-Mahaveer Sanglikar
What is a passive income?
Passive income is the best way to have a constant money flow.
In simple words, a passive income is an income for which you do not work much, and you receive money for a long period on your initial work. The major benefit of passive income is the money flow towards you.
Some of the examples of popular passive income are:
Dividends on your investments in share market and other places.
Interest on your savings in banks
Profit share from the joint ventures where you are not a working partner, but just a financer.
Interest on the money you gave to somebody.
The business that you own, but you are not working there, as others are running the business.
Rent from the property you own and others are using it.
Royalties from the books you wrote, and other intellectual properties that you own, like royalties from your inventions, patents, ideas and concepts.
Sell of your photographs, artwork and designs through websites.
Network Marketing
Affiliate Marketing
Profit share or rent from your car/vehicle which is used by somebody else.
Long period commission on your initial work, like an insurance agent.
Any other income for which you do not work directly.
Please note that for tax purposes, some of the income types mentioned above are not considered as passive income, and definition of passive income is changes state to state.
Mahaveer Sanglikar
There are many ways to make a lot of money. You can make money if you want to make it. You can make money using traditional ways or the new ways the technology has invented. Making money has become easy in this new era of overall development.
But remember that money is just one of the mediums to achieve our goals, money itself is not a goal. It should not be.
Here is a list of essentials of making money. Do not ignore them and you will surely make money and create wealth.
1. Do not Waste Your Time
If you are seriously interested in making money, the very first thing you should know is that you should not waste your time in useless things. Many people waste a major part of their time in watching time consuming useless programs on TV, or useless chatting with friends on internet and phones. Many people waste their time in gossips. Many people like to speak on politics.
Remember that you can not recover wasted time. So stop wasting your time and spend it in innovation, thinking, planning and implementation of your ideas. If you want to make money, thinking on money making ideas should be your first priority.
2. Read Books on Money Making & Personal Finance
Instead of wasting your time in useless things, you should spend some time on reading books on money making, personal finance, savings, mutual funds, insurance etc. A lot of information is available free on these things on internet. Books on such subjects are available in market.
Reading such information will create an awareness about money making and investment in your mind.
3. Have a Job
You can get a good job according to your educational qualification and experience. You can get a job even if you are not well educated and not experienced. So search for a job and you will get it. Getting job is getting money regularly.
To get a job, first you should know your qualities, your likes and dislikes. Working for what you love is always beneficial.
While doing a job, acquire new knowledge and information about that field. It will help you to get new opportunities.
While working for any business house, always try to get promoted to higher posts. If you feel that there is some partiality or injustice with you, tell about it to your boss clearly. If you get an opportunity elsewhere, do not hesitate to welcome it.
Along with your job, try to start a part time business.
4. Or Be Your Own Boss
If you are not interested in working for others, be your own boss. Start your own business.
There are hundreds of thousand way of making money through your own business. It depends on your knowledge and expertise, what type of business you should choose. You can become a manufacturer, a trader or just start a service oriented business. In these categories, you need some manpower, and if you are not interested in maintaining manpower, start an individual small business.
On individual level, you can have some freelance work.
5. Choose a Well Educated Spouse
You should marry with a well educated girl. It will be better if she is a working girl. A well educated spouse can help you in achieving your goals.
6. Learn to Save and Invest
Save compulsorily a part of of income and invest it insurance policies, bank deposits, mutual funds, gold, silver, stocks of blue chip companies etc. A small savings on regular basis gives you big returns.
If you ever get unexpected money, do not spend it, but just invest it and forget it.
7. Know About the Taxes and Laws
Keep your knowledge about taxes and related laws up to date. Learn about how to save on taxes.
8. Have Some Real Estate
Buy some real estate, a land or a home. As time passes, the price of real estate increases. The rate of increment is very high when compared to other investment.
9. Do Not Borrow
Do not borrow unnecessarily. Do not borrow huge amounts.
10. Do Not Waste Money
Do not get addicted to habit of wasting money. Keep yourself away from gambling, lottery, quick money schemes etc. Get rid of alcohol, cigarettes and other such addictions. All this saves your money.
11. Pay Bills Before Last Day
Pay your light bill, phone bill, taxes etc. before deadline dates. It saves the fine. Thus you save money.
12. Keep Yourself Fit
Physical exercise is a must thing to keep you feet. Good health keeps you away from medical expenses.
