12 Passive Income Ideas for Achieving Financial Freedom in Life

If you have not read the previous post Click Here .

6.   Blogging:

Blogging is a Wonderful Art

        Blogging is an art also it’s a wonderful hobby. You can create blog based on your passion and interests. Some of the best topics for blogging are technology, science, educational, current affairs and personal blogs. As medium of passive income source, blogging generally takes a slower pace in the initial phase and later on grows exponentially, earning you in tonnes.
This is the prime reason why most people opt out of blogging after a short interval of time. Optimisation for search engine, social media marketing, Gaining audiences and thus maintaining them over time with catering their never ending need for high quality contents takes patience, time and lot of upfront work.

But once you have gained a trusted network of followers who are totally devoted to your content, then the real rapid progress will begin in no time. Majority of blogger uses Google AdSense, Media.net, Adsterra etc. as an ads publishing partner for generating primary income sources. Later, they generate secondary sources of income such as affiliates and merchandise. Most of blogs have either WordPress or blogger as their platform, some even chooses Tumblr and Wix Most common web hosting and domain registrar are Godaddy and Bluehost.

If you want to learn more blogging Click: How to create a blog in no time?

Buy a Blog: If you don’t wish to write content for the blog and give an upfront work then you can simply buy a well-established blog. Advantage of such alternative is that you already have regular followers, so you just need to maintain them. You can hire some good content writers and marketer to move forward with the blog.
Click Here: Where can I buy a Website?

Content Writer: Some wishes to be writer but they don't like to take huge risks, so instead of creating their own website they host their content over some well-established platforms. There are two ways to be a professional content writer.

  1. Register oneself on some freelancing site which acts as intermediate between writer and websites e.g.  Up work, freelancer.
  2. Directly go the site where you want to host the content and contact them. If they need a writer they will hire you and post your content. Hubpage, Metro Parent, List-verse(Source)

By being a content writer you avoid the risk of being ignored and it also enables to achieve a  to have a good quantity of viewers. Most of these freelancing content writer likes the topic of current affairs, as it is most favourite among the audiences. Another major advantage of being a content writer is that writer neither have to worry about SEOs and marketing the post to the public.

Generally these platforms have separate departments for editing the post, marketing the content and generating revenue by most optimised techniques. So this makes the content writer free from risk and tension.(Source)

Product Review Blog: The competition in production industries has increased with the industrialisation Since inception selling the product to the right customer at the right time has been a troublesome job. The case is similar with the customers who have to make right choices among top niche brands which are alike in most aspects.

Some people are crazy about reading the books which are just released in the market while for some other the crazy is in newly launched products (Smartphones, laptops, electronic products, softwares, automobiles, games, puzzles, toys etc.). Whether it is books or any other products you can set up a blog entirely on the reviewing the newbies. The primary motive of such bloggers is to attract those customers who are interested in buying those products and they just need some honest reviews. So these blogger generally fill up their blogs with high quality SEOs and provides the users affiliate link the online shopping sites for the same product they reviewed. Some illustrations of SEO: Which is better Samsung Galaxy Note 8 or iPhone X?

In doing so they persuade some of the customers to buy the products via their affiliates. Thus the blogger get a commission for each product he sells. Most of these sites gives affiliate for Amazon, Flipkart, and ebay.com.

Fake Online Store: No, this is not what you are thinking. You are not cheating on anyone here. You are just creating a Glass screen of store where you display all the products you wishes to display with all the discounts offers, reviews, specification, prices and when the user clicks the "buy now" link you take them to the real online store from where you took the affiliate marketing. This isn't either Drop shipping, as for drop shipping is concerned you tie up with the business holder and you pass on the customer shipment data to their database with the price of the products the customers paid you after deducting your own expenses. Both Store doesn’t requires any inventory holding cost as the similarity.
Success of these fake store depends on how well is your site SEOs and generally these sites requires tones of quality content in articles and video format. So don’t worry, this is totally legal!

