Passive Income Ideas to Earn Money in 2022
What is a Passive Income?
Passive income is a great way to help generate extra cash flow, whether you’re running a side business or just trying to make a little extra cash each month. Passive income can help you make more money in good times and help you get through if find yourself unemployed or even voluntarily leaving work.
In today’s time it is important to have multiple sources of income just like you would diversify your portfolio to be financially stable. Passive earnings could also help meet your retirement goals.
Types of Passive Income
- Skills based – Any income generated from utilisation of your skills/expertise. This may not need much upfront capital.
- Investments based – Income generated from returns on upfront investments. This needs upfront capital.
Dwelling further into both types starting with skills based.
1) Skill based Passive Income
India now has 15 million freelancers second only to US with 53 million as per site Truelancer. Professionals can turn to freelancing in an area of their expertise. Freelance India, Youth4Work and Up Work are some of the well-known freelancing sites you can check out for jobs ranging from tech to art to photography.
With a huge focus on upscaling currently, you can leverage your expertise to sell courses. You may sell or distribute your courses through Udemy, Coursera and Skill share. You may also use the ‘freemium’ model, by selling content on sites like You tube and gain through viewership and charging separately for premium content. Courses could generate passive income for a long period of time.
Creating Seminars, Webinars or Guest lectures:
Similar to selling courses you could leverage your expertise, but this requires constant efforts to keep connecting and building your audience. You could also give guest lectures at universities and corporations.
This could range from writing a small piece for newspapers or magazines to writing a book. Writing an E-book could be further better as less capital is required to sell and distribute the same.
Blogging / Starting a blog, Youtube Channel:
Find a popular subject, even a small niche, you are expert at. Start building out a suite of content and draw an audience, it can create a steady income stream over time, as your content becomes more engaging and famous. If it turns out fruitful you could draw sponsors and form a revenue stream.
In affiliate marketing, website owners, social media “influencers”, or bloggers promote third-party products by including a link to the product in their website or social media account. Instagram and TikTok have become huge platforms for people trying to get more followers and promote their products. Affiliate partners such as Amazon, eBay, Awin and ShareA Sale are also famous.
2) Investment Based Passive Income
This could come from renting your house on lease, on rent to travellers from platforms like Airbnb, renting your car or any other asset which could be of use to someone. Though mostly stable source of passive income, it could be affected by economical volatilities, like low demand for house and car rentals during the pandemic.
Investments in Financial instruments:
This investments can be made in instruments such as mutual funds, ETFs, gold, bonds or equities based on an investors risk profile providing capital appreciation. Systematic Withdrawal plan (SWP) is a type of mutual fund which allows investors to withdraw certain amount at fixed intervals of time thus providing a good source of passive income.
We hope this articles helps you know the Ideas for Passive Income & How to Earn Money in 2022. If you need any assistance on Investments, Insurance or How To Invest In Mutual Funds Feel free to contact Wealth Baba. We will try to help you out in the best possible way.