ideas for the readers to select and follow. In other way, it can consider as a formula of active-active-passive income generation model.

Generating active income required attention from the person but, a passive income doesn’t required full time attention but generating income from some carefully planned and executed activities with an intention of generating income while the person is sleeping. Here is all three methods:  

How to create Active income?

Here are two common methods to create steady, active income.

Full time Job

No doubt your full time job is the major stream of income. As you are engaged with job in the whole day, it is the first active income source for you. To continue with this, a person required to put high amount of efforts to increase the skill sets to competent with the market.

Part time Business or Job

Part time activities such as home business or part time jobs are the best way to create another source of income. However, here also your attention required as it is again an active method to create a second source of income.

How to create passive income?

Passive income is nothing but you are getting income from some activities you have dome such as investing in some good dividend stocks or mutual fund. In order to generate a handsome passive income, search around for the opportunities. Here are some methods I follow to generate passive income to me:

1. Invest in High Dividend Yield Stocks

As mentioned earlier, stocks are the most preferred instruments to create passive income through making a onetime investment. If you research a bit, you can easily identify the best dividend payers in our market. For an example, those who have invested on Wipro shares during the year of 1981, might have received a passive dividend income more than 118 crores now (Read this to know how).

Building a good portfolio with high dividend paying company stocks would help you to generate passive income to your bank account time to time.

2. Mutual Funds

Mutual funds are another option to create passive income. Creating a portfolio by including good dividend paying mutual funds, selected with Dividend option, is a best method and highly recommended to people near retirement age, to create a steady, passive income.

3. Monthly Income Plans

Make a mix of MIP and monthly income option such as post office MIPs to generate passive income tremendously. One should calculate the required income to their account and the period and invest/deposit of the MIPs accordingly.

4. Real Estate

Real estate is the best option to generate passive income through the form of rent. Any once can achieve the goal of having a piece of rented real estate through planning properly. It can be any form, either it is a rented houses, shops or even renting a plain land. One of the beautiful advantage of real estate is, the passive income stream generating from real estate will increase and sustain.  

5. Internet Entrepreneur

Create a web portal or blog with high traffic to generate income from advertisements and adding contents. High traffic blogs are generating handsome income through advertisements and other methods. However, your free time required maintaining the portal or blog and so some kind of effort regularly required but this is also a considerable option to show your passion to the world and generate decent income.

6. Income From Passion

This idea is bit different than others above. If you are a passionate photographer, you have lots of opportunities to sell your photos through various options in internet. If you are passionate to any other field, identify relevant opportunities to sell your passion to the world. This will fetch you lots of money indirectly and directly.