Drop shipping: It is a supply chain mechanism where your store does not need to keep goods in stock instead your online store transfer the client’s order and shipment details to respective manufacturer or another retailer. Thus the dropshipper is free of inventory cost and the risk of shipping the goods.
      
    Key advantage                                     
a) The dropshipper himself can set the price of the products which is impossible in fake online store.
b) The dropshipper doesn’t keep Inventory of products thus its zero cost inventory system.
c) Low cost Start up mechanism.
d) Fewer skills needed to set up and maintain

          Wooh! Amazing system, isn’t it?
Check some of the best Dropshippers: Salehoo, Alibaba, Wholesale Center(Source)

Sell your own products using Website: Do you own a business? Do you face trouble marketing your products?  Sell it over Internet.
      Best way to grab attention of millions of customers to your business is by selling products over internet and marketing them through lucrative ads. You products can be simple as designer coffee mug, t-shirt to a wide range of sophisticated machine tools and softwares.
        
    Key advantages:
a) Flexible market place.
b) Easy target the quality customer through various online ads mechanism.
c) Worldwide market.
d) No profit sharing to any third party.
    The minor con in setting up you own online store is that you yourself have to market the product and thus increased marketing and inventory cost. Once a strong hold is maintained among competitor then you just need to maintain a good relationship with your clients. Some of the best web based product sellers are Adobe, Microsoft.
      
Sell Merchandise and Earn Passive Income: The prerequisite to sell merchandise is that you need to have an own brand value and fan following. Many YouTubers sells merchandise which include T-shirts, handicrafts, toys, puzzles, phone cover etc. The well-known YouTubers who makes tonnes of passive income, out of merchandise are Markiplier, Pew di Pie, and Dudes Perfect.
They sell specially designed product for their audience. Once designed & store is ready, they with minimal work earn huge passive income.

7.  Bitcoin Mining

Shh! Wait, It is really possible.

      Many would readily disagree against me on this topics. So I would once again like to define the term passive income, 
                 “income that is generated without any active participation."

Ya, it’s true that bitcoin and altcoin (Ethereum, Litecoin) mining is quite difficult these days & you would need specialised set of computers called the Application Specific Integrated Circuit (ASIC) & mining rig. But once you are all set with initial phase only slight maintenance & regular power supply is necessary for mining.

If you are not still convinced by mining, then for you, I have an alternative i.e. cloud mining. In cloud mining you don’t need any separate rig for mining, you can go with your normal PC with shared processing over network for mining.

To know more about cloud mining Click How to start Cloud mining?

Once you earn any cryptocurrency keep it as it's market is constantly increasing over time. Take time to understand market then sell it off when the time is optimum for you.

Cryptocurrency Or the Money of Future: The first and most wide spread crypto-currency is Bitcoin. It was announced in late 2008 by Satoshi Nakamoto. He preferred to address bitcoin as “a peer – peer electronic cash system“. He had built the decentralised digital cash system which had faced many failed attempt in the past.
      
How does crypto-currency work?
The crypto currency like bitcoin has a complete list of transaction been constantly broadcasted each moment world-wide. Thus each and every peers, connected in the network has the complete data of all transaction & the balance of every account.

Whenever a crypto-currency is transferred from sender account to receiver account a specific confirmation code is attached over it. This is where miners comes to play, these confirmation code are generally mathematical problems which can be solved by only high performance computers. In bitcoin SHA250 Hash algorithm is used as cryptograph. Thus, the miner get a commission, for these solving each algorithm and completing the transaction. The commission are in the form of bitcoin or in the same of crypto currency which he mined.

Crypto-currency have gained world-wide attention due to its secure, fast and worldwide transaction with the blanket of anonymity. Huge amount of transaction are made in black market and in deep web with the help of crypto currency.

Finally, the revolutionary path of digital currency is at your doorstep, it’s your choice to either to board it or not. Many have turned to millionaires by this path, but still lies ahead a lot of uncertainty and risk.

