Saturday, 15 January 2011

Extra income or passive income helps you to support your financial needs

All we work for earning money to survive in this money dominating world. Without money we cannot support our family and give good education to our children etc. The price of all necessary items is skyrocketed and a common man is compelled to avoid not only the luxuries, but some necessities also. In such a scenario we can think about some extra income which is also known as passive income. Most of us are getting a few passive income in the form of bank interest or rental income. If we give a little attention, we can make a good passive income. I know some of my friends acting as insurance agents apart from their main job and make a good passive income. When we look for a source of passive income, try to select a method which is suitable for us, according to our taste and preference. If not we get bored and stop the extra work.

Following are some common source of passive income

Interest from investments A very common method of passive income and almost all are making some money out of their investments or bank accounts. You can increase this income by making some intelligent investment such as fixed deposits, term deposits, bonds, government securities, post office savings etc and this is a complete risk free method of passive income.

Rental Income Another method of passive income by letting out of your house property or commercial property, vehicle, tools etc.. If you can manage to own a property or any such things which can attract rent try for it and make a passive income.

Royalty If you can write a book or publish a collection of literature or articles you can make a good passive income in  the form of royalty.

Dividend You can earn dividend income by investing in shares and mutual funds. Be careful, because it may lead to loss also.

Capital gain You can earn a good income by selling properties or shares after a period of time. The value of property or good shares will be increased and can earn a profit out of it. Real estates, house properties, Gold etc, are good example of making profit from resale.

Residual income is another type of passive income such as agent commission from Insurance policies, or any affiliate sales which has a subscription nature. The agent or affiliate may get a residual income for the tenure of the policy or subscription alive.

Income from hobbies You can make money from hobbies such as painting or collections of antiquities, coins, stamps etc.

Agent Commission and brokerage If you have enough time and talent you can earn a good commission as a commission agent or broker or being a sub broker.

Income from blogs and internet You can make money from blogs and internet by sitting at home with your Computer.

Taking Tuition If you have enough knowledge and qualification you can take home tuition for school students and can earn a good passive income.

Teaching Music and dance This is also a good source of passive income, if you are talented enough,

Part time work You can work for part time with any establishments as your ability and can earn a good income.

The above items are some examples of making passive income and you can find more as per your experience and capability. Try to make a good passive income and live your life more fruit fully. But do not give a chance to devalue you main job or business.

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