5 Passive Income Ideas in 2024

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In recent years the concept of earning via one or multiple passive income ideas has become popular.  This is mostly because of the continued growth of various passive income sources, something that wasn’t there a few years back. The internet has changed and evolved in this aspect too. 

As most of us were confined to our homes during the COVID-19 time, earning a regular paycheck became difficult. This is where the need to use passive income as an additional source came into the picture.

Additional Read: Bond investment strategies

What is Passive Income?

Passive income is an income that requires very less resources in terms of time or money. Generating a passive income does not require you to constantly be active in the process. Where on the one hand regular income does require constant checks and time investments,  passive incomes require very little maintenance.

Passive income cannot be a substitute for a regular income. However, it does help you earn extra money which can be further used to build an emergency fund or act as the source for your mutual fund investment.

The Best Passive Income Ideas in 2024

There are plenty of passive income ideas that one can participate in, but some, in particular, work better than others. This is a list of the best passive income ideas one can have a look at.

  • 1. Non-Cumulative FDs:

Non-cumulative Fixed Deposits can be one of the best sources of passive income that you can invest in. In non-cumulative FDs, the banks or the financial institution in question pay the interest regularly.  This interest is paid either quarterly or monthly. Rarely is this payment done on a semi-annually basis. 

When compared to cumulative FDs however, the interest in the non-cumulative FDs is slightly less and one cannot reinvest in them either. 

  • 2. Giving Property on rent:

If you are the owner of multiple properties then putting up your properties for rent might just be the best passive income idea you will have. Any property that you aren’t using, you can easily put up for rent. In case your property is in a prime location, then this passive income could end up being quite substantial.

Whether it is a residential property or a commercial one, both can fetch a good rental amount. This is why it is important to also consider the rental value of any property that you are deciding to purchase. 

  • 3. Dividend Paying Stocks:

Investing in dividend-paying stocks is one of the most popular passive income strategies. Companies that generate consistent profits often reward shareholders with dividends.

Dividend stocks provide a steady stream of income, usually on a quarterly basis. Reinvesting dividends can significantly increase your overall returns through the power of compounding. Tip: Look for companies with a strong history of dividend payments and growth, and diversify across sectors to minimize risk.

  • 4. Peer-to-peer Lending:

Have money to lend? Get yourself registered on a verified P2P (Peer-to-Peer) platform. This is a great source of passive income too as these platforms act as a great bridge between borrowers and lenders.

  • 5. Savings Account with High-Interest Rate:

Opening a savings account that provides you with a high interest rate could be a great way to earn a passive income too. Do remember though, that any interest earned that is above ₹10,000 during the financial year gets added to your income and taxed accordingly.

Conclusion:

The concept of a passive income is beyond being a trend. It has now turned into a full-fledged way of earning an extra income. 

There are plenty of sources of passive income when you come to think of it. Here we have just listed 5 of the best ones out there. Start by trying out one or two of them and then maybe branch out.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

For All Disclaimers Click Here: https://bit.ly/3Tcsfuc

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