8. Stock Photograph:

        If you are a person with keen interest in taking photographs and you have the right equipment’s for it (Know more about equipment here).Then why waste time finding other sources of passive income? Create a stock photography album and upload it to istockphoto  or shutterstock and earn royalty lifetime.

How do stock photography works?
Let’s us take a simple example of this blog, the content creator of this blog required some relevant photos and diagrams for illustrations. The audience loves the blog with lot of relevant photos, as most of us remember pics rather than the actual data. This is how our brain is wired. But the problem here arises that the writer is no photographer or has no talent for it.

This is the point where he start to explore stock images which suits the content and is also at a reasonable price. Once he chooses an image he pays for it and posts it over to his blog. The amount he paid is distributed in proportion amongst the image creator and the site hosting it. This payable amount to creator is called royalty.

Pixel - Free Stock Images 

There is an alternative to this, instead of hosting on other website you can create a website and show out your collections of photography with as option to buy it. Once you have set up an photo library, post it over to your site and market it. Advantage of such an options is that there is no third party you try to grab your earning and over a long time this will prove profitable.

Stock Music, melodies, graphic designs: Similar to stock images you can create stock music ,graphic designs and get paid each time someone wants to download it. Vital point to note is these works must be created from your passion and dedication rather than a source of passive income. If your work is not noteworthy then it will be lost amongst many others as time passes.

9. Rent out

a) Rent out extra home:

If you own two house and you keep one just vacant then you are losing a good opportunity of generating passive income. Try renting out the second house and at a reasonable rates.
Renting out is one of the oldest methods of generating passive income. It is believe that great landlords started to rent out the extra land to the poor farmers as a source of income in ancient India, as looking out all his property was not practically possible. These landlords took their share from these poor farmers in the form of crops during harvesting, according to their ethos.

Now renting is common and easier as the rules and regulations are set by the governments. But still make sure that the amount you charge from the tenants are according to the market value of home in that region. In India the annual rent must fall between 2.5-3% of the capital value with slight difference according to the location and amenities provided.(Source)

b) Rent out as Paying Guest:
Does your extravagant home is too much for your family? or Do you wish to aid the loan repayment with some extra cash? Rent out some extra place. Most kids once they begin their career they set out for their life’s journey thus, most parent's home are vacant for rest of the lifetime. So these parents can keep students as paying guest, this will keep their life lit and will definitely add some extra income with the pensions.

As for the college students perspective, they prefer staying out rather than in hostels due to low quality food they are provided in hostel mess. Paying guest is best way to attract them. Renting out a complete house is out of their budgets, so they naturally turn in for PG. If you offer PG then another mode active income source can be generated by food supply chain. Generally students bring in more students once they start liking your food and if you provide them at a reasonable price.

c) Rent out your things:
Any unnecessary thing which is not useful for you in your current life’s phase then rent it out to those who need them. This can be anything from your kid’s toys, games, books, cameras to some paid softwares, paid site’s account password. Rent them out amongst your friends and relatives.
This is not a long term source of passive income but it will still do some good in paying bills in everyday life.
Renting out domain name is another source of income for long term. You can generate proportionate or fixed income from the tenants. But make sure that proper rental agreements are followed, get address proof, ID and security deposits in cash before handing over the things.

d) Rent out Car and Car space for ads:

Renting out car is a large scale active business as you may know OLA and Uber are major taxi services worldwide. But for those of us, with extra cars which they don’t use in regular use can be rented out to drivers for generating passive income. Cons of this service is that car will requires a regular servicing. There are two methods of renting cars:

 a)      You can directly control car renting and pay the driver on a monthly wages. It’s risky but if you are into this then it can be a great deal. Income generated will be quite  increased. This type requires networking with people. This a active mode of income.
 b)       You can ask driver to pay you a fixed amount or share of what he earns. This is low risky and also a passive mode of generating income. Here you don’t need to market  your business as you are not involved into it.

