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Let’s start with the active ones. Active route of incomes require time and mindful investment.
1. Teach a few students in your
vicinity: If you have a grip on a specific subject, offer it as tuition to
students. It could be music, languages or a proper school course. Give it one
to two hours of your time and see the income grow.
2. Freelance your skills: If you are
a graphic designer, a video maker or have learnt how to write story books but
your day job isn’t any of these find connections who will help you with
freelance work. Online portals have too much competition with lower rates so
you have the offline world open to quote your own rates and show your quality.
3. Start a small business of selling
products: you can help a friend source the products for you and start marketing
it till they are completely sold and then restock. The profit is up to you to
keep or re-invest. You could also start a small business of creative handiwork
that you can easily do after your day job. This will make your work pretty
unique and you will be able to charge as you wish.
Passive routes of income are built
once you have established your active routes of income. These routes do not
require your intervention but do need your supervision from time to time.
1. Investment in stocks: Buy stocks
and let them sit. The dividends will accrue in to your account over time and
all you need to do is check the statement once every 3-6 months. This passive
income however is doing two things for you. Saving the invested amount and
giving you profit over and above that.
2. Invest in real estate: Just like
above, investing in real estate and earning a running income from that doesn’t
require a lot of daily hassles. However, if you can not own real estate, you
may consider putting up a room on AirBnB or Couchsurfing. This will prove to be
an additional passive income source.
3. Income from fixed deposits/ bank
accounts: This one is fairly easy. You put money in your bank and they pay you
a fixed amount each month. You don’t need to worry when it is going to come.
You know it will come and you just collect it.
Both these ‘supplements’ to income -
active and passive; add to your income while most passive ones grow your wealth also. How does that make your
money look in the long-run?
Imagine you earn Rs. 30,000/- from
your day job and you decide to take up teaching for an additional Rs. 20,000/-
per month. That brings the total to Rs. 50,000/-
You decide to put Rs. 25,000/- in
the stock market. Considering a company that gives out dividends every 3 months
at 9%, the company pays Rs. 9 for every Rs. 100 invested, which is Rs. 2250/-
per three months. For a year that is Rs. 9,000/-
Your annual earnings for the year is
(50,000*11) 550,000+25,000=575,000
Add to that the dividend of Rs.9,000
= 584,000/-
Plus you still have your initial Rs.
25,000/- that were invested in the market saved till year end.
Which is in stark difference of what
could have been (30,000*12)
Rs. 360,000/- only!
Uroosa Kanwal writes on personal finance and is working on her own small idea to help bloggers. You can find more of her writings at Finance It Out!
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