Car space for ads: This mostly preferable to those who are drivers or who travel frequently. Some companies or sometime retailers want to advertise in local market with a lower rates. This cannot be achieved by TV ads or big roadside banners ads. So they prefer to advertise using the posting small ads banners on taxis. You can simply earn few bucks each month by just driving your car around.

10. Own a Salon, Batting Cage, Car Wash, Gym, Laundromat:

         Here the requirement of medium – large initial investment is mandatory with regular maintenance. All these ways of passive income sources requires to employee 1-10 people regularly. The return on this investment depends largely on how you market them, quality of services provided to the customers.

 As two sides of same coin high risk comes with huge advantage of high to unimaginable returns or passive income. If you are successful in creating a brand value in any above sources, then you can just begin a whole new active business.  You can open new franchises with your same brand just like Mc Donald, Cafe coffee, Domino's etc.

Set up a spa/beauty parlour or just buy an existing one. First make sure what you are going to offer to the clients it can include hair care, body care, waxing, laser treatment etc. based on the local market scenario Then hire talented hair stylist, manicurist, therapist,assistant, manager and get them all kind of necessary equipments. Try to be decorative and be designer friendly. Get high publicity with discounted or packaged offers. Thus create a craze among youngsters which leads to huge brand value. Some of the well established parlour are Jaweb Habib, Toni and Guy,Jean Claude Biguine, Metodo Rossano Ferrietto etc.

Similarly with simple business tricks & intelligence we can setup batting cage, car-wash and Laundromat. Location is another important thing to take care off. For instance Try to setup a Laundromat where most bachelors live, as bachelor myself, I would admit washing jeans and bed sheets is tiresome task. So best place is near college hostels or near industrial areas. Similarly set up a batting cage near a shopping mall as it can attracts trendy crowd and for car wash, near a big garage or outside city over by highways.

These days men’s are as much body caring as woman. As most of hardworking jobs are automated and computerised, so most job these days only require mental work. This cause overeating and urge for junk foods which increase fatty belly. So men try to hit gym to reduce them. Create a mania among office employees and college students target them, market among them about you gym. Thus you can gain some quality customers.

11.  Automate your current business:

           The best way to free oneself is by automating the current business. Try to hire someone who is capable of handling your business in your absence. You have to build up a trust bond with him before you can replace yourself with him.

This is no easy process to automate your business. But if you can check out some of the leading businessman like Ratan Tata of Tata Groups, Dhirubhai Reliance of Reliance Group, Bill Gates of Microsoft, Larry Page of Google, Larry Ellison of Oracle they all had setup a business and then tried built a strong and effective management to run it, in long term without their active participation. Time plays an important role in here. All of the above mentioned business tycoons have done their share, in generating passive income sources which are reliable and so now they enjoy their financial freedom.

12. Investing

         Investing is allocating ones wealth in some company stocks, exchange indexes, bonds, mutual funds, cryptocurrency and metal in a belief that in future the price of that investment will definitely increase and would earn them a good some of money. Many of the families especially in India believes Stock Market as a legalised gambling.

Is there an age or an amount to start investing?
No. Definitely Not. You can invest whenever it feel most appropriate for you with the most comfortable amount you can allocate, but to earn a high return I would recommended to start early, as early as in teens. Warren Buffet, the greatest investor of all time with a net worth of $85 Billions, gives the young generation an inspiration quote on investing:
               “It is always good to start early…because you can never buy back time.”
     
Investing is an large topic to cover here. But you can always check out : Complete Beginners Guide to Investing

Conclusion:

There is a common Myth about passive income, that it doesn't need any form of hard work to generate it. But I can guarantee you that no one can generate any form income without any physical or mental work put into it. Some do it in the initial phase while some does it as a continuous process.

Thus, it all depends on your thought process whether you like to do work in initial phase or as a continuous process. But I would conclude by saying; 
"Passive income can easily support you in gaining Financial Freedom and it can in turn lead to life's happiness. After all anything that matters in Life is HAPPINESS."